Chinese Ministry of Commerce: We will sign the trade deal in Washington next week

[Butifldrm]

 

2019/07/26 21:55

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• Section: Iraq
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Trump calls for changing the status of the Emirates, Qatar and Kuwait to prevent them from harvesting "unfair benefits": rich developing "no" countries

BAGHDAD (Reuters) - US President Donald Trump has asked the World Trade Organization to change the status of a group of member states, including the United Arab Emirates, Qatar and Kuwait, threatening unilateral action if it does not happen.

Trump, in a special note issued Friday by the United States representative to the Organization, urged the United States to push for reform for developing countries.

Trump said the reform should aim to prevent "unilaterally declared" developing countries from harvesting "unfair trade benefits" because of WTO rules.

Trump said in a document that a group of members - the UAE, Qatar, Kuwait, Turkey, China, Hong Kong, Brunei, Macau, Singapore, Mexico and South Korea - described themselves as developing, although rich.

The US president vowed that if the WTO did not achieve "substantial progress" in reforming the area within 90 days, it would stop its dealings with those countries as developing countries. He said that the United States would not support any of these countries within the framework of the Organization Economic Cooperation and Development.

"The World Trade Organization (WTO) is going bankrupt while the world's richest countries claim they are developing to circumvent the rules of the organization and get special deals," Trump said in a tweet on Friday. "Enough!"

Trump continued: "Today, the United States Trade Representative was directed to take action to stop the deception of these countries to the regime at the expense of the United States."

Agencies

http://almasalah.com/ar/news/175549/ترامب-يطالب-بتغيير-صفة-الإمارات-وقطر-والكويت-لمنعها-من-حصد-فوائد-غير-عادلة-دول-غنية-لا-نامية

 

 

[yota691]

Washington: Complete trade talks with China in September

 31 July 2019 05:41 PM
Direct: The White House said the recent trade negotiations with China have been fruitful, adding that Washington and Beijing will Acetkmlan talks in September / September next.

China and the United States resumed trade talks in Beijing over two days led by US Treasury Secretary Stephen Menochin and Trade Representative Robert Laitheese with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan and other officials.

The White House said in a statement on Wednesday that the two largest economies in the world discussed such issues as the forced transfer of technology, intellectual property rights and services, as well as non-tariff barriers and agriculture.

The White House said the Chinese side had reiterated its commitment to increase the purchase of agricultural products in the United States.

The White House said the talks were expected to be completed in order to enforce a trade deal in Washington in early September.

 

[yota691]

Trump: Beijing pays tens of millions of dollars to Washington and things are going well

 05 August 2019 12:20 PM
Direct US President Donald Trump said that with China , things are going well in light of Beijing to pay tens of millions of dollars to Washington.

"China is paying us millions of dollars," Trump said in a tweet on the social networking site Twitter on Saturday. "The devaluation of their currency and the injection of huge amounts of cash into their system has made it possible."

"So far, our consumers are paying nothing, there is no inflation, and there is no help from the Fed," Trump said.

Last week, Trump announced the introduction of 10 percent tariffs on imports from China worth $ 300 billion, and plans to start implementing the resolution early next month.

"Our representatives have just returned from China after constructive talks on a future trade deal. We thought we had a deal with China three months ago. Unfortunately, China decided to renegotiate the deal before signing," Trump said, .

 

[yota691]

China asks its companies to suspend the import of agricultural products from Washington

 05 August 2019 01:39 PM
Direct : According to press reports that the Chinese government has asked its owned companies suspend imports of US agricultural products, after Washington 's decision to impose new customs duties.

Chinese government-owned agricultural products have now stopped buying US agricultural goods and are waiting to monitor the development of trade talks, Bloomberg quoted informed sources as saying on Monday.

On Thursday, US President Donald Trump announced a 10 percent tariff on imports from China worth $ 300 billion, starting in September.

The sources told Xinhua that Chinese officials were surprised by President Trump's decision.

Trump's decision came after a US delegation ended his direct visit to China, the first after the decision to resume trade talks.

Trump said: "China agreed to buy agricultural products from the United States in large quantities, but did not do so."

Last week, China announced that its trade negotiators and the United States had discussed the issue of agricultural product purchases during trade talks.

 

[yota691]

A storm in global markets after China's response to Trump's decisions

From: Sally Ismail

Mubasher: The world's two biggest economies have become increasingly volatile amid heightened trade tensions, casting a shadow over financial assets around the world on Monday.

The decline in the value of China's currency has pushed levels at the lowest level in more than a decade investors in the global financial markets to move to safe assets in an effort to hedge the current uncertainty.

The Chinese government has asked its own companies to suspend imports of US agricultural products, according to media reports .

The People's Bank of China (PBOC) allowed average currency trading to drop to 6.9225 yuan per dollar at its weakest level since December 2018.

This caused the USD to surpass the 7-yuan mark for the first time since 2008.

