- Joe Biden: China will surpass us if we don’t act
- Challenging days await Draghi, the new hope of Italy
- The UK accused EU of demanding tougher standards
Joe Biden: China Will Surpass Us if We Don’t Act
US President Joe Biden evaluated the US-China rivalry at the meeting at the White House, where infrastructure problems in the country were discussed.
Stating that he had a 2-hour phone call yesterday with Chinese President Xi Jinping, Biden said that China is carrying out major projects in many areas.
“If we don’t get moving, they are going to eat our lunch,” President Biden told senators.
Stating that he knew China and Jinping well from his term of vice president and they also discussed common points, Biden stated that they were also aware of the competitive factors between the two countries.
China has been investing heavily in its infrastructure, pouring money into high-speed rail, metro systems, apartment buildings, electricity grids, and mobile networks.
“They have a major, major new initiative on the rail and they already have a rail that goes 225 miles an hour with ease,” Mr. Biden noted. “They’re working very hard to try to move in a position where they end up being the source of a new way in which to power automobiles. They’re going to invest a lot of money. They’re investing billions of dollars in dealing with a whole range of issues that relate to transportation, the environment, and a whole range of other things. We just have to step up,” he added.
Given the economic fallout of the coronavirus pandemic, the American economy remains extremely fragile, but there are expectations that a massive influx of investment to rebuild and develop its long-neglected infrastructure might also rejuvenate the economy.
Biden added that he did not follow the impeachment proceedings against former US President Donald Trump, but only on the news.
It was stated that Mr. Biden voiced “fundamental” concerns about Beijing’s “coercive and unfair” trade practices, as well as concerns over China’s crackdown in Hong Kong and treatment of Muslims in Xinjiang.
Mr. Xi maintained a hard line on Hong Kong, Xinjiang, and Taiwan, calling them matters of “sovereignty and territorial integrity”.
He told Mr. Biden confrontation would be a “disaster” and the two sides should re-establish the means to avoid misjudgments, China’s foreign ministry said. US Secretary of State Antony Blinken stated that they will closely follow China’s human rights violations in East Turkistan, Hong Kong and Tibet, and they will object to Beijing’s unfair practices in the global economic system.
Challenging Days Await Draghi, the New Hope of Italy
Mario Draghi has gathered enough support from Italian lawmakers and is now highly likely to lead that country’s next government.
While Mario Draghi accepted the task of forming the government gave hope for struggling Italy and the Italian economy, it also raised expectations that reforms could take place more quickly.
Although the said development is welcomed in the markets, it is stated that the government will be composed of different groups, pointing to difficult times for Draghi. There is a risk that Draghi will have difficulties in implementing reforms due to different groups, and that this will be short-lived, even if the country starts to boom.
The extent of the problems facing Draghi is difficult to overstate. The Italian economy shrank by 9% in 2020, and its debt has now hit 159% of GDP. Unemployment would probably grow, fueling social discontent and placing pressure on many political forces who support Draghi to withdraw their backing from his administration.
Stating that there may be disputes between the groups that can support Draghi in the Parliament, Berenberg Chief Economist Holger Schmieding stated that if Draghi establishes the government, the groups may withdraw support for reform proposals that they do not like. Schmieding said it may be more difficult for Draghi to impose pro-growth reforms than to form a government.
Stating that Draghi can make progress in Italy, Schmieding emphasized that if he resolves the issue of how to use the EU rescue fund of 209 billion euros, the conflicts that have arisen may be settled for a while.
Commerzbank Senior Economist Dr. Marco Wagner stated that the task of the government to be established by Draghi will first be to invest more than 209 billion euros in the EU rescue fund. Stating that Italy needs good investments in education, infrastructure, and mainly public administration in order to overcome the structural problems in the economy, Wagner noted that the new government to be established by Draghi will consist of different parties with different views and that the progress in the economy may be short-lived.
Dekabank Chief Economist Ulrich Kater also stated that Mario Draghi has an opportunity to bring the necessary reforms to the agenda in terms of labor market regulations, the efficiency of public administration, improvement of the legal system. Kater stated that the arrival of Draghi was a great opportunity for Italy to renew the economic system for more growth and wealth.
The UK Accused EU of Demanding Tougher Standards
The British Prime Ministry stated that splitting stock transactions between financial centers would not be in anyone’s best interest.
“The EU still did not give us full equivalence, even though we are one of the world’s leading financial centers and we have a strong regulatory system,” the Prime Ministry said in a statement.
In the statement, it is reported that some of the stock transactions in the UK have shifted to EU countries with the recommendation of the EU due to the failure to provide the necessary balances by the EU, it was said: “Our position is that no one would benefit from a fragmentation of stock transactions among financial centers.”
Bank of England (BoE) President Andrew Bailey also called on the EU to keep financial ties with London in his assessment on the BoE website.
“I am afraid a world where the EU directs and sets the rules and standards we have in the UK will not work. Will the EU cut Britain from itself? There are signs of an intention to do so now, but I think it would be a mistake.” – Bailey said.
Andrew Bailey has urged the EU not to pick a fight over post-Brexit access for financial services and accused it of demanding tougher standards of the UK than other countries. He also added that Europe was asking the UK to meet a standard that it “holds no other country to and would not agree to itself”.
The EU currently does not acknowledge that the UK Stock Exchanges have the same audit status as their counterparts in the Netherlands, France, and Germany.
Additionally, it has been reported that Amsterdam has overtaken London as Europe’s largest share trading center, and experts say the symbolic blow could be followed by the City losing jobs as well as more business owing to Brexit.
The Dutch capital, which was previously the sixth largest exchange center in Europe, saw an average daily trading surge from €2.6bn (£2.3bn) to €9.2bn in January as exchanges shifted order books abroad after Brexit. It pushed London into second place, with average daily trading halving from €17.5bn to €8.6bn last month, according to data released by the CBOE exchange.