Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc.

James Campbell

2018-10-25 10:36:00 Thu ET

Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc. U.S. corporate profit growth remains high at 22% as of October 2018, but fewer S&P 500 companies manage to beat stock analyst estimates of both bottom-lines and sales. This lackluster stock performance erodes investor sentiment and thus contributes to the recent sharp sell-off in equities.  The negative ripple effects and externalities spread to East Asian and European stock markets.

On the quiet western front, President Trump remains rather bellicose toward China, whereas, the Chinese trade delegates, diplomats, and negotiators etc become less belligerent and less truculent in the Sino-U.S. trade standoff. In the meantime, the Federal Reserve continues the current neutral interest rate hike to contain inflation and wage growth in America. Key greenback appreciation arises as a result of this current interest rate hike. As a consequence, U.S. dollar appreciation exacerbates the bilateral trade deficit between America and China.

In this light, the Trump administration may or may not be able to effectively curb the current bilateral trade deficit with China. The Federal Reserve monetary policy reaction can lead to U.S. dollar appreciation that inevitably weakens the impact of Trump tariffs on Chinese imports.

 


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

Bridgewater hedge fund founder Ray Dalio suggests that the current state of U.S. capitalism poses an existential threat for many Americans.

Daphne Basel

2019-04-25 09:35:00 Thursday ET

Bridgewater hedge fund founder Ray Dalio suggests that the current state of U.S. capitalism poses an existential threat for many Americans.

Bridgewater hedge fund founder Ray Dalio suggests that the current state of U.S. capitalism poses an existential threat for many Americans. Dalio deems the

+See More

Pinterest files a $12 billion IPO due in mid-2019.

Laura Hermes

2019-03-09 12:43:00 Saturday ET

Pinterest files a $12 billion IPO due in mid-2019.

Pinterest files a $12 billion IPO due in mid-2019. This tech unicorn allows users to pin-and-browse images through its social media app and website. Pintere

+See More

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

Monica McNeil

2018-05-11 09:37:00 Friday ET

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2

+See More

Capital market liberalization and globalization connect global financial markets to allow an ocean of money to flow through them.

Becky Berkman

2018-06-17 10:35:00 Sunday ET

Capital market liberalization and globalization connect global financial markets to allow an ocean of money to flow through them.

In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th

+See More

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession.

Dan Rochefort

2019-09-19 15:30:00 Thursday ET

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession.

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession. Treasury yield curve inversion helps predict each of the U.S.

+See More

Most major economies grow with great synchronicity several years after the global financial crisis.

John Fourier

2018-01-19 11:32:00 Friday ET

Most major economies grow with great synchronicity several years after the global financial crisis.

Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,

+See More