G-7 summit set to end without an agreement for the first time in history

A view shows the Hotel du Palais summit venue ahead of the G7 Summit in the French coastal resort of Biarritz, France, August 21, 2019. REUTERS | Regis DuvignauThe Group of Seven (G-7) summit is set to end without a joint communique for the first time in its 44-year history, after French President Emmanuel Macron decided to abandon the tradition citing “a very deep crisis of democracy.” France will want to avoid another ‘G-6+1 summit’Last year, at the G-7 summit in Ottawa, Canada, Trump threw ty


A view shows the Hotel du Palais summit venue ahead of the G7 Summit in the French coastal resort of Biarritz, France, August 21, 2019. REUTERS | Regis DuvignauThe Group of Seven (G-7) summit is set to end without a joint communique for the first time in its 44-year history, after French President Emmanuel Macron decided to abandon the tradition citing “a very deep crisis of democracy.” France will want to avoid another ‘G-6+1 summit’Last year, at the G-7 summit in Ottawa, Canada, Trump threw ty
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Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: sam meredith
Keywords: news, cnbc, companies, trade, summit, set, g7, end, joint, history, trump, president, french, communique, agreement, france, united


G-7 summit set to end without an agreement for the first time in history

A view shows the Hotel du Palais summit venue ahead of the G7 Summit in the French coastal resort of Biarritz, France, August 21, 2019. REUTERS | Regis Duvignau

The Group of Seven (G-7) summit is set to end without a joint communique for the first time in its 44-year history, after French President Emmanuel Macron decided to abandon the tradition citing “a very deep crisis of democracy.” It will be the first time since meetings began in 1975 that the forum has failed to end a summit without an agreed statement, laying bare the deepening rift between heads of state from seven of the world’s largest economies. Speaking to reporters ahead of the G-7 meeting at a news conference in Paris on Wednesday, Macron said an attempt to produce a joint communique would most likely be a “pointless” exercise. He referenced President Donald Trump’s decision to withdraw from a landmark climate agreement restricting global efforts to cut carbon as one example of why it would be difficult to display a united front.

The annual summit brings together the leaders of Britain, Canada, France, Germany, Italy, Japan and the United States. It will be held in the seaside town of Biarritz in southwest France from Saturday through to Monday. Securing an agreement at the annual summit has proved increasingly difficult in recent years, partly because the U.S. president has expressed a preference for bilateral trade pacts over multilateral agreements. “It is impossible to predict what the U.S. will do — we might be in for some surprises from Trump,” Agathe Demarais, global forecasting director at the Economist Intelligence Unit (EIU), told CNBC via telephone. “I’m not sure what he is going to do, maybe Trump doesn’t know either,” Demarais said, citing the U.S. as a notable exception in its approach to handling disputes.

France will want to avoid another ‘G-6+1 summit’

Last year, at the G-7 summit in Ottawa, Canada, Trump threw typically stage-managed proceedings into disarray. The U.S. president made an early exit from the meeting, refused to sign the collective final statement and engaged in personal insults over trade with Canadian Prime Minister Justin Trudeau. The summit appeared to demonstrate fraying ties between the U.S. and its traditional allies, with one photo seemingly summing up divisions in the room. The image, which appeared on German Chancellor Angela Merkel’s Instagram account, showed world leaders gathered around Merkel on one side of a table, while a seated Trump looked on with his arms folded.

German Chancellor Angela Merkel deliberates with U.S. President Donald Trump during the G-7 summit in Canada on June 9, 2018. Jesco Denzel | Bundesregierung | Getty Images

From a French perspective, the hosts will “want to try to manage this G-7 so it doesn’t turn into another embarrassing mess with everyone arguing with each other,” Constantine Fraser, European political analyst at the TS Lombard research group, told CNBC via telephone. “I think it is quite possible” there will be no joint communique at the end of this year’s summit, Fraser said, before adding the statement was now little more than an “increasingly desperate fig leaf.” “The G-7 is no longer for the world’s richest countries to show a united front… And the lack of a joint communique is a recognition of where we are at,” Fraser said. French media dubbed last year’s gathering in Ottawa as the “G-6+1 summit,” citing Washington’s refusal to sign the final statement.

