US President Donald Trump will be the focus of financial markets on Tuesday. Mr. Trump is expected to address the economy and trade in a key speech at the world economic forum in Davos this evening, Beijing time, and analysts say gold could gain momentum if his comments reignite trade tensions. In addition to trump’s remarks, the republican-controlled U.S. senate will formally begin its impeachment trial on Tuesday, which is expected to have an impact on the market.
Trump’s Davos speech gets a lot of attention
The world economic forum 2020 annual meeting and Davos forum will be held from January 21 to 24 with the theme of “building global strength for sustainable development”.
This year marks the 50th anniversary of Davos. U.S. President Donald Trump, German chancellor Angela Merkel, and European central bank President Christine Lagarde will address other world leaders.
US President Donald Trump will deliver a speech at the world economic forum annual meeting 2020 at 18:30 Beijing time on Tuesday. Mr. Trump is expected to address the prospects for the US domestic economy and trade disputes with the European Union.
Mr. Trump is back in the spotlight after missing Davos last year because of the government shutdown. In 2018, Mr. Trump used the Davos speech to signal his aggressiveness on trade, an early sign of global trade tensions.
After the US signed a first-phase trade deal with China last week, analysts say Mr. Trump’s next target will be the EU. The move means the trade dispute is heating up, giving trump’s speech extra prominence.
While signing the first phase of the economic and trade deal with China, Mr. Trump kept his eye on the ground by sharply criticizing negative interest rates in the eurozone and telling it to “pay us”. Mr. Trump also blamed the large us current account deficit on the “excessive” value of the dollar.
Trade disputes between the US and Europe have been on display since 2017. The US imposed tariffs on steel, aluminum and steel products from the EU in 2018. The EU responded by imposing tariffs on US motorcycles and agricultural products.
The US has also threatened more trade sanctions on “national security” grounds. Although the deadline has passed and the Trump administration has yet to act, he could change his mind at any moment.
According to media reports, the US government is considering imposing tariffs on European goods to press the European Union to further cut subsidies to European aircraft maker airbus. The US is also considering tariffs on French goods in retaliation for French taxes on the revenues of us technology companies such as Amazon and Facebook, and Washington’s recent breach of the WTO’s dispute settlement mechanism has left the two sides unable to resolve their disputes peacefully.
Trump is expected to meet with European Commission President Stephane von der lean on the sidelines of the Davos forum in Switzerland, where the two sides will discuss digital taxes and tariffs, which are at odds with each other, three sources said Tuesday.
Analysts said that if Mr. Trump reignited the us-European trade dispute in his latest speech, it would exacerbate risk aversion in the market and thus spur further gains in gold prices. Spot gold remained above $1,560 an ounce in early Asian trading on Tuesday.
In addition to the us-EU trade dispute, Iranian foreign minister Mohammad Javad Zarif said on Monday he would not attend the forum, disappointing hopes for a us-Iran meeting in neutral Switzerland to ease tensions in the Middle East.
In addition, in an effort to boost his re-election campaign and offset the impact of the impeachment, the White House suggested that trump’s speech would highlight his record on trade and the economy.
Analysts pointed out that since it is an election year in the US and Trump is determined to win a second term, all his activities will focus on the election, including this year’s Davos forum will also be a perfect occasion for him to brush off his achievements.
The Trump impeachment case has come to a head
The impeachment trial of US President Donald Trump will come to a head-on Tuesday when the US Senate begins its formal trial. With the senate now dominated by Republicans, Mr. Trump is widely expected to be acquitted on the basis of his party’s majority.
The U.S. Senate on Thursday formally accepted articles of impeachment against President Donald Trump. Seven impeachment managers from the U.S. house of representatives formally read out the two impeachment charges against Donald Trump in the Senate on Thursday, opening the impeachment trial of Donald Trump in the senate as chief justice John Roberts and all the senators present took the oath.
Chief justice John Roberts will preside over the Senate impeachment trial of President Trump. He vowed to give senators a “fair trial” at the trial, which began on Tuesday.
