It was another miserable day on Wall Street as a series of big December plunges continued, putting stocks on track for their worst month in a decade.

The Dow Jones Industrial Average dropped 464 points Thursday, bringing its losses to more than 1,700 points since Friday.

The benchmark S&P 500 index has slumped 10.6 percent this month and is almost 16 percent below the peak it reached in late September.

The steady gains of this spring and summer now fell like a distant memory. As we’ve entered the fall, investors started to worry that global economic growth is cooling off and that the U.S. could slip into a recession in the next few years. The S&P 500 is on track for its first annual loss in a decade.

The technology stocks that have led the market in recent years are now dragging it down. The technology-heavy Nasdaq composite is now down 19.5 percent from the record high it reached in August.

The market swoon is coming even as the U.S. economy is on track to expand this year at the fastest pace in 13 years. Markets tend to move, however, on what investors anticipate will happen well into the future, so it’s not uncommon for stocks to sink even when the economy is humming along.

Slowing economy a concern

Right now, markets are concerned about the potential for a slowing economy and two threats that could make the situation worse: the ongoing trade dispute between the U.S. and China, which has lasted most of this year, and rising interest rates, which act as a brake on economic growth by making it more expensive for businesses and individuals to borrow money.

The selling in the last two days came after the Federal Reserve raised interest rates for the fourth time this year and signaled it was likely to continue raising rates next year, although at a slower rate than it previously forecast.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, said investors felt Fed Chairman Jerome Powell came off as unconcerned about the state of the U.S. economy, despite deepening worries on Wall Street that growth could slow even more in 2019 and 2020. Wren said investors want to know that the Fed is keeping a close eye on the situation.

“He may be a little overconfident,” said Wren. “The Fed needs to be paying attention to what’s going on.”

Powell also acknowledged that the Fed’s decisions are getting trickier because they need to be based on the most up-to-date figures on jobs, inflation, and economic growth. For the last three years the Fed told investors weeks in advance that it was almost certain to increase rates. But things are less certain now, and the market hates uncertainty

‘Completely overblown’

Treasury Secretary Steven Mnuchin said the market’s reaction to the Fed was “completely overblown.”

Investors have responded to a weakening outlook for the U.S. economy by selling stocks and buying ultra-safe U.S. government bonds. The bond-buying has the effect of sending long-term bond yields lower, which reduces interest rates on mortgages and other kinds of long-term loans. That’s generally good for the economy.

At the same time, the reduced bond yields can send a negative signal on the economy. Sharp drops in long-term bond yields are often seen as precursors to recessions.

The S&P 500 index skidded 39.54 points, or 1.6 percent, to 2,467.42. The Dow fell 464.06 points, or 2 percent, to 22,859.60 after sinking as much as 679.

The Nasdaq fell 108.42 points, or 1.6 percent, to 6,528.41. The Russell 2000 index of smaller companies dropped another 23.23 points, or 1.7 percent, to 1,326.

Stocks for smaller companies suffer

Smaller company stocks have been crushed during the recent market slump because slower growth in the U.S. will have an outsize effect on their profits. Relative to their size, they also tend to carry more debt than larger companies, which could be a problem in a slower economy with higher interest rates.

The Russell 2000 is down almost 24 percent from the peak it reached in late August and it’s down 13.6 percent for the year to date. The S&P 500, which tracks larger companies, is down 7.7 percent.

The possibility of a partial shutdown of the federal government also loomed over the market on Thursday, as funding for the government runs out at midnight Friday. In general, shutdowns don’t affect the U.S. economy or the market much unless they stretch out for several weeks, which would delay paychecks for federal employees.

Oil prices still dropping 

Oil prices continued to retreat. Benchmark U.S. crude fell 4.8 percent to $45.88 a barrel in New York, and it’s dropped 40 percent since early October. Brent crude, used to price international oils, slipped 5 percent to $54.35 a barrel in London.

After early gains, bond prices headed lower. The yield on the two-year Treasury rose to 2.87 percent from 2.65 percent, while the 10-year note rose to 2.80 percent from 2.77 percent.

The gap between those two yields has shrunk this year. When the 10-year yield falls below the two-year yield, investors call it an “inverted yield curve.” That hasn’t happened yet, but investors fear it will. Inversions are often taken as a sign a recession is coming, although it’s not a perfect signal and when recessions do follow inversions in the yield curve, it can take a year or more.

“The bond market has been telling us something for about a year, and that is there’s not going to be much inflation and there’s not going to be a sustained surge in economic growth,” said Wren, of Wells Fargo.

Around the world

In France, the CAC 40 lost 1.8 percent and Germany’s DAX fell 1.4 percent. The British FTSE 100 slipped 0.8 percent. Indexes in Italy, Portugal and Spain took bigger losses.

Tokyo’s Nikkei 225 lost 2.8 percent and Hong Kong’s Hang Seng gave up 1 percent. Seoul’s Kospi shed 0.9 percent.

As investors adjusted to the prospect of a weaker economy and lower long-term interest rates, the dollar fell to 111.11 yen from 112.36 yen. The euro rose to $1.1469 from $1.1368.

The British pound rose to $1.2671 from $1.2621. That sent the price of gold higher, and it gained 0.9 percent to $1,267.9 an ounce. Silver rose 0.3 percent to $14.87 an ounce and copper, which is considered an indicator of economic growth, fell 0.7 percent to $2.70 a pound.

Other fuel prices also fell. Wholesale gasoline lost 4.6 percent to $1.32 a gallon and heating oil slid 3.1 percent to $1.75 a gallon. Natural gas gave up 3.8 percent to $3.58 per 1,000 cubic feet. 
…

It was another miserable day on Wall Street as a series of big December plunges continued, putting stocks on track for their worst month in a decade.

The Dow Jones Industrial Average dropped 464 points Thursday, bringing its losses to more than 1,700 points since Friday.

The benchmark S&P 500 index has slumped 10.6 percent this month and is almost 16 percent below the peak it reached in late September.

The steady gains of this spring and summer now fell like a distant memory. As we’ve entered the fall, investors started to worry that global economic growth is cooling off and that the U.S. could slip into a recession in the next few years. The S&P 500 is on track for its first annual loss in a decade.

The technology stocks that have led the market in recent years are now dragging it down. The technology-heavy Nasdaq composite is now down 19.5 percent from the record high it reached in August.

The market swoon is coming even as the U.S. economy is on track to expand this year at the fastest pace in 13 years. Markets tend to move, however, on what investors anticipate will happen well into the future, so it’s not uncommon for stocks to sink even when the economy is humming along.

Slowing economy a concern

Right now, markets are concerned about the potential for a slowing economy and two threats that could make the situation worse: the ongoing trade dispute between the U.S. and China, which has lasted most of this year, and rising interest rates, which act as a brake on economic growth by making it more expensive for businesses and individuals to borrow money.

The selling in the last two days came after the Federal Reserve raised interest rates for the fourth time this year and signaled it was likely to continue raising rates next year, although at a slower rate than it previously forecast.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, said investors felt Fed Chairman Jerome Powell came off as unconcerned about the state of the U.S. economy, despite deepening worries on Wall Street that growth could slow even more in 2019 and 2020. Wren said investors want to know that the Fed is keeping a close eye on the situation.

“He may be a little overconfident,” said Wren. “The Fed needs to be paying attention to what’s going on.”

