US–China trade war optimism? Big companies are not buying it

If you follow the markets, there’s been recent reason for optimism about a U.S.-China trade deal. The quarterly survey finds CFOs around the world increasingly are worried about U.S. trade policy as a business risk factor. If a trade deal remains elusive, even that stability may not last long. — CNBC Global CFO Survey Q3 U.S. CFOs taking the survey did reveal significant concerns about the trade war in other responses. Impact of trade tensions new new U.S. tariffs—CNBC Global CFO Survey Q3 The d


If you follow the markets, there’s been recent reason for optimism about a U.S.-China trade deal. The quarterly survey finds CFOs around the world increasingly are worried about U.S. trade policy as a business risk factor. If a trade deal remains elusive, even that stability may not last long. — CNBC Global CFO Survey Q3 U.S. CFOs taking the survey did reveal significant concerns about the trade war in other responses. Impact of trade tensions new new U.S. tariffs—CNBC Global CFO Survey Q3 The d
US–China trade war optimism? Big companies are not buying it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: eric rosenbaum, anthony volastro
Keywords: news, cnbc, companies, buying, china, big, companies, deal, survey, business, optimism, president, risk, trade, policy, cfo, cfos, war, uschina


US–China trade war optimism? Big companies are not buying it

If you follow the markets, there’s been recent reason for optimism about a U.S.-China trade deal. Some investors are buying it — literally — with recent gains in stocks attributed to positive signals from the U.S. and China after a volatile August. But there’s one group of market insiders not buying the talk: corporate executives. In other words, the people who run the companies whose publicly traded shares have been rebounding. Top executives in the U.S. and around the world are not placing bets that the U.S.-China trade war will be resolved anytime soon. In fact, corporations say they expect to feel the pain of trade tensions over the next six months, according to the third-quarter CNBC Global CFO Council survey. The quarterly survey finds CFOs around the world increasingly are worried about U.S. trade policy as a business risk factor. Chief financial officers also downgraded their view of the U.S. economy, from “improving” to “stable.” If a trade deal remains elusive, even that stability may not last long. “With this level of uncertainty between the U.S. and China, I would think ‘stable’ might actually be a win a couple of quarters from now,” said Jack McCullough, president and founder of the CFO Leadership Council, an executive networking group. “I cannot recall when CFOs were as jittery about a change in policy as they are today.” The CNBC Global CFO Council represents some of the largest public and private companies in the world, collectively managing more than $5 trillion in market value across a wide variety of sectors. The Q3 2019 survey was conducted between Aug. 21 and Sept. 3 among 62 global members of the council.

Trade is the biggest risk factor

Thirty-five percent of CFOs cited U.S. trade policy as the “biggest external risk factor,” which was more than double the second biggest risk highlighted: “consumer demand.” Fears about trade were up from 22% in the second quarter. There was an important split between U.S. CFOs and those based around the world. Thirty-five percent of U.S. CFOs cited consumer demand as the top external risk factor, which can be explained by the fact that the resilience of the U.S. economy, in spite of slowdowns in Europe and China, has been based on consumer strength. What is the biggest external risk factor currently facing your business? — CNBC Global CFO Survey Q3 U.S. CFOs taking the survey did reveal significant concerns about the trade war in other responses. About sixty-five percent said trade policy will be a negative for their business over the next six months. In Q2 that had dropped to 40% — possibly due to a prevailing and false sense of security that a deal would be easier to achieve than has proven to be the case — but it is now back up to a level consistent with the Q3 2018 through Q1 2019 surveys. “The surprise may be that only about 65% of CFOs view that trade policy will be a negative for their organizations,” McCullough said. “While at a macro level it’s easy to understand the motivation behind the recent policy changes, I can’t find a single CFO who has told me it would be a positive for his or her business. … It is uniformly negative for their business, at least in the eyes of finance chiefs.”