Tech tax

Alongside environment and trade, analysts expect Brexit, inequality, the possible reinstatement of Russia and universal taxation on digital giants to dominate proceedings. Late last month, Trump warned he “might” slap tariffs on French wine in response to the country’s new tax affecting technology companies. “This is a very, very contentious topic. France wants to impose this digital tax but the problem is most digital giants are American,” the EIU’s Demarais said.

French President Emmanuel Macron pictured before a meeting at the Elysee presidential palace in Paris on July 22, 2019. LUDOVIC MARIN | AFP | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: sam meredith
Keywords: news, cnbc, companies, trade, summit, set, g7, end, joint, history, trump, president, french, communique, agreement, france, united


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Mike Pompeo tells business execs, economists that he thinks the China trade war could end by 2020 election

Secretary of State Mike Pompeo told a group of business executives and free-trade economists that he believes the trade war with China could come to an end by the 2020 presidential election, according to people who attended the gathering. Pompeo told CNBC’s “Squawk Box” earlier Tuesday that he wasn’t sure about where things will ultimately stand between the U.S. and China. I have spoken to Secretary Mnuchin almost every day,” Pompeo told CNBC. I think we would all agree that it would be better f


Secretary of State Mike Pompeo told a group of business executives and free-trade economists that he believes the trade war with China could come to an end by the 2020 presidential election, according to people who attended the gathering. Pompeo told CNBC’s “Squawk Box” earlier Tuesday that he wasn’t sure about where things will ultimately stand between the U.S. and China. I have spoken to Secretary Mnuchin almost every day,” Pompeo told CNBC. I think we would all agree that it would be better f
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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: brian schwartz
Keywords: news, cnbc, companies, secretary, trade, state, thinks, moore, pompeo, end, economists, mike, election, told, york, execs, china, war, tells, according


Mike Pompeo tells business execs, economists that he thinks the China trade war could end by 2020 election

Secretary of State Mike Pompeo told a group of business executives and free-trade economists that he believes the trade war with China could come to an end by the 2020 presidential election, according to people who attended the gathering.

At a private lunch in New York on Tuesday, Pompeo spoke in front of a crowd of about 40 people that included economics writer Stephen Moore, Blackstone CEO Steve Schwarzman, Gristedes supermarket founder John Catsimatidis and former New York GOP chairman Ed Cox, according to people who attended the gathering.

Representatives from the State Department and Blackstone did not return a request for comment.

President Donald Trump has been levying tariffs on a variety of Chinese goods since the start of his administration, while China has been retaliating with trade barriers of its own.

Pompeo told CNBC’s “Squawk Box” earlier Tuesday that he wasn’t sure about where things will ultimately stand between the U.S. and China.

“I don’t know the answer to that. I have spoken to Secretary Mnuchin almost every day,” Pompeo told CNBC. “I haven’t been at the center of these actual negotiations. I’ve seen them make real progress.”

Moore said Pompeo, speaking at the lunch, sounded somewhat bullish on the prospects of an agreement.

“He still thinks that we can get a deal before the election. I think we would all agree that it would be better for the country,” Moore told CNBC in an interview.

Moore also noted that Pompeo still seemed hawkish on a China deal in the short term. Pompeo, according to Moore, pointed out that there continue to be hurdles to an immediate agreement.

“It’s been a tough slog to get China to agree to things. The hardliners are in command right now,” Moore said, reflecting on Pompeo’s remarks.

Catsmatidis also took away that Pompeo senses that China and the U.S. will come to an agreement over the next year.

“He talked about China. He thinks it will probably get done and they are not going to wait until 2020,” said the supermarket magnate.

The meeting was organized by the “Committee to Unleash Prosperity,” whose founders include Moore, former Reagan administration economist Art Laffer and former presidential candidate Steve Forbes. Catsimatidis is a member of the group.

