Displaying items by tag: trade war

Tuesday, 05 November 2019 13:20

US Considers Dropping Tariffs

(New York)

In what comes as a very encouraging sign in the trade war, Washington is considering dropping some tariffs on Beijing as part of an effort to close a deal with China. The Trump administration is reportedly debating whether to drop $112 bn worth of tariffs. That said, the White House would be expecting something in return. The potential cut in tariffs follows the cancellation of a new $250 bn+ tariff package.


FINSUM: Both sides making concessions is the key to a solid deal. We find this encouraging.

Published in Politics
Thursday, 31 October 2019 12:22

China Doubts US Trade Deal Possible

(Beijing)

Investors have been jolly lately about the progress made in the trade war. Ever since Trump’s announcement of a “phase 1” deal a few weeks ago, trade war concern has been diminishing, with markets rising accordingly. However, there was a reality check today as China made worrying comments, saying that they don’t think any long-term/substantial deal would be possible with Trump, and that they are even worried about him backing out of a simple short-term deal because of his “impulsive nature” (from Bloomberg).


FINSUM: Talk about throwing cold water on something. That said, none of these comments—positive or negative—mean too much. What ends up on paper matters more.

Published in Eq: China
Thursday, 31 October 2019 12:21

Fed Pauses Rate Cuts

(Washington)

The Fed finally paused. Investors were worried about it, but it happened as many expected. The Fed decided to lower rates another 25 bp yesterday, but said that for the time being, it would stop worrying about the possible trade war. Analysts interpret Powell’s statements as indicating that the Fed wants to wait to see weakness in the US consumer before undertaking any more rate cuts.


FINSUM: Some are perplexed by this pause because none of the three main things the Fed is worried about have actually improved.

Published in Bonds: Treasuries
Wednesday, 23 October 2019 09:59

Beijing is Getting Rid of Hong Kong’s Leader

(Hong Kong)

Beijing is making a big change at the very top of Hong Kong’s leadership. Xi Jinping is said to be drawing up a plan to replace Hong Kong’s leader Carrie Lam with an interim chief. Beijing has been critical of Lam’s handling of the Hong Kong protests. Lam reportedly already offered to resign, but Beijing made her stay. Evidently, Beijing is now concerned about any timing of the move to replace her as they don’t want to further inflame the situation.


FINSUM: Beijing wants to replace her because of mismanagement, but they do not want to be seen to cave into the violence of protesters. Big pickle.

Published in Politics
Friday, 18 October 2019 09:44

China’s Weak GDP Growth Send Shockwaves

(Beijing)

China’s newest GDP data has just come in and it is shockingly weak. Third quarter GDP growth was the lowest in has been since the early 1990s and appears to show the sting of US tariffs. Growth was just 6%, a major sign of the weakening state of the global economy. That is the same level of growth as in the late 1980s, though China’s economy is now far larger. Those paying attention will know that China’s economy grew at around 7-8% per year since the Crisis.


FINSUM: So this is an admitted 6%. Beijing keeps very tight control of its economic data, so it is not inconceivable that the real number is actually lower.

Published in Eq: Asia
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