While at a macro level it’s easy to understand the motivation behind the recent policy changes, I can’t find a single CFO who has told me it would be a positive for his or her business. Jack McCullough president and founder, CFO Leadership Council

McCullough noted that his networking group offers an online forum for more than 1,100 chief financial officers to discuss issues of importance to their business. He said there never has been a question that he can recall about government policy that has dominated discussion as much as the trade policy has recently. That discussion has included whether manufacturing is moving and strategies for dealing with tariffs. “It is top of mind, and they are not confident they will emerge from this unscathed,” he said. Nearly half of North American CFOs surveyed by CNBC said they are facing higher input costs, and more than one-quarter said they have increased prices to offset those costs. They were more likely than European or Asian counterparts to say they have experienced higher costs and passed on those costs to customers. And more likely to say they have moved operations to minimize the impact of tariffs, though that was less than 20% of CFO respondents. While U.S. CFOs indicated in the survey that they were not confident about increasing their capital spend, less than 10% said they had delayed or canceled projects because of trade policy. Impact of trade tensions new new U.S. tariffs—CNBC Global CFO Survey Q3 The daily headlines can be tougher to measure. On Thursday alone, news broke that the U.S. and China were considering an interim trade deal, but a few minutes later a senior White House official told CNBC no such deal was in the works. President Donald Trump did agree to delay increasing tariffs on $250 billion worth of Chinese goods from Oct. 1 to Oct. 15 as a “gesture of goodwill,” and that move was matched by China, which said it would restart purchase of some U.S. agricultural products. Then later in the day, President Trump told reporters he would be open to an interim trade deal with China but would prefer a lasting deal. “It’s something we would consider, I guess,” Trump said. The U.S. and China have agreed to meet again at the negotiating table in October, a plan that was reported after an early September phone call between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. CFOs view of the trade war is not yet influencing their thinking about President Trump’s reelection chances. The survey found the majority of CFOs of the belief that Trump will be reelected in 2020 and the U.S. economy will not slip into a recession next year.

Trade weighing on business investment


Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: eric rosenbaum, anthony volastro
Keywords: news, cnbc, companies, buying, china, big, companies, deal, survey, business, optimism, president, risk, trade, policy, cfo, cfos, war, uschina


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China adds US agricultural products to tariff exemptions ahead of trade talks

US–China trade war optimism? Big companies are not buying itTop executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…CNBC Global CFO Councilread more


US–China trade war optimism? Big companies are not buying itTop executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…CNBC Global CFO Councilread more
China adds US agricultural products to tariff exemptions ahead of trade talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: yun li, eric rosenbaum
Keywords: news, cnbc, companies, china, soon, ahead, resolved, think, tariff, agricultural, overcnbc, products, adds, talks, sixtyfive, optimism, trade, exemptions, policy, war, uschina


China adds US agricultural products to tariff exemptions ahead of trade talks

US–China trade war optimism? Big companies are not buying it

Top executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…

CNBC Global CFO Council

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Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: yun li, eric rosenbaum
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Dropcam founder Greg Duffy reportedly leaves Apple

US–China trade war optimism? Big companies are not buying itTop executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…CNBC Global CFO Councilread more


US–China trade war optimism? Big companies are not buying itTop executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…CNBC Global CFO Councilread more
Dropcam founder Greg Duffy reportedly leaves Apple Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: kif leswing
Keywords: news, cnbc, companies, soon, leaves, resolved, dropcam, apple, think, founder, overcnbc, sixtyfive, optimism, reportedly, trade, duffy, policy, war, uschina, greg


Dropcam founder Greg Duffy reportedly leaves Apple

US–China trade war optimism? Big companies are not buying it

Top executives do not think the U.S.-China trade war will be resolved soon. Sixty-five percent of U.S. CFOs think U.S. trade policy will be negative for their businesses over…

CNBC Global CFO Council

read more


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: kif leswing
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US companies are canceling investment into China at a faster clip, survey shows

However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. Just over half of the surve


However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. Just over half of the surve
US companies are canceling investment into China at a faster clip, survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: evelyn cheng
Keywords: news, cnbc, companies, canceling, tariffs, clip, shows, companies, investment, trade, china, respondents, report, faster, american, local, foreign, survey


US companies are canceling investment into China at a faster clip, survey shows

Chinese shipping containers are stored beside a US flag after they were unloaded at the Port of Los Angeles in Long Beach, California on May 14, 2019. – Global markets remain on red alert over a trade war between the two superpowers China and the US, that most observers warn could shatter global economic growth, and hurt demand for commodities like oil. (Photo by Mark RALSTON / AFP) (Photo credit should read MARK RALSTON/AFP/Getty Images) MARK RALSTON | AFP | Getty Images