China's retaliation comes against the background of the US threat last week to impose customs duties on Chinese goods worth $ 300 billion as of next month.

Investors have moved away from risky assets such as equities amid growing trade tensions between the two sides despite a truce announced on the sidelines of the Group of 20 summit in June.

Japan's Nikkei <.N225> was down 1.7 percent at the end of the day, its lowest closing in two months.

European stocks fell more than 1 percent on the day, with most sectors within the red range.

By 1045 GMT, the STOXX 600 index was down 1.8 percent at 371.2 points.

Wall Street futures indicate that the Dow Jones index will start trading with losses of 328 points, with a decline of 1.3 and 1.7 percent respectively in the S & P 500 and Nasdaq.

At times of rising trade uncertainty, everyone is turning to safe assets, led by government bonds, and the return on those debts is going down with an inverse relationship between them.

At the same time, the yield on 10-year US Treasury bonds fell to 1.772 percent and Germany's yield on the same term fell to -0.510 percent.

The yield on British government debt, which is repayable after 10 years, also registered the lowest level before easing slightly at 0.515 percent.

Investors are turning to gold as a safe havens , gaining as much as $ 18 in spot trade after reaching its highest level since mid-2013.

At the same time, the price of gold futures for delivery in December rose by about 1 percent or $ 14.70 to $ 1472.20 an ounce.

The spot price of yellow metal increased by more than 1.2 percent, or $ 17.92, to $ 1458.75 an ounce.

The yuan fell more than 1.4 percent against the US dollar today at 7.0406 yuan per dollar.

At the same time , Asian currencies were dominated by losses , with the Indian rupee falling 1.5 percent, the biggest drop this year, as the dollar rose to 70.6413 rupees.

South Korea's currency saw a similar 1.5 percent loss against the greenback, pushing the dollar to 1215.3 won, its lowest level since March 2016.

With the Japanese Yen and the Swiss Franc considered safe haven currencies, the two currencies gained in today's trading.

The Japanese yen rose 0.5 percent against the dollar, dropping to 106.06 yen.

The Swiss franc also rose against the greenback by more than 0.8 percent, the dollar fell to 0.9742 francs.

Although the Green Paper was seen as a safe haven currency in times of trade tensions, the dollar's main index, which followed the performance of the US dollar against six major currencies, fell 0.4 percent to 97.680.

On the other hand, the setback in the trading conditions caused oil prices to fall by more than 1 percent on the back of fears that the demand for crude affected negatively.

Brent and Nymex crude futures for October and September fell 1.2 percent and 1 percent respectively to settle at $ 55.09 and $ 61.17 a barrel.

 

[bostonangler]

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. 

China is stepping away from further U.S. farm imports after President Donald Trump ratcheted up tensions with its biggest agricultural trading partner last week.

The Chinese government has asked its state-owned enterprises to suspend purchases of U.S. agricultural products, people familiar with the situation said. Also, privately run Chinese crushers that had received retaliatory-tariff waivers on American soybeans from Beijing have stopped buying the commodity due to uncertainty over trade relations, other people said.

President Trump on Thursday proposed adding 10% tariffs on another $300 billion in imports from Sept. 1, marking an abrupt escalation of the trade war between the world’s largest economies shortly after the two sides restarted talks. Bureaucrats in Beijing were stunned by Trump’s announcement, according to Chinese officials who’ve been involved in the trade talks, and Beijing has pledged to respond if the U.S. insists on adding the extra tariffs.

China’s state-run agricultural firms have now stopped buying American farm goods, and are waiting to see how talks progress, the people said, declining to be identified as they’re not authorized to speak to the media. Meanwhile, the private crushers haven’t received notices from the government on any policy change since the U.S. escalated tensions last Thursday, people said.

“The leverage that China has is its large agricultural purchases,” Darin Friedrichs, a senior analyst at INTL FCStone’s Asia commodities division, said in an interview on Bloomberg TV. “This does affect U.S. farmers and the rural U.S. voting base that’s normally in support of Donald Trump. If they hit back before the election, that’s the obvious way to retaliate.”

China’s commerce ministry didn’t respond to faxes seeking comment about the halt in purchases.

Trump Complaint

Trump has repeatedly complained that China hasn’t made the “large quantities” of agricultural purchases that he claims President Xi Jinping promised when they met in Osaka at the G-20 summit.

Those accusations are “untrue” as Chinese companies have bought U.S. farm products, including soybeans, Cong Liang, Secretary General of the National Development and Reform Commission, said in an interview with state media CCTV. Some deals haven’t been completed because the prices are not competitive, he said.

The escalation of tensions has encouraged Chinese buyers to turn to Brazilian soybeans, people familiar with the situation said last week. Part of the decision to halt imports by the private buyers is due to the relatively expensive price of American beans, the people said.