After the senate officially opened his impeachment trial, Mr. Trump responded that he had been impeached after a perfect phone call. Mr. Trump said the senate trial would proceed very quickly. The impeachment trial was “a sham”.
This is the third time in U.S. history that the Senate has tried to impeach a President. Trump thus becomes only the third US President in US history to be tried by the senate after the 17th President Lyndon Johnson and the 42nd President Bill Clinton.
On December 8, 2019, the US house of representatives passed two articles of impeachment against President Trump, namely “abuse of power” and “obstruction of congressional investigation”. The house accused Mr. Trump of obstructing Congress and abusing his power to pressure Ukraine to announce an investigation into his Democratic rival Joe Biden.
U.S. President Donald Trump expects the senate to initiate impeachment proceedings and is confident it will acquit him, White House press secretary Alison Grisham said in a statement last Wednesday.
Senate majority leader Mitch McConnell said last Wednesday that the impeachment trial against trump would begin on Tuesday. Mr. McConnell said the senate would meet six days a week for the impeachment trial, during which members could ask questions.
CNN reported that on Tuesday, the senate’s 100 members will vote first on the trial rules and procedures, with the hearing scheduled to begin at 1 p.m. The impeachment trial will run six hours a day, six days a week.
The White House formally announced the trump defense team in a statement on Jan. 17. In a statement, the White House stressed that Mr. Trump had done nothing wrong and was confident that the team of lawyers “will defend him, the voters, and our democracy in this baseless and illegal impeachment.”
Us media analysts believe the republican-dominated senate will conclude Mr. Trump is innocent. But Democrats are still hoping to extend the impeachment trial to reveal more information about trump’s efforts to pressure the Ukrainian President to find “black material” for his opponent, Joe Biden. They believe the move could cost trump some votes as the 2020 presidential election heats up.
US President Donald trump’s legal team on Saturday accused House Democrats of trying to overturn the 2016 election in a document outlining the White House’s official response to two articles of impeachment passed last month.
Mr. Trump’s lawyers attacked impeachment as a “dangerous attack on the right of the American people to freely choose their President” ahead of November’s election. “This is a brazen and illegal attempt to overturn the results of the 2016 election and disrupt the 2020 election, which is only months away,” the President’s legal team said in a document on Saturday. The document was a response to an official subpoena issued by the senate informing Mr. Trump of the upcoming trial and charges against him.
US President Donald Trump on Monday dismissed impeachment charges against him by the Democratic-led house of representatives, saying allegations that he abused his power and obstructed Congress were an insult to the US constitution and must be rejected.
“The Senate should quickly reject these flawed articles of impeachment and acquit the President,” a republican presidential pre-trial summary said. It was Mr. Trump’s first full defense before the senate trial began.
The move came after democratic lawmakers laid out their objections to Mr. Trump in a 111-page document submitted before the senate opened on Tuesday, saying the President must be removed to protect national security and preserve the American system of government.
The focus remains on whether new witnesses should be called and new evidence presented, after nearly a month of wrangling and confrontation.
According to Politico, Senate majority leader Mitch McConnell plans to introduce a resolution that would delay the question of whether to call new witnesses until after the initial debate. It is understood that if no new witnesses are called, the trial will soon enter its final phase.
Both the White House and Republicans want a quick resolution to the impeachment trial within two weeks. But Mr. McConnell’s plan has faced stiff opposition from Democrats.
In a senate trial, if more than a two-thirds majority finds President trump guilty, he will be fired and vice President pence will take over. But if no more than two-thirds of lawmakers believe he is guilty, he will be fully pardoned and remain in office.
In the current senate, republicans hold 53 seats, Democrats 45 and independents two. The republican-controlled Senate is widely expected to exonerate Mr. Trump. None of the 53 republican senators have expressed support for removing trump.
According to CNN, the Democrats currently have a weak majority in the senate, while republicans control the chamber with a 53-45 majority. Passage of articles of impeachment requires a supermajority if at least 67 senators agree to impeach Mr. Trump.