Some American companies in China are speeding up their move away from the mainland as increasing tariffs continue to hurt their businesses. That’s according to a survey released by the American Chamber of Commerce in Shanghai on Wednesday. More than a quarter of the respondents – or 26.5% – said that in the past year, they have redirected investments originally planned for China to other regions. That’s an increase of 6.9 percentage points from last year, the AmCham report said, noting that technology, hardware, software and services industries had the highest level of changes in investment destination. The research, conducted in partnership with PwC, surveyed 333 members of the American Chamber of Commerce in Shanghai. It was conducted from June 27 to July 25 — during the period when U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks, and before the latest escalation in retaliatory tariffs. U.S. firms in the mainland also said restrictions to accessing the local market have made it difficult for them to carry out their business, the report said. Asked about the best possible scenarios in ongoing trade negotiations, more than 40% of respondents said greater access to the domestic market would be the most important outcome to help their businesses succeed. That was followed by more than 28% that ranked improved intellectual property protection as key. The third most hoped-for outcome of the trade talks was “increased purchases of U.S. goods,” at 14.3%, the survey showed. That’s in contrast to the Trump administration’s latest efforts to pressure China into buying more American products, especially in agriculture.

Barred from market access

One of the longstanding complaints U.S. companies have about operating in China is that many industries are closed to foreign businesses. In the sectors that are open, it is difficult to compete with state-owned enterprises or privately owned companies that may benefit from local connections or policies, they say. Allegations of forced transfer of critical technology to Chinese partners and lack of intellectual property protection are just some of the challenges U.S. businesses cite for operating in China. The latest AmCham survey found accessing the local market remained one of the key problems companies faced, with more than half the respondents — or 56.4% — saying that obtaining licenses was not easy.

Still, with no sign of a trade agreement, 2019 will be a difficult year; without a trade deal, 2020 may be worse. AmCham Shanghai and PwC survey

By industry, the one that most sought improved market access was the banking, finance and insurance sector. The high 81% of respondents in that sector seeking a better business environment contrasts with Beijing’s announcements in the last 18 months that it will be relaxing foreign ownership rules in the financial sector. Some measures include allowing majority foreign ownership of a local securities venture and increased foreign ownership of local stocks. However, survey respondents did note an overall improvement in nearly all issues of concern — including intellectual property protection and forced technology transfer. The proportion of businesses that said the Chinese government treats foreign and local companies equally also rose from 34% to 40% in the latest survey.

Tariffs hurting US firms

The U.S. business presence in China remains strong, with American companies and their affiliates raking in more than $450 billion in sales in the Asian country, according to an August report from research firm Gavekal Dragonomics. The analysis also pointed out that sales figure is more than twice the value of U.S. exports of goods and services to China. But retaliatory tariffs from both sides are hitting revenues and causing some American firms to change their China strategy, the AmCham survey showed. If Washington were to impose all the duties as threatened, essentially all Chinese goods exported to the U.S. will be subject to tariffs by the end of the year. In response to the increasing American duties, Beijing has countered with tariffs of its own on U.S. exports to China.

Just over half of the survey respondents said revenue has decreased as a result of the increased tariffs. One third of them attributed a drop of between 1% and 10% of revenue to the higher duties. Overall profitability did not decline in 2018, the report said. But more respondents said revenue and margins declined last year, especially compared with operations in other countries. Pessimism levels shot up by 14 percentage points to about 21% — respondents felt less optimistic about the outlook for 2019 due in part to a slowing domestic economy.

Bright spots remain in China

The survey, however, did find some areas of optimism among respondents in China. The pharmaceuticals, medical devices and life sciences category ranked among the industries with the most respondents reporting revenue growth last year. That sector also came in second among those most optimistic about 2019. The AmCham report said the positive outlook was “likely due to government policy changes, including accelerated approvals of foreign drugs.” More than two-thirds of companies in food and agriculture planned to increase investment in 2019, the most of any industry, the report said. Retail and consumer companies also intended to invest more in China, especially in smaller cities where many analysts still see a major growth opportunity. However, businesses are getting ready for a drawn out trade war between the two economic giants. Of those surveyed, 35% expect trade tensions to continue for another 1 to 3 years, while nearly 13% say it will go on for 3 to 6 years. About 17%, however, were even more pessimistic, and predict that the trade conflict will drag on indefinitely. The report added: “Still, with no sign of a trade agreement, 2019 will be a difficult year; without a trade deal, 2020 may be worse.”


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: evelyn cheng
Keywords: news, cnbc, companies, canceling, tariffs, clip, shows, companies, investment, trade, china, respondents, report, faster, american, local, foreign, survey


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US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.
US futures point to slightly higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning.

At around 1:40 a.m. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher.

