Trade and banking matters hit China

The Chinese economy is one of the two giant economies in the global market. We have got used to relying on China to produce growth of more than 6%, and to supply a wide range of manufactured items at attractive prices. The combined effects of a huge expansion of Chinese manufacturing capacity, and the digital … Continue reading “Trade and banking matters hit China”

How much damage will the trade war do?

Trade wars are not good news. Mr Trump’s imposition of tariffs on another $200bn of Chinese exports helped drag eastern markets down ahead of the event. Forecasters and pundits fear that the tariffs will curb exports and activity in Chinese factories, push up the price level a little in the US and adversely affect the … Continue reading “How much damage will the trade war do?”

Is the trade war really all about the mid-term elections?

US President Donald Trump’s trade war could damage the global economy, but is he just playing politics? Steve Mnuchin did not hold any formal meetings with China at this weekend’s meeting of G20 finance ministers in Buenos Aires. This is despite the US Treasury Secretary indicating recently in Congress that he was prepared to reopen … Continue reading “Is the trade war really all about the mid-term elections?”

Why is this such a worried bull market?

Normally bull markets are full of people who are optimistic. They radiate enthusiasm for economies and shares. They hunt down markets or individual stocks that look cheap compared to the rest and recommend them. They recommend simply buying the global or local market to join in a general uplift in shares they expect. Eventually you … Continue reading “Why is this such a worried bull market?”

Trade War: A game of strategy

Donald, who? In early 2016, Parmenion used the incoming US President, Donald Trump as the theme for our regional roadshows. Who was he and what were his plans? We talked about The Wall, his infrastructure plans, tax cutting ideas and the promised support for the military. We didn’t foresee the Russian investigation, high White House staff … Continue reading “Trade War: A game of strategy”

Investors are hoping Trump is playing tactics

When equity markets were hitting new highs Donald Trump was taking all the credit. “The reason our stock market is so successful is because of me,” the President declared to journalists aboard Air Force One. But the problem with this attitude, as noted by Barack Obama’s former press secretary Jay Carney, is that if you … Continue reading “Investors are hoping Trump is playing tactics”

Can China get along with President Trump?

When President Trump met President Xi we were told the meeting went well. The two men recognised the power each held, and both had a reason to want a positive relationship. Mr Trump understood the influence China has over North Korea, and wanted help with sorting out the tensions over North Korea’s development of nuclear … Continue reading “Can China get along with President Trump?”

War of Words

Global stockmarkets suffered another month of losses in March, with investors becoming unnerved by the potential fallout of an impending trade war. This has been instigated by President Trump expressing an intention to impose tariffs across a wide range of imports, with China the prime target. Given there tends to be no winners in a … Continue reading “War of Words”

America First – At what cost?

Just as economies around the world show signs of growing in sync (which is rare) Donald Trump has announced tariffs on imported steel and aluminium. Stock markets reacted badly to the news, on fears of a possible trade war. After taking rising interest rates and stock market volatility in their stride, the threat of protectionism … Continue reading “America First – At what cost?”

Bad news and good news for markets

Woes have come together in recent days for share markets. As if Mr Trump’s threats of a trade war were not enough, the President has now joined with others in criticising the business model and tax charges of some leading tech companies. After months of leadership by Nasdaq we saw the tech index falling as … Continue reading “Bad news and good news for markets”