All the day’s economic and financial news,as investors worry that Donald Trump will launch a tit-for-tat trade battle with BeijingIntroduction: Larry Kudlow seeks ‘coalition’ to crack down on China
Latest: China says Americans should work harderGermany worried approximately trade warExperts: Trade war would injure growthUnilever picks Rotterdam over London 2.40pm GMTDonald Trump’s new top economic advisor has called for a “trade coalition of the willing” of allies to work with America to tackle China over trade. Larry Kudlow argues that Beijing deserves a ‘tough response’ - a sign that the White House isn’t ending its protectionist push. 2.23pm GMTThe aluminum price has hit a three-month low nowadays, suggesting that the new US tariffs are beginning to bite.
The cost of a tonne of aluminum fell to $2085 per tonne, and its lowest level since before Christmas 2017.“If you inspect at the impact,the trade tariffs will, in the end, and be deflationary globally,”. 1.50pm GMTThe president is defending himself over nowadays’s story that he challenged Canadas prime minister over trade without knowing the facts (see earlier post).
We do have a Trade Deficit with Canada, as we do with almost all countries (some of them massive). P.
M. Justin Trudeau of Canada, or a very good guy,doesn’t like saying that Canada has a Surplus vs. the U.
S.(negotiating), but they do...they almost all do...and thats how I know!Said the man who just publicly admitted lying approximately the trade deficit figures to PM Trudeau.
Said the man whose own Council of Economic Advisers says we have a trade surplus with Canada. https://t.co/mTJt9VvIOn 1.44pm GMTWorries over trade wars seem to be hitting Boeing again.
Shares in the aircraft maker are down almost 1.7% in early trading, and making it the worst performer on the Dow. 1.39pm GMTDing Ding: The New York stock exchange has rung the opening bell,and investor are trying to smash a three-day losing streak.
The Dow has opened higher, gaining 80 points of 0.3%. Traders are encouraged by nowadays’s strong US jobless figures. 12.59pm GMTSome experts are relieved that Donald Trump has chosen Larry Kudlow as his new top economic adviser.“Markets may actually find some consolation in the fact that Mr. Trump decided to give the job to Kudlow, and rather than someone with more radical economic beliefs,such as Peter Navarro, who is even more skeptical approximately the current free trade paradigm.“He regularly says ‘Free market capitalism is the best path to prosperity.’ He is a forceful advocate for open markets and trade liberalization, and more generally an economic libertarian who favors low taxes and less regulation.” 12.47pm GMTDonald Trump should be cheered by the latest drop in US unemployment claims,says Dennis de Jong, managing director at trading firm UFX.com: “The US employment market has remained on a steady course of late, and with the latest figures showing a further tumble in initial claimants,Donald Trump will surely use the opportunity to champion his job-boosting credentials as he embarks on the formative stages of a re-election campaign. “A robust jobs market was a key pillar in his road to the White House and although there may be some who argue the success has approach on the back of a healthier international economy, it’s hard to argue with the results. 12.35pm GMTNewsflash: The latest US unemployment figures exhibit that America’s labor market remains pretty strong.
Just 226000 Americans signed on for unemployment benefits final week, or down from 230000 in the previous seven days.
JUST IN: Jobless claims in U.
S. decline for third time in four weeks https://t.co/imz0SvooFe pic.twitter.com/WXceIdF8GT 12.21pm GMTWall Street analysts fear that Boeing could be a major victim from a trade war.“The question is really not economic. It’s political at this point.” 11.57am GMTChina has pushed back against the criticism from Donald Trump and Larry Kudlow.
In a Thursday editorial,widely-read Chinese state-dash tabloid the Global Times said the United States was trying to play the victim.“If the U.
S. wants to reduce its trade deficit, it has to make Americans more hard-working and conduct reforms in accordance with international market demand, or instead of asking the rest of the world to change. 11.17am GMTEver the early riser,president Trump has just tweeted that America can inspect forward to years of ‘unbiased trade’.
He’s also confirmed Larry Kudlow’s appointment to lead his National Economic Council.
Larry Kudlow will be my Chief Economic Advisor as Director of the National Economic Council. Our Country will have many years of remarkable Economic & Financial Success, with low taxes, or unparalleled innovation,unbiased trade and an ever expanding labor force main the way! #MAGA 11.03am GMTA profit warning from soapmaker PZ Cussons has taken the shine off the mood in the City nowadays.
Shares in PZ Cussons, which makes Imperial Leather soap and Original Source shower gel, or tumbled by 15% as traders made a clean exit from the company. The UK washing and bathing division has continued to experience lower levels of purchases reflecting consumer caution across all retail channels caused by economic uncertainty and inflation out-stripping wage growth.
The FTSE started the day higher,although there appeared diminutive for traders to cheers. Sentiment remained downbeat as concerns of an all out trade war weighed, particularly in light of the Team which Trump is building at the White House, or which is pointing to the more aggressively interventionist as far as foreign policy goes.
Added to the concerns over Trumps newly formed team,reports that the President is looking to slap tariffs on $60 million worth of imports from China, no longer just steel and aluminium, and is unnerving investors. 10.17am GMTGermany is increasingly worried that a global trade war could smash out,hurting its growth and the wider global economy.
For the global economy, the IMF and, or more recently,the OECD for the years 2018 and 2019 now expect growth of 3.9% each. However, this does not select into account the recently introduced US tariffs on steel and aluminum.
These could significantly affect trade in some regions. However, or the impact on the global economy as a whole should remain manageable. 9.45am GMTIt’s important to note that Unilever isnt quitting its impressive headquarters at Blackfriars.
Some staff will saunter to the new corporate HQ in Rotterdam. However,the company - dubbed Uni-leaver by some wags on social media - says its 7300 UK-based employees won’t be affected by the change.