‘Very Nervous’

Soybean futures for November traded in Chicago erased gains to fall 0.8% to $8.6175 a bushel by 6:39 p.m. Beijing time. Corn futures lost 1.5% to $4.0325 a bushel. Meanwhile, soybean meal prices in China added 1.6%, while rapeseed meal futures jumped 2.3% on expectations for tighter supplies.

China had already drastically cut on U.S. purchases, with soybean imports sinking to the lowest in a decade during the first half. In a show of goodwill, the Asian nation had recently given the go-ahead for five private companies to buy up to 3 million tons of U.S. soybeans without paying retaliatory tariffs. Meanwhile, state-owned firms earlier pledged to buy about 14 million tons in the current marketing year, of which 4 million tons have not yet been shipped.

The companies that had received the waivers were state-owned Jiusan Group, as well as privately run Shandong Bohi Industry Co. and China Sea (Zhonghai) Grain and Oil Industry Co., Bloomberg reported last month. Yihai Kerry Group, a Chinese subsidiary of Singapore-based Wilmar International Ltd., and Hopefull Grain & Oil Group are also among the firms.

“I would be very nervous if I was a Chinese company trying to buy produce right now,” Friedrichs said. “We’ll see a lot of private importers backing away from U.S. products as well.”

https://finance.yahoo.com/news/china-asked-state-buyers-halt-030119492.html

 

 

 

 

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[yota691]

Trump commented on the fall of the yuan: "China is committing a grave violation"

05 August 2019 03:45 PM
From: Noha Al - Nahhas

direct US President Donald Trump criticized the sharp decline in the value of the Chinese yuan, accusing Beijing of manipulating the value of its currency.

The Chinese yuan fell today to its lowest level in more than 10 years , as the dollar surpassed the level of 7 yuan.

"China has lowered its currency to almost a historic low," Trump said in a tweet on the social networking site Twitter on Monday.

Trump added: "This is called manipulation of the value of currency," he went on to say: "The Fed is listening to it."

 

"This is a gross violation that will seriously weaken China over time," Trump said.

Last week, the US president announced a new tariff of 10 percent against Chinese imports worth $ 300 billion.

[yota691]

China's central bank: We have not devalued the yuan to counter US tariffs

05 Aug 2019 05:34 PM
Direct : The People's Bank of China denied that it is devaluing the yuan to counter US tariffs, noting that the movements of the local currency are determined by the market.

"Because we are a big and responsible country, China will abide by the G20 leaders' agreement on the exchange rate issue, abide by the market exchange rate regime and not participate in competitive devaluation," Chinese central bank governor Yi Gang said in a statement on Monday.

Yi said the bank will not use the exchange rate for competitive purposes.

The People's Bank of China set the local currency's average trading range at 6.9225 yuan per dollar, sending the yuan to a 10-year low against the dollar.

US President Donald Trump accused China of manipulating its domestic currency, saying it had made a serious mistake.

"This fluctuation is driven by the market, whether it is the fundamentals of the Chinese economy or the market supply and demand balance, the current renminbi exchange rate is at an appropriate level," Yi said.

"Despite the volatility of the RMB exchange rate due to recent external uncertainties, I am confident that the yuan will remain a strong currency," he said.

Trade war escalated recently between the two biggest economies in the world when President Bush announced tariffs of 10 percent on the rest of Chinese goods starting next month, to respond China to suspend the import of products of agricultural from Washington , according to press reports.

By 1:58 pm GMT, the yuan had fallen against the dollar by about 1.6 percent to 7.0496 yuan.

 

[yota691]

Analyst: devaluation of the yuan may suppor t US stocks

 05 Aug 2019 09:36 PM
Direct : An economic analyst believes that the decline of the Chinese yuan could lead to the rise of US stocks in the end, despite the current selling wave.

"Initially, it would hurt all the risky assets because of the shock of seeing this dramatic devaluation of the yuan to new lows," Nick Colas, co-founder of Datatrix Research, said in a statement carried by Yahoo Financial on Monday.

Global stocks, led by Wall Street, suffered sharp losses as the dollar crossed the 7-yuan mark for the first time in a decade.

Analysts believe that the devaluation of the yuan may be good in two ways. First, it will lead to lower bond yields as global investors seek safe assets such as Treasury bonds, and this helps to raise equity valuations.

The second way, Colas believes that the decline of the yuan against the dollar will accelerate the exit from global stocks, especially emerging markets and investment in US stocks.

The 10-year US Treasury yield fell to its lowest level since October 2016 in today's trading.

 

[yota691]

Dollar above 7 yuan .. China sends warning to the United States

 05 August 2019 09:15 PM
Edit: Noha copper

Direct: In a zero-sum currency war, politicians urge central banks to cut borrowing costs to push down the exchange rate.

An analysis published by Bloomberg Open suggests that US President Donald Trump wants the Fed to cut interest rates further and a weaker dollar, but China shows Trump that such a strategy would backfire.

