US to delay some tariffs with China – stocks up

The US Trade Administration has delayed some tariffs with China. Tariffs, which were about to come into force in September, are now delayed until mid December. The goods, valued at 300 billion dollars, are related to some electronics, toys and clothings.

The US financial markets jumped after the news and Dow Jones -index is trading up 1,6 % and Nasdaq nearly 1,9 % up. The larger S&P 500- index is also trading up, 1,5 % and the Brent oil future is having over 5 % increase. Euro is trading at 1,12 dollars.

Business Finance

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

Stocks mixed in NY before G20 Osaka

The US equities closed mixed today in New York ahead of the G20 meeting in Osaka, Japan on Saturday. The US President said he would use the “Plan B” if the US and China cannot proceed with the trade issues during the weekend. He said the new tariffs would be closer to 10 % rather than 25 %.

Dow Jones closed down 0,04 % to 26 536 points, S&P 500 index closed down 0,12 % to 2913 points, but Nasdaq ended up 0,32 % to 7909 points.

In the tech-stocks the ride-hailing company Uber (UBER) ended down 1,37 % to 42,45 dollars, showing the market capital of 72 billion dollars. The rival Lyft (LYFT) ended also down 1,67 % to 62,82 dollars with the market cap of 18,3 billion dollars. The latest IPO tech company, Slack Technologies rose 4,96 % to 32,37 dollars (16,4 billion market cap). Cryptocurrency Bitcoin reached above 13 000 dollars.

One of the hottest issues during the G20 leaders summit will be foreign exchange rates. Mr Trump has said that the US dollar is too strong compared to euro and Chinese yuan and thus taking competitive edge from the US companies. The G20 finance ministers and central bankers have already made their commitments from competitive devaluation, according to Bloomberg. In the markets, the Federal Reserve rate cut is expected to happen in July meeting.

The important meeting with President Donald Trump and the Chinese President Xi Jinping will be on Saturday. Mr Trump will also meeting for example the Russia´s President Vladimir Putin and Turkey´s Erdogan.

In Europe the stocks wee also mixed. In London the FTSE 100 index ended down 0,08 % to 7416 points, while in Germany the DAX index ended up 0,14 % to 12 245 points. In France the stocks declined by 0,25 % to 5500 points. The German 10 year government bond yield dropped to record low to -0,31 %.

The debate about Brexit continued and Boris Johnson, the PM and Conservative leader candidate, said that he does not expect no-deal departure on October.

The sterling was trading down 0,03 % to 1,2685 dollars, while euro was trading down 0,01 % to 1,1366 dollars. Dollar was up 0,54 % to 107,78 Japanese yen.

In Asia the stocks were also mixed. In Shanghai the stocks closed down 0,19 % to 3117 points, while in Hong Kong the Hang Seng index closed up 0,13 % to 28 221 points. In Japan the Nikkei 225 index ended down 0,51 % to 21086 points.

Business Finance

Foxconn ready to move production out of China – good news for iPhones

The electronics manufacturer Foxconn is ready to move productions out of China for the US markets, if needed. The company spokesman made the comments about the situation related to the US China trade disputes and the iPhones manufacturing situation in China.

Foxconn is the leading manufacturer partner of iPhones for Apple (AAPL)  and according to the company 25 % of the total capacity is now outside China.

Apple shares closed  up 1,16 % to 194,69 dollars in New York on Tuesday. The market cap for the company is now 896 billion dollars.

Business Finance Tech

Stocks down in NY due to new trade tariffs

The US stock markets closed down today due to the US China trade dispute. Mr President Donald Trump said in the CNBC interview that he is preparing to have new tariffs for 300 billion dollars for goods if the Chinese President Xi Jinping is not meeting in the G20 meeting in Osaka, Japan in late June. This would mean that Chinese goods would get new tariffs to the current 250 billion dollars of goods.

Dow Jones index closed down 0,05 % to 26048,51 points, the S&P 500 index closed down 0,03 % to 2885,72 points and Nasdaq ended down 0,01% to 7822,56 points.

In the forex markets, the euro was trading up 0,02 % to 1,13 dollars, while the sterling was down 0,05 % 1,2719 dollars. President Donald Trump´s comments about the interest rates and the Fed´s too tight monetary policy was noticed in the markets during the day. According to Trump, the euro is undervalued about 20 %.

In the tech-side some of the largest US states are trying to stop the megadeal between T-Mobile and Sprint. They warn that the mobile carrier merger would lead to higher consumer prices.

In London the FTSE 100 -index closed up 0,31 % to 7398 points and in Germany the Dax-index was also up, +0,92 % to 12155,81 points. In France, the CAC 40 index closed up 0,48 % to 5408,45 points.

In the Brexit situation, the EU is saying that there will be no new agreement between the parties. According to Sunday Times, the PM candidate Boris Johnson has said that UK should not pay 39 billion pounds settlement if they there is no new deal.

The new UK Prime Minister and the new Conservative Party leaders is announced on July 22. There are 10 candidates for this position. Between 19th-20th July MPs take part in ballots until only 2 candidates remain.

Business Finance Tech

Asian stocks mixed – trade disputes continued (corrected)

Asian stocks were mixed on Thursday trading. The Japanese, South Korean and Chinese markets were open, while the Nordic markets were closed.  (Corrected the trading hours in Europe and in the US).

The Nikkei index 225 were trading 0,49%  % to 20 900 points while the HangSeng index in Hong Kong was trading down 0,50% to 27100 points, Shanghai A was down 0,96 % to 3023 points and the Kospi index was up 0,53 % to 2034 points in South Korea.

The main concern for the markets were the US China trade was and the new elements in the discussion. According the news agencies China has said that it will consider the rare earth elements in the trade war. These metals are used in  consumer goods and electronics. According to Reuters, China accounted for 81 % of the world rare earth production by the US Geological Survey.

In the fixed income markets, the US 10-year Treasury note yield traded yesterday at 2,26%, while the Treasury 3 month Treasury Bill 2,36 %. This yield curve inversion suggested that the economy is heading to a lower growth period. This has increased the worries of the economy situation and the trade war impact in general.

Company side for example the Chinese Alibaba, listed in New York, said that it will consider a 20 billion dollars secondary listing in Hong Kong due to the uncertain trade dispute.

The US dollar was trading slightly up and was up 0,10 % to 109,70 yens. The UK pound was nearly flat, up 0,05 % to 1,2632 dollars. The euro was unchanged at 1,113 dollars.


Business Finance

US to make 16 billion dollars aid to farmers- WSJ

The US Government has rolled out a 16 billion dollars aid package for the US agriculture sector to offset the losses from the trade conflict with China. According to Wall Street Journal the commodity prices have sank to the lowest level in more than 10 years while the expectation is that the trade conflict will hinder the agritrade between the countries.

According to WSJ this program is similar to the aid initiative in 2018 which was about 12 billion dollars founding for farmers. This initiative is about direct aid to farmers.

The S&P GSCI Agricultural Commodities index was trading today up 0,06 % to 274,30 points. During one year time the index has dropped by 18,59 % and 5-years time by 13,40 %.

Soybeans are the biggest product crop to be exported to China. Before the conflict the US shipped 10 billion – 12 billion dollars of soybeans to China a year, writes the WSJ.

Business Finance