British govt report suggests US is currently winning trade war with China

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China has already declared its intent to retaliate against US President Donald Trump’s new tariffs on $200 billion in Chinese imports, a move set to raise prices on consumer goods for both countries.

Several analysts have demonstrated how Trump’s tariffs will blowback on the US economy. Moody’s Investment Service previously warned that the tariffs would reduce US GDP by 0.25 percent in 2019, to about 2.3 percent. The American economy could take an even bigger hit if Trump proceeds with tariffs on $200 bn worth of Chinese products, Moody’s warned. Continue reading

The Art of the Deal Vs. The Art of War

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At the risk of beating a dead horse on the topic of trade wars, the sequence of unfolding events is making me cautious near term.

Let me explain why.

First, for all those market pundits, analysts and investors who are following the twists and turns of this trade tiff using Trump’s Art of the Deal as their playbook…

I have a better read for you. Pick up a copy of Sun Tzu’s, The Art of War instead! Continue reading

G-20 Wrestles Currency Tension as Zhou Says Bubble Has Burst

Zhou Xiaochuan, governor of China’s central bank, told a meeting of Group of 20 finance ministers in Ankara that a stock-market bubble in his country had “burst,” according to Japan’s Taro Aso. Another official present at the talks said China had presented the country’s situation as a new normal.

China is on the defensive as its slowing economy and market turbulence send shock waves through emerging markets just as the U.S. is preparing to raise interest rates. With the MSCI emerging market index down 18 percent so far this year, a draft communique prepared before the meeting cited “recent volatility in financial markets” and the need to monitor potential spillovers.

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Global stocks in ‘panic mode’ as Chinese factory slump drags on markets

Global markets are hemorrhaging. How many more band-aids can be put on a wound that is somehow only delaying the death of the patient?

 

Britain’s leading share index fell to 6,286 points on Friday morning immediately after opening, a decline of 1.26%.
The drop mirrored stock markets across Asia-Pacific after they went into “panic mode” when further signs of a weakening Chinese economy compounded overnight losses on Wall Street and European bourses.

China’s factory sector shrank at its fastest pace in more than six years in August as domestic and export demand dwindled, a private survey showed, adding to worries that the world’s second-largest economy may be slowing sharply and sending financial markets into a tailspin.

China’s surprise devaluation of the yuan and heavy selling in its stock markets in recent weeks have sparked fears that it could be at risk of a hard landing, which would hammer world growth. Continue reading

Chinese Stocks Continue to Collapse as World Economy Prepares for Nosedive

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Asian shares have retreated. Even the Nikkei has fallen back to two-year lows, following Chinese shares as they further their sharp correction plunge, dropping so far as 2.8%. There are fears of a continuing economic decline in the Chinese economy. The Shanghai Composite Index (SSEC) has fallen another 2.8% after Tuesday’s 6% drop. Continue reading

China stocks plunge over 3% by break on Wednesday

The benchmark Shanghai Composite Index plunged 3.12% to close at 3,631.4 points. Continue reading

New China stock market plunge prompts global jitters

Another day, another slide. The CCP is running out of tricks in its bag and the endgame for the global financial system is almost near. As a previous article had stated, after China loses control, there’s no one else left to prop up the global economy and all will come down like a ton of bricks.

 

Devaluation of yuan and Beijing’s moves to halt shares sell-off fails to prevent biggest one-day fall in three weeks for Shanghai Composite Index

China’s Shanghai Composite Index plunged more than 6% in its biggest drop in three weeks, amid fears that the recent change in exchange rate policy may accelerate flows of capital out of China. Continue reading

China’s stock-market collapse is not over yet

The collapse in China’s stock market is far from over despite the Shanghai Composite Index having fallen nearly 30% in about a month and experts are urging investors to bail out while there is time.

“We continue to advise investors to consider not holding individual positions in Chinese stocks but advocate for fully diversified exposure to emerging-market equities,” Peter Donisanu global research analyst at Wells Fargo Investment Institute said in a report to investors. Continue reading

China’s Stocks Plunge as State Intervention Fails to Stop Rout

China’s benchmark stock index fell to a three-month low on concern a raft of measures to stabilize equities is failing to stop the bear-market rout as traders unwind margin bets at a record pace.

The Shanghai Composite Index slid 3.6 percent to 3,592.35 at 1:04 p.m., after plunging as much as 8.2 percent, the most since 2007. Power, health-care and consumer companies led declines, as only 46 stocks among the 1,106 that trade in Shanghai rose. PetroChina Co. and Industrial & Commercial Bank of China Ltd., the two biggest stocks, lost more than 2 percent.

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Bank of America warns of ‘lethal’ damage to China’s financial system as deflation deepens

‘Deflation, Devaluation, and Default’ loom in China this year. The denouement for Shanghai’s bourse will not be pretty, says the US bank.

China is at mounting risk of a financial crisis this year as growth sputters and deflationary pressures trigger a wave of defaults, Bank of America has warned.

The US lender told clients that a confluence of forces are coming together that threaten to chill the speculative mania on the Shanghai stock exchange and to expose the underlying fragility of China’s $26 trillion edifice of debt.

“A credit crunch is highly probable,” said the bank in a report entitled “Deflation, Devaluation, and Default”, written by David Cui and Tracy Tian.

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