Issue 75 | July 22, 2016
Demand for perishables is growing rapidly in China 
 
China's continued economic growth and urbanization has created a need for an improved cold supply chain. Although growth is slowing, China's economy is still expected to grow by six to seven percent annually. Research indicates that this growth will be reflected in a rising upper middle class. Trends in consumer needs will follow this growing middle class, meaning an increase in demand for perishable options, such as fruits and vegetables. This increasing demand leads many to believe that China is an untapped market for perishables. In order to tap into this market and meet the changing consumer needs, China must consider major investments in food transportation and safety. Read more.
 
Brexit clouds TTIP negotiations, but may not scupper deal 
 
Britain's decision to leave the European Union will complicate negotiations of the proposed United States-European Union free trade deal, the Transatlantic Trade and Investment Partnership (TTIP). TTIP talks will be delayed as E.U. officials focus their attention on mending United Kingdom-European Union relationships. In addition, the tumultuous U.K.-E.U. relationship foreshadows instability for the E.U. market; the U.S. may withhold its best offers during TTIP negotiations if it is not able to assess how valuable access to the E.U. market is. Despite these complications, both U.S. and E.U. officials are committed to advancing the trade deal. Although the British decision to leave the E.U. will delay its conclusion by at least two years, the case for TTIP is likely to survive. Read more.
 
TTIP negotiators reiterate 2016 goal, while noting market access gaps 
 
Leaders of TTIP trade talks reiterated their intention of meeting their 2016 target, adding that pressure to achieve their goals is still present. Responding to questions on the current status of TTIP, officials confirmed that the deal will have approximately 30 chapters, with negotiators working off of "consolidated texts" to expedite the process. Officials qualified this statement by insisting that meeting their 2016 target will not come at the expense of substance, especially considering the use of consolidated chapters. Trade talks have been divided into three overarching areas: market access, regulatory cooperation and rules on certain trade topics. Following this structure, TTIP leaders will purposely negotiate the remaining sections of the deal while keeping in mind their proposed 2016 target. Read more.
 
Putin mind-melds with Elon Musk as Russia funds Hyperloop dream 
 
Since its debut in 2013, Elon Musk's revolutionary mode of transportation has sparked the interest of Russian investors. The trademarked Hyperloop is proposed to be a network of levitating pods that travel through tubes at lightning speed. U.S. startup Hyperloop One, which has pledged to realize Musk's vision of transportation, has partnered with Russian sponsors and design firms. Hyperloop One has even received a pledge of support from Vladimir Putin, who is eager to transform Russian transportation with this technology. Russia has turned to China to help fund its Hyperloop, a partnership that will connect Asia and Europe and vastly improve cargo transport for Russia.  Read more.
 
May draws line under Cameron Era as Johnson named to Brexit team 
 
U.K. Prime Minister Theresa May has announced her team that will continue negotiations on Britain's exit from the European Union. May is determined to shape a "bold new positive role" for Britain abroad and less "burning injustice" at home. Selecting a capable team is of utmost importance to May, who is coming into office at a turbulent time, just three weeks after the E.U. referendum. Along with Brexit, May is tasked with managing a predicted recession. The impending Brexit has already created ripple effects through markets and global economies; in just three weeks, the pound has fallen 11 percent. With a fresh perspective that previous Prime Minister Cameron could not offer, May hopes to help Britain gracefully emerge from its current state. Read more
 
Yuan near six-year low as sliding imports add to economy concern 
 
China's yuan traded at the weakest level in six years as a dive in imports revealed a declining demand in an economy growing at its slowest pace since 2009. The Chinese inbound shipments shrank more than estimated in last month while exports dropped for a third month. According to the China Foreign Exchange Trade System, the yuan is valued at $6.6878 USD in Shanghai. The U.S. central bank has been pushing to boost interest rates as the labor market recovers and inflation rises, but the chances of the Fed raising rates in September have dropped to 14 percent, compared to 32 percent before Brexit.  Read more.
 
The Role of Mobile Devices in the Global Economy, Aug. 17
 
Join the Council to hear from Jeffrey Cleveland, principal and chief economist of Payden & Rygel and his associate Siddarth Saravat, as they provide an overview of the impact mobile technology will have in the global economy.
 Register Here.
Compiled by Global Interns Cassie Herminston-Boyd and Mohini Narasimham.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.