Asia mood to be tested by Trump warning on China

[webfact]

Asia mood to be tested by Trump warning on China

By Wayne Cole

 

FILE PHOTO - U.S. President Donald Trump waves during joint statements with China's President Xi Jinping at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Thomas Peter

 

SYDNEY (Reuters) - A tentative rebound in global share markets will be tested in Asia on Tuesday after U.S. President Donald Trump quashed hopes he might strike a truce on trade with China, dampening risk appetite across the region.

 

In an interview with The Wall Street Journal, Trump said he expects to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently.

 

Trump said it was "highly unlikely" he would accept China's request to hold off on the increase.

 

The comments ran counter to recent speculation about a possible deal when Trump meets with Chinese President Xi Jinping at the G20 summit in Buenos Aires later this week.

 

"Trump's pessimistic view on the chances of a game-changing China trade deal may puncture global equity markets' optimistic start to the week," said Sean Callow, a senior FX analyst at Westpac in Sydney. "Combined with last week's harsh report from the U.S. trade representative, investors have only the flimsiest hope that the Trump-Xi meeting in Argentina will amount to more than a hill of soybeans."

 

The early reaction was limited to a drop in trade-sensitive currencies, including the Australian dollar <AUD=D3>, with share markets yet to open in Asia.

 

The U.S. dollar remained firm for the moment at 113.60 yen <JPY=D3>, while the euro nursed losses at $1.1328 <EUR=>.

That left the dollar a shade firmer at 97.089 <.DXY> against a basket of currencies.

 

Shares in Apple Inc <AAPL.O> fell after-hours in reaction to Trump's comments that tariffs could also be placed on laptops and iPhones imported from China.

 

Trump's remarks came just as the mood among investors had shown signs of brightening. Wall Street took heart from an upbeat holiday shopping period. [.N]

 

European stocks also bounced on Monday, on talk that Italy was preparing to rework spending plans that have fueled tensions with the European Union, though coalition leaders later said the government was sticking to its main 2019 budget goals as it awaits a full cost analysis of its most important spending measures for next year. Even oil managed to regain a little ground after the gut-wrenching slide of recent weeks.

 

The Dow <.DJI> ended Monday up 1.46 percent, while the S&P 500 <.SPX> gained 1.55 percent and the Nasdaq <.IXIC> 2.06 percent.

 

The rally came after the S&P 500 on Friday recorded its lowest close in six months, down more than 10 percent from September's peaks, putting it in "correction" territory.

 

In commodity markets, oil prices climbed nearly 3 percent on Monday in what was seen as largely a technical correction after weeks of losses.

 

Brent crude <LCOc1> futures rose $1.68 to $60.48 a barrel, while U.S. crude <CLc1> gained $1.16 to $51.58 a barrel.

 

(Reporting by Wayne Cole; Editing by Leslie Adler)

 

-- © Copyright Reuters 2018-11-27

[pegman]

Trump just keeps on digging. 

[car720]

I don't like the guy but he does rattle cages and as we head into the future I believe that some serious cages are going to need rattling.

[edwinchester]

1 hour ago, car720 said:

I don't like the guy but he does rattle cages and as we head into the future I believe that some serious cages are going to need rattling.

Hopefully the cage he'll be condemned to soon.

[Tug]

Hey it’s a win for Donald he won’t have to pay more for anything you pay more not him

[CaptRon2]

Sorry Tug but I do not understand what is the point of your reply, am I correct in assuming your are upset with President Trump for looking out for American interests, or just the whole Make America Great Again policy?

[Bluespunk]

3 hours ago, Tug said:

Hey it’s a win for Donald he won’t have to pay more for anything you pay more not him

All trump cares about is looking good on fox and tweeting.

[Redline]

I agree with  a hard line on China, but do it in concert with allies.  And, work constructively with them instead of alienating them-it’s common sense 

[IAMHERE]

America can not afford to keep sending a half Billion dollars to China every year. Something for 'fair/equal trade' has to be done.

[tonbridgebrit]

1 hour ago, Redline said:

I agree with  a hard line on China, but do it in concert with allies.  And, work constructively with them instead of alienating them-it’s common sense 

"A hard line on China, but do it in concert with allies"   ??   ????

