Equity markets once again rallyed yesterday for hopes of rumors of progress in negotiations between the U.S. and China. Weak U.S. economic data, on the other hand, has been ignored. But now time is running out: on December 15th the further US tariffs against China would come into force. It is unlikely that the Phase 1 deal will be signed before that. The stock markets are assuming that Trump will postpone the tariffs – and what if not? Meanwhile, there are new indications regarding the US repo market: Fed Vice-President Quarles (who will be questioned again today) sees a cause in the central bank’s regulations, but the problem is likely to be deeper. Without the Fed, the US money market would be dead.
In economic terms the score is 1-0 for China against the USA! Tonight again a much better than expected Caixin Purchasing Managers Index from China (services). Today the ISM Index from the USA will give […]
A column from New York by Herbert Bauernebel The boom in the USA continues to deliver record figures – but is the US economy slowly overheating? The figures are impressive about a US economy steaming […]
In the trade war the news becomes more and more absurd! Today the Chinese media report that they agree to reach an agreement. It can hardly be more absurd. On closer inspection, however, there is […]