Yu Yongding via Caixin | Has China violated the rules of the World Trade Organization (WTO) as the U.S. has said? The most reliable answer should be from the WTO itself. On the 10th anniversary of China’s entry to the organization, former WTO Director-General Pascal Lamy said in an interview with the U.S. magazine China Business Review that “China has done really well in terms of implementing its long list of commitments, although no country is above criticism.”
Intermoney | Other risks to which we must pay attention are those arising from emerging markets. In this case, one should not focus only on one country, as there are numerous fronts open. For example, the latest update to the IMF forecasts cut the growth forecasts for Argentina and Brazil, stressing the more difficult finanacial conditions and the need for adjustments to the Argentinian economy while, in the case of Brazil, it stressed the effect of strikes and political instability.
Facebook and Twitter have been significantly punished by investors following figures about users which created doubts about the performance of both companies in the future. In the first case, the number of users active per month increased 1.74% in 2018 to pass from 2.196 millions to 2.234 million, disappointing market expectations and delivering the smallest increase since Facebook provided figures.
Financial markets in developed countries have suffered several difficult months of August this century. Therefore we should never be confident about August and this year there are reasons to face it with caution. In a brief series which starts today, Intermoney identifies the key elements of these potential risks.
Yu Yongding via Caixin | Washington launched its trade war against Beijing in part because of China’s long-running trade surplus with the U.S., but it turns out that the surplus isn’t as large as advertised. U.S. President Donald Trump has said that his country has an annual trade deficit of $500 billion with China. This is nonsense.
Benjamin Cole | Fed Chair Jerome Powell has stated the Fed’s 2% target is symmetric, which may be code words for “inflation a little above 2% is tolerable.” The US central bank may find fighting inflation resembles heart surgery with a chainsaw.
Eelke Heemskerk and via The Conversation | Who holds the power in international politics? Most people would probably say it’s the largest states in the global system. Yet multinationals like Apple and Starbucks still wield phenomenal power. They oversee huge supply chains, sell products all over the world, and help mould international politics to their interests.
America’s interests — not to mention image — took a major hit in Helsinki during the meeting between US President Donald Trump and Russian President Vladimir Putin. This is more than sufficient to provoke America’s concern about the direction Donald Trump is taking the country.
On the few occasions the Fed’s former chairman Ben Bernanke speaks in public, which makes him feel physically sick- , he resorts to metaphors. It is what he did in May when he declared that “in 2020 the coyote is going to leap off the precipice and is going to look down”. Bernanke was referring to Wile E.Coyote, the coyote in the Roadrunner, a series of Warner cartoons which ran in the 50s and 60s.
Where the euro may go in 2018 is such a central question and will have implications for global asset markets around the world. Christopher Gannatti, head of research at Wisdom Tree, thinks that “forecasting currencies is very much like putting together a puzzle”, at times requiring just as much art as data.