The Day at a Glance | Jul 5 2022

The Top

*China´s Vice Premier Liu He discussed economic sanctions and tariffs with Janet Yellen.

*German government preparing to help gas giant Uniper.

*The United Kingdom´s PMI set above expectations (53.7 vs 53.1e.).

*Ukraine will need $60 million dollars to meet its funding requirement this year.

*The likelihood of a recession in the United States increased to 38%.

*Consumer confidence in Mexico drops to 43.6 points (-1.1 annual bps).

*Tax revenues increased 2.7% in the first half of the year.

Economic environment

Chinese and US officials meet. The Biden administration is expected to lift some tariffs implemented during the Trump era. Chinese Vice Premier Liu He met with US Secretary of the Treasury, Janet Yellen, to discuss economic policy and the stability of global supply chains. North American officials would start to lift tariffs to reduce the cost of daily goods in efforts to fight persistent, high inflation. However, some analysts estimate that lifting said burdens would have a marginal effect on inflation and on trade with China. In the short term, the potential recession in the United States is a greater threat for China. Also, the tariffs have not had the expected effect on Chinese exports as they increased +15.1% in the first five months of 2022, 28% in 2021 and 8% in 2020. Biden is expected to announce the lifting of sanctions and tariffs this week.