Greetings,
Equities: As discussed yesterday (#2 here), President Trump’s approval ratings have been climbing, which is encouraging him to get more aggressive on trade. That’s why this latest news shouldn’t be a surprise.
The White House strategy now is to tack on an additional $100 billion in new tariffs which would result in China simply running out of ‘retaliation capacity.’
Commodities: Soybean futures took a hit in after-hours trading on the news of the additional $100bn tariffs on China.
Cryptocurrency: Bitcoin didn’t have a significant reaction as it passed the “death cross.”
Emerging Markets: China’s currency took a hit in the offshore markets on the news of the $100bn in new tariffs.
The Eurozone: The Eurozone retail sales were lower than expected.
The United States: It’s also unlikely that tariffs will bring back manufacturing jobs, many of which were lost as a result of increased factory efficiency.
This chart shows the household net worth diverging sharply from the personal savings rate. Some analysts view this widening gap as a harbinger of the next recession.
Food for Thought: The number of women running for the US Senate.
Edited by Paul Menestrier
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