Overall tone around growth remain optimistic
Powell signals the fed is on pause until around summer
China US talk
1/30 -1/31, senior Chinese official are set to meeting their American counterparts in Washington
Tim Cook says tension between US and China were easing
China, many provinces are cutting their 2019 growth target
Base case: trade deficit dispute is described as largely resolved and China has suggested a proposal for >1 trillion over 6 years has already been made by Beijing
PADVSA & Oil
Trevino imposes sanction on stated-owned oil company of Venezuela
Saudi Airbus won’t increase output to compensate for any lose Venezuela production
On a monthly basis, cleared notional in sterling overnight index average (SONIA) swaps is now higher than that for sterling London inter-bank offered rate (LIBOR).
The smooth transaction from LIBOR will be one in which contacts that reference LIBOR are replaced or amended before fallback provisions are triggered. Market consensus suggests calculating a SONIA-LIBOR spread to reflect a fixed term credit premise.