Trade War

EU Faces Dilemma: To Stand Tall Or Kneel

"Until now Europe has failed to resist American pressure. This is another opportunity to take a stand and defy Washington. The European Commission will discuss next steps today... The outcome will be a litmus test for Europe's unity to show whether the bloc is really a powerful alliance of the countries ready to protect their interests or it is nothing more than a puppet on a string dancing to the US tune."

El-Erian Exposes The Upside And Downside Of Liquidity-Driven Markets

"The markets' overall sense of 'goldilocks' - not too hot, not too cold - explains much of the gap between buoyant stock indexes and lagging economic and policy fundamentals...What remains more elusive, however, is confidence that this will end up at an enjoyable destination."

What Bond Traders Are Most Worried About Right Now

The latest BofA credit investor survey finds that while geopolitical risk remains credit investors' top concern not surprisingly oil prices moved into second place, while - with the rally in financial markets - asset bubbles jumped into third position.

BofA Is Very Worried About Two "Dangerous" Games Of Chicken About To Unfold

 "If the market is underpricing the uncertainty with respect to the outlook of US monetary policy, we are even more concerned that it seems totally impervious to the risk of two potentially disruptive, if not dangerous, Games of Chicken likely to unfold in the summer and the beginning of the fall."

Washington And Berlin On A Collision Course

Trump and Chancellor Angela Merkel will definitely be on a collision course at the G-20, with Merkel emphasizing discussions on climate change, refugees and no trade protectionism, much to Trump’s disgust. The Russia sanctions bill just adds to the unholy mess. Expect a lot of fireworks “celebrating” those bilaterals in Hamburg.

Trump "Overrules" Cabinet, Prepares To Unleash Global Trade War

In what may be one of the "most consequential and contentious" decisions about to be announced by Donald Trump, with the political world distracted by Trump's media wars, Axios reports that Trump - defying virtually all his Wall Street advisors - is set to launch a global trade war.

Bank of America's Forecast Of When The Fed Will Crash The Market

"... would be surprised if bull market which began with SPX 666 ends before 6666 on the Nasdaq... summer 2017 = significant inflection point in central bank liquidity trade…will likely lead to “Humpty-Dumpty” big fall in market in autumn, in our view. But Big Top likely occurs when Peak Liquidity meets Peak Profits. We think that's an autumn not summer story."

Furious China "Outraged" By U.S. Sale Of $1.4BN In Weapons To Taiwan

One day after the US announced it would sell $1.42 billion in weapons to China's offshore nemesis Taiwan, Beijing lashed out at the United States, saying it was "outraged" and demanded the US revoke immediately its "wrong decision", saying it contradicted a "consensus" President Xi Jinping reached with his counterpart, Donald Trump

China Fireworks Continue With Yuan's Biggest 4-Day Rally In 12 Years

China's unprecedented crackdown against Yuan shorts continued overnight, when the FX market saw even more fireworks as the onshore yuan headed for the biggest four-day advance since 2005 following the strongest central bank fixing since January and amid ongoing speculation China's central bank is trying to crush shorts while China's big banks continue to limit offshore liquidity.

How America Could End Up In An Unexpected War With China

"...the PRC might not be an ally, but there is no reason it should be an enemy. Yet attempting to dominate and contain China risks turning it into an angry and well-armed adversary. Instead, Washington should prepare to share global leadership. Far better to yield thoughtfully while shaping the future than to be forced to concede even more under pressure."