The fierce clashes between the US and China, according to the board of directors of the Apple supplier Foxconn, Terry Gou turn to technology.
“They are not really fighting a trade war, it’s a technology war,” Gou said at the General Assembly on Friday.
For his company, the conflict was the biggest challenge in the company’s history. Various plans have been worked out to react, said Gou, without giving any details.
Foxconn has become known as Hon Hai Precision . The company has more than one million employees, most of them in China.
The dispute between the US and China has rocketed up recently. US President Donald Trump announced on Monday that he would impose new tariffs on Chinese goods worth $ 200 billion should the government in Beijing implement retaliatory tariffs on previous US import restrictions. Analysts also believe that this is disrupting the supply chains for the technology and automotive industries, for which Foxconn produces for the most part.
The US-imposed punitive tariffs on steel and aluminum put the EU in the grip of pressure and raise concerns about a trade war with other products. There are fears that the government of US President Donald Trump, following a retaliatory move from Brussels, will impose higher taxes on additional sectors such as the export-oriented German auto industry. Observers urge prudence: As long as it is all about steel, Europe is comparatively little affected.
US tariffs on imports of steel (25 percent) and aluminum (10 percent) from the EU came into force on Friday morning. Mexico and Canada – the largest steel supplier in the USA – are also among them. All three trading partners of Washington consider this unjustified. The Federal Government assesses the new tariffs as unlawful.
The EU filed suit on Friday against US special tariffs at the World Trade Organization (WTO). “The European Union must clearly represent its interests,” said Foreign Affairs Commissioner Federica Mogherini in Brussels. The request for consultations in the context of a dispute settlement procedure was received, it was said at the WTO in Geneva. In addition, the EU wants to impose additional tariffs on a number of US imports.
Continue reading “EU wants to respond to US punitive tariffs – worried about escalation”
An analyst has compared the performance of the stock market under US President Trump to that during Ronald Reagan’s term and now fears that investors will have to face a fierce bear market.
Both Donald Trump and ex-President Ronald Reagan did not come from the political establishment when they were elected to the White House. For Ralph Acampora, Director of the technical analysis department at Altaira Capital Partners, this was the occasion to look for other similarities.
Bear market under Reagan
When Reagan was sworn in on January 20, 1981, the Dow Jones index stood at around 950 points. At first, investors could look forward to a six-month “honeymoon” period, with a gain of just under 10 percent, according to Acampora.
Continue reading “Analyst: The stock market under Trump is similar to that under Ronald Reagan – Now follows a fierce bear market?”
Apr 13 – Over the past few years, the US Federal Reserve and the world’s central banks have pushed interest rates down with massive money printing and thus the stock markets to record levels. Now, however, the Fed is tightening its monetary policy. British hedge fund manager Crispin Odey warns of the consequences of this policy, especially as US President Donald Trump is fueling the economy.
The S & P500 is well on the way to recovery: there are many reasons for this. The Syrian crisis has eased a bit after US President Donald Trump has described an intervention in Syria as “an option”. At the same time, he is considering re-entering the negotiations on the Trans-Pacific Free Trade Pact TPP. In addition, the US president said that a trade war with China could be prevented if China opened its market more for US products. In the environment, investors are buying heavily US stocks.
Fed slows down the economy considerably
How long the recovery lasts depends on two factors: On the one hand by Trump. Largely due to its tax reform, according to the Congressional Budget Office (CBO), the new borrowing Fiscal Year 2017/18, which ends in September, is expected to rise more than 20 percent to $ 804 billion. For the coming fiscal year, a further increase to $ 981 billion is planned. With that, Trump is fueling the economy, trying to position the Republican electoral chances well into the 6/5 midterm elections.
Continue reading “US economy faces first stagflation in 40 years”
A rally in Asian equities looked set to prolong into a third week after US stocks posted strong gains and Treasury yields dipped with US monetary policy back in focus in a week that includes two appearances from Federal Reserve Chairman Jerome Powell. The yen dropped.
Futures in Japan, Australia and Hong Kong all signaled equities will rise when Monday trading starts after the S&P 500 Index rose 1.6 per cent Friday.
Powell will address the House Financial Services Committee tomorrow and the Senate Banking Committee two days later to give his Humphrey-Hawkins testimony.
Bond traders are pricing less than the three quarter-point rate hikes that Fed officials havesignalled as likely this year.
Continue reading “Stocks set to rally as bond yields dip, Powell to signal direction of rate hikes in the US”