Watch: CNBC’s full interview with Secretary of State Mike Pompeo


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: brian schwartz
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Trump clarifies ‘personal meeting’ tweet, suggests Xi should meet Hong Kong protesters

President Donald Trump on Thursday said he has “no doubt” that Chinese President Xi Jinping could bring an end to the unrest in Hong Kong by meeting face to face with the protesters. Trump said this in a tweet Thursday morning, less than a day after he first appeared to propose that a “personal meeting” between himself and Xi could bring a speedy end to “the Hong Kong problem. ” All aspects of the U.S.-China relationship have come under intense scrutiny, as the escalating trade war between Beiji


President Donald Trump on Thursday said he has “no doubt” that Chinese President Xi Jinping could bring an end to the unrest in Hong Kong by meeting face to face with the protesters. Trump said this in a tweet Thursday morning, less than a day after he first appeared to propose that a “personal meeting” between himself and Xi could bring a speedy end to “the Hong Kong problem. ” All aspects of the U.S.-China relationship have come under intense scrutiny, as the escalating trade war between Beiji
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Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: kevin breuninger
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Trump clarifies 'personal meeting' tweet, suggests Xi should meet Hong Kong protesters

President Donald Trump on Thursday said he has “no doubt” that Chinese President Xi Jinping could bring an end to the unrest in Hong Kong by meeting face to face with the protesters.

Trump said this in a tweet Thursday morning, less than a day after he first appeared to propose that a “personal meeting” between himself and Xi could bring a speedy end to “the Hong Kong problem. ”

All aspects of the U.S.-China relationship have come under intense scrutiny, as the escalating trade war between Beijing and Washington roils global markets and tensions ratchet up between mainland China and protesters in semiautonomous Hong Kong.

Trump has been criticized for taking an ambiguous stance on the Chinese government’s action in Hong Kong, where hundreds of thousands of people have taken to the streets originally to protest a divisive extradition bill supported by Beijing.

Fights have erupted at the protests, and the threat of increased violence has hovered over the demonstrations, which included storming government buildings and occupying the city’s airport.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: kevin breuninger
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Web security company Cloudflare files to go public

Cloudflare, a company whose technology helps companies distribute their content and keep it available online, has filed to go public. In the first half of 2019, Cloudflare had a $36.8 million net loss on $129.2 million in revenue, according to the IPO prospectus. Cloudflare’s competitors include Cisco, Zscaler, content-delivery network providers Akamai and Fastly and cloud providers like Amazon and Microsoft. Chinese web company Baidu is also a customer, and it provides Cloudflare with a network


Cloudflare, a company whose technology helps companies distribute their content and keep it available online, has filed to go public. In the first half of 2019, Cloudflare had a $36.8 million net loss on $129.2 million in revenue, according to the IPO prospectus. Cloudflare’s competitors include Cisco, Zscaler, content-delivery network providers Akamai and Fastly and cloud providers like Amazon and Microsoft. Chinese web company Baidu is also a customer, and it provides Cloudflare with a network
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Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: jordan novet
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Web security company Cloudflare files to go public

Cloudflare, a company whose technology helps companies distribute their content and keep it available online, has filed to go public. On Thursday the company’s filing kicking off the process of its initial public offering became publicly available.

In the first half of 2019, Cloudflare had a $36.8 million net loss on $129.2 million in revenue, according to the IPO prospectus. That revenue figure was up 48% from the first half of 2018, and the loss was up 13%.

The company plans to start trading under the ticker symbol “NET.” The lead underwriters are Goldman Sachs, Morgan Stanley and JP Morgan.

Cloudflare’s competitors include Cisco, Zscaler, content-delivery network providers Akamai and Fastly and cloud providers like Amazon and Microsoft. The San Francisco-based company says 20 million internet properties use its services.

The company had 74,873 paying customers at the end of the first half of 2019, with 408 of them contributing more than $100,000 in annualized billings. The company’s clients include cloud infrastructure providers like DigitalOcean and IBM, along with software companies like Discord, Marketo and Zendesk.

Chinese web company Baidu is also a customer, and it provides Cloudflare with a network presence in China. Terms of Cloudflare’s agreement with Baidu conclude at the end of 2020, but it can terminated at the end of 2019 under certain circumstances. “The risk of such an early termination event may have increased during the current environment of economic trade negotiations and tensions between the Chinese and U.S. governments,” Cloudflare says in the prospectus.

