Published: Tue, August 27, 2019
Money | By Ethel Goodwin

China Blinks as Asian Markets Tank, Seeks 'Calm' End to Trade War

China Blinks as Asian Markets Tank, Seeks 'Calm' End to Trade War

In addition to his decision to jack up tariffs, Trump said he was ordering US companies to find alternatives to doing business in China and move operations back to the United States.

White House spokeswoman Stephanie Grisham said: "His answer has been greatly misinterpreted". He at first seemed to express regret Sunday over escalating the trade dispute, but the White House later said his only regret was that he didn't impose even higher tariffs on China.

"If the United States implements its plan of raising tariffs, China will definitely continue to take measures and safeguard its own legitimate rights", said Geng. The sooner the Trump administration understands this, the better it would be. "Why not?" He added, "Might as well, might as well", when asked the same question.

"Whether or not the phone calls were primarily technical, it seems Trump is concerned the precipitous drop we saw with USA equities was dangerously approaching the price gains that came from the biggest rally in his presidency in early 2018", said Edward Moya, senior market analyst at Oanda, in a note.

Trump's optimistic comments on China came as he commented for the first time on the surprise appearance at the G-7 summit by Iranian Foreign Minister Javad Zarif, and as the global gathering put Trump's differences with his counterparts on display.

Larry Kudlow, Trump's top economic adviser, provided some clarification to Trump's announcement on CNN'S "State of the Union" program Sunday. Beijing unveiled new tariffs last Friday on $75 billion of US goods.

Under the Emergency Economic Powers Act, the United States president has the power to regulate the commerce of USA companies if a national emergency is declared against an "unusual and extraordinary threat".

"This is not a healthy bounce, and it is across virtually all the major indexes, so it is an indication the momentum for US equities remains biased to the downside", Kenny said.

The US Secretary of the Treasury, Steven Mnuchin, on the sidelines of the G-7 meeting in France called out Beijing for unfair trade practices and said if China would agree to a fair and balanced relationship "we would sign that deal in a second".

The Farm Journal Pulse is a national text message-based poll sent to approximately 5,000 farmers and ranchers in the continental U.S.

Hong Kong's Hang Seng Index, which plunged as much as 3.6% in early trading, clawed back some of its losses after Trump's comments and ended the day down 1.9%.

Concerns about the global economy slipping into recession and uncertainty over the pace of U.S. interest rate cuts have created some anxiety about how long the current USA expansion will last.

"For all of the Fake News Reporters that don't have a clue as to what the law is relative to Presidential powers, China, etc., try looking at the Emergency Economic Powers Act of 1977", President Trump Tweeted late Friday.

If US firms were forced to pull out of China that would mean a "deeper entrenchment of protectionist policies" and leave globalization "hanging by a thread", said OCBC's Lee.

This is aimed at balancing actual forex market trends with the need to guard against the precipitous swings that can occur in China's immature capital markets. "We're going to start very shortly to negotiate., but I think we're going to make a deal". We're getting a lot of money in tariffs. We never got 10 cents from China. "We'll have to wait and see".

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