Powell also acknowledged that the Fed’s decisions are getting trickier because they need to be based on the most up-to-date figures on jobs, inflation, and economic growth. For the last three years the Fed told investors weeks in advance that it was almost certain to increase rates. But things are less certain now, and the market hates uncertainty

‘Completely overblown’

Treasury Secretary Steven Mnuchin said the market’s reaction to the Fed was “completely overblown.”

Investors have responded to a weakening outlook for the U.S. economy by selling stocks and buying ultra-safe U.S. government bonds. The bond-buying has the effect of sending long-term bond yields lower, which reduces interest rates on mortgages and other kinds of long-term loans. That’s generally good for the economy.

At the same time, the reduced bond yields can send a negative signal on the economy. Sharp drops in long-term bond yields are often seen as precursors to recessions.

The S&P 500 index skidded 39.54 points, or 1.6 percent, to 2,467.42. The Dow fell 464.06 points, or 2 percent, to 22,859.60 after sinking as much as 679.

The Nasdaq fell 108.42 points, or 1.6 percent, to 6,528.41. The Russell 2000 index of smaller companies dropped another 23.23 points, or 1.7 percent, to 1,326.

Stocks for smaller companies suffer

Smaller company stocks have been crushed during the recent market slump because slower growth in the U.S. will have an outsize effect on their profits. Relative to their size, they also tend to carry more debt than larger companies, which could be a problem in a slower economy with higher interest rates.

The Russell 2000 is down almost 24 percent from the peak it reached in late August and it’s down 13.6 percent for the year to date. The S&P 500, which tracks larger companies, is down 7.7 percent.

The possibility of a partial shutdown of the federal government also loomed over the market on Thursday, as funding for the government runs out at midnight Friday. In general, shutdowns don’t affect the U.S. economy or the market much unless they stretch out for several weeks, which would delay paychecks for federal employees.

Oil prices still dropping 

Oil prices continued to retreat. Benchmark U.S. crude fell 4.8 percent to $45.88 a barrel in New York, and it’s dropped 40 percent since early October. Brent crude, used to price international oils, slipped 5 percent to $54.35 a barrel in London.

After early gains, bond prices headed lower. The yield on the two-year Treasury rose to 2.87 percent from 2.65 percent, while the 10-year note rose to 2.80 percent from 2.77 percent.

The gap between those two yields has shrunk this year. When the 10-year yield falls below the two-year yield, investors call it an “inverted yield curve.” That hasn’t happened yet, but investors fear it will. Inversions are often taken as a sign a recession is coming, although it’s not a perfect signal and when recessions do follow inversions in the yield curve, it can take a year or more.

“The bond market has been telling us something for about a year, and that is there’s not going to be much inflation and there’s not going to be a sustained surge in economic growth,” said Wren, of Wells Fargo.

Around the world

In France, the CAC 40 lost 1.8 percent and Germany’s DAX fell 1.4 percent. The British FTSE 100 slipped 0.8 percent. Indexes in Italy, Portugal and Spain took bigger losses.

Tokyo’s Nikkei 225 lost 2.8 percent and Hong Kong’s Hang Seng gave up 1 percent. Seoul’s Kospi shed 0.9 percent.

As investors adjusted to the prospect of a weaker economy and lower long-term interest rates, the dollar fell to 111.11 yen from 112.36 yen. The euro rose to $1.1469 from $1.1368.

The British pound rose to $1.2671 from $1.2621. That sent the price of gold higher, and it gained 0.9 percent to $1,267.9 an ounce. Silver rose 0.3 percent to $14.87 an ounce and copper, which is considered an indicator of economic growth, fell 0.7 percent to $2.70 a pound.

Other fuel prices also fell. Wholesale gasoline lost 4.6 percent to $1.32 a gallon and heating oil slid 3.1 percent to $1.75 a gallon. Natural gas gave up 3.8 percent to $3.58 per 1,000 cubic feet. 
…

The U.S.-China trade war is spooking potential investors in soybean crushing plants planned for Wisconsin and New York state, developers said, casting doubt on the future of a sector that had been a rare bright spot in the U.S. farm economy.

Crushers in the United States have been posting near-record profits by snapping up cheap and plentiful soybeans no longer purchased by China and making soymeal and soy oil for export to Europe and Southeast Asia.

But margins are not predictable as the United States and China attempt to resolve their trade differences before a March 2 deadline, adding another puzzle as investors parse out the costs and impacts of a trade dispute between the world’s two largest economies.

WSBCP LLC, or the Wisconsin Soybean Crushing Plant, is struggling to find backers for the state’s first soy processing facility because of uncertainty in agricultural and financial markets over the trade conflict, said Phil Martini, chief executive of industrial contractor C.R. Meyer & Sons Co, who is overseeing the project.

“I’m not a mental giant, but it doesn’t take one to think people are uncertain about what’s going on,” Martini said. “The crush margin is very good, but it can go the other way.”

China bought about 60 percent of U.S. raw soybean exports last year in deals worth $12 billion, but has mostly been buying beans from Brazil since imposing a 25 percent tariff on American soybeans in July in retaliation for U.S. tariffs on Chinese goods.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed on Dec. 1 not to impose additional tariffs for 90 days, a truce that spurred Chinese purchases of a few million tons of U.S. soybeans this month.

It is unclear when or if Beijing will remove its soy tariff, a move that would spur more deals and lift U.S. soybean prices in a boon to U.S. farmers and a blow to crushing margins.

Construction on the $150 million plant in Waupun, Wisconsin, is set to begin in 2019, with a projected opening in 2020, according to a June statement from the city, which owns the land where the facility would be located.

Martini said it remains to be seen whether the timetable needs to be postponed. He is also looking for livestock producers to commit to buying the plant’s products.

Kathy Schlieve, Waupun’s economic director, said the project would likely be delayed because the investor pool is not finalized.

“It’s different dynamic and we’re really trying to understand that,” Schlieve said about the trade war.

Shift from 2017

The uncertainty is a turnaround from last year when farmer-owned agricultural cooperatives were building new soybean crushing plants at the fastest rate in two decades after several years of large crops.

U.S. grain merchant Archer Daniels Midland Co set a new record for crush volumes in the third quarter and benefited from strong margins.

But after months of soybean futures prices hovering around 10-year lows due to the lack of Chinese buying, farmers have little room for new ventures.

“There isn’t a lot of extra money out there to invest in something like that,” said John Heisdorffer, an Iowa farmer and chairman of the American Soybean Association.

New York plant

The trade war also prolonged the search for investors for a $54 million soybean crushing plant that St. Lawrence Soyway Company is planning for Massena, New York, near the border with Canada, CEO Doug Fisher said.

Fisher tried to win over investors worried by the trade war with charts and graphs showing how the conflict improved margins for U.S. crushing plants.

“These tariffs with China rattle them, when in fact they have increased crush plant profits,” Fisher said.

As of Wednesday, the company had raised about 85 percent of the total, Fisher said.

St. Lawrence Soyway’s plant is projected to process soybeans into feed for dairy cows. The livestock industry has also been hit by Chinese tariffs on dairy products and pork, though.

“As those farmers are not doing as well, their ability to buy meal at higher prices is not there,” Fisher said.
…

The U.S.-China trade war is spooking potential investors in soybean crushing plants planned for Wisconsin and New York state, developers said, casting doubt on the future of a sector that had been a rare bright spot in the U.S. farm economy.