U.S. stocks ended Tuesday little changed amid a fall in tech shares. Ahead of Wednesday’s session, the focus is on trade relations between China and the U.S. Beijing released a tariff exemptions list for products from the U.S. on Wednesday morning.

Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


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China will win the trade war and wean off American technology in 7 years, strategist says

China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday. “China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.” In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unles


China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday. “China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.” In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unles
China will win the trade war and wean off American technology in 7 years, strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stella soon
Keywords: news, cnbc, companies, tech, war, china, huawei, software, chips, win, strategist, american, wean, technology, trade, told


China will win the trade war and wean off American technology in 7 years, strategist says

China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday.

“China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.”

China has traditionally been reliant on U.S. suppliers for key tech components such as chips and software, as well as modems and jet engines, but recent developments in the two countries’ protracted trade war have strained those ties and affected businesses from both sides.

In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unless they got permission to do so. Some American mobile networks also use Huawei gear, while other U.S. companies have said their revenue will be affected by the blacklist.

Alphabet’s Google also halted all business activity with Huawei, a move that means future Huawei phones will no longer come installed with Google’s Android operating system.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stella soon
Keywords: news, cnbc, companies, tech, war, china, huawei, software, chips, win, strategist, american, wean, technology, trade, told


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George Soros offers rare praise for Trump and how he’s handled Huawei in the trade war

Billionaire liberal financier George Soros offered some rare praise of Donald Trump’s policies in a Wall Street Journal op-ed Tuesday, but said he’s worried the president will undermine his own strategy. Soros called Trump’s policy on China, “coherent and genuinely bipartisan” as well as “the greatest — and perhaps only — foreign policy accomplishment of the Trump administration.” Specifically, Soros said the Trump administration was right to put Huawei on the Commerce Department’s “entity list”


Billionaire liberal financier George Soros offered some rare praise of Donald Trump’s policies in a Wall Street Journal op-ed Tuesday, but said he’s worried the president will undermine his own strategy. Soros called Trump’s policy on China, “coherent and genuinely bipartisan” as well as “the greatest — and perhaps only — foreign policy accomplishment of the Trump administration.” Specifically, Soros said the Trump administration was right to put Huawei on the Commerce Department’s “entity list”
George Soros offers rare praise for Trump and how he’s handled Huawei in the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: lauren feiner
Keywords: news, cnbc, companies, trumps, huawei, policy, rare, list, trade, offers, oped, entity, china, hes, war, soros, handled, seriously, praise, trump


George Soros offers rare praise for Trump and how he's handled Huawei in the trade war

Billionaire liberal financier George Soros offered some rare praise of Donald Trump’s policies in a Wall Street Journal op-ed Tuesday, but said he’s worried the president will undermine his own strategy.

Soros called Trump’s policy on China, “coherent and genuinely bipartisan” as well as “the greatest — and perhaps only — foreign policy accomplishment of the Trump administration.”

Specifically, Soros said the Trump administration was right to put Huawei on the Commerce Department’s “entity list” as a national security threat, which prevents U.S. companies from engaging in business with the firm.

In the op-ed, Soros called China “a dangerous rival in artificial intelligence and machine learning” but said its ability to compete in the 5G market is seriously hampered by Huawei’s dependence on U.S. companies.

“As long as Huawei remains on the entity list, it will lack crucial technology and be seriously weakened,” Soros wrote.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: lauren feiner
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Jobs growth just hit a level not seen since 2011, and it’s putting one top economist on alert

Wilmington Trust’s Luke Tilley is worried a bearish trend in the employment numbers will hurt the economy’s strongest part: consumers. According to the firm’s chief economist, the U.S. is seeing its lowest year-over-year jobs growth since 2011, which was just two years into the economic recovery. But until there’s a resolution on the trade front, Tilley suggests tariff pressure could overcome consumers and push recession risks higher. “There are no real amount of Fed cuts that could in our view


Wilmington Trust’s Luke Tilley is worried a bearish trend in the employment numbers will hurt the economy’s strongest part: consumers. According to the firm’s chief economist, the U.S. is seeing its lowest year-over-year jobs growth since 2011, which was just two years into the economic recovery. But until there’s a resolution on the trade front, Tilley suggests tariff pressure could overcome consumers and push recession risks higher. “There are no real amount of Fed cuts that could in our view
Jobs growth just hit a level not seen since 2011, and it’s putting one top economist on alert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stephanie landsman
Keywords: news, cnbc, companies, alert, economic, growth, putting, consumer, view, fed, hit, tariffs, trade, slowdown, level, strongest, 2011, economist, seen, jobs, tilley


Jobs growth just hit a level not seen since 2011, and it's putting one top economist on alert

Wilmington Trust’s Luke Tilley is worried a bearish trend in the employment numbers will hurt the economy’s strongest part: consumers.