The yuan has fallen against the dollar to the lowest level since 2008 at 7 yuan per dollar, and the exchange rate of the yuan in foreign trade fell to the lowest level ever, despite the absence of the Chinese central bank in the global race to reach zero interest rates.

On the contrary, the People's Bank of China is talking about keeping house prices stable, a sign that monetary policy makers will not be accommodative.

The spread between 10-year Treasury yields in China and the United States widened to 1.3 percent, the highest level since January 2018, and in theory would weaken the dollar, not the yuan.

Skeptics may argue that the Chinese currency's move today was not quite normal, as the Yuan's decline was less than the South Korean won's decline, which fell below 1,200 won against the dollar, a level that appeared sensitive by technocrats within the central bank.

The decline in both the yuan and the won occurred as the US dollar strengthened against emerging market currencies.

But the yuan's recent move can be read with little political science. The Chinese yuan is a more managed currency than the Korean won, which is more or less subject to free circulation.

The People's Bank of China (PBOC) has many tools to stop betting against the currency, such as issuing high-yielding foreign bonds, for example.

In other words, the yuan fell below the level of 7 yuan per dollar just because the People's Bank of China allowed it, and set a benchmark price of the currency at levels below 6.9 yuan for the first time this year.

Beijing has joined a group of Western skeptics questioning whether President Trump is sincere and willing to reach a trade deal with China, amid speculation that he is using the conflict between them to force the Federal Reserve to cut interest rates.

China announced last week that it would take necessary preventive measures if the US president carried out his threats to add additional tariffs on Chinese imports.

After two years of trade war, China has become more intelligent than ever before, as the state flexes its muscles to show that it is capable of coping with American pressure and has many remaining tools it can use for revenge.

The recent devaluation of the yuan is a warning, and if the Trump administration applies 10 percent tariffs on $ 300 billion in imports from China, Beijing will only need to slightly lower its current capital controls to bring down the exchange rate. Automatic.

China's state-led economic model has caused many problems, and it also has strengths and policy coordination, among others.

This was confirmed by press reports that the government had asked state-owned companies to suspend imports of US agricultural products.

Unlike the United States, Chinese bureaucrats can use monetary, foreign and fiscal policy measures and tailor them in a coherent strategy.

 

[yota691]

China's response and stock markets tumbling are the focus of global events today

 06 August 2019 12:04 AM
From: Ahmed Shawky

LIVE: China's response to Trump's decision triggered  sharp and volatile stock markets to top global events by the end of Monday.

In response to Washington's intention to impose tariffs on other Chinese imports, China has asked its partners to suspend imports of agricultural products from the United States.

Not only did Beijing respond, but the People's Bank of China set the average local currency trading range at 6.9225 yuan per dollar, pushing the dollar above the 7-yuan mark, setting the Chinese currency to a 10-year low.

US President Donald Trump commented on the yuan's fall , saying: "China is committing a serious violation," while the Chinese central bank denied the use of currency in the trade dispute.

China's response led to a strong jolt in global markets, with US stocks tumbling sharply and Dow Jones lost more than 760 points by the end of the session, the biggest daily loss this year, led by Apple.

This comes despite an analyst's expectation that the devaluation of the yuan will support US stocks.

European stock indices also fell more than 2 percent at the close with trade war fears.

For Chinese stocks it has also fallen by about 2 percent , with the yuan fell to the lowest level in a decade against the dollar.

The Japanese "Nikkei" index fell by about 1.7 percent at the end of the session , the lowest level in two months.

In the bond market,  the difference between US long-term debt yields and their short-term counterparts fell to a 12-year low on trade tensions, while UK government yields fell to a record low.

Gold gains and oil losses

The appeal of the yellow metal as a safe haven increased as trade tensions escalated, with gold prices gaining around $ 19 on settlement with the losses of the dollar and US stocks to a six-year high.

As a result of trade tensions, copper fell to its lowest level in two years during today's trading.

With demand worries over the trade war, oil prices fell about 1.7 percent on settlement and Brent fell below $ 60.

Bank of America also expected oil prices to fall by about $ 30 if China decides to buy Iranian crude.

Poor service activity

US service activity fell to a 3-year low in the past month as production and new orders fell.

China's service sector also fell in July to a five-month low.

In contrast, UK service activity rose more than analysts' expectations to a 9-month high.