Well, that's not going to happen, is it ?  The allies (as in Europe, Australia, Japan, etc ) are not interested in slapping new taxes onto the Chinese goods entering their countries. Trump's America is, near enough, the only country that is trying to put higher taxes on the Chinese imported goods. Europe, and nearly everybody else, wants to increase it's exports to China, Europe regards China as a vast market for European goods.

Europe knows that slapping higher taxes onto the Chinese imports will mean that Beijing will simply slap higher taxes on European goods entering China. That's a lose-lose situation for both Europe and China.

[tonbridgebrit]

8 hours ago, car720 said:

I don't like the guy but he does rattle cages and as we head into the future I believe that some serious cages are going to need rattling.

Well, Trump is rattling Beijing's cage, and some people love this. But Beijing is slapping higher taxes onto the American food products and crops entering China. America's farmers are watching their exports to China being reduced. We have to bear in mind that China is a vast market for America's farmers.

Rattling Beijing's cage might be funny for some people. But is it worth it, when America's economy is being harmed ? Surely not ?

[Kiwiken]

1 hour ago, IAMHERE said:

America can not afford to keep sending a half Billion dollars to China every year. Something for 'fair/equal trade' has to be done.

No One is forced to buy from China. No one is forced to sell to China. It is an open market. However the reason for the Trade anomaly is the fact that China produces what US and other World consumers want more cheaply for a similar quality than Our own Countries do.

Trumps universal increasing and putting of tariffs on most of the USA's trading partners makes no sense at all.

You can make everything you need in house in the USA the problem is. That there is a lot more profit to be made in a Market of 7 billion people than a market of 350 million. US Businesses understand this. China understands this . Only Donald Trump and people Insular and Xenophobic do not understand this. America will lose her place by looking Inwards and the Way Mr Trump is pushing you the Yuan will be the next World currency.

[car720]

2 hours ago, tonbridgebrit said:

Well, Trump is rattling Beijing's cage, and some people love this. But Beijing is slapping higher taxes onto the American food products and crops entering China. America's farmers are watching their exports to China being reduced. We have to bear in mind that China is a vast market for America's farmers.

Rattling Beijing's cage might be funny for some people. But is it worth it, when America's economy is being harmed ? Surely not ?

Absolutely not.  One point four billion people take a lot of feeding.

[Redline]

8 hours ago, tonbridgebrit said:

"A hard line on China, but do it in concert with allies"   ??   ????

Well, that's not going to happen, is it ?  The allies (as in Europe, Australia, Japan, etc ) are not interested in slapping new taxes onto the Chinese goods entering their countries. Trump's America is, near enough, the only country that is trying to put higher taxes on the Chinese imported goods. Europe, and nearly everybody else, wants to increase it's exports to China, Europe regards China as a vast market for European goods.

Europe knows that slapping higher taxes onto the Chinese imports will mean that Beijing will simply slap higher taxes on European goods entering China. That's a lose-lose situation for both Europe and China.

I’m speaking about unfair trade practices such as government subsidies, dumping below cost, intellectual property theft, Chinese ownership of foreign companies-and yes, Europe is working on this too ????

[car720]

6 hours ago, Redline said:

I’m speaking about unfair trade practices such as government subsidies, dumping below cost, intellectual property theft, Chinese ownership of foreign companies-and yes, Europe is working on this too ????

I am sure that your moral compass is pointing in the right direction but please consider the real meaning of "America's interests".  Unfair trade practices are not unique to China.  I have heard people question Bill Gates and the Facebook guy about intellectual property theft.  And as for foreign ownership of foreign companies, well..................................

[Kiwiken]

2 hours ago, car720 said:

I am sure that your moral compass is pointing in the right direction but please consider the real meaning of "America's interests".  Unfair trade practices are not unique to China.  I have heard people question Bill Gates and the Facebook guy about intellectual property theft.  And as for foreign ownership of foreign companies, well..................................

So all Countries should Nationalise Foreign owned Companies operating in their Country. I believe Europe and the USA would be the biggest losers on that. All over S.E.A , and China, India and Pakistan are American and European owned Factories.

Intellectual property theft what would you call 100 years of Division of China for the opium trade and the poisoning of her people. That is intellectual theft too but no compensation has ever been paid

[Redline]

5 hours ago, car720 said:

I am sure that your moral compass is pointing in the right direction but please consider the real meaning of "America's interests".  Unfair trade practices are not unique to China.  I have heard people question Bill Gates and the Facebook guy about intellectual property theft.  And as for foreign ownership of foreign companies, well..................................