Crushers in the United States have been posting near-record profits by snapping up cheap and plentiful soybeans no longer purchased by China and making soymeal and soy oil for export to Europe and Southeast Asia.

But margins are not predictable as the United States and China attempt to resolve their trade differences before a March 2 deadline, adding another puzzle as investors parse out the costs and impacts of a trade dispute between the world’s two largest economies.

WSBCP LLC, or the Wisconsin Soybean Crushing Plant, is struggling to find backers for the state’s first soy processing facility because of uncertainty in agricultural and financial markets over the trade conflict, said Phil Martini, chief executive of industrial contractor C.R. Meyer & Sons Co, who is overseeing the project.

“I’m not a mental giant, but it doesn’t take one to think people are uncertain about what’s going on,” Martini said. “The crush margin is very good, but it can go the other way.”

China bought about 60 percent of U.S. raw soybean exports last year in deals worth $12 billion, but has mostly been buying beans from Brazil since imposing a 25 percent tariff on American soybeans in July in retaliation for U.S. tariffs on Chinese goods.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed on Dec. 1 not to impose additional tariffs for 90 days, a truce that spurred Chinese purchases of a few million tons of U.S. soybeans this month.

It is unclear when or if Beijing will remove its soy tariff, a move that would spur more deals and lift U.S. soybean prices in a boon to U.S. farmers and a blow to crushing margins.

Construction on the $150 million plant in Waupun, Wisconsin, is set to begin in 2019, with a projected opening in 2020, according to a June statement from the city, which owns the land where the facility would be located.

Martini said it remains to be seen whether the timetable needs to be postponed. He is also looking for livestock producers to commit to buying the plant’s products.

Kathy Schlieve, Waupun’s economic director, said the project would likely be delayed because the investor pool is not finalized.

“It’s different dynamic and we’re really trying to understand that,” Schlieve said about the trade war.

Shift from 2017

The uncertainty is a turnaround from last year when farmer-owned agricultural cooperatives were building new soybean crushing plants at the fastest rate in two decades after several years of large crops.

U.S. grain merchant Archer Daniels Midland Co set a new record for crush volumes in the third quarter and benefited from strong margins.

But after months of soybean futures prices hovering around 10-year lows due to the lack of Chinese buying, farmers have little room for new ventures.

“There isn’t a lot of extra money out there to invest in something like that,” said John Heisdorffer, an Iowa farmer and chairman of the American Soybean Association.

New York plant

The trade war also prolonged the search for investors for a $54 million soybean crushing plant that St. Lawrence Soyway Company is planning for Massena, New York, near the border with Canada, CEO Doug Fisher said.

Fisher tried to win over investors worried by the trade war with charts and graphs showing how the conflict improved margins for U.S. crushing plants.

“These tariffs with China rattle them, when in fact they have increased crush plant profits,” Fisher said.

As of Wednesday, the company had raised about 85 percent of the total, Fisher said.

St. Lawrence Soyway’s plant is projected to process soybeans into feed for dairy cows. The livestock industry has also been hit by Chinese tariffs on dairy products and pork, though.

“As those farmers are not doing as well, their ability to buy meal at higher prices is not there,” Fisher said.
…

A state of emergency has been declared in two eastern Sudan states after at least eight protesters were killed in mass demonstrations against rising prices.

Thousands of protesters marched in cities and towns across Sudan Thursday, angry over widespread corruption and the rising costs of basic goods, including bread.

Eyewitnesses in al-Qadarif said men wearing uniforms were among the protesters. Prices for food have skyrocketed in recent months, with inflation topping 60 percent. This comes after the government cut subsidies earlier this year.

Protesters there torched government buildings, including the headquarters of the ruling National Congress Party. Eyewitnesses in Atbara say the building was burned to the ground.

States of emergency were declared in the cities of al-Qadarif and Atbara.

Some of the Sudanese protesters are demanding a regime change. Many say they cannot earn a living or pay for basic needs like bread and fuel.

A Khartoum resident said students were planning to stage more protests Thursday around Khartoum University, but government security agents intervened and the students were ordered off the streets.

Police fired tear gas at hundreds of protesters within a kilometer of the presidential palace in Khartoum. Demonstrations were reported in Atbara, Port Sudan, Barbar, Nohoud and other cities.

The economy has deteriorated over the past several years after South Sudan became independent, depriving Khartoum of much of its oil revenue.

Carol Van Dam Falk and Kenneth Schwartz contributed.
…

A state of emergency has been declared in two eastern Sudan states after at least two protesters were killed in mass demonstrations sparked by rising prices.

Thousands of protesters were marching in cities and towns across Sudan Thursday, angry over the rising costs of goods, such as bread, and widespread corruption.

Eyewitnesses in al-Qadarif said among the protesters were some men wearing uniforms. Prices for food have skyrocketed in recent months, with inflation topping 60 percent. This comes after the government cut subsidies earlier this year.

In Atbara, in River Nile state, at least one protester was killed on Wednesday and another protester died on Thursday.

Protesters there torched government buildings, including the headquarters of the National Congress Party, which is the ruling party in Sudan. Eyewitnesses in Atbara say the building burned to the ground Thursday.

States of emergency were declared in the cities of al-Qadarif and Atbara.

Some of the Sudanese protesters are demanding a regime change. Many say they cannot earn a living or pay for basic needs like bread and fuel. 

A Khartoum resident said students were planning to stage more protests Thursday around Khartoum University, but government security agents intervened and the students were ordered off the streets.

Police fired tear gas at hundreds of protesters within a kilometer of the presidential palace in Khartoum. Demonstrations were reported in Atbara, Port Sudan, Barbar, Nohoud and other cities.

The economy has deteriorated over the past several years after South Sudan became independent, depriving Khartoum of much of its oil revenue.
…

The independent U.S. central bank raised borrowing rates Wednesday for the fourth time this year, dismissing President Donald Trump’s contention that policymakers ought not tinker with the country’s robust economy, the world’s largest. 

The Federal Reserve board voted 10-0 after a two-day meeting to increase its benchmark short-term interest rate — which is the rate that banks charge each other on overnight loans to meet reserve minimums — by a quarter percentage point to a range of 2.25 percent to 2.5 percent, its highest point in a decade.  

But the Fed also took note of clouds on the horizon for the U.S. economy, saying it expected to increase rates again only twice in 2019, not three times as it had previously projected.

It also cut its 2019 economic growth forecast for the U.S. from 2.5 percent to 2.3 percent, both figures well off the 4.2 percent U.S. growth in the April-to-June period and the 3.5 percent figure from July to September. 

Stock prices have sunk 

Policymakers said they would closely watch “global economic and financial market developments and assess their implications for the economic outlook.” In the last several weeks, stock market indexes in the U.S. and elsewhere have fallen sharply, a plunge for some U.S. market indicators that wiped out all previous 2018 gains. 

The interest rate set by the Fed often affects borrowing costs throughout the U.S., for major corporations and consumers, and often sets the standard for global lending rates. 

Trump had no immediate comment on the latest boost in interest rates, but earlier in the week implored policymakers to forgo another increase: 

But central bank policymakers operate independently of White House oversight, and Wednesday’s quarter-point increase had been widely expected.

