U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution.

Becky Berkman

2019-09-15 14:35:00 Sun ET

U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution. The U.S. Treasury classification of China as a new currency manipulator suggests that this classification represents another escalation of the current Sino-U.S. trade conflict. The next currency battle may turn out to be relentless in the current game of competitive depreciation. This escalation spooks global financial markets and therefore wipes 3.5% from all major U.S. stock market indices such as S&P 500, Dow Jones, Nasdaq, and MSCI USA. French, German, and other European stock market indices decline by 2.5%-3%.

China allows its renminbi currency to tumble to the psychologically vital 7-yuan per U.S. dollar (or the lowest level in 11 years). This depreciation may give China an unfair competitive advantage against America in the current game of chicken in tech, trade, and currency. However, the recent renminbi currency misalignment may or may not help increase Chinese exports due to global interest rate surprises and competitive prices outside East Asia. Federal Reserve interest rate cuts may inadvertently give American politicians the vague impression that monetary policy can help repair the damage of trade policy mistakes. When push comes to shove, the law of inadvertent consequences counsel caution.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

Apple Boston

2018-05-25 07:30:00 Friday ET

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America. This new round of tariffs

+See More

President Trump hails and touts America's new high real GDP economic growth in mid-2018.

Daisy Harvey

2018-07-25 11:41:00 Wednesday ET

President Trump hails and touts America's new high real GDP economic growth in mid-2018.

President Trump hails and touts America's new high real GDP economic growth in 2018Q2. The U.S. is now a $20+ trillion economy, and America hits this mi

+See More

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power.

Peter Prince

2019-08-18 11:33:00 Sunday ET

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power.

House Judiciary Committee summons senior executive reps of the tech titans to assess online platforms and their market power. These companies are Facebook,

+See More

From crony capitalism to state capitalism, what economic policy lessons can we learn from Putin's reign in Russia?

Jonah Whanau

2018-03-13 07:34:00 Tuesday ET

From crony capitalism to state capitalism, what economic policy lessons can we learn from Putin's reign in Russia?

From crony capitalism to state capitalism, what economic policy lessons can we learn from President Putin's current reign in Russia? In the 15 years of

+See More

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Becky Berkman

2018-10-13 10:44:00 Saturday ET

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O

+See More

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company.

Jonah Whanau

2019-06-01 10:33:00 Saturday ET

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company.

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company. HuaWei can

+See More