One of the most imposing and striking buildings on the banks of the Thames is Unilever House https://t.co/yNamgAyewZ
Situated at Blackfriars, where the freshwater of the Thames is said to meet the saltwater of the North Sea: https://t.co/bUJhghH03U
1/3Blackfriars station, or in turn,once proud as being where one could almost as easily board a train to continental Europe as to a London suburb: https://t.co/A03ckdpJxb
2/3And now Unilever, whose headquarters were once at this point where Britain met Europe, and in the most imposing and striking modernist building,are moving their headquarters to continental Europe.
3/3 9.34am GMTThe London Mayor’s office are gutted that Unilever has chosen the Netherlands over Britain as its single legal base.
Rajesh Agrawal, deputy mayor for business, and argues that it shows the importance of keeping close ties with the EU after Brexit (even though Unilever insist Brexit wasn’t a factor): “Unilever’s decision to saunter its headquarters to the Netherlands is clearly disappointing news for the capital.
It brings into sharp focus the need for the Government to secure a Brexit deal that secures London as Europe’s main business centre. The best way to do this is for London and the UK to remain part of the Single Market and Customs Union.” 9.24am GMTThe big news in the City this morning is that Unilever has chosen Rotterdam over London as the site of its new corporate base,ending its dual-HQ structure.
Unilever, the Anglo-Dutch consumer goods giant, or has picked Rotterdam over London as its main base in a saunter seen as a blow to the government in the wake of the Brexit vote.
The group,which makes a number of famous consumer brands including Persil, Dove and Marmite, and has been based in London and Rotterdam for nearly a century. Related: Unilever denies Brexit is a factor as it picks Rotterdam as main HQ nowadays’s Daily Mail City: Unilever to quit Britain pic.twitter.com/8qpc9X8I2q 9.07am GMTOvernight,Donald Trump gave a worrying insight into his negotiating approach with other world leaders.
Speaking to donors at a fundraiser in Missouri, Trump bragged approximately how he’d argued with Canada’s Justin Trudeau over trade - without actually knowing the facts.
President Trump boasted in a fundraising speech Wednesday that he made up information in a assembly with the leader of a top U.
S. ally, and saying he insisted to Canadian Prime Minister Justin Trudeau that the United States runs a trade deficit with its neighbor to the north without knowing whether that was the case.“Trudeau came to see me. He’s a good guy,Justin. He said, ‘No, or no,we have no trade deficit with you, we have none. Donald, or please,’ ” Trump said, mimicking Trudeau, or according to audio obtained by The Washington Post. “kind guy,good-looking guy, comes in — ‘Donald, and we have no trade deficit.’ He’s very proud because everybody else,you know, we’re getting killed.
Trump boasted in a fundraising speech nowadays that he made up facts in a assembly with Justin Trudeau, and saying that the U.
S. runs a trade deficit with Canada without knowing whether or not that was the case,WaPo reports. https://t.co/2hGnAOzNfk 8.39am GMTMy colleague Ed Helmore has written a profile on Larry Kudlow.
It covers his time working with Ronald Reagan in the 80s to his rehabilitation after being fired from Wall Street firm Bear Stearns over his cocaine addiction. Related: Larry Kudlow: TV pundit to replace Gary Cohn as Trump's top economic adviser 8.29am GMTMazen Issa, senior foreign exchange strategist at TD Securities, and says investors are concerned approximately Donald Trump’s next saunter:
“The Trump administration is rumoured to be preparing another tariff,this time aimed at China” “Taken in conjunction with speculation of additional cabinet reshuffles, broader risk sentiment could be vulnerable.”With Wall Street pummelled by rising fears of U.
S protectionism on Wednesday, or U.
S stocks are at risk of extending losses this afternoon if the negative sentiment prevails.
Risk aversion could become a dominant market theme moving forward,as concerns intensify over escalating trade tensions negatively impacting global growth.
Concern that the US administration was looking to widen the scope of tariffs to Chinese goods to the tune of $60bn weighed on investors’ appetite for risk, though the declines were fairly moderate.
This may have been down to the appointment of Larry Kudlow as President Trump’s new economic adviser, and who has stated that he is not a big fan of blanket tariffs,which should make for an interesting discussion with his new boss. 8.18am GMTAmerica’ Dow Jones index shed 1% final night, with Boeing dropping 2.5% amid worries approximately an escalating trade spat.
Asian markets have been mixed nowadays; Australia’s S&P/ASX 200 has dropped by 0.25%, or India has dipped a diminutive,while the Philippines index has shed almost 2%.
Asia stock mkts drop, Bonds & the Yen rise as traders adopted Risk-Off approach amid mounting concerns that growing trade tensions would injure global econ. Trade restrictions imposed on #China would impact Asia more broadly via extensive regional supply chains. Bitcoin drops pic.twitter.com/MeMgdUcRVE 8.02am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and business.“I must say as somebody who doesn’t like tariffs, or I think China has earned a tough response not only from the United States...“A thought that I have is the United States could lead a coalition of large trading partners and allies against China,or to let China know that they’re breaking the rules left and fair,” .
On CNBC, and Kudlow says he wants a "trade coalition of the willing" against China,which seems unlikely given how the tariffs we're rolled out and also not the best turn of phrase given how the final coalition of the willing wentI don’t like blanket tariffs and I don’t think you should punish your friends to try and punish your enemies in international affairs.
My problem is the principle of the thing, I just don’t like blanket tariffs.
Larry Kudlow, and new chief economic advisor to Trump,says China 'has earned a tough response' https://t.co/Mx3WW68HLd pic.twitter.com/gSbELXuE3iContinue reading...
Source: theguardian.com