Arrest of Wanzhou Meng Raises Trade War Tensions | OPEC Summit
Published December 6, 2018
The CFO of Huawei was arrested in Canada on December 1st in response to a US extradition request over Iranian sanctions. The provides an unambiguous indication that the trade war is intensifying to a new level. Expect much lower probabilities of a US-China trade deal by March 1st.
The Bank of Canada’s Governor Poloz will deliver an Economic Progress Report this morning to provide further clarity to the December meeting hold on rates. Additionally, Canadian trade balance data is set to be released. Expectations are a widening deficit pushing increased import activity, while energy prices should drive an overall decline.
Markets will be paying close attention to Vienna today as ministers from the core OPEC group are meeting. The agenda for the members will revolve around coming to an agreement on which state will cut production and by how much. The initial Saudi-Russia handshake deal extending the OPEC/non-OPEC supply pact into 2019 suggests a positive foundation.
Germany’s CDU party will elect a new leader at its convention tomorrow, with Angela Merkel not running for re-election as party leader. This comes despite her intentions to remain Chancellor until the end of the parliamentary term in 2021.