In the United States, Donald Trump's struggle with Internet companies continues. The US could also impose new sanctions on China, which in turn has passed a new national security law in Hong Kong. Meanwhile, Poland has seen an unexpected cut in interest rates.
President Donald Trump said he would introduce laws that could abolish or weaken the law protecting online businesses, including Twitter and Facebook.
The attack on section 230?
This is an extraordinary attempt to regulate the social media platforms where he was criticized. The proposed legislation is part of the Trump Order signed on Thursday afternoon. The U.S. President wants to remove or amend a provision of the law called Section 230. It protects social media from liability for content posted by its users.
Donald Trump said that U.S. Attorney General William Barr will begin drafting legislation immediately to regulate social media companies. As a consequence, the rise in Nasdaq 100 may stop, as we have seen for days now.
An interest rate cut, weaker PLN?
The Monetary Policy Council has once again reduced interest rates in Poland. The reference rate dropped to 0.1%. Why? In a statement to the MPC's decision, it was written that the main argument is the fear of inflation falling or even the threat of deflation in Poland.
However, earlier, when inflation was approaching 5%, the MPC did not pay attention to it. Now, as we may see, it has changed its approach. An unexpected reduction of interest rates may in turn hamper the strengthening of the zloty, which we have seen in recent days. The EUR/PLN exchange rate rose from 4.40 to 4.45.
When the tension increases, the appetite for risk would drop.
Today's speech by US President Donald Trump may prove important for world markets, exchanges, and oil prices. Everyone will be watching the expected announcement of the new policy towards China, and the growing tensions between the two powers, which are currently centred around Hong Kong, continue to reduce the appetite for risk, Bloomberg said. Stock exchange indices in Asia have fallen in line with oil prices.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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