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Below are Views On Daily Global Market Update 15 November 2021 By Asheesh Chanda, Kristal.AI

Xi-Biden virtual summit tonight

The first virtual meeting between the two leaders, since Biden took office, is scheduled to take place today. Matters discussed will mostly be around Taiwan and China's recent economic / regulatory actions. Other matters like pullback of US tariffs or China's human rights record are reportedly off the table. The meeting comes at a crucial time for both leaders, Xi is fresh off the party plenum last week that all but confirmed a life term for him as President and he cannot appear weak by providing too many concessions. Biden is struggling to pass his USD 1.75 tn budget bill at home and will be looking to score points politically.

Speaking of the budget bill, Yellen and White House economic adviser Brian Deese made the rounds on the Sunday talk shows touting the benefits of the bill with regards to inflation. With price rises becoming the latest hot topic politically, they attempted to position a reduction in childcare, healthcare and housing costs as positive for the economy by reducing inflation. The Dems are hoping they can come to an agreement by the end of the week and pass the bill through the House as pressure builds on them politically ahead of the mid terms next year.

The COP26 summit in Glasgow ended on the weekend in bittersweet fashion as India and China watered the down their commitment to reduction in coal fired power plants by altering language from 'phasing out' coal power to 'phasing down' instead. There was some positives as a broad emissions trading scheme was agreed and global temperature increase, could in theory, be limited to 1.5%. We're setting up for a tough morning in Asia as Q3 GDP growth in Japan turned negative, hit by Covid measures and a decline in business spending. Retail Sales and Industrial Production data out of China were in line with expectations but put the V shape recovery narrative here at risk.”

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