Archives of “May 30, 2019” day

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BREAKING : China press: The US is doomed to fail if it acts arbitrarily on trade

  
Analysis, Economy

Official newspaper of the Chinese Communist Party, People’s Daily, carries on the stern words directed at the US.

  • If the U.S. acts arbitrarily, it will hurt its own international reputation and image and disrupt global cooperation
  • US politicians should listen to voices of American society as well as warnings and criticism of its trade policy from various countries
  • China hopes the U.S. politicians can wake up, become aware of their mistakes and step away from wrong path
via Bloomberg 

Brexit – UK car production in April fell by the largest amount since the global financial crisis

  
Analysis, Economy

The Society of Motor Manufacturers and Traders (SMMT) in the UK reports car production fell 44.5% y/y in April

  • The biggest fall in 10 years
  • Car factories shut down last month to sidestep the risk of supply chain disruption from a potentially chaotic “no-deal” Brexit on March 29, the original date for Britain’s departure from the European Union.
  • While this was pushed back to Oct. 31, the postponement came too late for carmakers to change plans, prompting a “dismal” collapse in output, the SMMT said.
“Today’s figures are evidence of the vast cost and upheaval Brexit uncertainty has already wrought on UK automotive manufacturing businesses and workers,” SMMT Chief Executive Mike Hawes said. “Prolonged instability has done untold damage, with the fear of ‘no deal’ holding back progress, causing investment to stall, jobs to be lost and undermining our global reputation.” 
via Reuters report.

Nouriel Roubini on US & China – quickly escalating into a death match

  
  Analysis

A piece from Nouriel Roubini, CEO of Roubini Macro Associates and Professor of Economics at the Stern School of Business

  • a hot war between the world’s two major powers still seems far-fetched, a cold war is becoming more likely.
The global consequences of a Sino-American cold war would be even more severe than those of the Cold War between the US and the Soviet Union
  • the Soviet Union was a declining power with a failing economic model
  • China will soon become the world’s largest economy
  • China is fully integrated in the global trading and investment system, and deeply intertwined with the US
I don’t think this will come as a surprise to many. Well worth reading:

US stocks end lower but fight off a close below 200 day MA

  
Analysis, US Market

S&P and Nasdaq avoid a close below the 200 day MA

The S&P and Nasdaq indices traded below their 200 day MAs today at 2776.42 and 7528.78 respectively. However, a bounce off the lows did not erase the declines in the major indices, but as a consolation prize, the broad indices closed back above the MA level.   We will see what tomorrow brings.
The final numbers are showing:
  • The S&P index fell -19.49 points or -0.69% at 2782.95. The 200 day MA is at 2776.42.
  • The Nasdaq index fell -60.042 points or -0.79% at 7547.309. The 200 day MA is at 7528.78
  • The Dow fell 221.57 points or -0.87% at 25126.47. It’s 200 day MA was broken yesterday and it remains below that MA at 25430
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