Business and Market Discussions / View from Taiwan / Consul General - Italy

The US Federal Reserve said tariffs are a persistent headwind to economic growth. In the minutes of its last monetary policy meeting released overnight, Fed officials said that the combination of tariffs and generally slower economic conditions “could have significant negative effects on the US economy.” However, a divided Fed described the July rate cut as a “mid-cycle adjustment” rather than the start of a new easing phase.

German Chancellor Angela Merkel has suggested an alternative to the Irish border backstop, a key Brexit sticking point, could be found within 30 days. She stressed it would be up to the UK to offer a workable plan. UK Prime Minister Boris Johnson said he was "more than happy" with that "blistering timetable" and believed there was "ample scope" for a new deal to be reached.

China has threatened to impose sanctions on US firms involved with the sale of 66 F-16 fighter planes to Taiwan. The US$6bn deal approved by Washington is the biggest in decades. Foreign Ministry spokesman Geng Shuang said the sale was a violation of international law and international relations, as well as the One China policy.

On today’s Money Talk we’re joined by Enzio von Pfeil at St. James’s Place and Ian Hui from JP Morgan Asset Management. Providing the view from Taiwan is Political Risk Consultant, Ross Feingold. After 8:30, we speak with Clemente Contestabile, the Consul General of Italy in Hong Kong.