A good (despite the hyperbolic headline) post on Zero Hedge this morning about the Trump administration cracking down on trade issues with China: Trump to Launch Trade War With China on Friday, Beijing vows retaliation.
As we mentioned shortly after the election in Chines Currency Manipulation and the New “Giant Sucking Sound”, trade relations with the Chines could get quite precarious. The Chines economy is in a bit of a delicate state, and regardless of what one does or doesn’t think about President Trump, there is no debating that his negotiating style and strategy, is likely to ruffle some feathers.
China deciding to pull back on treasury purchases would be interesting in and of itself, let alone how it could impact the Janet Yellen and the Feds plan to being the “un-tapering“.
Heading into a weekend where many traders may be looking for an excuse to bail anyhow, Trumps potential comments could make for an interesting Monday morning, even if the jawboning doesn’t reach the level of Treasury Secretary James Baker over the weekend of October 17-18 of 1987.
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