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.
2017-11-13 07:42:00 Monday ET

Top 2 wealthiest men Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion with students at the University of Washin
2023-05-31 03:15:40 Wednesday ET

The U.S. further derisks and decouples from China. Why does the U.S. seek to further economically decouple from China? In recent times, th
2023-09-14 09:28:00 Thursday ET

Colin Camerer, George Loewenstein, and Matthew Rabin assess the recent advances in the behavioral economic science. Colin Camerer, George Loewenstei
2019-09-23 12:25:00 Monday ET

Volcker, Greenspan, Bernanke, and Yellen contribute to a Wall Street Journal op-ed on monetary policy independence. These former Federal Reserve chiefs unit
2018-10-13 10:44:00 Saturday ET

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
2017-02-13 09:35:00 Monday ET

JPMorgan Chase CEO Jamie Dimon says President Trump has now awaken the *animal spirits* in the U.S. stock market. The key phrase, animal spirits, is the