US Companies Need to Leave China Trump Says

Weekly Report - 26/08/2019

US-China Trade War


While trade pressure builds up, US companies will probably come against a very complicated situation in China as Chinese businesses search for methods to adjust their business plans to the new situations that may offer new opportunities for Chinese businesses according to experts.

Last Friday, China announced its intentions to force extra tariffs on $75 billion worth of American products starting Sept. 1 and Dec. 15. The move comes with an answer from the US President Donald Trump that tweeted that he is also going to raise tariffs on $550 billion of Chinese imports. Also on Friday, the US President announced that US organizations “are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA".

The Week that was

Last Friday the popular US Dollar extended its range into the Asian session due to expectations that Jerome Powell the US Federal Reserve Chairman will upset the markets with his speech. Futures on NASDAQ and the S&P both went above while Dow futures rose 120 points, registering a positive start of more than 100 points. The Oil erased its Thursday drops, with Brent going up to $60 a barrel, while lower values from primary producers shocked demand.


Main Focus This Week

The main focus this week will probably be on the trade war. The new escalation between U.S and China last Friday and, while Trump tries to accuse to FED Chair Powell for the situation, the tensions will increase toward the US President.  Now another important matter to watch is the news from the British Prime Minister that he is trying to find legal help about closing down parliament for 5-weeks and that will probably shake the GBP.


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