Trump has basked in a robust U.S. economy, even as numerous investigations engulf him and his 2016 presidential campaign, and key advisers have quit his administration or been forced out.

U.S. trade disputes are ongoing with China, and world stock market volatility has cut investor gains in recent weeks. But the 3.7 percent jobless rate is the lowest in the United States in 49 years, worker wages are increasing and consumers — whose activity accounts for about 70 percent of the U.S. economy — are spending. 

​Unhappy with Powell

But Jerome Powell, the Fed board member Trump named a year ago as chairman, had drawn the president’s ire by overseeing three interest rate hikes this year ahead of the latest one.

Trump last month said he was “not even a little bit happy” with his appointment of Powell.

Trump has said he thinks the Fed is “way off base” by raising rates, but has been powerless to stop it from boosting them. Central bank policymakers have raised interest rates to keep the inflation rate in check and keep the economy from expanding too rapidly. 

“I’m doing deals and I’m not being accommodated by the Fed,” Trump told The Washington Post last month. “They’re making a mistake because I have a gut and my gut tells me more sometimes than anybody else’s brain can ever tell me.”

Some economists are predicting, however, that the decade-long improving U.S. economy could stall in the next year or so and perhaps even fall into a recession, which, if it occurs, would in most circumstances call for cutting interest rates to boost economic activity. 
…

The independent U.S. central bank raised borrowing rates Wednesday for the fourth time this year, dismissing President Donald Trump’s contention that policymakers ought not tinker with the country’s robust economy, the world’s largest. 

The Federal Reserve board voted 10-0 after a two-day meeting to increase its benchmark short-term interest rate — which is the rate that banks charge each other on overnight loans to meet reserve minimums — by a quarter percentage point to a range of 2.25 percent to 2.5 percent, its highest point in a decade.  

But the Fed also took note of clouds on the horizon for the U.S. economy, saying it expected to increase rates again only twice in 2019, not three times as it had previously projected.

It also cut its 2019 economic growth forecast for the U.S. from 2.5 percent to 2.3 percent, both figures well off the 4.2 percent U.S. growth in the April-to-June period and the 3.5 percent figure from July to September. 

Stock prices have sunk 

Policymakers said they would closely watch “global economic and financial market developments and assess their implications for the economic outlook.” In the last several weeks, stock market indexes in the U.S. and elsewhere have fallen sharply, a plunge for some U.S. market indicators that wiped out all previous 2018 gains. 

The interest rate set by the Fed often affects borrowing costs throughout the U.S., for major corporations and consumers, and often sets the standard for global lending rates. 

Trump had no immediate comment on the latest boost in interest rates, but earlier in the week implored policymakers to forgo another increase: 

But central bank policymakers operate independently of White House oversight, and Wednesday’s quarter-point increase had been widely expected.

Trump has basked in a robust U.S. economy, even as numerous investigations engulf him and his 2016 presidential campaign, and key advisers have quit his administration or been forced out.

U.S. trade disputes are ongoing with China, and world stock market volatility has cut investor gains in recent weeks. But the 3.7 percent jobless rate is the lowest in the United States in 49 years, worker wages are increasing and consumers — whose activity accounts for about 70 percent of the U.S. economy — are spending. 

​Unhappy with Powell

But Jerome Powell, the Fed board member Trump named a year ago as chairman, had drawn the president’s ire by overseeing three interest rate hikes this year ahead of the latest one.

Trump last month said he was “not even a little bit happy” with his appointment of Powell.

Trump has said he thinks the Fed is “way off base” by raising rates, but has been powerless to stop it from boosting them. Central bank policymakers have raised interest rates to keep the inflation rate in check and keep the economy from expanding too rapidly. 

“I’m doing deals and I’m not being accommodated by the Fed,” Trump told The Washington Post last month. “They’re making a mistake because I have a gut and my gut tells me more sometimes than anybody else’s brain can ever tell me.”

Some economists are predicting, however, that the decade-long improving U.S. economy could stall in the next year or so and perhaps even fall into a recession, which, if it occurs, would in most circumstances call for cutting interest rates to boost economic activity. 
…

The United States and China blamed each other for the crisis in the world trading system during a two-day “trade policy review” of the United States at the World Trade Organization.

The Chinese representative to the WTO, Hu Yingzhi, accused the United States of deforming the rules of world trade, which is having a detrimental impact on the economy and on American workers.

U.S. Ambassador to the WTO Dennis Shea retorted that the crisis was caused by China’s trade-distorting practices. He disputed the charge that the United States is the center of the crisis, saying instead that the U.S. is the epicenter of the solution.

WTO Trade Policy Review Division Director Willy Alfaro described the two-day debate as lively and engaged. He told VOA that member states expressed a number of concerns, including worry about a shift of focus in the U.S. trade policy, which is based on five pillars.

“The first one is the adoption of trade policies supporting the national security policy,” Alfaro said. “The second one is building a stronger U.S. economy and [third is] negotiating better trade deals, [fourth is] vigorous enforcement of domestic trade laws and rights under existing trade agreements, and finally reform of the multilateral trading system.” 

Alfaro said the U.S. has received a lot of support from member countries on the need to reform the multilateral trading system and to make it more transparent.

However, WTO officials said members also raised concerns regarding the introduction of new “Buy American” provisions, which could result in unnecessary trade barriers and increased protectionism. 

They also criticized U.S. agricultural policy, particularly the limited market access for certain commodities, high tariffs, and the continued use of trade distorting support.
…

The United States and China blamed each other for the crisis in the world trading system during a two-day “trade policy review” of the United States at the World Trade Organization.

The Chinese representative to the WTO, Hu Yingzhi, accused the United States of deforming the rules of world trade, which is having a detrimental impact on the economy and on American workers.

U.S. Ambassador to the WTO Dennis Shea retorted that the crisis was caused by China’s trade-distorting practices. He disputed the charge that the United States is the center of the crisis, saying instead that the U.S. is the epicenter of the solution.

WTO Trade Policy Review Division Director Willy Alfaro described the two-day debate as lively and engaged. He told VOA that member states expressed a number of concerns, including worry about a shift of focus in the U.S. trade policy, which is based on five pillars.

“The first one is the adoption of trade policies supporting the national security policy,” Alfaro said. “The second one is building a stronger U.S. economy and [third is] negotiating better trade deals, [fourth is] vigorous enforcement of domestic trade laws and rights under existing trade agreements, and finally reform of the multilateral trading system.” 

Alfaro said the U.S. has received a lot of support from member countries on the need to reform the multilateral trading system and to make it more transparent.

However, WTO officials said members also raised concerns regarding the introduction of new “Buy American” provisions, which could result in unnecessary trade barriers and increased protectionism. 

They also criticized U.S. agricultural policy, particularly the limited market access for certain commodities, high tariffs, and the continued use of trade distorting support.
…

Poland has signed a long-term deal with a U.S. company for supplies of liquefied natural gas as part of an effort to reduce its dependence on Russian energy, the two sides announced on Wednesday.

Port Arthur LNG, a subsidiary of San Diego-based Sempra Energy, and Poland’s state gas company PGNiG jointly announced the agreement for the sale of 2.7 billion cubic meters per year of gas to Poland over a 20-year period.

Their statement said that is enough to meet about 15 percent of Poland’s daily gas needs.

