Archives of “August 2019” month

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Chinese media takes a victory lap after US climbs down on tariffs

  
Analysis, Politics

China has its spin working

There’s the trade war and there’s the domestic propaganda war. Both sides continually claim victory at all times. Xinhua is highlighting how it was the US who called China, which is a soft way to highlight that it was the US that blinked.
The Global Times is taking a more festive approach.
China has its spin working
Trump hates more than anything to be ‘seen’ as a loser in negotiations. In the past, China let him have his victories but now they seem to be priming the domestic audience for a fight.

USTR publishes full list of delayed tariffs. All cell phones included

  
  Analysis
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USTR publishes which tariffs to go into effect Dec 15

The US delayed all tariffs on cell phones until December 15, according to lists of tariffs just published.
Here is the Sept 1 list. Here is the Dec 15 list.
The initial statement wasn’t entirely clear but the list shows that all cell phone tariffs are delayed until Dec 15.
Aside from that, there are 1000s of items on each list. I guess the lists show who has the better lobbyists, and which parts of the economy/market the White House didn’t want to hurt.

Eyes on the PBOC reference rate setting for onshore yuan due soon

  
Analysis, Forex

The mid rate from the People’s Bank of China for USd/CNY is due just after 0115GMT.

Reuters estimate is for a rate at 7.0421. If you’ve been following aolong the past week or so you’ll know that these estimates have come in on the igh side for USD/CNY. yes, the PBOC is allowing the yuan to weaken, but not by as much as expected.
I do wonder if that will change soon given the … is collapse to strong a word? … weaker credit growth reported yesterday:
  • New yuan loans ¥1,060.0 bn vs ¥1,275.0 bn expected
  • Aggregate financing ¥1,010.0 bn vs ¥1,625.0 bn expected
  • China FX regulator chief says does not expect disorderly depreciation of the yuan
Offshore yuan relatively steady today:
The mid rate from the People's Bank of China for USd/CNY is due just after 0115GMT.

US stocks off lows but stay in the red for the entire day

  
Analysis, US Market

Major indices fall over -1.2% on the day

The US stocks started the day in the red and ended in the red. In between, it was in the red too.
The best the major indices could do today was:
  • S&P -0.38%
  • Nasdaq  – 0.43%
  • Dow, -0.41%.
The low point for each was:
  • S&P, -1.56%
  • Nasdaq, -1.57%
  • Dow, -1.76%
The closing levels for each was:
  • S&P, -1.23%, down -35.97 points
  • Nasdaq, -1.20%, down -95.73 points
  • Dow, -1.49%. down -391 points.
Not a good day for the major indices as trade concerns and anxiety over Hong Kong developments, has the major indices worried.
Below is a graphical represenation of the major US and European % highs, lows and closes.  The European shares ended lower, giving up earlier gains in the day.
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