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A trade war truce? The US and Chinese economies need one, but they also need domestic reforms to stave off global catastrophe

The world economy is on the brink of something nasty. Stock market valuations have seemed overstretched for a long time and pessimists have been looking for a good excuse to sell for months. It has been a tough call considering the deluge of cheap money flooding the markets and the bullish riptide dominating sentiment in recent years.It is no surprise that investors are harking back to events leading up to the 2000 and 2008 market crashes. Trade tensions, growth worries and mounting financial… Source link

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Stocks Blog: Trump escalates trade war, ending US-China truce

Good day, traders, and TGIF — Well, Mr. Trump certainly had an overnight surprise — he escalated the trade war, saying he will hit $300 billion worth of Chinese goods with a 10 per cent tariff. We’ll keep you up on what you need to know, with insights from top analysts, the latest news and the big moves in our markets. So come back and check in on us throughout the day. And if you have any feedback, we’d love to hear from you at deb.price@scmp.com . — Georgina Lee and Deb…

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China 

US-China trade truce increases pressure at home for both Trump, Xi to cut a deal, analysts say

For decades, Jasco Products Company has outsourced production of its doorbells, lights and surge protectors to China without a second thought. But, a trade war with the United States that has been raging for the last year has put the Oklahoma-based company and thousands of other firms like it – both American and Chinese – at risk.The tit-for-tat battle between the world’s two largest economies is already weighing on business confidence, analysts have warned, and has the potential to tip the… Source link

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Stocks Blog: Hang Seng, Shanghai on track for week of gains thanks to bump from US-China trade war truce bump

Happy Friday, traders — The Hang Seng and Shanghai benchmarks are on track to have a week of gains, thanks to bumps they both got over last weekend’s US-China trade war truce. But we’ve seen some days of thin trading volumes and weakening conviction that the world’s two largest economies are ending their fight soon, if at all.  The Hang Seng has ended the past four weeks ahead, including a big 5 per cent jump the week ending June 21. The Shanghai Composite Index was down last week. We’ve got……

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Trade war truce does little to boost public confidence in China due to lack of trust for ‘flip flopping’ Trump

The trade war truce agreed between President Xi Jinping and US counterpart Donald Trump at the G20 summit in Japan at the weekend has done little to alleviate the concerns from online users, exporters and manufacturers in China, largely down to a mistrust of the American leader due to what has been described as his track record of “flipping and flopping”.On Saturday, the two leaders agreed a pause on new tariffs of up to on US$300 billion of Chinese goods imported into the United States. The US… Source link

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Global 

China Premier promises ‘faster’ financial opening up to foreign investors days after agreeing US trade war truce

China will scrap foreign ownership caps in the domestic financial industry from 2020, a year earlier than previously expected, Premier Li Keqiang said on Tuesday, in a fresh gesture to woo foreign investors, just days after agreeing another truce in the year-long trade war with the United States.Li did not directly mention the US or the trade war in his speech to the “Summer Davos” forum in Dalian on Tuesday, but said China will open its markets wider to foreign investors, while also repeating… Source link

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Stocks Blog: Hong Kong investors return to trade truce by Donald Trump and Xi Jinping, overnight property destruction by demonstrators

Good day, traders — Hong Kong investors get their first shot at buying and selling here since the Xi-Trump trade truce was called on Saturday. On Monday, they were on holiday. And what a holiday — marking the 1997 handover from Britain to China — it turned out to be. Protests took a decidedly new turn, with demonstrators breaking the glass door to get into the Legislative Council building and doing other property damage.   So traders in Hong Kong ‘s market have competing emotions to factor… Source link

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Money 

US-China trade truce ‘better than expected’ but issues remain, says governor of Chinese central bank

People’s Bank of China Governor Yi Gang said the result of the G20 meeting over the weekend was “a little bit better” than expected, but stressed that difficulties remain ahead in solving trade tensions with the US.At an event on Monday in Helsinki, Yi said he will remain cautious in the future because difficulties remain in structural and fundamental issues, though the road map for trade talks agreed by Presidents Donald Trump and Xi Jinping in Osaka is constructive.“But as long as the two… Source link

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What truce? US-China trade war uncertainty still weighing on global growth, Morgan Stanley says as it cuts outlook

Morgan Stanley has cut its outlook for global growth, saying continued uncertainty over the US-China trade war was having a “more pronounced” effect on business confidence and outlook for economic expansion.In a research note dated Sunday, the investment bank said it had cut its expectations for global gross domestic growth by 20 basis points to 3 per cent for 2019 and to 3.2 per cent for 2020.The outlook cut came as US President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to… Source link

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Money 

Traders raise a toast to US-China trade war truce, lifting Moutai to become the first Chinese stock to close above 1,000 yuan

Kweichow Moutai, the world’s most valuable liquor distiller, is about to set several records on China’s stock market.Shares of the Guizhou province-based company, which produces the upmarket rice liquor under the Maotai brand, rose 4.3 per cent to a record 1,026.25 yuan in Monday trading, on track to become the first Chinese stock to be valued at such levels in Asia’s largest capital market.Traders bought more of the stock – whose namesake baiju is usually the toast at China’s state banquets –… Source link

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