“This agreement marks an important step toward Poland’s energy independence and security,” the U.S. Secretary of Energy Rick Perry said.

Sempra Energy’s CEO Jeffrey Martin said the deal helps his company “advance our vision to become North America’s premier energy infrastructure company.”

No financial details were disclosed, in line with the secretive nature of gas deals, which are sensitive politically given Russia’s dominance of Europe’s energy market.

In recent weeks Poland also signed long-term deals for gas with American suppliers Cheniere and Venture Global Calcasieu Pass and Venture Global Plaquemines LNG.

These deals have been sealed as both Poland and the United States have been trying to stop Nord Stream 2, a pipeline under construction that, when finished, would transport gas from Russia to energy-hungry Germany.

Poland, along with several other European countries, see Nord Stream 2, which bypasses Ukraine, as a political project meant to weaken that country and gain leverage over Europe by making it more dependent on Russian gas.

Officials for the Nord Stream 2 dispute that view, saying it is merely a commercial project and would not cut off Ukraine, pointing to diversification of Europe’s gas market.

Also Wednesday, U.S. Deputy Secretary of State John Sullivan met with Polish Foreign Minister Jacek Czaputowicz in Warsaw, the last stop in a visit to several countries in the region.

Ahead of his visit the State Department said he would meet with Polish leaders to discuss shared concerns over Nord Stream 2, among other issues.

Czaputowicz told reporters in Warsaw that Nord Stream 2 is “harmful to the security of all of the European Union.”

He called Germany’s support for the project “anti-European” and also faulted Austria for using its six-month EU presidency, which ends this month, to keep the issue off Europe’s agenda.

 
…

Poland has signed a long-term deal with a U.S. company for supplies of liquefied natural gas as part of an effort to reduce its dependence on Russian energy, the two sides announced on Wednesday.

Port Arthur LNG, a subsidiary of San Diego-based Sempra Energy, and Poland’s state gas company PGNiG jointly announced the agreement for the sale of 2.7 billion cubic meters per year of gas to Poland over a 20-year period.

Their statement said that is enough to meet about 15 percent of Poland’s daily gas needs.

“This agreement marks an important step toward Poland’s energy independence and security,” the U.S. Secretary of Energy Rick Perry said.

Sempra Energy’s CEO Jeffrey Martin said the deal helps his company “advance our vision to become North America’s premier energy infrastructure company.”

No financial details were disclosed, in line with the secretive nature of gas deals, which are sensitive politically given Russia’s dominance of Europe’s energy market.

In recent weeks Poland also signed long-term deals for gas with American suppliers Cheniere and Venture Global Calcasieu Pass and Venture Global Plaquemines LNG.

These deals have been sealed as both Poland and the United States have been trying to stop Nord Stream 2, a pipeline under construction that, when finished, would transport gas from Russia to energy-hungry Germany.

Poland, along with several other European countries, see Nord Stream 2, which bypasses Ukraine, as a political project meant to weaken that country and gain leverage over Europe by making it more dependent on Russian gas.

Officials for the Nord Stream 2 dispute that view, saying it is merely a commercial project and would not cut off Ukraine, pointing to diversification of Europe’s gas market.

Also Wednesday, U.S. Deputy Secretary of State John Sullivan met with Polish Foreign Minister Jacek Czaputowicz in Warsaw, the last stop in a visit to several countries in the region.

Ahead of his visit the State Department said he would meet with Polish leaders to discuss shared concerns over Nord Stream 2, among other issues.

Czaputowicz told reporters in Warsaw that Nord Stream 2 is “harmful to the security of all of the European Union.”

He called Germany’s support for the project “anti-European” and also faulted Austria for using its six-month EU presidency, which ends this month, to keep the issue off Europe’s agenda.

 
…

Every Brazilian, including current and former members of the armed forces, will have to compromise under the next administration’s pension reform plan, a former general set to become government minister said in an interview.

Retired General Carlos Alberto dos Santos Cruz told Reuters in Brasilia last week that it was “inadmissible” in today’s world for some Brazilians employed in the public sector to retire in their 40s or 50s.

On December 4, right-wing President-elect Jair Bolsonaro said he planned to tackle the overhaul of Brazil’s fiscally burdensome pension system with piecemeal reforms that can pass Congress, starting with an increase in the minimum age of retirement.

Many economists say cuts to Brazil’s social security system are essential to controlling a huge federal deficit and regaining Brazil’s investment-grade rating.

“There are some professions that will need to cede some things, as is the case with the justice system workers, the prosecutor’s office, and all public sector employment,” Santos Cruz said. “The military is in the same situation. The idea of retirement, for example, is going to have to be tweaked.”

One of a group of former army generals who have become close advisers to Bolsonaro, Santos Cruz will be Bolsonaro’s main liaison with Congress, state and local governments, when he takes office on January 1.

Brazil would have to take a long hard look at the age people stop working in order to protect public finances, said Santos Cruz, who is 66.

Bolsonaro, a former army captain and staunch defender of Brazil’s 1964-1985 military dictatorship, had pledged to protect military pensions and retirement rights, but the realization that they are responsible for nearly half of the pensions deficit led his economic advisers to push him to rethink that stance. In recent comments, Bolsonaro has said he is willing to countenance a minimum age for military retirement.

Santos Cruz also said any austerity measures should be leveled against top-earning public workers, for whom the pain is relatively less, rather than lower paid employees.
…

Every Brazilian, including current and former members of the armed forces, will have to compromise under the next administration’s pension reform plan, a former general set to become government minister said in an interview.

Retired General Carlos Alberto dos Santos Cruz told Reuters in Brasilia last week that it was “inadmissible” in today’s world for some Brazilians employed in the public sector to retire in their 40s or 50s.

On December 4, right-wing President-elect Jair Bolsonaro said he planned to tackle the overhaul of Brazil’s fiscally burdensome pension system with piecemeal reforms that can pass Congress, starting with an increase in the minimum age of retirement.

Many economists say cuts to Brazil’s social security system are essential to controlling a huge federal deficit and regaining Brazil’s investment-grade rating.

“There are some professions that will need to cede some things, as is the case with the justice system workers, the prosecutor’s office, and all public sector employment,” Santos Cruz said. “The military is in the same situation. The idea of retirement, for example, is going to have to be tweaked.”

One of a group of former army generals who have become close advisers to Bolsonaro, Santos Cruz will be Bolsonaro’s main liaison with Congress, state and local governments, when he takes office on January 1.

Brazil would have to take a long hard look at the age people stop working in order to protect public finances, said Santos Cruz, who is 66.

Bolsonaro, a former army captain and staunch defender of Brazil’s 1964-1985 military dictatorship, had pledged to protect military pensions and retirement rights, but the realization that they are responsible for nearly half of the pensions deficit led his economic advisers to push him to rethink that stance. In recent comments, Bolsonaro has said he is willing to countenance a minimum age for military retirement.

Santos Cruz also said any austerity measures should be leveled against top-earning public workers, for whom the pain is relatively less, rather than lower paid employees.
…

Greek lawmakers approved the heavily indebted country’s budget for 2019 late Tuesday, the first since Greece exited an eight-year bailout program.

The budget lawmakers passed with a 154-143 vote still is heavy on austerity measures to ensure Greece registers a hefty surplus, in compliance with its debt relief deal with international creditors.