Cloudflare has been involved in several controversies, most recently including the move to stop providing services for message board 8Chan. In 2017 it stopped backing a neo-Nazi website, the Daily Stormer. Cloudflare said that it received negative feedback on those decisions and that potential customers elected to not subscribe to its services as a result.

“Activities of our paying and free customers or the content of their websites or other Internet properties, as well as our response to those activities, could cause us to experience significant adverse political, business, and reputational consequences with customers, employees, suppliers, government entities, and others,” the company said in the filing.

Cloudflare’s investors include Fidelity, NEA and Pelion Ventures and Venrock.

Matthew Prince, Cloudflare’s co-founder and CEO, owns 20.2% of the company’s class B shares, and co-founder and COO Michelle Zatlyn has 6.8%.

In a letter to prospective shareholders, they said the IPO code name, Project Holloway, is a reference to Cloudflare’s third co-founder, Lee Holloway. “Tragically, Lee stepped down from Cloudflare in 2015, suffering the debilitating effects of Frontotemporal Dementia, a rare neurological disease,” they wrote. Trusts affiliated with Holloway own 18% of Cloudflare’s class A shares.

WATCH: Here are the implications for Cloudflare withdrawing support from 8Chan


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: jordan novet
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Deliveroo to end operations in Germany, focus on other markets: Spokesman

A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany. British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday. “We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future. Deliveroo w


A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany. British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday. “We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future. Deliveroo w
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Deliveroo to end operations in Germany, focus on other markets: Spokesman

A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany.

British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday.

The withdrawal of Deliveroo — which says it has 1,100 riders in five cities and just under 100 employees in Germany — reduces competition for Dutch rival Takeaway.com, which last year agreed to buy larger competitor Delivery Hero’s business in the German food delivery market.

Deliveroo’s decision comes as Takeaway.com and British rival Just Eat have just finalized the terms of their deal to create a global food delivery company that will be a market leader in Britain, Germany, the Netherlands and Canada.

“We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future.

Deliveroo will shift its resources and investment towards boosting growth and expanding in markets around Europe and the Asia-Pacific region, the spokesman said.

Deliveroo said “appropriate compensation and goodwill packages” would be available for riders, employees and restaurants.


Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, service, spokesman, company, operations, focus, markets, deliveroo, delivery, food, takeawaycom, end, germany, rival


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Sen. Doug Jones says Congress ‘may end up acting’ if Trump’s trade war with China drags on

HUNTSVILLE, Ala. — Alabama’s Democratic Sen. Doug Jones criticized President Donald Trump’s escalating trade war with China on Tuesday, hinting at bipartisan congressional action to check the president as his state becomes more exposed to the crossfire between Washington and Beijing. “If this doesn’t change soon, I think Congress may end up acting. The ongoing trade war between the world’s two largest economies took more anxious turns this week, resulting in market volatility. Trade talks collap


HUNTSVILLE, Ala. — Alabama’s Democratic Sen. Doug Jones criticized President Donald Trump’s escalating trade war with China on Tuesday, hinting at bipartisan congressional action to check the president as his state becomes more exposed to the crossfire between Washington and Beijing. “If this doesn’t change soon, I think Congress may end up acting. The ongoing trade war between the world’s two largest economies took more anxious turns this week, resulting in market volatility. Trade talks collap
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Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: amanda macias jacob pramuk, amanda macias, jacob pramuk
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Sen. Doug Jones says Congress 'may end up acting' if Trump's trade war with China drags on

HUNTSVILLE, Ala. — Alabama’s Democratic Sen. Doug Jones criticized President Donald Trump’s escalating trade war with China on Tuesday, hinting at bipartisan congressional action to check the president as his state becomes more exposed to the crossfire between Washington and Beijing.

“I think Alabama is not just in a unique position, but we are in a very vulnerable position with both manufacturing and farming, we cannot overlook the impact that this is having on farmers up and down the state from one end to another,” Jones told CNBC on the sidelines of the Space and Missile Defense Symposium in Huntsville.

