Trump: New taxes with China trade

The US President Donald Trump is to impose a new 10 % tariff in China imports. The new taxes, would be imposed beginning September 1st and would include for example smart-phones, laptop computer and children’s clothing.

According to Bloomberg, they will come on top of the 25% duty in place already on some $250 billion in Chinese goods and mean that almost all trade with China will be subject to new taxes.

The US President Donald Trump and the Chinese President Xi Jinping, met last time in Osaka at the end of June. The coming G7 meeting in France, in Biarritz, at the end of August, the 24 to 26 August, might also provide a possibility to continue the locked trade talks.

The Financial markets tumbled to the new tariffs news in Wall Street yesterday and in Asia today. For example the Nikkei-index was trading over 2 % lower and Shanghai-index over 1,7 % lower.

 

 

Business Finance

Trump: US is not accepting Paris Agreement

The US President Donald Trump said that the country is not accepting a global Climate Change standard, which would mean a loss of the country’s production by over 20 %. He commented the Climate Change issues in the press conference in Osaka, Japan today.

According to him, the US air is now the cleanest it has ever been and he thinks that countries that have accepted the climate standard (the Paris Agreement) will loose their power with manufacturing.

Trump mentioned also that he does not like the subsidies related to the renewable wind power the US has at the moment.

– I do not like it, he said.

President Donald Trump did not signed the climate change communique of the G20 nations in Osaka. This so-called 19+1 formula on climate change  is similar to the Argentina meeting last year.  This means that the other countries are fully committed to the implementation of the Paris Agreement.

Business Finance

Stocks closed down in NY- US data and trade tariffs

The US equities closed down today due to weak consumer confidence data and the trade tariffs between the US and China. The US and China leaders are meeting this week in G20 meeting in Japan and the information from the Federal Reserve has been that the tariffs can increase the risk of slower growth globally if there is no more confidence in the markets.

Dow Jones closed down 0,67 % to 26 549 points, S&P 500 index down 0,95 % to 2917 points and Nasdaq down 1,51 % to 7884 points. In Europe the FTSE 100 -index closed up 0,08 % to 7422 points, while the equities on the continent were down. In Germany the DAX closed down 0,38 % to 12 228 points and in France the CAC 40 down 0,13 points to 5514 points.

The US consumer confidence and new home sales were both below markets expectations. On the other hand on the M&A side, the deal volumes and values have been record high, according to Bloomberg data. On Tuesday, AbbVie said it would buy Allergan company, the Botox maker, for 63 billion dollars.

The G20 meeting on Friday and Saturday in Osaka, Japan will give more information while the US President Donald Trump and the Chinese President Xi Jinping will have their discussions then. According to Bloomberg, the US officials have signalled that the trade deal is unlikely to happen.

The US markets have been pricing a 50 basis points rate cut for the next Federal Reserve meeting in July, but according to St.Lous Fed President James Bullard such a rate cut would be too much. He commented the situation in a Bloomberg interview.

The central bankers have been discussing about the cryptocurrencies and Facebook´s new Libra coin in the central banks meeting in Switzerland today. The question of financial stability, consumer and regulatory standpoint are the major issues for the tech company and some believe Libra is not going to be a Bitcoin.

According to Reuters, the Facebook other issues related to privacy concerns and hate speeches have been the major topics and central bankers are requiring more information from Facebook in order to proceed with the new currency. The Britain’s Financial Conduct Authority (FCA) also commented the issue today with the same tone of voice.

In London, the discussions about the Brexit deal and the new Prime Minister have continued. Boris Johnson or Jeremy Hunt will be the next Prime Minister for the UK and the new leader will be announced on the 23rd of July. The deadline, October 31st will be soon, while the UK Parliament is starting their summer holidays on July 25 and the MPs will return on the September 3rd.

The euro was trading slightly up 0,01 % to 1,1368 dollars and the sterling up 0,06 % to 1,2696 dollars.

In Asia, the stocks were also down, the Shanghai All ended down 0,87 % to 2982 points, the Hang Seng in Hong Kong down 1,15 % to 28185 points and the Nikkei-index in Japan down 0,43 % to 21 193 points.

 

 

 

 

 

 

Business Finance

Trump and Xi to have extended meeting in G20

The US President Donald Trump said today that he and the Chinese President Xi Jinping will have extended meeting during the G-20 meeting in Osaka, Japan next week.

Mr Trump tweeted that he had a “very good” phone conversation with Mr Jinping today and he confirmed that the trade negotiations teams will begin talks prior the meeting.

The meeting will take place in Osaka, where the G-20 leaders will gather on June 28-29. According to the Japan Prime Minister Shinzo Abe the meeting in Osaka, Japan is determined to lead global economic growth by promoting free trade and innovation, achieving both economic growth and reduction of disparities, and contributing to the development agenda and other global issues with the Sustainable Development Goals (SDGs) at its core. Through these efforts, Japan seeks to realize and promote a free and open, inclusive and sustainable, “human-centered future society.”

 

 

 

 

 

 

 

 

 

Business Finance

Trump and Xi to meet in Japan in June

The US President Donald Trump and his Chinese colleague President Xi Jinping are meeting in Japan in the G20 meeting in June. According to Reuters, the White House economic adviser Larry Kudlow confirmed the meeting on Fox News Sunday.

The trade situation with the both countries have been stable after the news that the US raised the tariffs on Friday and threatened to put tariffs on all goods from China if there is no deal. The new deadline is agreed to be one month long according to Bloomberg News.

The G20 meeting will be held in for the first time in Japan. The G20 leaders will meet on the 28th and 29th of June in Osaka.Also the Finance Ministers and Central Banks Governors meeting and the Foreign Ministers’ meeting will also be at the same time in Japan, but in different locations.

Business Finance