According to the firm’s chief economist, the U.S. is seeing its lowest year-over-year jobs growth since 2011, which was just two years into the economic recovery.

“Things are slowing down,” he told CNBC’s “Trading Nation” on Monday. “Any time you see something that’s first time since 2011, it really gets your attention.”

Tilley, a former economic advisor to the Philadelphia Fed, stresses the issue in a nonfarm payrolls chart.

“Not only have we had a slowdown in the month-over-month job growth, we also had an announcement from the Bureau of Labor Statistics that they’re going to be revising downward the growth from 2018 and 2019 down by about half a million jobs,” he said. “If you incorporate that in the current data, we have a slowdown to the slowest job growth in year over year since that we’ve had since 2011.”

Tilley mostly blames the U.S.-China trade war for the worrisome numbers — not a late economic cycle phenomenon.

“The next round of tariffs on imports from China are going to fall on the consumer. We know that the consumer is the strongest part of the economy,” he said.

The Federal Reserve reported Monday that July consumer borrowing increased at its fastest pace in two years. The activity, which was driven by a leap in credit card use, is a sign consumers are spending strongly.

But until there’s a resolution on the trade front, Tilley suggests tariff pressure could overcome consumers and push recession risks higher. If the Dec. 15 round of China tariffs are officially implemented, he warned, they will have painful consequences on spending.

“There are no real amount of Fed cuts that could in our view avert a recession if we continue to amp up those trade and tariffs,” Tilley said. “We do view the Fed as doing its part to help, but it’s not really the right medicine for what’s ailing the patient right now.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stephanie landsman
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Chinese yuan could hit 7.3 per dollar by the end of the year, CLSA says

The Chinese yuan is set to weaken further against the dollar as trade tensions between the United States and China continue, according to CLSA Chief Economist Eric Fishwick. Fishwick predicts the yuan will reach around 7.3 per dollar by the end of the year. On Tuesday morning, the yuan traded around 7.1144 against the U.S. currency on the Chinese mainland. A weaker yuan, which is also known as the renminbi, would make China’s exports relatively cheaper on the international markets. The U.S. has


The Chinese yuan is set to weaken further against the dollar as trade tensions between the United States and China continue, according to CLSA Chief Economist Eric Fishwick. Fishwick predicts the yuan will reach around 7.3 per dollar by the end of the year. On Tuesday morning, the yuan traded around 7.1144 against the U.S. currency on the Chinese mainland. A weaker yuan, which is also known as the renminbi, would make China’s exports relatively cheaper on the international markets. The U.S. has
Chinese yuan could hit 7.3 per dollar by the end of the year, CLSA says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, tariffs, chinese, weaker, end, dollar, trade, weaken, hit, set, currency, yuan, clsa, tensions


Chinese yuan could hit 7.3 per dollar by the end of the year, CLSA says

A Chinese bank employee counts 100-yuan notes and US dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019.

The Chinese yuan is set to weaken further against the dollar as trade tensions between the United States and China continue, according to CLSA Chief Economist Eric Fishwick.

Fishwick predicts the yuan will reach around 7.3 per dollar by the end of the year. On Tuesday morning, the yuan traded around 7.1144 against the U.S. currency on the Chinese mainland.

“Looking at how the currency trades, it is very clearly demonstrated that it is being used as a way to offset the effects of tariffs,” Fishwick told CNBC’s “Street Signs” on Monday. “So, the yuan is allowed to weaken whenever the U.S. ratchets the tensions higher.”

“I think that the forces that are pushing the yuan lower are still in place,” he added.

The yuan has been closely watched by investors, economists and other market watchers in recent months because it is seen as one of the tools China can use in response to rising U.S. tariffs.

Last month, the currency weakened past a psychologically important level of 7 against the greenback. A weaker yuan, which is also known as the renminbi, would make China’s exports relatively cheaper on the international markets. The U.S. has repeatedly accused Beijing of keeping its currency weaker in order to gain a trade advantage over its competitors.

