"With the rise in the dollar and interest rates already squeezing emerging economies just as President Donald Trump’s trade war threatens China, the U.S. is set to be the only Group of Seven nation to see economic growth accelerate this year as Trump’s tax cuts kick in.
The end of the short-lived euphoria of a synchronized global upswing is already evident in financial markets"
Trump's latest gambit to control Fed policy via Twitter, has backfired:
But of course everything in the Idiocracy is dressed up to look good, so that it can fall apart in the background...
"Net income of 8.69 billion yuan, a 40.8 percent decline from the 14.68 billion yuan reported in the fiscal first quarter of 2017."
Here is the problem in a nutshell for Chinese stocks:
They are being devalued, along with the currency:
You will recall, that this most recent rally in Chinese Tech stocks aka. "Emerging Markets" was fueled by optimism ahead of this week's low level trade talks:
Monday:
The escalation that JP Morgan less than 24 hours ago bet wouldn't happen, just happened:
"BEIJING/WASHINGTON (Reuters) - The United States and China escalated their acrimonious trade war on Thursday, implementing punitive 25 percent tariffs on $16 billion worth of each other’s goods, even as mid-level officials from both sides resumed talks in Washington."
Trump on Monday told Reuters in an interview that he did not “anticipate much” from the talks"
Trump on Monday told Reuters in an interview that he did not “anticipate much” from the talks"
Why? Because breaking China's economy is seen as a prime directive in the Trump trade war:
"Asked by President Donald Trump to assess China’s prospects at a cabinet meeting, Kudlow on Thursday asserted that “their economy is just heading south. Business investment is just collapsing.”
"We're winning"
Global growth is the only casualty:
Global growth is the only casualty:
Some people have more skin in the game than they've been led to believe...