 

[yota691]

Bloomberg: Trade war costs the world $ 1.2 trillion

Economy | 07:30 - 05/08/2019

 

 

 

BAGHDAD - The 
all-out trade war could cost the world economy about $ 1.2 trillion, Bloomberg Economic Agency estimated on Monday. 
In a report, the agency said the recent escalation in the trade war could cost the already fragile world economy a lot. 
"Global GDP would be 0.6 percent lower in 2021, should the market decline during an all-out trade war, compared to a scenario of no trade war, the equivalent of $ 1.2 trillion." 
More than a year ago, the trade war between the United States and China entered a new phase, with US President Donald Trump announcing a 10 percent surcharge on Chinese goods beginning early next month. 
On May 10, Trump directed the start of a process of government meetings and gathering opinions, to impose customs duties on Chinese imports totaling $ 300 billion.
On July 10, US Federal Reserve Chairman Jerome Powell said trade tensions and concerns about global growth were affecting the US economy and its outlook. 
Leaders of the G20 of the world's most powerful economies have long expressed the consequences of the escalating trade war between the United States and China as a "major negative threat" to the global economy, as well as geopolitical tensions in the Middle East. Ended / 29 BC

[yota691]

Yuan hits 11-year high

Economy | 10:28 - 05/08/2019

 

 

 

 

Follow - Mawazine News

BEIJING (Reuters) - The Chinese yuan fell more than 1 percent to an 11-year low on Monday as fears of a sharp escalation in the US-China trade war intensified, sending other currencies into the region.

Growing concern over the trade war has prompted investors to turn to safe haven assets and the yen rose to a seven-month high against the dollar. 
The yuan suddenly crossed the seven-yuan mark for the first time since the global financial crisis, a level some market traders consider a key support level. 
The yuan fell to 7.1137 yuan to the dollar in overseas transactions and 7.0424 dollars to the yuan in the country. 
This comes days after US President Donald Trump surprised markets and announced that he would impose more tariffs on Chinese goods. 
In the latest trading, the yuan fell 1.5 percent to 7.0839 yuan to the dollar in foreign trade and 1.3 percent to 7.0319 against the dollar in domestic trading. It was the first time the yuan had traded above seven yuan to the dollar since May 2008

[yota691]

America ranks China as a currency manipulator for the first time in decades

 

US Treasury Secretary Stephen Menuchin. "Reuters"

Arab and international Economy News Baghdad US Treasury Secretary Stephen Menuchin said in a statement that the US government has decided to consider China manipulative in its currency and will engage with the International Monetary Fund to eliminate unfair competition by Beijing. The move has further aggravated the already tense relations between the two countries and is in compliance with US President Donald Trump's pledge to label China as a currency manipulator for the first time since 1994. The US move comes after China allowed its yuan to drop below seven against the dollar on Monday for the first time in more than a decade. Beijing later said it would stop buying US agricultural products in a major escalation in a nearly one-year trade war with the United States. The sharp 1.4 percent drop in the yuan came days after Trump abruptly imposed a 10 percent tariff on imports from China worth $ 300 billion on Thursday, triggering a shock to financial markets after a brief truce in their trade war. The news pushed the dollar to drop sharply while supporting gold. The US Treasury Department said a statement by the People's Bank of China (CBB) on Monday made it clear that Chinese authorities exercised extensive control over the yuan's exchange rate. The People's Bank of China said it would "continue ... to take necessary and targeted measures against (herd behavior) that may occur in the foreign exchange market." "This is a frank acknowledgment by the People's Bank of China that he has extensive experience in manipulating his currency and that he is still willing to do so continuously," the Treasury said. She said China had broken a commitment to refrain from devaluation in order to influence competition within the G-20. After classifying a country as a currency manipulator, the Treasury Department is obliged to call for private talks to correct undervalued currency, including penalties. The ministry classified Taiwan and South Korea as currency manipulators in 1988, the year in which Congress passed the currency review law. China was the last country to be classified as well in 1994. Views 15   Date Added 06/08/2019

[yota691]

Washington accuses China of manipulating yuan

06 August 2019 11:18 p
Direct : The United States launched China Description "currency manipulator" and it formally, for the first time since the nineties of the last century, with a high degree of trade tensions between the two countries.

Before the US Treasury Department's decision on Monday, US President Donald Trump described China as a currency manipulator after the US currency broke the 7-yuan barrier for the first time in 10 years.

In May, the United States decided not to call China or any other country a currency manipulator, but decided to keep it on the watch list of nine nations.

The People's Bank of China (PBOC) announced yesterday that the yuan's fall was the result of trade protectionist measures and the application of high tariffs against China.

The Chinese central bank also stressed that it will continue to take necessary measures against the behavior of positive reactions that may occur in the foreign exchange market.

The US Treasury Department said it would continue to work with the International Monetary Fund (IMF) to eliminate the unfair competitive advantages of recent Chinese measures.

The statement by the People's Bank of China showed that the Chinese authorities had full control over the RMB exchange rate.

According to the 1988 Act, the US Treasury Department is required to inform Congress every 6 months about whether any country manipulates its currency to gain commercial advantages at the expense of the United States.

The United States identifies three categories as trading partners as currency manipulators, a large bilateral trade surplus with the United States, a current global account surplus, and one-way intervention in the foreign exchange market.

The last time the United States launched the word "currency manipulator" was China in 1994.

By 8:10 am GMT, the dollar was down 0.3 percent at $ 7.0326 against the yuan.