Earlier Tuesday, government spokesman Dimitris Tzanakopoulos said the proposed budget was Greece’s first in 10 years to be drafted “under circumstances of relative financial and political freedom” from bailout creditors.

“Today we have the opportunity to vote for a budget that now reflects the priorities of the Greek government, and not of [its] supervising institutions,” he said during a parliamentary debate.

As the debate drew to a close, more than 2,000 people demonstrated peacefully outside parliament in two separate protests called by labor unions.

The budget submitted by the left-led government foresees Greece’s battered economy growing 2.1 percent in 2018 and 2.5 percent in 2019. The debt load is set to decline from 180.4 percent of output this year to 167.8 percent next year.

Greece owes most of that debt to European partners and the International Monetary Fund. The debt relief deal secured favorable repayment terms, but in return the country must achieve budget surpluses for decades to come.

The country also secured a cash buffer from creditors so it would not have to tap bond markets until the rates demanded by investors to buy Greek government bonds drop.

Prime Minister Alexis Tsipras told lawmakers Tuesday that the country is not locked out of bond markets by high borrowing costs — even though his government has so far shelved stated plans to issue bonds shortly after the end of Greece’s last bailout, in August.

“[It] is a myth” that Greece can’t tap bond markets, Tsipras said. “You can be certain that we will again make a market exit, with a very good rate.”

Greece depended on bailout loans from 2010 until August 2018, and imposed crippling cutbacks to secure the money. Its finances are still subject to creditor scrutiny, albeit less intense than before.

Tsipras’ government is playing up citizen assistance programs that are intended to bring some 900 million euros in tax cuts and welfare benefits to less well-off Greeks. The money for the relief measures is supposed to come from a surplus generated by high taxes and constrained public spending.

However, labor unions say that’s not enough.

“Funding in the budget both for education and for health is much lower than our expectations,” Giannis Paidas, head of the Adedy civil servants’ union, said during the smaller of Tuesday’s two central Athens protests.

“It is the same and worse as during previous bailout-era years,” Paidas added. “There will be a 1 billion-euro increase in taxation. As you understand, this increase will burden working Greeks.”
…

Greek lawmakers approved the heavily indebted country’s budget for 2019 late Tuesday, the first since Greece exited an eight-year bailout program.

The budget lawmakers passed with a 154-143 vote still is heavy on austerity measures to ensure Greece registers a hefty surplus, in compliance with its debt relief deal with international creditors.

Earlier Tuesday, government spokesman Dimitris Tzanakopoulos said the proposed budget was Greece’s first in 10 years to be drafted “under circumstances of relative financial and political freedom” from bailout creditors.

“Today we have the opportunity to vote for a budget that now reflects the priorities of the Greek government, and not of [its] supervising institutions,” he said during a parliamentary debate.

As the debate drew to a close, more than 2,000 people demonstrated peacefully outside parliament in two separate protests called by labor unions.

The budget submitted by the left-led government foresees Greece’s battered economy growing 2.1 percent in 2018 and 2.5 percent in 2019. The debt load is set to decline from 180.4 percent of output this year to 167.8 percent next year.

Greece owes most of that debt to European partners and the International Monetary Fund. The debt relief deal secured favorable repayment terms, but in return the country must achieve budget surpluses for decades to come.

The country also secured a cash buffer from creditors so it would not have to tap bond markets until the rates demanded by investors to buy Greek government bonds drop.

Prime Minister Alexis Tsipras told lawmakers Tuesday that the country is not locked out of bond markets by high borrowing costs — even though his government has so far shelved stated plans to issue bonds shortly after the end of Greece’s last bailout, in August.

“[It] is a myth” that Greece can’t tap bond markets, Tsipras said. “You can be certain that we will again make a market exit, with a very good rate.”

Greece depended on bailout loans from 2010 until August 2018, and imposed crippling cutbacks to secure the money. Its finances are still subject to creditor scrutiny, albeit less intense than before.

Tsipras’ government is playing up citizen assistance programs that are intended to bring some 900 million euros in tax cuts and welfare benefits to less well-off Greeks. The money for the relief measures is supposed to come from a surplus generated by high taxes and constrained public spending.

However, labor unions say that’s not enough.

“Funding in the budget both for education and for health is much lower than our expectations,” Giannis Paidas, head of the Adedy civil servants’ union, said during the smaller of Tuesday’s two central Athens protests.

“It is the same and worse as during previous bailout-era years,” Paidas added. “There will be a 1 billion-euro increase in taxation. As you understand, this increase will burden working Greeks.”
…

The finance committee of Mexico’s lower house of Congress on Tuesday rapidly approved the revenue section of President Andres Manuel Lopez Obrador’s 2019 draft budget, auguring speedy passage in the legislature his party controls.

Lopez Obrador’s leftist government only unveiled the budget proposal on Saturday night. It met with a positive initial response from financial markets, with investors warming to his commitment to keep a lid on spending.

The president’s National Regeneration Movement (MORENA) and its allies dominate Congress, having won the first outright majority in more than two decades.

Having been approved by the finance committee without changes, the revenue section is expected to go to the floor of the lower house on Tuesday afternoon. Once approved, the revenue budget proposal moves to the Senate.

The budget is a major test of Lopez Obrador’s credibility, which was shaken when he said on Oct. 29 he was scrapping a partly built $13 billion new Mexico City airport on the basis of a referendum that was widely panned as illegitimate.
…

The finance committee of Mexico’s lower house of Congress on Tuesday rapidly approved the revenue section of President Andres Manuel Lopez Obrador’s 2019 draft budget, auguring speedy passage in the legislature his party controls.

Lopez Obrador’s leftist government only unveiled the budget proposal on Saturday night. It met with a positive initial response from financial markets, with investors warming to his commitment to keep a lid on spending.

The president’s National Regeneration Movement (MORENA) and its allies dominate Congress, having won the first outright majority in more than two decades.

Having been approved by the finance committee without changes, the revenue section is expected to go to the floor of the lower house on Tuesday afternoon. Once approved, the revenue budget proposal moves to the Senate.

The budget is a major test of Lopez Obrador’s credibility, which was shaken when he said on Oct. 29 he was scrapping a partly built $13 billion new Mexico City airport on the basis of a referendum that was widely panned as illegitimate.
…

The economic outlook in South Korea is not good, according to the Hyundai Research Institute, which stated in a report this week that the economy “reached its peak in May 2017” and may bottom out in 2020.

The bad economic news continues to contribute to President Moon Jae-in’s plummeting approval rating, which now stands at 45 percent, his lowest evaluation according to Gallup Korea. The latest poll indicates 53 percent of businesses gave Moon a negative rating, compared to only 41 approving of his administration.

The Hyundai Research Institute forecasts South Korea’s economic growth rate at 2.5 percent for the coming year, a rate matched by the LG Economic Research Institute. The state-run Korean Development Institute and the International Monetary Fund estimate a 0.1 percent higher growth rate. However, the Bank of Korea is an outlier and holds on to the most optimist view of a 2.8 to 2.9 percent growth rate through 2020.

Kim So Young, an economics professor at Seoul National University said Asia’s fourth-largest economy is slowing down, “but at this moment, it’s not at it’s worst.”

Research Fellow Chung Min, at the Hyundai Research Institute, said data it collected predicts things will approach the economy’s lowest point during the second half of 2019.

