Iñigo Isardo, Link Analysis│An exchange rate conflict threatens to complicate US-China trade conflict. As we anticipated yesterday, the escalation of tensions in the trade conflict between the US and China impacted negatively on western markets. China has responded with the largest devaluation of its currency the yuan in more than a decade.
Íñigo Isardo (Link Securities) | This week will be affected by the uncertainties of the trade conflict between the US and China after the latest “turn of the screw” introduced by US President Donald Trump into the trade negotiations. Last Thursday Trump announced on Twitter the imposition of 10% tariffs from 1 September on 300 Bn$ of imports from China which so far have not had to pay tariffs.
Alicia García-Herrero*| Without an expectation of a larger market for European exports in the absence of additional opening up by Chinese authorities, European exporters should not enjoy the ongoing China-US negotiations.