“If this doesn’t change soon, I think Congress may end up acting. There’s bills that I’ve got pending with Senator Alexander and Senator Portman and I think if this doesn’t end soon, Congress is going to start stepping in more than they have in the past,” he added.

The ongoing trade war between the world’s two largest economies took more anxious turns this week, resulting in market volatility. China, which has already put retaliatory tariffs on a range of U.S. crops, dealt another blow to the American farm industry Monday when it said it would stop purchasing U.S. agricultural products. U.S. stock indexes stabilized Wednesday, as the S&P 500 and Nasdaq inched higher while the Dow Jones industrial average fell slightly.

On Tuesday, White House economic advisor Larry Kudlow offered reassurance, telling CNBC that there’s still an opportunity for negotiation.

“The reality is we would like to negotiate,” Kudlow said, adding that the president has said “if you make a good deal, maybe he’ll be flexible on the tariffs.”

In June, Trump and Chinese President Xi Jinping agreed on the sidelines of the G-20 summit in Japan to restart negotiations and not impose new tariffs on each other’s goods. Trade talks collapsed in May, with intellectual property theft proving to be a major sticking point between the two parties.

Jones said the trade conflict has created uncertainty for key industries. Mercedes, Honda and Hyundai operate assembly plants in the state, while Mazda and Toyota are building a joint assembly plant in Alabama, according to the state’s Department of Commerce.


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: amanda macias jacob pramuk, amanda macias, jacob pramuk
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Opioid distributors said to propose $10 billion settlement to end state lawsuits, stocks fall

A pharmacist empties a prescription bottle of opioid painkillers that she filled for a patient at the pharmacy inside the facility in Boston. Shares of drug distributors fell Tuesday after a report said McKesson, Cardinal Health and AmerisourceBergen have proposed paying $10 billion to settle claims they helped to fuel the U.S. opioid epidemic. The companies made the verbal proposal as part of talks with a group of state attorneys general, according to Bloomberg, citing three people familiar wit


A pharmacist empties a prescription bottle of opioid painkillers that she filled for a patient at the pharmacy inside the facility in Boston. Shares of drug distributors fell Tuesday after a report said McKesson, Cardinal Health and AmerisourceBergen have proposed paying $10 billion to settle claims they helped to fuel the U.S. opioid epidemic. The companies made the verbal proposal as part of talks with a group of state attorneys general, according to Bloomberg, citing three people familiar wit
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Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: berkeley lovelace jr
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Opioid distributors said to propose $10 billion settlement to end state lawsuits, stocks fall

A pharmacist empties a prescription bottle of opioid painkillers that she filled for a patient at the pharmacy inside the facility in Boston.

Shares of drug distributors fell Tuesday after a report said McKesson, Cardinal Health and AmerisourceBergen have proposed paying $10 billion to settle claims they helped to fuel the U.S. opioid epidemic.

The companies made the verbal proposal as part of talks with a group of state attorneys general, according to Bloomberg, citing three people familiar with the offer. The National Association of Attorneys General, which is the handling talks on behalf of several states, countered with a demand for $45 billion to cover costs from the crisis, the report said.

Whether the drug distributors and attorneys general can agree to a deal remains uncertain, according to the report.

Shares of the drug distributors, which deliver majority of prescription medications to U.S. pharmacies, fell in mid-morning trading. McKesson, Cardinal Health and AmerisourceBergen were all down about 4% on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: berkeley lovelace jr
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Latest US-China tensions could be the trade version of ‘the end of the world as we know it’

“It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” Whether the current events detonate a f


“It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” Whether the current events detonate a f
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Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jeff cox
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Latest US-China tensions could be the trade version of 'the end of the world as we know it'

As the U.S.-China trade dispute hits another level and hammers financial markets, the bigger casualty over the longer term could be the globalization trend that has developed over the past quarter century or so. Only the European Union exports more good to the U.S. than China, making the impact of a prolonged tit-for-tat tariff potentially severe. American businesses have begun looking for alternative markets from which to get the goods they had been buying from China, pushing imports from China down 12.2% year to date, according to government data released Friday. The trend threatens fundamental change to the interconnected global economy, said Neil Shearing, group chief economist at Capital Economics.