 

[yota691]

China responds to US accusations: "World order will be destroyed"

 06 August 2019 01:32 PM
Direct : China commented on the US decision as a currency manipulator, that such a decision would destroy the global financial system, and may cause chaos in the financial markets.

The United States decided to mark China as a currency manipulator after the yuan fell against the US dollar to its lowest level in 10 years yesterday.

The People's Bank of China said on Tuesday that Washington's decision would increase currency market tensions and prevent the recovery of trade and the global economy.

The statement added that China has not and will not use the exchange rate as a tool to deal with trade disputes.

The US Treasury Department said it would continue to work with the International Monetary Fund (IMF) to eliminate the unfair competitive advantages of recent Chinese measures.

"China advised the United States to take control of the matter before descending into the abyss and be wary of its mistakes and return from the wrong path," the Chinese central said.

The US president announced at the end of last week the application of new customs tariffs by 10 percent on imports of 300 billion dollars from China beginning next month.

By 1010 GMT, the yuan was up against the US dollar by 0.4 percent to 7.0255 yuan.

 

[yota691]

China sets the reference price of the yuan higher than expected

Direct: Select the Central Bank of China 's yuan exchange rate on Tuesday at the highest level of 7 yuan per dollar level, trimming global market fears of a bearish trend of the Chinese currency.

The US dollar broke the 7-yuan barrier yesterday, recording the green card 7.0304 yuan in intraday trading in China, while 7.0807 yuan in foreign trade.

The People's Bank of China (PBOC) on Friday set the reference price of the yuan at 6.9683 yuan per dollar, a stronger-than-expected level of 6.9736 yuan.

The average currency trading range is weaker than the 6.9225 yuan per dollar level set by the central bank yesterday , the lowest since May 20, 2008.

The central bank allows the currency to move up or down to a maximum of 2 percent of the reference price.

By 11:14 am GMT, the Chinese yuan against the US dollar rose more than 0.3 percent to drop the green card to 7.0278 yuan.

The Chinese currency lost about 1.5 percent of its value in trading yesterday, prompting US President Donald Trump to accuse Beijing of manipulating the value of its currency.

 

[yota691]

Goldman Sachs rules out a trade deal between Washington and Beijing ahead of the 2020 elections

06 August 2019 03:00 PM
Direct : "Goldman Sachs , " the bank said it is no longer expected that the United States and China reach a deal to end the trade dispute before the US presidential elections next year.

In a note released Tuesday, the bank said it expected the Federal Reserve to cut interest rates in two consecutive sessions amid growing trade policy risks, market expectations for further interest rate cuts and increased global risks related to the possibility of implementing the bricast without agreement. The Witters Agency.

Last week, US President Donald Trump decided to impose 10 percent tariffs on imports from China worth $ 300 billion from next month.

The plan taken by Washington suggests that the two countries have taken the toughest route and reduced the chances of resolving the crisis in the near future, according to Jean-Hatzaz, chief economist at Goldman Sachs.

The Bank of America analyst said the odds were as high as 75 percent that the Fed could cut interest rates next month, 50 percent for another cut at the October meeting.

Last week, the Fed decided to cut interest rates for the first time since the global financial crisis by 25 basis points.

"The Fed is more responsive this year to threats of trade war, bond market outlook, and global growth concerns," he said.

 

[yota691]

Trump: China is killing us with unfair trade deals

 07 August 2019 09:12 PM
direct: US President Donald Trump said that his firm on China 's behavior in the world markets will benefit the US economy at the end of the day, noting that China is hurting the United States of unfair trade transactions.

The trade war between the United States has escalated China has sharply in recent days, causing a sharp loss of US stocks and a sharp fall in government bond yields after Washington on Monday described Beijing as a currency manipulator for the first time since 1994.

Last week, Trump announced a 10 percent tariff on China's remaining $ 300 billion in imports from September 1.

The US president told reporters at the White House, on Wednesday, that the market reaction was expected, but still confident of the strength of the US economy.

"In the end, economic growth will be much higher than it could have been, because China was killing us with unfair trade deals," he said.

The White House has said Chinese negotiators will visit Washington next month for trade talks, but hopes for a deal appear to have diminished as Goldman Sachs believes it no longer expects the United States and China to reach a deal before the presidential election in 2020.

 

[MyLadiesDaddy]

On 8/6/2019 at 7:07 AM, yota691 said:

China responds to US accusations: "World order will be destroyed"

 06 August 2019 01:32 PM
Direct : China commented on the US decision as a currency manipulator, that such a decision would destroy the global financial system, and may cause chaos in the financial markets.

The United States decided to mark China as a currency manipulator after the yuan fell against the US dollar to its lowest level in 10 years yesterday.

The People's Bank of China said on Tuesday that Washington's decision would increase currency market tensions and prevent the recovery of trade and the global economy.

The statement added that China has not and will not use the exchange rate as a tool to deal with trade disputes.

