We view these comments as the true culprit in today's price action when coupled with a
reduction in trade war fears.
While there is almost universal agreement that the overall impact of a trade war is negative, market action suggests the hunt for the right
stocks in a trade war has begun.
We are not
in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S..
The report notes Gulf Coast ports are also
winners in the trade wars, particularly Port Houston, which was the strongest port - centric industrial market in the U.S., averaging 2.3 million square feet of total net absorption over the past 10 years.
Investors have been worried that tariffs on steel and aluminum imports implemented by the U.S. earlier this month could cause its trading partners to take retaliatory actions and eventually
result in a trade war.
«We've been
in a trade war for decades,» new U.S. commerce secretary Wilbur Ross told Bloomberg News recently, as he clarified why the U.S. is launching a radical series of trade negotiations that will include a head - on collision with China and ripping up NAFTA.
«We've opened up a new
front in the trade war, and while it's quieter than all of the bombast about tariffs that had people freaking out, there are still a ton of companies that can get hurt here,» the «Mad Money» host said.
Well, no matter what The Donald does he can't start a trade war because we're
already in a trade war with China.
China's Global Times, a state tabloid that often voices nationalist views, said in an editorial this week that any suggestion China would suffer more than the United
States in a trade war was «arrogant and naïve.»
In this week's Weekend Reads: America might get embroiled
in a trade war over the price of Bourbon, and it's obviously worth the fight.
With U.S. steel and aluminum tariffs set to take effect within days, France's top finance official said the EU shouldn't get
caught in a trade war.
«To whatever extent anyone believes that the US has the
advantage in a trade war because it has a big deficit (so it has more to gain) one could say the same for China in a capital war because it has the bigger deficit,» he wrote.
Read more from USA TODAY:
In a trade war between US and trading partners, small stocks may fare best See 7 sexy new cars, SUVs debuting at the New York Auto Show Royal Caribbean takes delivery of Symphony of the Seas, world's largest cruise ship
President Trump plans for big tariffs on foreign steel, but if he thinks it's the opening
move in trade war with China, he's wrong.
Benoit Coeure, executive board member of the European Central Bank, said he is not sure we are
in a trade war yet.
More from Global Investing Hot Spots: China's weapon that can be
used in a trade war with US Tesla and China trade war Apple's China situation is an albatross
Uhlenkott points out that it's the small and medium - size enterprises, as opposed to larger manufacturers of automobiles and airplanes, that are likely to be put out of
business in a trade war.
«We felt that the recent
smoothing in trade war discussions felt too quick and too easy to take at face value,» Neil Campling, co-head of global thematic group at Mirabaud Securities, said in a research note Thursday.
Economically, China may be highly vulnerable and will suffer worse consequences than the
U.S. in a trade war, but as the world's second - largest economy, it can still deliver a powerful counter punch.
OK, but Michael has argued (pretty persuasively, I think) from his various posts and books that the only way that the US can balance unilaterally is by imposing capital controls, that China buys so many USDs because it needs to export capital as a fundamental in its growth model, and that historically, in periods of excess supply / insufficient demand, it's the creditor nations, not the debtor nations, that
suffer in trade wars (or capital wars, which I guess is the same thing).
Thune and Kansas Republican Sen. Pat Roberts said they were worried about the agricultural industry, which could be
targeted in a trade war.
Alberta has granted sweeping new powers to its energy minister as the province ups the
ante in its trade war with British Columbia
While most analysts have been fixated on what the U.S. has to
lose in a trade war, China is also at risk because it can not match the U.S. in duties.
To recap, over the past few months Alberta and British Columbia have been
locked in a trade war over a proposed $ 7.4 billion pipeline expansion project.
As we're
seeing in another trade war, one involving with hard metals, the provoked party isn't always bound to back down, especially when political fortunes are at play.
One day it could be industrial companies such as Boeing or Caterpillar, which export lots of products and therefore could be
harmed in a trade war.
While overseas money pours into stocks and bonds, hedge funds don't boost efficiency or
help in trade wars.
Appearing at a joint press conference in the White House, Mr Trump was asked how he would avoid his steel tariff «
escalating in a trade war».
The Subprime Debacle: Act 2 (pdf)-- John Mauldin Currency: The Weapon of
Choice in Trade Wars in a World of Lower Demand — Satyajit Das
my lucky penny tells me we'll get a quick spike to 1249 as the final bears capitulate when we have an up Sep rather than a down one, Oct 9, then we get
crushed in a trade war / dollar crash / inflation / lack of growth death spiral....
And on the Twitter - like social media site Weibo, the hashtag «
retaliate in trade war» has been used in more than 330,000 tweets.
On Thursday and Friday, stocks dropped significantly amid a
spike in trade war concerns before picking back up on Sunday in response to President Trump's latest statement:
The Chinese President XI Jinping opened the World Economic Forum in Davos saying that nobody would emerge as a
winner in a trade war.
In a tweet early Wednesday, Trump said the U.S. is «
not in a trade war with China,» adding «that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.»
Cohn believes that the tariffs could
result in trade wars and cost more jobs than they save; while Navarro and others such as US Trade Rep. Robert Lighthizer and US Commerce Secretary Wilbur Ross think they could be an effective way to reduce the US trade deficit and revive beleaguered industries.
In fact Wilbur Ross, the commerce secretary, opined to Bloomberg News that the U.S. has been
in a trade war for decades — and that's why the U.S. has a trade deficit.