Shearing said that the move for the U.S. to levy tariffs on all Chinese imports, which President Donald Trump announced last week, shouldn’t come as a surprise, but it still carries broad implications that may not be fully appreciated. “Lingering in the background is a more fundamental concern – namely that we may be witnessing the end of globalization,” Shearing said in a note to clients. “If so, the rapid increase in cross-border movement of goods, services, capital and people that has been the defining feature of the global economy over the past two decades may be about to reverse – with macroeconomic implications that would extend well beyond the narrow impact of tit-for-tat tariffs,” he said.

‘The end of the world’

There’s evidence of that starting to happen. Foreign direct investment in the U.S. was $410.7 billion in the first quarter, up marginally from the end of 2018 but down 57% from the peak four years ago. Among the implications for more deterioration in the global picture that Shearing cites are the “disintegration of the rules-based system” that has governed international commerce since the end of the World War II, and a potential “Balkanization” of the world economy as the U.S. and China develop their own standards, tech platforms and payment systems. “It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Shearing is not alone in his concern for how globally destructive the U.S.-China schism could be. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” And Deutsche Bank strategist Parag Thatte noted that this is the fourth time that Trump has used a stock market peak to launch a trade-related Twitter offensive against China. Markets have recoiled over the developments, with stocks Thursday staging a more than 500-point reversal after Trump announced the expanded tariffs, then tumbling around 900 points by late-day Monday after China saw an overnight currency devaluation. Whether the current events detonate a full-scale trade and currency war that poses an existential threat to globalization remains to be seen. “You want to think of it as something more than a pinprick, a little bit of damage, a little regression of the global trend that we’ve been seeing for many decades. But it has the potential to get worse,” said Alan Blinder, a Princeton University economist. “We’re not yet in a full-scale trade war, we’re certainly not anywhere close to a full-scale currency war of competitive devaluations. But those two things are no longer unthinkable, and that’s got the markets spooked.” Trump himself has been a proponent of nationalism and used to chide some of his advisors — former National Economic Council director Gary Cohn, for one — as being globalists. The president has pushed an “America first” political agenda, with one specific goal being the reduction of the trade deficit with China, which was at $167 billion through the first half of the calendar year. Blinder said one negative scenario would see the U.S. start to become alienated from the rest of the trading world as it continues to levy tariffs not only on China but also on such traditional allies as Europe, Mexico and Canada. “One of the real fears for me as an American is this is not really shaping up as China vs. the West, it’s shaping up as the U.S. vs. everybody else,” he said. “I tend to think that the bad outcome is not that China gets disconnected from the rest of the world, it’s that the U.S. gets disconnected from the rest of the world. That’s the doomsday scenario, and that’s just dumb.”

Market implications


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jeff cox
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‘It’s unclear what the end game is,’ former US ambassador says of Trump’s trade war with China

U.S. President Donald Trump has been extremely unpredictable and it’s not clear what the end game of his trade war with China will be, a former American ambassador told CNBC on Friday. Trump has been “wildly unpredictable in many ways with one exception,” said David Adelman, former U.S. ambassador to Singapore from 2010 to 2013 during the Obama administration. “He views trade, and he views even security issues, as a zero sum game — if he sees one country benefiting or one of America’s counterpar


U.S. President Donald Trump has been extremely unpredictable and it’s not clear what the end game of his trade war with China will be, a former American ambassador told CNBC on Friday. Trump has been “wildly unpredictable in many ways with one exception,” said David Adelman, former U.S. ambassador to Singapore from 2010 to 2013 during the Obama administration. “He views trade, and he views even security issues, as a zero sum game — if he sees one country benefiting or one of America’s counterpar
‘It’s unclear what the end game is,’ former US ambassador says of Trump’s trade war with China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: huileng tan
Keywords: news, cnbc, companies, unpredictable, unclear, negotiations, tariff, trumps, trade, china, tariffs, end, game, ambassador, president, views, chinese, trump, war


'It's unclear what the end game is,' former US ambassador says of Trump's trade war with China

U.S. President Donald Trump has been extremely unpredictable and it’s not clear what the end game of his trade war with China will be, a former American ambassador told CNBC on Friday.

