Trade Wars

And The Worst-Performing Currency Since Trump's Election Is...

Putting aside the hyperinflationary collapse of Venezuela's black market Bolivar, the Mexican Peso continues to languish since Donald Trump was elected President in Nov 2016 as trade wars and border wall discussion weigh the currency down. On the other hand, amid economic stumbles and nuclear armageddon on its doorstep, the Korean Won is outperforming...

Trader: Trump Tax Plan Likely To Send S&P To New Record Highs "No Matter What He Says"

"Investors are looking for a reason to buy U.S. equities again, which means they’ll probably find one in Donald Trump’s tax plan no matter what he says on Wednesday.  The prevailing sentiment suggests U.S. stocks will achieve record highs within days. It’ll just be a matter of how long it takes to work out which part of Trump’s proposal will justify that move after the fact."

IMF Drops Pledge To "Resist All Forms Of Protectionism"

A communique from the IMF’s steering committee released on Saturday in Washington echoed the G-20 reversal, and said that officials “are working to strengthen the contribution of trade to our economies" while omitting a call from its last statement in October to “resist all forms of protectionism."

The US & China: Why The Sudden Convergence On North Korea?

China is quite keen on projecting itself as a rising global power, and the dominant power in Asia and the adjacent seas. So how does it look when a supposed global power can't even control a client state on its own border? China's inability to influence, much less control, North Korea's nuclear ambitions and threats gives the lie to its claim of global power.

Are Central Banks Losing Control?

Eight years after the crisis of 2008-09, central banks are still injecting $200 billion a month into the global financial system to keep it from imploding.

Trader Warns "US Markets Are Playing Global Pied Piper"

Markets have started this week feeling much relieved, notes Bloomberg's Richard Breslow, as the understandable fears that U.S.-Asia strategy might continue their lurch toward direct economic confrontation were given a respite. However, as Breslow notes, asset classes galore are at important levels and vigilance will pay a hefty premium.

China Bonds, Stocks, Commodities Extend Gains As Yuan Tumbles To One-Month Lows After Renewed Liquidity Injection

As China got back to work after Golden Week, it appeared a renewed exuberance appeared in every orifice of liquidity provision (even as PBOC sucked up excess for 6 straight days). Stocks are up, bonds are up, and commodities are soaring (all as Yuan tumbles) and tonight authorities unleashed 100bn reverse-repo (for the first time in 7 days) as leverage seems nothing to worry about again yields drop and asset prices rise.