The 2018 third-quarter data led Seoul to cut its upcoming economic outlook, citing weak investments and global trade disputes.

“The economy is faced with downward risks such as deepening trade disputes, spreading financial instability in emerging markets amid the normalizing monetary policy by the major countries,” according to the government outlook. 

Experts agreed with that assessment, but had more to add.

Kim So Young said rising household debt is another factor, and Yonsei University professor of economics Taeyoon Sung cited two other potential causes.

One, he said, is major businesses have lost their competitiveness in global markets. The other is the Moon administration’s mandate to increase the minimum wage. Sung asserted higher wage costs have had a huge impact on the market economy.

Hansung University assistant professor Kim Sang Bong specifically identifies potential hardships the South Korean semiconductor sector may face because of increased competition from China and potential for the United States economy to “bottom out” in 2020 as well because of its own trade issues.

Hopes of a turnaround

Monday, Moon unveiled his plan to stave off South Korea’s stagnant economy and reverse course from his administration’s income-led growth policy, dubbed “J-nomics” (a combination of the president’s name (Jae-in) and economics).

Moon said in a ministers meeting that “we have to put policies that would vitalize the economy through innovation in regulation and encourage investment and, at the same time, lift regional economies and balanced development.”

Moon acknowledged that “it’s difficult to radically change an economy in a five-year term… In the process of changing the economic policy direction [to income-led growth], there could be some controversy and doubts, but we need to take an attitude to see [the changes] bear fruit with patience.”

Taeyoon Sung finds it hard to be optimistic about South Korea’s economy, predicting a continued downward trend for the country and calling the global situation “out of control.”

Hyundai Research Institute’s Chung Min said, “In the short-term, the administration needs to encourage investment and regulatory reform is required for that (reform) to take place, particularly in the SOC (Social Overhead Capital, a term referring infrastructure needs of a society).”

“Because investment in the construction sector is decreasing, it is necessary to have early execution of SOC [projects],” he added. “In the long-term, economic restructuring should take place, leading to a more active economy.”

The Hyundai Research Institute recommends the government carry out more flexible economic policies and consider an interest rate cut, “also, they should pursue expansionary fiscal policies and front load 2019 budget in the first half.”

Kim So Young agrees that altering South Korea’s current economic policies is a wise course of action, because the nation cannot control external conditions like the tariff dispute between Washington and Beijing.

Moon’s announcement “patches” things, said Kim Sang Bong, “but it offers no consistent policy.”

Leading Sung to mention that whatever changes are implemented, it will be difficult to forecast any type of recovery time should the economy “bottom out” as the Hyundai Research Institute predicts.

Chung Min noted that continued and careful monitoring of the economy is needed.

Lee Ju-hyun contributed to this report.
…

The economic outlook in South Korea is not good, according to the Hyundai Research Institute, which stated in a report this week that the economy “reached its peak in May 2017” and may bottom out in 2020.

The bad economic news continues to contribute to President Moon Jae-in’s plummeting approval rating, which now stands at 45 percent, his lowest evaluation according to Gallup Korea. The latest poll indicates 53 percent of businesses gave Moon a negative rating, compared to only 41 approving of his administration.

The Hyundai Research Institute forecasts South Korea’s economic growth rate at 2.5 percent for the coming year, a rate matched by the LG Economic Research Institute. The state-run Korean Development Institute and the International Monetary Fund estimate a 0.1 percent higher growth rate. However, the Bank of Korea is an outlier and holds on to the most optimist view of a 2.8 to 2.9 percent growth rate through 2020.

Kim So Young, an economics professor at Seoul National University said Asia’s fourth-largest economy is slowing down, “but at this moment, it’s not at it’s worst.”

Research Fellow Chung Min, at the Hyundai Research Institute, said data it collected predicts things will approach the economy’s lowest point during the second half of 2019.

The 2018 third-quarter data led Seoul to cut its upcoming economic outlook, citing weak investments and global trade disputes.

“The economy is faced with downward risks such as deepening trade disputes, spreading financial instability in emerging markets amid the normalizing monetary policy by the major countries,” according to the government outlook. 

Experts agreed with that assessment, but had more to add.

Kim So Young said rising household debt is another factor, and Yonsei University professor of economics Taeyoon Sung cited two other potential causes.

One, he said, is major businesses have lost their competitiveness in global markets. The other is the Moon administration’s mandate to increase the minimum wage. Sung asserted higher wage costs have had a huge impact on the market economy.

Hansung University assistant professor Kim Sang Bong specifically identifies potential hardships the South Korean semiconductor sector may face because of increased competition from China and potential for the United States economy to “bottom out” in 2020 as well because of its own trade issues.

Hopes of a turnaround

Monday, Moon unveiled his plan to stave off South Korea’s stagnant economy and reverse course from his administration’s income-led growth policy, dubbed “J-nomics” (a combination of the president’s name (Jae-in) and economics).

Moon said in a ministers meeting that “we have to put policies that would vitalize the economy through innovation in regulation and encourage investment and, at the same time, lift regional economies and balanced development.”

Moon acknowledged that “it’s difficult to radically change an economy in a five-year term… In the process of changing the economic policy direction [to income-led growth], there could be some controversy and doubts, but we need to take an attitude to see [the changes] bear fruit with patience.”

Taeyoon Sung finds it hard to be optimistic about South Korea’s economy, predicting a continued downward trend for the country and calling the global situation “out of control.”

Hyundai Research Institute’s Chung Min said, “In the short-term, the administration needs to encourage investment and regulatory reform is required for that (reform) to take place, particularly in the SOC (Social Overhead Capital, a term referring infrastructure needs of a society).”

“Because investment in the construction sector is decreasing, it is necessary to have early execution of SOC [projects],” he added. “In the long-term, economic restructuring should take place, leading to a more active economy.”

The Hyundai Research Institute recommends the government carry out more flexible economic policies and consider an interest rate cut, “also, they should pursue expansionary fiscal policies and front load 2019 budget in the first half.”

Kim So Young agrees that altering South Korea’s current economic policies is a wise course of action, because the nation cannot control external conditions like the tariff dispute between Washington and Beijing.

Moon’s announcement “patches” things, said Kim Sang Bong, “but it offers no consistent policy.”

Leading Sung to mention that whatever changes are implemented, it will be difficult to forecast any type of recovery time should the economy “bottom out” as the Hyundai Research Institute predicts.

Chung Min noted that continued and careful monitoring of the economy is needed.

Lee Ju-hyun contributed to this report.
…

Chinese President Xi Jinping on Tuesday called for the implementation of reforms but offered no new specific measures in a highly anticipated speech that marked the 40th anniversary of China’s move towards market liberalization.

In a speech lasting nearly an hour-and-a-half, Xi called for support of the state economy while also guiding the development of the private sector, and said China will expand efforts at opening up and ensure the implementation of major reforms.

“We must, unswervingly, reinforce the development of the state economy while, unswervingly, encouraging, supporting and guiding the development of the non-state economy,” Xi said during a speech at Beijing’s Great Hall of the People.

Xi was speaking on the day China marked as the 40th anniversary of the start of late leader Deng Xiaoping’s campaign of “reform and opening up,” which led to explosive industrial growth that made China’s economy the world’s second-largest.

“Opening brings progress while closure leads to backwardness,” he added.

