Category Archives: International trade

Trump rattles markets as US economy adds 164,000 jobs in July – as it happened

Posted on by

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The Bank of Finland governor Olli Rehn has confirmed that he has withdrawn from the race to become the next managing director of the International Monetary Fund.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...

Trump’s threat of new China tariffs sparks backlash from US retailers

Posted on by

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...

UK less able to cope with hard Brexit than it was in spring, say officials

Posted on by

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...

Donald Trump’s trade war hurting China more than US, says IMF

Posted on by

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...

Trump claims trade war is working as China’s growth hits 27-year low – business live

Posted on by

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...

Donald Trump threatens new tariffs on $4bn of EU products

Posted on by

Whisky, cheese and olives among items that could be hit in row over aircraft subsidies

Donald Trump has threatened fresh tariffs on $4bn (£3,2bn) of European products including cheese, scotch whisky and olives, ratcheting up pressure on the EU in a long-running row over aircraft subsidies.

The US trade representative’s office released a list of 89 additional items – including olives, Italian and Dutch cheese, Scotch whisky, Irish whiskey, pasta, coffee and ham – that could face tariffs. These join products worth $21bn that were announced as potential targets for tariffs in April, which included roquefort cheese, wine, champagne, olive oil and seafood such as oysters. The latest list also includes a number of copper products and other metals.

Continue reading...

EU signs landmark trade deal with Vietnam

Posted on by

Agreement to cut 99% of tariffs is first with developing country in Asia and swiftly follows deal with South American bloc

The European Union has signed a landmark free-trade deal with Vietnam, the first of its kind with a developing country in Asia, paving the way for tariff cuts on almost all goods.

The EU has described the deal as “the most ambitious free trade deal ever concluded with a developing country”.

Continue reading...

Trade war looms over G20 as Trump attacks India over tariffs – business live

Posted on by

Rolling coverage of the latest economic and financial news, as US president blasts India for raising tariffs on American goods

Heads-up: One of Donald Trump’s top advisors has warned that America could press on and raise tariffs on Chinese imports.

Larry Kudlow, director of the National Economic Council, has said America is insisting on ‘structural changes’ to China’s intellectual property laws, with effective enforcement for any breaches.

“If need be, we may move ahead – we may move ahead on additional tariffs.

We have word from the WH --> Kudlow says there are no preconditions set ahead of any trade talks with China. (per @Reuters, Fox News)

This G20 summit is Theresa May’s last big foreign trip before stepping down as PM.

She’s expected to hold meeting with Australian PM Scott Morrison, Turkey’s Recep Tayyip Erdoğan, South Africa’s Cyril Ramaphosa and Saudi crown prince Mohammed bin Salman.

Quite the lineup for Theresa May's one-to-one meetings at this G20 summit in Osaka - Putin, Mohammad bin Salman, Erdogan...And Trump will be here too, of course. So much for that "rules-based global order" she prizes.

Continue reading...

China will not allow G20 to discuss Hong Kong, says foreign minister

Posted on by

Foreign powers have no right to interfere in ‘internal affair’, says Zhang Jun, as Beijing also calls for trade compromise

China has said it will not allow the G20 nations to discuss the Hong Kong issue at its summit this week, assistant foreign minister Zhang Jun said on Monday.

Millions of people demonstrated on the streets of the city this month against a bill that would allow people to be extradited to the mainland to face trial in courts controlled by the Communist party.

Continue reading...

Mark Carney dismisses Boris Johnson’s no-deal Brexit trade claim

Posted on by

Bank of England governor says UK would be hit automatically by tariffs on exports to EU

The Bank of England governor, Mark Carney, has said that the UK would be hit automatically by tariffs on exports to the EU in a no-deal Brexit, rejecting a claim made by Boris Johnson that this could be avoided.

Tory leadership candidate Johnson said this week that tariffs would not necessarily have to be paid if the UK left the EU without a deal because the UK could rely on article 24 of the general agreement on tariffs and trade (Gatt).

Continue reading...

Trump budget chief wants delay in Huawei restrictions

Posted on by
  • Russell Vought makes request in letter to Pence and Congress
  • Mnuchin: trade progress with China could ease Huawei actions

The Trump administration’s acting budget chief is asking for a delay in restrictions against Huawei products, according to a letter to Vice-President Mike Pence and nine members of Congress.

Related: ‘All I have done, no credit!’ Enraged Trump defends US-Mexico migrant deal

Continue reading...

Trump’s Mexico deal is victory for ‘hostage-taking’, ex-WTO head says

Posted on by

Pascal Lamy said Trump’s actions went against the spirit of diplomacy after Mexico agreed to expand asylum program

The immigration deal imposed on Mexico by Donald Trump under the threat of punitive tariffs is a victory for “hostage-taking” over international rules, a former head of the World Trade Organization (WTO) said on Saturday.

Related: Trump calls off tariffs after US-Mexico deal but Mnuchin says threat remains

Continue reading...

