Donald Trump announced a “very substantial phase one deal” to solve the long-running trade dispute with China.
After a two-day meeting in Washington between US and Chinese officials on Friday Trump announced a delay on plans to raise tariffs on $250bn worth of goods to 30% on 15 October.
Continue reading...Kevin Rudd is among a coalition of former leaders who have urged the US and China to settle their differences
The ongoing trade war between the US and China, with its associated decoupling of the two powerhouse economies, was a step in the direction of a new cold war, a coalition of former world leaders has warned.
Writing on behalf of the global leadership foundation in an opinion piece published in the New York Times overnight, former prime ministers Kevin Rudd of Australia, Helen Clark of New Zealand and Carl Bildt of Sweden have urged presidents Donald Trump and Xi Jinping to end their trade dispute for the sake of the world at large.
Continue reading...MPs say thousands of jobs, many in rural Scotland, could be at risk from planned 25% tax
MPs are calling on Boris Johnson to intervene directly with Donald Trump to prevent the US imposing punitive tariffs of 25% on imported scotch whisky later this month.
The US announced last week that scotch would be among a range of European goods subject to hefty import taxes from 18 October, as it hits back against the EU in the long-running trade dispute over subsidies for Airbus.
Continue reading...The only tool he has to placate US consumers is successive interest rate cuts – but the whole world is playing at that game
Donald Trump’s cunning plan to make America great again by launching a trade war with China has officially backfired. Last week, a keenly watched measure of US manufacturing showed firms cutting back on production and jobs at a rate not seen since 2009. Recession warning lights are flashing and the outlook seems a world away from the cheery one presented by the president when he entered the White House in 2017.
It is quite something for a president to impose a trade policy that weighs heavily on parts of a crucial sector for the US economy – and it’s a bizarre tactic given that the votes of manufacturing workers delivered him his first term in office.
Continue reading...Campaign accused of ignoring colonial abuses when setting out maritime industries’ future
Historians and academics have labelled a new government campaign “tone deaf” and “historically illiterate” for using images of ships used for slavery and colonisation to promote Britain’s maritime sector.
The UK has a long history with commercial shipping, reaching as far back as 1700 ⚓️
Our #Maritime2050 plan maps out the next 30 years of innovation. Find out more https://t.co/VqYPNw300C #LISW19 pic.twitter.com/0Olw3gk2F8
Prices are at record levels and demand is growing for fishermen north of the border after China imposed tariffs on live lobsters
Long hours, rolling ocean swells, and the occasional spring snowstorm are all part of the job for Francis Morrissey.
“It’s bred into you from the time you’re a child: you either like the ocean or you don’t,” said the fisherman and business owner from the Canadian province of Prince Edward Island. “Even when I’m in the office, I wish I was out there.”
Continue reading...Chinese exports worth $125bn will face new taxes from 1 September, while China places levy on oil as agreement becomes more distant
China and the United States have begun imposing additional tariffs on each other’s goods in the latest escalation of their bruising trade war that has sent shockwaves through the global economy.
A new round of tariffs took effect from 0401 GMT on Sunday, with Beijing’s levy of 5% on US crude oil marking the first time the fuel has been targeted since the world’s two largest economies started their trade war more than a year ago.
Continue reading...Donald Trump has admitted he may rethink his deepening trade war with China after criticism from fellow world leaders at the G7 summit in Biarritz. Asked at a working breakfast with Boris Johnson if he had had second thoughts about the standoff, the president replied: 'Yeah, sure. Why not? … I have second thoughts about everything'
Continue reading...On Friday the US president ‘hereby ordered’ companies to halt business with China, among other attacks – how did we get here?
Even by Donald Trump’s standards his Twitter rant attacking China on Friday was extraordinary. In a series of outbursts Trump “hereby ordered” US companies to stop doing business with China, accused the country of killing 100,000 Americans a year with imported fentanyl and stealing hundred of billions in intellectual property.
The attack marked a new low in Sino-US relations and looks certain to escalate a trade war already worrying investors, manufacturers and economists who are concerned that the dispute between the two economic superpowers could trigger a recession.
Continue reading...Move puts additional 5% and 10% on imports in latest tit-for-tat between top two economies
China has unveiled retaliatory tariffs against about $75bn (£60bn) worth of US goods, putting up to 10% on top of existing rates in the latest tit-for-tat in the dispute between the world’s top two economies.
The salvo from China on Friday comes after the US unveiled tariffs on an additional $300bn of Chinese goods, including consumer electronics, scheduled to go into effect in two stages on 1 September and 15 December.
Continue reading...Brazil’s handling of forest fires set to top agenda of G7 countries at meeting in Biarritz this weekend
Amazon fires: what is happening and is there anything we can do?
France and Ireland have said they will oppose an EU trade deal with South American countries unless Brazil takes action to stop the burning of the Amazon.
On the eve of a meeting of the G7 nations in Biarritz, an Élysée source said Emmanuel Macron thought Brazil’s president, Jair Bolsonaro, “lied” to him at the G20 meeting in Osaka in June about his climate commitments and therefore France would oppose the Mercosur treaty.