The US Treasury Department said it would continue to work with the International Monetary Fund (IMF) to eliminate the unfair competitive advantages of recent Chinese measures.

"China advised the United States to take control of the matter before descending into the abyss and be wary of its mistakes and return from the wrong path," the Chinese central said.

The US president announced at the end of last week the application of new customs tariffs by 10 percent on imports of 300 billion dollars from China beginning next month.

By 1010 GMT, the yuan was up against the US dollar by 0.4 percent to 7.0255 yuan.

 

If that headline doesn't tell you everything you everything you need to know about the current world situation.

[yota691]

China's central bank continues to lower the yuan reference price to an 11-year low

 09 August 2019 12:44 PM
Direct : China's central bank continued to lower the benchmark yuan rate at an 11-year low as trade bickering with Washington continued.

The People's Bank of China on Friday set the benchmark currency against the US dollar at 7.0136 yuan, the lowest level since April 2008.

Analysts had expected that the reference price of the currency of the world's second largest economy against the green paper would hit 7.0222 yuan.

The benchmark price set today by the Chinese central bank is lower than yesterday's record of 7.0039 yuan per dollar.

A weak currency helps any country make exports cheaper in international markets, and Donald Trump's administration objects to the cheap yuan because it gives Chinese products a price advantage.

The United States accused China this week of manipulating its currency's value against the US dollar after the dollar broke the 7-yuan barrier for the first time since 2008.

Trade disputes between the world's two largest economies intensified after US President Donald Trump's decision last week to impose 10 percent tariffs on China from next month.

By 10:25 am GMT, the yuan fell against the dollar by about 0.2 percent to 7.0606 yuan.

 

[yota691]

Trump adviser: We will respond strongly if China devalues its currency

 10 August 2019 12:07 AM
Direct : Commercial Counselor White House said that Beijing plans to devalue its currency , and if it did, the United States would respond strongly.

The "Peter Navarro" in statements to the network "CNBC" America, on Friday: "It is clear that they are manipulating their currency from a commercial point of view."

Earlier this week, China allowed its currency to fall against the dollar to its lowest level since 2008, while the Trump administration later described Beijing as a "currency manipulator".

"China has devalued its currency by more than 10 percent with the clear aim of reducing the impact of tariffs," Navarro said.

Last week, US President Donald Trump announced his intention to impose 10 percent tariffs on Chinese goods worth $ 300 billion, claiming that China has not committed to buying US agricultural goods as promised.

The trade war continued to boil this week as China announced it would stop buying US agricultural products in response to Trump's threats.

Trump's adviser said US farmers would not be hurt by tariffs, noting that China, not US consumers, would suffer financially because of tariffs.

He continued: "China will bear the burden of almost all of this through currency manipulation and price cuts, Beijing is suffering much more damage than we may."

 

[yota691]

Trump and the dollar .. Are we living the end of the policy of "strong currency first"?

 11 August 2019 10:25 AM
Edited by Sally Ismail

Direct: Since the 1990s, the United States has clearly stated that a strong dollar is in the best interest of the state.

Global investors took this position for granted, giving them confidence that US officials will not devalue the US currency.

But the messy messages from President Donald Trump's administration are destabilizing those assumptions.

On July 26, Trump said a strong dollar was nice but made competition difficult, adding that he did not rule out action to weaken the US currency.

Trump's comments contrasted with remarks by White House economic adviser Larry Kudlow that the United States would not intervene in currency markets.

Public questions about US currency policy are increasing, as a strong dollar doctrine was introduced by Treasury Secretary Robert Rubin in 1955 as a means of boosting foreign demand for US Treasuries.

This doctrine helped establish the dollar as the world's preferred reserve currency, as the pledge not to devalue the green paper encouraged international investors and US trading partners to invest their cash in US assets.

A weaker dollar would provide some advantages, as US manufacturers may increase sales abroad because their goods will become cheaper for foreign customers.

At the same time, US companies and people who buy imported goods will face higher prices.

Abandoning that policy would also have implications for global markets and US government funding in the long run.

The confidence of foreigners in the dollar makes them more willing to hold US debt, reducing the interest rate that the Treasury should pay.

For now, attracting global funds is no problem: foreign holdings of US Treasury bonds stood at a record high of around $ 6.5 trillion in May.

Investors have few alternatives, with many bonds in Europe and Japan offering negative yields, compared with a yield of about 2 percent on ten-year US government debt.

But Trump's pressure to weaken the currency may begin to curb these inflows of international funds, according to Catherine Mann, chief global economist at Citigroup.

A former deputy assistant at the Treasury's International Economic Analysis Unit, Brad Cetser, believes that a strong dollar policy ended once Trump began complaining about the green paper's strength.

While comment on currency policy in previous US administrations was within the purview of the Treasury Department, Trump went out of fashion early on.

Before even taking office, Donald Trump said in early 2017 that a strong dollar was "wiping out" us.