“Every step of reform and opening up is not easy. In the future, we will be inevitably faced with all sorts of risks and challenges, and even unimaginable tempestuous storms,” said Xi, stressing the role the ruling Communist Party.

Xi was speaking amid mounting pressure to accelerate reforms and improve market access for foreign companies as a bitter trade war with the United States weighs on the Chinese economy.

China’s heavy support of its sprawling state sector has been a point of contention with the United States.

The trade war has spurred some Chinese entrepreneurs, government advisers and think tanks to call for faster economic reforms and the freeing up of a private sector stifled by state controls and struggling to gain access to credit.

Xi and U.S. President Donald Trump agreed early this month to a 90-day truce in the trade dispute, which halted the threatened escalation of punitive tariffs while the two sides continue negotiations.

In his speech, Xi enumerated the accomplishments of China’s development.

“Grain coupons, cloth coupons, meat coupons, fish coupons, oil coupons, tofu coupons, food ticket books, product coups and other documents people once could not be without have now been consigned to the museum of history,” he said. “The torments of hunger, lack of food and clothing, and the hardships which have plagued our people for thousands of years have generally gone and won’t come back.”

Numerous luminaries in attendance were cited for their contributions to China’s economic reforms including the heads of online giants Alibaba, Tencent Holdings and Baidu and car maker Geely Automobile Holdings.
…

Chinese President Xi Jinping on Tuesday called for the implementation of reforms but offered no new specific measures in a highly anticipated speech that marked the 40th anniversary of China’s move towards market liberalization.

In a speech lasting nearly an hour-and-a-half, Xi called for support of the state economy while also guiding the development of the private sector, and said China will expand efforts at opening up and ensure the implementation of major reforms.

“We must, unswervingly, reinforce the development of the state economy while, unswervingly, encouraging, supporting and guiding the development of the non-state economy,” Xi said during a speech at Beijing’s Great Hall of the People.

Xi was speaking on the day China marked as the 40th anniversary of the start of late leader Deng Xiaoping’s campaign of “reform and opening up,” which led to explosive industrial growth that made China’s economy the world’s second-largest.

“Opening brings progress while closure leads to backwardness,” he added.

“Every step of reform and opening up is not easy. In the future, we will be inevitably faced with all sorts of risks and challenges, and even unimaginable tempestuous storms,” said Xi, stressing the role the ruling Communist Party.

Xi was speaking amid mounting pressure to accelerate reforms and improve market access for foreign companies as a bitter trade war with the United States weighs on the Chinese economy.

China’s heavy support of its sprawling state sector has been a point of contention with the United States.

The trade war has spurred some Chinese entrepreneurs, government advisers and think tanks to call for faster economic reforms and the freeing up of a private sector stifled by state controls and struggling to gain access to credit.

Xi and U.S. President Donald Trump agreed early this month to a 90-day truce in the trade dispute, which halted the threatened escalation of punitive tariffs while the two sides continue negotiations.

In his speech, Xi enumerated the accomplishments of China’s development.

“Grain coupons, cloth coupons, meat coupons, fish coupons, oil coupons, tofu coupons, food ticket books, product coups and other documents people once could not be without have now been consigned to the museum of history,” he said. “The torments of hunger, lack of food and clothing, and the hardships which have plagued our people for thousands of years have generally gone and won’t come back.”

Numerous luminaries in attendance were cited for their contributions to China’s economic reforms including the heads of online giants Alibaba, Tencent Holdings and Baidu and car maker Geely Automobile Holdings.
…

China hopes Britain’s exit from the European Union can happen in an orderly way and that the bloc will reduce hurdles to Chinese investment and keep its markets open, China’s foreign ministry said on Tuesday.

China, the world’s second-largest economy, has watched Brexit nervously, worried not only about potential market turmoil from a disorderly departure but about losing Britain’s supportive voice for free trade within the EU.

“China hopes to see Brexit proceed in an orderly fashion and stands ready to advance China-EU and China-UK relations in parallel,” the ministry said in a lengthy policy document on EU ties.

The EU and China are often at loggerheads over trade and other issues, with the EU sharing many of the same concerns as the United States about market access, trade imbalances and intellectual property rights protection.

The bloc is China’s largest trading partner while China is its biggest trading partner after the United States.

The EU has been pressing for better access to the Chinese market for its companies, while China has complained about what it sees as unfair restrictions on Chinese investments in the EU.

Despite events such as Brexit, China said the EU has remained committed to integration, pressed on with reforms and played a major role in regional and international affairs.

Beijing has promised to look at the possibility of reaching a “top notch” free trade deal with Britain post-Brexit.

The Brexit process is currently deadlocked with just over 100 days until Britain is due to leave the EU.

On trade, China’s white paper said the EU should ease high-tech export controls on China and facilitate mutual investment.

The government will significantly ease market access and endeavor to foster a “stable, fair, transparent, law-based and predictable business environment that protects the legitimate rights and interests of foreign investment and treats Chinese and foreign firms registered in China as equals,” it said.

“China hopes that the EU will keep its investment market open, reduce and eliminate investment hurdles and discriminatory barriers, and provide Chinese companies investing in Europe a fair, transparent and predictable policy environment and protect their legitimate rights and interests.”

The EU last month provisionally agreed on rules for a far-reaching system to coordinate scrutiny of foreign investments into Europe, notably from China in the wake of a surge in Chinese investments, to end what a negotiator called “European naivety.”
…

China hopes Britain’s exit from the European Union can happen in an orderly way and that the bloc will reduce hurdles to Chinese investment and keep its markets open, China’s foreign ministry said on Tuesday.

China, the world’s second-largest economy, has watched Brexit nervously, worried not only about potential market turmoil from a disorderly departure but about losing Britain’s supportive voice for free trade within the EU.

“China hopes to see Brexit proceed in an orderly fashion and stands ready to advance China-EU and China-UK relations in parallel,” the ministry said in a lengthy policy document on EU ties.

The EU and China are often at loggerheads over trade and other issues, with the EU sharing many of the same concerns as the United States about market access, trade imbalances and intellectual property rights protection.

The bloc is China’s largest trading partner while China is its biggest trading partner after the United States.

The EU has been pressing for better access to the Chinese market for its companies, while China has complained about what it sees as unfair restrictions on Chinese investments in the EU.

Despite events such as Brexit, China said the EU has remained committed to integration, pressed on with reforms and played a major role in regional and international affairs.

Beijing has promised to look at the possibility of reaching a “top notch” free trade deal with Britain post-Brexit.

The Brexit process is currently deadlocked with just over 100 days until Britain is due to leave the EU.

On trade, China’s white paper said the EU should ease high-tech export controls on China and facilitate mutual investment.

The government will significantly ease market access and endeavor to foster a “stable, fair, transparent, law-based and predictable business environment that protects the legitimate rights and interests of foreign investment and treats Chinese and foreign firms registered in China as equals,” it said.

“China hopes that the EU will keep its investment market open, reduce and eliminate investment hurdles and discriminatory barriers, and provide Chinese companies investing in Europe a fair, transparent and predictable policy environment and protect their legitimate rights and interests.”

The EU last month provisionally agreed on rules for a far-reaching system to coordinate scrutiny of foreign investments into Europe, notably from China in the wake of a surge in Chinese investments, to end what a negotiator called “European naivety.”
…