Trump has been “wildly unpredictable in many ways with one exception,” said David Adelman, former U.S. ambassador to Singapore from 2010 to 2013 during the Obama administration.

“He views trade, and he views even security issues, as a zero sum game — if he sees one country benefiting or one of America’s counterparties benefiting, he makes the assumption that it must be coming at the cost of the American economy.”

“So I think it’s not too far-fetched to see the President begin to look around the world and use this very blunt instrument to prosecute his case,” added Adelman, who is now partner at Reed Smith, a law firm.

His comments came after Trump announced Thursday that the U.S. is placing 10% tariffs on another $300 billion worth of Chinese goods, effective Sept. 1. In May, the U.S. raised tariffs from 10% to to 25% on $200 billion of Chinese imports.

The tariff announcement surprised markets and sent major indexes in the U.S. and Asia reeling, as Washington and Beijing had just restarted tariff negotiations in Shanghai this week — the first in-person trade talks since a ceasefire in late June. The White House had said after those meetings that negotiations were “constructive” and that China had confirmed its commitment to increase purchases of U.S. agricultural exports.


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: huileng tan
Keywords: news, cnbc, companies, unpredictable, unclear, negotiations, tariff, trumps, trade, china, tariffs, end, game, ambassador, president, views, chinese, trump, war


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Bank of America: New tariffs to hit earnings and cause stocks to plateau through the end of the year

Bank of America is calling for U.S. stocks to hold near current levels through the rest of the year following President Donald Trump’s move to put new tariffs on Chinese goods, which could further dampen corporate earnings. The firm has a year-end target for the S&P 500 of 2900 points, just a hair below Thursday’s closing price of 2953.56 points. The S&P 500 has enjoyed a run of nearly 18% this year. Last month, Bank of America pointed out that early second-quarter earnings were “healthy” but “w


Bank of America is calling for U.S. stocks to hold near current levels through the rest of the year following President Donald Trump’s move to put new tariffs on Chinese goods, which could further dampen corporate earnings. The firm has a year-end target for the S&P 500 of 2900 points, just a hair below Thursday’s closing price of 2953.56 points. The S&P 500 has enjoyed a run of nearly 18% this year. Last month, Bank of America pointed out that early second-quarter earnings were “healthy” but “w
Bank of America: New tariffs to hit earnings and cause stocks to plateau through the end of the year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: michael sheetz
Keywords: news, cnbc, companies, plateau, america, bank, tariffs, earnings, 500, end, hit, subramanian, sp, signs, cause, stocks, sees


Bank of America: New tariffs to hit earnings and cause stocks to plateau through the end of the year

Traders work on the floor at the New York Stock Exchange (NYSE) in New York.

Bank of America is calling for U.S. stocks to hold near current levels through the rest of the year following President Donald Trump’s move to put new tariffs on Chinese goods, which could further dampen corporate earnings.

The firm has a year-end target for the S&P 500 of 2900 points, just a hair below Thursday’s closing price of 2953.56 points. The S&P 500 has enjoyed a run of nearly 18% this year.

Bank of America sees a host of pressures that “should limit upside” of stocks for the rest of 2019, citing uncertainty from trade, geopolitics and the Federal Reserve, as well as “downward revisions to estimates” from corporate earnings. Last month, Bank of America pointed out that early second-quarter earnings were “healthy” but “warning signs” flashed in the form of some companies lowering forecasts.

“Our sensitivity analysis suggests that fresh tariffs (10% on $300B) would represent a hit to S&P 500 earnings of 30-40bps from rising input costs,” Bank of America’s equity strategist Savita Subramanian said in a note to investors on Friday.

Despite the expected hit to companies’ results, Subramanian said that “we still like US stocks.”

“The ‘easy money’ to be made is in longer term investments,” Subramanian said, adding that Bank of America prefers “inexpensive, domestic quality cyclicals, like Financials” and sees “no signs of an imminent recession / bear market.”

– CNBC’s Michael Bloom contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: michael sheetz
Keywords: news, cnbc, companies, plateau, america, bank, tariffs, earnings, 500, end, hit, subramanian, sp, signs, cause, stocks, sees


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