In the following years, the president moved to Twitter to criticize the dollar's strength and focus on Europe and China over what he saw as currency manipulation.

Given the strength of communication over the past two years, it is still believed that the era of strong dollar policy is over, says BGIM's chief fixed income economist and former Treasury official Nathan Shits.

"This is something different, but what is not yet clear is how to describe the new dollar policy and the advantages of the new system," Shits said.

Markets should take Trump's desire for a weaker currency seriously, says Cetser, now a fellow at the Council on Foreign Relations.

 

The performance of the dollar index weighted trade movement from the nineties until 2019 - (Source: Bloomberg)

Current Treasury Secretary Stephen Mnuchin has sent mixed signals about the dollar, which has gained against most of its peers in the G10 countries in 2019 so far.

The dollar-weighted trade-adjusted inflation index is not far from the highest point recorded in 2003, showing the headwinds facing US exports.

"In the long run, I believe in a strong dollar, which indicates a strong US economy," Mnuchin said in comments with CNBC on July 24.

"It will not push for a weak dollar policy in the near term."

The confirmation comes days after he told Bloomberg News that there was no change in the country's currency policy so far, a repudiation that has sparked speculation that the United States could later intervene in the markets to weaken the dollar.

Wall Street analysts still see little prospect of intervention but not impossible, as the United States has not sold the dollar to weaken the currency since 2000, a move that has been part of a coordinated effort to support the euro.

Unilateral intervention would spoil the long-term commitment reaffirmed last June by the United States along with other G20 members to avoid weakening exchange rates to boost exports.

The events of late July indicate divisions within the US administration whether or not to take the dollar's devaluation.

Bank of America strategists wrote in a July report that the simplest way for Trump to get a weaker currency is to say the United States is abandoning its policy.

Although the phrase "strong dollar policy" is largely symbolic, abandoning it in favor of a "strong growth policy" could spread across markets and could lead to a 5-10 percent decline in the green paper, according to the US bank.

However, the administration may need to be cautious to move the transformation in a way that does not undermine the situation regarding the acquisition of US assets, analysts warned.

Replacing the Clinton administration's legacy would create many unknowns.

The important issue, he says, is not the death of a strong dollar policy but the policy options that may be replaced later.

[yota691]

IMF shocking America .. Chinese yuan in line with economic fundamentals

by Othman Abu Khadra 15 Hours ago

The IMF encouraged China to adopt a more flexible exchange rate approach while minimizing currency intervention

The International Monetary Fund (IMF) maintained its assessment Friday that the value of the Chinese yuan was largely in line with economic fundamentals, but an official said the IMF was encouraging Beijing to adopt a more flexible exchange rate while minimizing currency intervention.

An assessment of Beijing's economic policies found that the yuan's 2018 exchange rate was "not overvalued or substantially undervalued," said James Daniel, director of China's IMF department.

The IMF's views on the yuan differ from those of the United States, the world's largest shareholder, which this week declared China a "currency manipulator" after allowing the yuan to fall below seven yuan against the dollar.

US Treasury Secretary Stephen Mnuchin is seeking to reach out to the IMF to help correct a "unfair" trade advantage from Beijing's currency measures, but Daniel declined to disclose the IMF's response to that request.

"Our discussions with the US Treasury are continuing on a wide range of issues," Daniel told reporters at a conference call.

"The IMF report shows that there was no currency manipulation at all and that China's external balance was appropriate," Jeffrey Sach, a senior UN adviser and professor of economics at Columbia University, was quoted as saying by Xinhua.

"The US Treasury's announcement that China is a currency manipulator was blatantly arbitrary, arbitrary and politically based on Trump's tweets rather than objective analysis," Sach said.

Meanwhile, the IMF warned on Friday that China may need more fiscal stimulus if trade tensions with the United States worsen, jeopardizing economic and financial stability.

China should open more sectors to foreign competition to put its economy in the best position to deal with trade pressures, the UN adviser said.

Source: Al Jazeera

[yota691]

Evo: The outlook for the global economy has deteriorated in light of the escalating trade dispute

Economy | 01:33 - 12/08/2019

 

 

 

 

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Economic prospects deteriorated in all parts of the world during the summer due to the escalating trade dispute between the United States and China, a survey released on Monday showed. 
The German Ifo economic institute said its quarterly survey of 1,200 experts in more than 110 countries showed its measures of current conditions and economic outlook deteriorated in the third quarter. 
"Experts expect much weaker growth in global trade," said Clemens Fust, president of the institute, adding that trade expectations were at their lowest since the start of the tariff dispute last year. 
“Participants also expect greater weakness in private consumption, a larger reduction in investment activities and a decline in short and long-term interest rates,” he said.
US President Donald Trump said on Friday he was not ready for a trade deal with China that he even questioned a round of talks in September, stoking fears in financial markets that the dispute is unlikely to end soon.