By Paul Wiseman The Associated Press Anne D’Innocenzio Thu., Sept. 6, 2018 WASHINGTON—The Trump administration may be about to slap tariffs of up to 25 per cent on an additional $200 billion (U.S.) in Chinese goods, escalating a confrontation between the world’s two biggest economies and likely squeezing U.S. companies that import everything from handbags to bicycle tires. The administration could decide to begin taxing the imports — equal to nearly 40 per cent of all the goods China sold the United States last year — after a public comment period ends Thursday. China is ready to impose retaliatory tariffs on $60 billion worth of U.S. goods if that happens, a commerce ministry spokesperson said Thursday. The U.S. has already imposed tariffs on $50 billion in Chinese products, and Beijing has punched back with tariffs on $50 billion in American goods. These U.S. goods include soybeans and beef — a direct shot at supporters of … [Read more...] about Trade frictions rise as Trump considers taxing an additional $200 billion in Chinese imports
Braces in chinese
The powerful stock rallies of recent years suffer from an intriguing weakness: bank stocks aren’t going along for the overall ride. This year, to date, Japanese banks are down about 13%, while Asian banks generally are down about 7%. Europe’s have fared worst of all – down 17%. America’s are down 5%. On June 26, for example, banks extended losses even as US shares held largely steady. That disconnect is now part of a well-established pattern. The dailyReport Must-reads from across Asia - directly to your inbox Why? Confusion over negligible interest rates, for one thing. Expectations are that the European Central Bank and the Bank of Japan will begin moving rates away from zero. Only, the likely glacial pace of tightening is robbing European and Japanese yield curves of the steepening needed to boost banks’ profit-and-loss profiles. Question: Are bull markets truly credible if bank stocks don’t participate? The party is over Louis Gave of … [Read more...] about Weak bank stocks: A canary in a coal mine?
China’s crackdown on capital outflows sharply reduced its investment in Australia last year, and there could be worse to come if accusations of political meddling by Beijing continue to undermine business confidence. Direct investment by Chinese firms and state-owned enterprises declined by 11% to US$10.3 billion in 2017 from the previous year, according to a study by the University of Sydney and global auditing company KPMG. The dailyReport Must-reads from across Asia - directly to your inbox Co-author Doug Ferguson said 2017 “was an important and testing year in many ways for Chinese direct investment in Australia.” Ferguson, head of Asia and international markets for KPMG Australia, added: “We believe there is likely to be a continuation of the current downward trend in 2018.” The biggest falls were in infrastructure (down 89%), oil and gas (down 84%), renewable energy (down 64%) and commercial real estate (down 22%). Mining and other forms of … [Read more...] about Australia braces for further decline in Chinese investment
Asia UnhedgedReal-time intel on what moves markets Oil, gas and coal exports will be subject to 25% levy in second wave of duties announced by Beijing last week By Asia Times staff June 19, 2018 9:58 PM (UTC+8) Share Tweet Linkedin Print Email Share 0 Comment 0 As the trade row between the US and China escalates, Beijing is preparing retaliatory tariffs targeting energy, one of America’s most lucrative export sectors. Sales of American oil, gas and coal to the Asian giant have been increasing, so much, in fact, that the US energy sector has been running a bilateral trade surplus. However, the majority of those exports (not including liquefied natural gas) face being hit with a 25% Chinese tariff, which would be part of a second set of duties Beijing threatened to levy last week The move will likely reduce the profits of US oil producers. They will be able to sell it elsewhere, but will likely have to accept discounts to find new buyers. It remains unclear when and … [Read more...] about US energy sector braces for Chinese retaliatory tariffs
Asia UnhedgedReal-time intel on what moves markets With US soybeans targeted in the trade war, Chinese farmers, and diners, are being asked to make changes in what they grow, and eat By Asia Times staff May 4, 2018 4:45 PM (UTC+8) Share Tweet Linkedin Print Email Share 0 Comment 0 Soybeans have become a weapon for Beijing in its tit-for-tat trade row with Washington. Chinese importers stopped buying the US legumes after Beijing imposed a 25% tariff in early April, a move which threatens billions in exports and many farmers in the US Midwest. US agribusiness conglomerate Bunge Ltd has said Chinese importers had stopped buying American soybeans and were now sourcing the crop from Canada and Brazil. The US exported over 53 million tons of soybeans last year and most of that – nearly 33 million tons – was shipped to China. In 2016, some 61% of US soybeans were sold to China, a $14-billion business that made the crop the most valuable … [Read more...] about Farmers in China’s northeast get a new task: Grow soybeans