Continue reading...Bundesbank says summer’s slump in exports is expected to continue into the autumn
Germany’s economy is heading into recession after the country’s central bank warned that a slump in exports during the summer was likely to continue into the autumn.
The Bundesbank said a downturn in orders for cars and industrial equipment in the second quarter of the year was likely to continue in the third quarter, leaving the economy on the brink of a technical recession, defined as two consecutive quarters of negative GDP growth.
Continue reading...The trade minister, Simon Birmingham, has released a list of food products the EU wants protected as ‘geographical indicators’
Australia is gearing up for a fight with the European Union over the naming of hundreds of products including feta, gruyere and scotch beef as negotiations continue over an “ambitious” free trade agreement.
The trade minister, Simon Birmingham, has released a list of names the EU wants protected as part of the new trade deal – known as “geographical indications” or GIs – which are aimed at protecting European products.
Continue reading...Tweet in support of US farmers suggests dispute with Beijing could extend well into 2020
Donald Trump has dropped the broadest possible hint that he is ready to dig in for the long term in the Washington’s trade war with China, after the latest escalation in the long-running dispute between the world’s two largest economies.
The US president said he was ready to provide support for US farmers in 2020 should they face pressure from China, as economists at Goldman Sachs said the standoff could continue until after the US presidential election in November 2020.
Continue reading...Trade war rhetoric ratchets up as Beijing responds to US claim of being ‘a currency manipulator’
China stepped up the trade war rhetoric on Tuesday, accusing the US of “deliberately destroying international order” with “unilateralism and protectionism”.
A day after Washington branded China a currency manipulator in a rapidly escalating trade dispute, China’s central bank said it “deeply regretted” the move by the US and said such behaviour “seriously undermined international rules” and damaged the global economy.
Continue reading...Markets fell sharply as Trump threatens fresh tariffs; US non-farm payrolls matched economists’ expectations in July, while June figures were revised down
The Bank of Finland governor Olli Rehn has confirmed that he has withdrawn from the race to become the next managing director of the International Monetary Fund.
EU is about to vote on Europe’s candidate for IMF managing director. It is an exceptionally meaningful and motivating job. However, at this stage I withdraw my name from the ballot, so that we can achieve a broad-based consensus for the European candidate, and world-wide support.
Continue reading...Industry warns of job losses and higher consumer prices after president targets another $300bn in imports
US retailers were lining up on Thursday night against Donald Trump’s threat to impose tariffs on a fresh $300bn of Chinese imports in September, if a US-China trade deal can’t be struck.
Financial experts warned of an “economic drag” in the further escalation of trade tensions with China – after the president said that China had not stuck to various promises over trade that he had previously touted as signs of progress.
Continue reading...Exclusive: Analysis includes stark assessments of potential problems including panic-buying and civil disorder
The UK is currently less able to cope with a hard Brexit than it was in the spring, with the real risk of panic-buying in the run-up to Christmas and civil disorder if the country leaves the EU without a deal on 31 October, an official document reveals.
The prime minister, Boris Johnson, has made Michael Gove responsible for “turbo-charging” Brexit planning, and on Thursday the new chancellor, Sajid Javid, announced an extra £2.1bn of funding to prepare for a no-deal exit.
Continue reading...Brexit uncertainty and impact of Iran sanctions also likely to slow world growth, says Fund
Donald Trump’s claim that his protectionist measures are hurting China more than the US has received support from the International Monetary Fund in new forecasts showing how a fresh slowdown in the global economy has been concentrated in emerging economies.
The Washington-based IMF said the outlook was gloomier than it envisaged three months ago due to the tit-for-tat tariff war between the world’s two biggest economies, Brexit uncertainty and the impact of sanctions against Iran on oil prices.
Continue reading...Rolling coverage of the latest economic and financial news, including reaction to the latest Chinese GDP report
Earlier:
If you’re just tuning in, here’s our news story on the Chinese growth figures.... and president Trump’s response.
Donald Trump has claimed that his tariff battle with China is working after official data from Beijing showed growth in the world’s second biggest economy dropping to its slowest pace since 1992.
The US president said the impact of his protectionist measures had been to cause an exodus of companies from China, as Beijing announced that its annual rate of expansion had slowed from 6.4% to 6.2% in the second quarter of 2019.
In tweets that were immediately challenged by economists, Trump said his tough action had forced China’s leaders to the negotiating table.
Related: Donald Trump claims trade war is working as China's economy slows
European stock markets ended the day higher, blown upwards by hopes of fresh Chinese stimulus measure to prop up growth.
After a brief stint in the red the FTSE has powered higher on Monday as risk on dominated. Better than expected results from Citigroup boosting Wall Street and the prospect of stimulus for China lifted the FTSE at the start of the week.
Chinese GDP data showed that the economy grew by 6.2% its lowest level of growth in almost a decade. However, rather than depressing the market, hopes of stimulus for the world’s second largest economy have boosted risk appetite, lifting demand for riskier assets such as stocks. Just as we are seeing with the US, the prospect of easing financial conditions is not being interpreted as bad news for stocks. Instead the prospect of cheaper borrowing in the case of the Fed and support from the PBOC is giving investors plenty of confidence to buy in.
Continue reading...