Global 

Japanese firms fear escalation in South Korean trade spat as beer, car and fashion brands take a hit

Fearing further backlash from Korean consumers, Japanese companies are tiptoeing around the tit-for-tat dispute between their conservative government and South Korea over Japan’s wartime past as the US-China trade war hits global growth.Sales of Japanese beer, cars and clothing in South Korea have declined since the dispute erupted in early July, due in part to a consumer boycott of Japanese products unleashed by the trade dispute, but also against the backdrop of wobbly growth patterns in… Source link

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Trade war escalation leaves markets shaken, but a meltdown is not on the cards

August has historically been a rough month for financial markets. Sharp and disorderly sell-offs have often occurred at the height of the summer holiday season. Prominent examples include Iraq’s invasion of Kuwait in 1990, the start of the Asian financial crisis in 1997, the 1998 Russian debt default and, more recently, the unexpected devaluation of the yuan in 2015.The first few trading sessions of this month suggest that investors may be in for another brutal August. On Monday, the benchmark… Source link

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Global 

China’s exports post surprise growth in July despite dramatic escalation in US trade war

China’s external trade reported surprising stability in July, with exports growing 3.3 per cent and imports shrinking at 5.6 per cent, which was slower than analysts expected.Exports, having dropped by 1.3 per cent in June, beat the median forecast of a Bloomberg poll of analysts who had suggested a 1.0 per cent decline. This is despite July being the second full month under which China’s exports to the United States faced a higher tariff of 25 per cent. July’s total exports were US$221.53… Source link

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China 

China keeps door open to September talks in Washington, despite trade war escalation

Despite the significant escalation in tensions between China and the United States this week, negotiators are still expected to convene in Washington in September for another round of trade talks, sources have said.The next face-to-face negotiations are “likely to happen as planned”, even though the prospects of a deal are dim, according to Wei Jianguo, a former vice-minister of commerce responsible for foreign trade. Wei added that “it is possible that the meeting could ease the tensions a bit… Source link

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China currency move, US tariffs an ‘unwanted escalation’ in dispute, says Australia

Australia has called on the US and China to negotiate a resolution to their economic conflict, with Treasurer Josh Frydenberg describing the introduction of currencies into the dispute as an “unwanted escalation”.In a television interview on Wednesday, Frydenberg avoided answering a question on whether the US was right to brand China a currency manipulator.“It’s not for Australia to say which side is right and which side is wrong,” he said. “What Australia wants is for the international rules… Source link

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China 

China welcomes ‘actions that avoid US trade war dispute escalation’ ahead of Trump-Xi G20 meeting

China’s welcomes “actions that are helpful for managing differences and avoiding trade dispute escalation”, according to the Ministry of Commerce spokesman, in response to a South China Morning Post report that a truce in the trade war with the United States has been agreed ahead of this weekend’s G20 summit meeting between Xi Jinping and Donald Trump in Japan.According to three sources – one in Beijing and two in Washington – details of the agreement are being laid out which would lead to a… Source link

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China 

China economy slump goes on in May, with industrial growth lowest in 17 years amid US trade war escalation

Shoppers and pedestrians walk past stores in the Sanlitun area of Beijing, China, on Saturday, Nov. 3, 2018. As exporters feel the heat of the trade war, China’s powerful domestic-consumption engine was supposed to provide some protection for investors in the nation’s stocks. That is not working out so well. A narrative that is captured traders’ attention in recent weeks has been a “consumption downgrade” in the world’s second-biggest economy. Photographer: Gilles Sabrie/Bloomberg Source link

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Wall Street gripped by fear that Donald Trump’s China tariff escalation will disrupt Apple’s tech supply chain

Investors in Apple’s iPhone and its supply chain are taking no chances when it comes to the next stage of the US-China trade war.Even long-time China bulls such as large investor Thornburg Investment Management are bailing out of Apple and the companies in its supply chain, worrying that new rounds of US tariffs, if imposed, could severely affect the tech ecosystem.In the wake of the last-minute collapse of a deal to end the months-long US-China trade war, the Trump administration threatened to… Source link

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Alibaba projects 500 billion yuan in annual revenue amid escalation in US-China trade war

Chinese e-commerce giant Alibaba Group Holding projected annual revenue will surpass 500 billion yuan (US$72.7 billion) this financial year, despite a trade war between the US and China. The New York-listed company said its revenue rose 39 per cent to 376.8 billion yuan (US$54.7 billion) for the 12-month period ended March, excluding newly consolidated revenues, according to a company statement. Non-GAAP net income, which excludes valuation gains, was 93.4 billion yuan. “More and more,… Source link

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China 

China’s biggest companies can weather US-China trade war escalation, says rating agency S&P

S&P Global Ratings said the biggest Chinese companies it rates should be able to withstand the escalation of a trade war between the US and China in the near term, but prolonged uncertainty and lagging market confidence could make it harder for them to refinance debt if it persists.The rating agency said it estimates that only about 8 per cent of the companies that it assesses have direct exposure to the increased tariffs on exports to the US and most have sufficient buffers or alternative… Source link

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