2018-10-25 10:36:00 Thu ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
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.
2017-03-27 06:33:00 Monday ET
Goldman Sachs chief economist Jan Hatzius says the Federal Reserve's QE exit strategy makes sense ahead of Fed Chair Janet Yellen's stepdown in 2018
2022-10-15 09:34:00 Saturday ET
Internal capital markets and financial constraints Duchin (JF 2010) empirically finds that multidivisional firms with robust internal capital markets ret
2018-06-02 09:35:00 Saturday ET
The finance ministers of Britain, Canada, France, Germany, Italy, and Japan team up against U.S. President Donald Trump and Treasury Secretary Steven Mnuchi
2018-05-04 06:29:00 Friday ET
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the telecom merger proposal between Sprint and T-Mobile a
2017-05-31 06:36:00 Wednesday ET
The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since
2017-09-25 09:42:00 Monday ET
President Trump has allowed most JFK files to be released to the general public. This batch of documents reveals many details of the assassination of Presid