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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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Stocks Blog: How will the Chinese market respond to trade war escalation?

What a difference a week makes. Last Monday, the markets were in panic mode following tweets by US President Donald Trump that Washington would increase tariffs on US$200 billion dollars worth of Chinese imports from 10 per cent to 25 per cent.  But on Friday, the Shanghai Composite Index – though still 10 per cent off from an April high – added 3.1 per cent for its biggest gain in six weeks.  The tariff increases have come to pass, but a slew of market observers in China seem more confident……

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China 

Chinese researchers call for more reform and opening up to avoid escalation of trade war

Beijing should refine its strategy for its upcoming trade talks with Washington by making substantial domestic reforms and further opening up its economy, to prevent tensions from spilling over into non-trade sectors and plunging the world’s two largest economies into a long-term rivalry, a group of state researchers said on Thursday. The suggestions, made at a conference at Renmin University, came ahead of expected formal trade talks in January and amid a 90-day truce in the tariff dispute negotiated by Chinese President Xi Jinping and US President Donald Trump. China…

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Escalation of trade war could force Beijing to roll out fresh economic stimulus measures, PineBridge says

A further escalation of the trade war between the United States and China could force Beijing to take more expansive measures to stimulate the Chinese economy, according to officials at the asset manager PineBridge Investments. The rising trade tensions between the two largest economies have come against the backdrop of the Chinese government engaging in a campaign over the past two years to reduce the country’s debt levels, known as deleveraging, Markus Schomer, chief economist at PineBridge Investments, said. As the country’s economy has begun to slow, Beijing has begun…

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Global 

Trade war escalation will cut China’s GDP by 1.6 per cent and US’ by 0.9, estimates IMF

A further escalation of the trade war between the US and China would take a major toll on economic growth in both countries next year, with China the bigger casualty, according to an economic analysis released by the International Monetary Fund on Tuesday. The world economy would also suffer, the IMF said. Based on the trade tariffs already in place, the organisation revised down its estimates of world growth this year and next by 0.2 of a percentage point to a still healthy 3.7 per cent. Assuming the US slaps…

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Money 

Investigation into HNA’s New York headquarters may show new escalation in US-China trade war

The US is investigating the national security implications of a Chinese-owned property in Manhattan – a review which indicates that the Trump administration might be unsheathing a new weapon in its trade war with China. Chinese conglomerate HNA bought a 90 per cent stake in the midtown building at 850 Third Avenue it uses as its US headquarters in 2016. The building, which is 10 minutes’ walk from US President Donald Trump’s New York residence, now poses concerns because of its proximity to Trump Tower and a police station it…

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China 

Trade war escalation may trigger financial crisis in China, researchers warn

A further escalation of the trade war between Washington and Beijing to include sanctions on financial products or transactions could trigger a financial crisis in China, researchers warned in a report. The study – released on Saturday by Renmin University’s National Academy of Development and Strategy – looked at a series of possible additional retaliatory steps the US could take in the trade war to constrain, or even try to directly destroy, China’s financial markets, financial assets and its currency. China willing to talk trade but not with American ‘knife…

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