I think you are focusing on Trump’s agenda.  China is an exception as far as the scope of their unfair strategies.  They use state funds to manipulate the system, and the state controls private companies-this is very different than the other large economies.  I’m not talking about Facebook and Microsoft because they are private companies.  I’m speaking about direct government intervention and manipulation.  Do some research if you don’t understand.  It’s a unique situation because there are no laws holding the Chinese government back 

[mikebike]

16 minutes ago, Redline said:

I think you are focusing on Trump’s agenda.  China is an exception as far as the scope of their unfair strategies.  They use state funds to manipulate the system, and the state controls private companies-this is very different than the other large economies.  I’m not talking about Facebook and Microsoft because they are private companies.  I’m speaking about direct government intervention and manipulation.  Do some research if you don’t understand.  It’s a unique situation because there are no laws holding the Chinese government back 

Wow!! You understand how communist state-run industry works. That they use a political system that allows, nay, demands, the state to run business was supposed to be their downfall, no? Communist business can NEVER be competitive with capitalism... all those crappy Russian and East German cars, and the joke economies of Cuba, and Yugoslavia proved that... 5555555. So why the whinging? Crank up the capitalist machine and crush those sneaky commies!! But, but, but, we gave our manufacturing base away for the enrichment of the few and cannot compete anymore... please help us.... freaking snowflakes.

[Redline]

26 minutes ago, mikebike said:

Wow!! You understand how communist state-run industry works. That they use a political system that allows, nay, demands, the state to run business was supposed to be their downfall, no? Communist business can NEVER be competitive with capitalism... all those crappy Russian and East German cars, and the joke economies of Cuba, and Yugoslavia proved that... 5555555. So why the whinging? Crank up the capitalist machine and crush those sneaky commies!! But, but, but, we gave our manufacturing base away for the enrichment of the few and cannot compete anymore... please help us.... freaking snowflakes.

Maybe you can help?  You seem to have it all figured out.  Besides, you just made my point ???? thanks!

[mikebike]

3 minutes ago, Redline said:

Maybe you can help?  You seem to have it all figured out.  Besides, you just made my point ???? thanks!

Sorry... a wee dram and I reacted to your post, which, upon actually reading it was quite reasonable... mea culpa!!

[car720]

4 hours ago, Kiwiken said:

So all Countries should Nationalise Foreign owned Companies operating in their Country. I believe Europe and the USA would be the biggest losers on that. All over S.E.A , and China, India and Pakistan are American and European owned Factories.

Intellectual property theft what would you call 100 years of Division of China for the opium trade and the poisoning of her people. That is intellectual theft too but no compensation has ever been paid

I am not against this opinion.

[car720]

1 hour ago, Redline said:

I think you are focusing on Trump’s agenda.  China is an exception as far as the scope of their unfair strategies.  They use state funds to manipulate the system, and the state controls private companies-this is very different than the other large economies.  I’m not talking about Facebook and Microsoft because they are private companies.  I’m speaking about direct government intervention and manipulation.  Do some research if you don’t understand.  It’s a unique situation because there are no laws holding the Chinese government back 

Well, considering that I live in China I am not sure that I need to do that much research.  None of what you say is untrue.  It is just that I cannot abide the holier than thou attitude of one side whilst besmerching the other side when it is just as evil.

[Redline]

On 11/28/2018 at 2:49 PM, car720 said:

Well, considering that I live in China I am not sure that I need to do that much research.  None of what you say is untrue.  It is just that I cannot abide the holier than thou attitude of one side whilst besmerching the other side when it is just as evil.

Sure they are both self absorbed, but the difference in legal structures make the scale lopsided.  I recommend the research that the New York Times, and top China researchers, that have been studying about the USA-China relationship for decades, that was all last week in the Times.  Also, Bloomberg is coming out with one soon, I believe next week.  I have read extensively about this relationship, and it’s evolution.  China is going after democracy now, something nobody thought would happen.  It’s going to be an interesting confrontation 

[Tailwagsdog]

People need to do their research and stick with facts when blurbing in this column, if they did that they would realise Trump is doing freedom & democracy a great service by calling out the unelected junta in Beijing that rules China.