"Current events have revealed that Ayn Rand’s novel Atlas Shrugged is not just fiction, but almost a prophesy. Elizabeth Warren’s Accountable Capitalism Act and the cronyism of Trump’s tariff policies are straight out of Rand’s novel. It won’t end well..."
"The U.S. is trying to conclude the trade disputes swiftly, but China is prepared for a protracted war... China has time to fight to the end. Time will prove that the US eventually makes a fool of itself."
The market continues to gingerly ignore the accelerating currency devaluation in China, where the yuan is headed for a record eight weeks of declines. Italian bond yields spike ahead of an important meeting and payrolls are on deck.
A new month begins on the back foot after a fresh escalation in the US-China trade war, more PBOC intervention to calm markets, a Japanese bond rout as the BOJ did not intervene to calm markets, and a Fed meeting.
All traders will be on deck for Friday, July 6th when we not only get June payrolls, but growing trade wars culminate as the US is set to launch 25% tariffs on $34 billion of Chinese imports, provoking instant retaliation.