China Trade War Not Ending Soon

Roman Schwartz
November 1, 2018

US President Donald Trump has said he thinks his administration can strike "a great deal" with China on trade, but warned of imposing new tariffs on Chinese products if the agreement could not be reached.

Further, a recent survey reported by Reuters shows that 85 percent of USA businesses surveyed say they have suffered from the trade war's tariffs, and almost half of the companies reported increases in non-tariff barriers, as well.

The S&P 500 is down 32.36 points, or 1.2 percent.

The S&P 500 index shed 17.44 points, or 0.7 percent, to 2,641.25.

Scott Wren, global equity strategist at the Wells Fargo Investment Institute, said the market drop coincided with word that Trump and Xi may not meet personally to discuss trade differences when the Group of 20 meets next month in Buenos Aires.

Stocks have plunged since early October, breaking a long period of relative calm over the summer, and trading has been especially volatile the last few days.

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Wenger, who did not sound bitter about the manner of his 22-year reign coming to an end last season, said: "I am a supporter". They have a chance - but at the moment we have some other teams who look very strong as well".

The report sent a market that was rising after promising tech news back down, causing the Dow and S&P 500 to give up their gains for the year.

Among industrials, Boeing sank 6.6 percent to $335.59. Its stock traded above $2,000 a share in early September and has fallen 24.5 percent since then. "We are seriously concerned about this", Chinese foreign ministry spokesperson Lu Kang said in a statement posted on the ministry's website.

Meanwhile, Gao Feng, a spokesperson for China's Ministry of Commerce, said at a regular press briefing last Thursday that China had always been honest about trade talks with the US.

Indeed, mixed messages have become a recurring feature of the administration's approach to China during the trade war, including from the president, who has on a number of occasions made discouraging remarks about the prospect of resolution through dialogue, including talks proposed at the invitation of the US Treasury. "I have $267 billion waiting to go if we can't make a deal", he added. They've been taken out an average of USD500 billion a year for many years.

Firm U.S. economic data and a strongly worded statement from a China Politburo meeting chaired by President Xi Jinping signaling increased urgency for more measures to combat the slowing economy helped buoy sentiment toward risk assets.

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