2019-09-15 14:35:00 Sun ET
technology antitrust exchange rate competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
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.
2019-11-19 09:33:00 Tuesday ET

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth. Despite a sharp slowdown in U.S. services and utilities
2018-12-09 08:44:00 Sunday ET

President Trump meets with Chinese President Xi again at the G20 summit in the city of Buenos Aires, Argentina, in late-November 2018. President Donald Trum
2019-08-02 17:39:00 Friday ET

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment. Stanford finance professor John Cochrane disa
2020-05-07 08:26:00 Thursday ET

Disruptive innovators often apply their 5 major pragmatic skills in new blue-ocean niche discovery and market share dominance. Jeff Dyer, Hal Gregersen,
2017-10-03 18:39:00 Tuesday ET

President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's
2017-05-07 06:39:00 Sunday ET

While the original five-factor asset pricing model arises from a quasi-lifetime of top empirical research by Nobel Laureate Eugene Fama and his long-time co