The Briefing Room
General Category => Economy/Business => Topic started by: Elderberry on August 23, 2019, 08:09:40 pm
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Yahoo Finance by William Watts 8/23/2019
Fed’s Powell leaves door open to rate cut, but gets blasted by Trump as ‘enemy’
Stocks tumbled Friday as the U.S.-China trade war took a sharper turn, with President Donald Trump saying he’s ordering American companies to start looking for “an alternative to China,†while readying additional measures after Beijing imposed retaliatory tariffs on imports of U.S. goods.
Earlier, the major indexes flipped between modest gains and losses after Federal Reserve Chairman Jerome Powell left the door open for another interest rate cut in September in a widely anticipated speech in Jackson Hole, Wyoming.
How are the major benchmarks faring?
Stocks extended declines ahead of the closing bell. The Dow Jones Industrial Average DJIA, -2.37% was down 599 points, or 2.3%, at 25,653, while the S&P 500 index SPX, -2.59% dropped 73 points to 2,850, a 2.5% decline. The Nasdaq Composite index COMP, -3.00% shed 229 points, or 2.9%, to 7,762.
What’s driving the market?
Ahead of Friday’s open, China announced new tariffs of 5% and 10% on $75 billion in U.S. imports, set to go into effect in two tranches, on Sept. 1 and Dec. 15, respectively. The tariffs will be imposed on agricultural products, crude oil, small aircraft and cars among other goods. The Chinese government said that the move was in response to the Trump administration’s plans to institute 10% tariffs on $300 billion in Chinese imports, also in two stages and on the same dates, announced earlier in August.
More: https://www.marketwatch.com/story/stocks-set-to-head-slightly-higher-as-wall-street-awaits-powells-jackson-hole-speech-2019-08-23?siteid=yhoof2&yptr=yahoo (https://www.marketwatch.com/story/stocks-set-to-head-slightly-higher-as-wall-street-awaits-powells-jackson-hole-speech-2019-08-23?siteid=yhoof2&yptr=yahoo)
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Some small amount of temporary pain for one hell-of-a-lot of long term gain. The president is right as rain in taking on China!
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Some small amount of temporary pain for one hell-of-a-lot of long term gain. The president is right as rain in taking on China!
Yes, he is. He mentioned stopping the flow of fentanyl into the US as well as bringing manufacturing back.
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Monday....we will see record gains!
It is all a game. Nothing to see here in the big picture.
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Some small amount of temporary pain for one hell-of-a-lot of long term gain. The president is right as rain in taking on China!
Ag will probably have little effect - with the rains this year, causing many not to plant in the midwest and south, losing a market may not matter wrt produce... And with corn lacking, many in the livestock industry will be selling off, causing a short term glut in beef and pork, where losing a large market might help to keep the prices up.
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China runs a real risk of having a whole bunch of business diverted to places like Vietnam, India or Indonesia.
China needs the US far more than we need them.
Imagine China trying to replace the business with the US with, say, Kenya or Bolivia.
Won't happen.
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China runs a real risk of having a whole bunch of business diverted to places like Vietnam, India or Indonesia.
China needs the US far more than we need them.
Imagine China trying to replace the business with the US with, say, Kenya or Bolivia.
Won't happen.
DT is finding alternatives. Wonder who China's new trading partner is?
U.S., Japan agree in principle on trade deal worth ‘billions and billions’
President Trump said Sunday that he has reached a trade deal with Japan, is confident of reaching one with the U.K., and is still determined to force China to make enough concessions to get a deal with Beijing.
Mr. Trump said the agreement-in-principle with Japan is worth “billions and billions†of dollars and includes a big purchase of American corn, partly filling the void left by China’s refusal to buy U.S. farm products amid an escalating trade war.
“It’s a very big transaction, and we’ve agreed in principle. It’s billions and billions of dollars. Tremendous for the farmers,†Mr. Trump said in a meeting with Japanese Prime Minister Shinzo Abe at the Group of Seven summit in France. “We have excess corn in various parts of our country, with our farmers, because China did not do what they said they were going to do.â€
https://www.washingtontimes.com/news/2019/aug/25/us-japan-reach-trade-deal-agreement/ (https://www.washingtontimes.com/news/2019/aug/25/us-japan-reach-trade-deal-agreement/)
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I'm beginning to wonder how much this has to do with China trade talks or if it has to do with profit taking and rebuying at the lower price only to do it all over. Could be both I guess.
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Some small amount of temporary pain for one hell-of-a-lot of long term gain. The president is right as rain in taking on China!
It sure was temporary. Here we are barely 3 weeks since this article and the DOW has risen 1500 points. Getting to record-breaking territory.
And reading the news, it appears to be a cave by China by exempting more US goods from tariffs.
https://finance.yahoo.com/m/9a9a6daf-833b-3ce8-a8d6-2cdb52e9a63a/the-dow-rose-228-points.html
We are definitely winning this war, yet the Dem debate tonight will likely say we are losing it.