Since last year, the world’s two largest economies have imposed levies on billions of dollars worth of each other’s goods, which has affected international markets and dampened global growth outlook. Additional American tariffs are set to take effect on October 1 and December 15.

There’s no clear consensus among analysts on where the yuan might be headed, but many have said it depends on how the trade war escalates, or de-escalates.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, tariffs, chinese, weaker, end, dollar, trade, weaken, hit, set, currency, yuan, clsa, tensions


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Yen, franc sink as fading risks take shine off safe-havens

and were also sold in the slide, that pushed the yen as low as 107.49 per dollar, and the franc to $0.9922, with both also losing ground to the euro. “But it is kind of a lull period following a whole stream of positive news last week. We’re in a wait-and-see mode with major risk events like Brexit and trade negotiations being kicked down the road.” The pound stood just under a six-week high of $1.2385, hit overnight after a British law blocking a no-deal exit from the European Union came into f


and were also sold in the slide, that pushed the yen as low as 107.49 per dollar, and the franc to $0.9922, with both also losing ground to the euro. “But it is kind of a lull period following a whole stream of positive news last week. We’re in a wait-and-see mode with major risk events like Brexit and trade negotiations being kicked down the road.” The pound stood just under a six-week high of $1.2385, hit overnight after a British law blocking a no-deal exit from the European Union came into f
Yen, franc sink as fading risks take shine off safe-havens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10
Keywords: news, cnbc, companies, sink, overnight, trade, brexit, fading, shine, risks, safehavens, held, hit, yen, flat, currencies, franc, dollar, high


Yen, franc sink as fading risks take shine off safe-havens

The yen and Swiss franc fell to five-week troughs on Thursday as investors looked for higher-risk currencies, emboldened by a report of German stimulus plans, diminishing chances of a no-deal Brexit and hopes of a trade war breakthrough.

and were also sold in the slide, that pushed the yen as low as 107.49 per dollar, and the franc to $0.9922, with both also losing ground to the euro.

“Over the past 24 hours there has been a move towards more risk-friendly, pro-growth currencies,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank in Sydney.

“But it is kind of a lull period following a whole stream of positive news last week. We’re in a wait-and-see mode with major risk events like Brexit and trade negotiations being kicked down the road.”

The pound stood just under a six-week high of $1.2385, hit overnight after a British law blocking a no-deal exit from the European Union came into force.

The South Korean won and New Zealand dollar drifted higher, the won holding close to a month high at 1,191.0 per dollar and the kiwi close to a three-week peak at $0.6434.

Exuberance was held back, however, by weak Chinese economic data that hit equities markets, with factory-gate prices shrinking at their fastest pace since August.

Ratings house Fitch on Tuesday cut growth forecasts for Europe and China citing rising protectionism.

The yuan held mostly flat around 7.1169 per dollar.

Traders also remained cautious ahead of a key European Central Bank meeting on Thursday, at which policymakers are expected to ease monetary policy.

The euro was flat at $1.1043, underneath an overnight high of $1.1067 hit following a Reuters report that Germany may set up public investment agencies to boost fiscal stimulus without breaching national spending rules.

“This news caused some people to revise down their expectations for Thursday’s ECB meeting, although I think that’s entirely premature,” said Marshall Gittler, chief strategist at ACLS Global, in a note.

“I think the small rally in EUR today just sets up the currency for a bigger fall on Thursday.”

Market hopes for a trade breakthrough, meanwhile, rested on confidence overnight from U.S. Treasury Secretary Steven Mnuchin. He told Fox television that there had been “a lot of progress” on a U.S-China trade deal and that the U.S. side was “prepared to negotiate”.

The remarks pushed U.S. benchmark 10-year Treasuries to a three-week high where they held in Asian trade. The dollar was flat against a basket of currencies at 98.359.

Sterling barely shifted when Britain’s parliament voted, as expected, to stymie Prime Minister Boris Johnson’s bid for an early election, which prompted him to vow that he would secure a Brexit deal at an EU summit next month.

“While I am loath to go anywhere near the pound, I like what I see in the price action,” said Chris Weston, head of research at Melbourne foreign exchange brokerage Pepperstone Group.

“If GBP/USD kicks up through $1.2354 again, I would be looking for longs, with a stop through $1.2234.”


Company: cnbc, Activity: cnbc, Date: 2019-09-10
Keywords: news, cnbc, companies, sink, overnight, trade, brexit, fading, shine, risks, safehavens, held, hit, yen, flat, currencies, franc, dollar, high


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