Developments on two distinct fronts were at center stage in the past week. Escalation of the Sino-American trade war and the developments in the Persian Gulf. First the Trade war. Not only did tariffs rise on $200b of goods last Friday morning from 10 to 25%, but also the game took on a distinctly negative turn. The refusal of the US to accept Huawei products into the architecture and backbone of the 5G phone network rolling out around the world is well known. Yesterday however a new and disturbing layer was added. Google announced that they will no longer provide their operating system, Android, to the Huawei people for inclusion into their phones. Think about that for a moment. Huawei is the world’s number 2 producer of smartphones.
The Second development is the escalation rhetoric concerning Persian Gulf Oil distribution. Ship “sabotage” on two Saudi, 1 Emirati and 1 Norwegian flagged vessel and an “attack” by alleged Houthi armed drones on the Aramco East-West pipeline that runs form Al-Jubail to Yanbu on the Red Sea Coast. This is a major line with a 5m bbl/day capacity. The talk out of Washington and Teheran is alarming.
Crypto Currencies: Onward and Upward
Weekly Report - 20/05/2019