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

A physicist derives a mathematical formula for success.

Chanel Holden

2019-03-07 12:39:00 Thursday ET

A physicist derives a mathematical formula for success.

A physicist derives a mathematical formula that success equates the product of both personal quality and the potential value of a random idea. As a Northeas

+See More

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall.

Amy Hamilton

2019-01-19 12:38:00 Saturday ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall.

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his

+See More

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.

Chanel Holden

2018-03-21 06:32:00 Wednesday ET

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference. The Federal Reserve raises

+See More

China, Russia, France, Germany, and Japan may dethrone the petrodollar.

Jacob Miramar

2018-07-01 08:34:00 Sunday ET

China, Russia, France, Germany, and Japan may dethrone the petrodollar.

Are China and Russia etc gonna dethrone the petrodollar? Over the years, China, Russia, France, Germany, and Japan have made numerous attempts to use their

+See More

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations.

Dan Rochefort

2023-03-28 11:30:00 Tuesday ET

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations.

The Federal Reserve System conducts monetary policy decisions, interest rate adjustments, and inter-bank payment operations. Peter Conti-Brown (2017)

+See More

Stock market misvaluation and corporate investment payout

John Fourier

2022-11-15 10:30:00 Tuesday ET

Stock market misvaluation and corporate investment payout

Stock market misvaluation and corporate investment payout The behavioral catering theory suggests that stock market misvaluation can have a first-order

+See More