Renault-Fiat Chrysler merger collapses

Posted on by

French government blamed as €33bn deal to create world’s third largest carmaker stalls

The proposed €33bn merger of Fiat Chrysler and Renault has collapsed after an intervention from the French government, Renault’s biggest shareholder.

Fiat Chrysler, an Italian-American company, withdrew from a 50-50 merger proposal for its French rival after a board meeting on Wednesday. A deal would have created the world’s third-largest carmaker behind Volkswagen and Toyota.

Continue reading...

US-China trade war to cost $455bn in lost output, says IMF

Posted on by

Christine Lagarde says world must avoid the ‘self-inflicted wounds’ of a tit-for-tat wrangle

The International Monetary Fund has called for a speedy end to the deepening trade war between the United States and China after calculating that the tit-for-tat tariffs will cost $455bn (£357.5bn) in lost output next year – more than the size of South Africa’s economy.

Christine Lagarde, the IMF’s managing director, underlined her organisation’s growing concern at the most serious outbreak of trade tension since the 1930s and said “self-inflicted wounds” had to be avoided.

Continue reading...

Trump’s trade wars sent global investment tumbling – World Bank

Posted on by

Brexit and trade disputes push bank’s policy uncertainty index to record high, says report

Donald Trump’s trade wars with China, Mexico and Europe have sent global investment tumbling, according to a World Bank report that forecasts worldwide growth this year will slip back to levels not seen since 2016.

The Washington-based lender to developing world countries said in its half-yearly global health check that spiralling political uncertainty was to blame for a slowdown in trade and a collapse in investment spending that will push down GDP growth to 2.6% this year “before inching up to 2.7% in 2020”.

Continue reading...

UK factory growth hits three-year low amid Brexit and trade war worries – business live

Posted on by

Rolling coverage of the latest economic and financial news, as City investors fear the US-China trade war is intensifying

The UK factory sector was buffeted by ongoing Brexit uncertainty again in May, says Rob Dobson, dragging the PMI to a near three-year low.

He also fears that British manufacturing could continue to shrink in the comping months.

The trend in output weakened and, based on its relationship with official ONS data, is pointing to a renewed downturn of production.

“New order inflows declined from both domestic and overseas markets, as already high stock levels at manufacturers and their clients led to difficulties in sustaining output levels and getting agreement on new contracts.

Newsflash: Britain’s factory sector has suffered its worst contraction since the EU referendum almost three years ago.

Data firm Markit reports that new orders and employment both declined last month, hit by Brexit uncertainty and the knock-on impact of the US-China trade war.

New order inflows deteriorated from both domestic and overseas sources. New export business fell for the second month running and at the quickest pace in over four-and-a- half years. Manufacturers reported lower demand from Asia and Europe.

There was also mention of Brexit uncertainty, including clients diverting supply chains away from the UK, leading to lower demand from within the EU.

Continue reading...

Donald Trump is lashing out at Mexico but his real fight is at home | Phillip Inman

Posted on by

Democrats are turning a president enraged at the blocking of his border wall into an unhinged beast

Donald Trump’s threats of higher import tariffs against Mexican goods can be better understood not as an escalation of his trade war with the rest of the world, but as the act of a desperate man, prepared to upset most US business leaders to achieve his aim of building a border wall with the country’s southern neighbour.

His anger, which he will bring with him on a state visit to London on Monday, is not so much with Andrés Manuel López Obrador’s administration in Mexico City as with Congress, which has blocked the border wall, or at least restricted funding to such an extent that its completion is unlikely before the next presidential race gets under way.

Continue reading...

Royals to serve as extras in Donald Trump’s victory lap of UK

Posted on by

US president to use state visit to promote House of Trump as he doubles down on Brexit bet

Donald Trump’s state visit this week to the UK is being promoted as a celebration of a close alliance tempered through war.

It could be more accurately described as a personal lap of victory for the US president, performed largely at the expense of his hosts.

Continue reading...

Donald Trump defends tariffs on Mexico as stock markets reel

Posted on by

After 5% tariff announced, president tweets ‘Mexico has taken advantage of the US for decades’

Donald Trump has defended his decision to impose new tariffs on Mexico as stock markets worldwide were rattled by fears of an escalation in trade tensions.

“Mexico has taken advantage of the United States for decades,” Trump tweeted. “Because of the Dems, our Immigration Laws are BAD. Mexico makes a FORTUNE from the U.S., have for decades, they can easily fix this problem. Time for them to finally do what must be done!”

Continue reading...

China tells US provoking trade disputes is ‘naked economic terrorism’

Posted on by

Senior official says China is ‘not afraid’ of a trade war as Beijing signals potential restrictions on rare-earth exports

Provoking trade disputes is “naked economic terrorism“, a senior Chinese diplomat said on Thursday, ramping up the rhetoric against the US amid a bitter trade war that shows no signs of ending soon.

Zhang Hanhui, China’s vice foreign minister told reporters in Beijing China opposed the use of “big sticks” such as trade sanctions, tariffs and protectionism.

Continue reading...