So apparently those soya beans and interest cuts did not do the trick.
Dow drops 280 points, giving up big earlier gain after Trump says US adding more tariffs on China
https://finance.yahoo.com/news/1-tru...183638827.html
Latest news from Trump about imposing more tariffs not gone down well in the markets. Oil price has fallen dramatically, down 7%, Yen has risen sharply. I guess the stock markets in Asia will tumble today.
Just as I predicted, the trade war is not going to end anytime soon. I don't forsee any kind of agreement until after the election. China is not going to budge. Neither will the US.
At this point, I have growing suspicions that neither Trump or Xi is interested in a deal. China hawks want to decouple China's economy from the US. They may get their wish, as the trade war has made Beijing realized it's vulnerability in reliance on the American market. This may even backfire in the long-run when Beijing is no longer as exposed to Washington's economic pressure.
China though will find it increasingly hard to get access to the latest technology and innovation as they are cut-off from the US market. They may get around this eventually, but it will pose a challenge and obstacle to Beijing in any case.
Bottom line, any investor betting on a deal before the election next year is a fool.
Last edited by Coolboy; 02-08-2019 at 12:35 PM.
I feel ( my gut feeling) that it wont be just China, that gets slapped hard with tariffs...I think this is only the beginning, as the US start slapping tariffs on other Asian countries as well.
https://www.asiatimes.com/2019/07/ar...arget-vietnam/
Me thinks the UK potentially has bigger problems than India, China and all the other countries put together.
China / India etc can take the hits. I'm not sure the UK can. Are they not actively negotiating a deal right now, given that they have like 90 days to do this?