The trade war began II

There are also European goods - steel and aluminium - which are also subject to an additional 25% duty.

Meanwhile, Beijing's attempts to form a common front with the European Union against the US president's policy have failed. After meetings of senior Chinese officials with European leaders in Brussels and Berlin, these proposals were rejected.

The Chinese will ask the EU to file a joint action against them with the United States at the World Trade Organisation, and also to come up with a joint document after the EU-Chinese leaders meeting on 16-17 July in Beijing.

Instead, Beijing is likely to open up its European investment economy and curb bans on entire sectors that are currently in place.

After this denial of China, it remains only a weapon against American myths - a devaluation of the yuan. China's central bank cut the yuan to the dollar before the introduction of tariffs.

The trade war began I

So, the trade war began, starting at 00:01 GMT today. The US has imposed tariffs on Chinese goods worth $34B, with Beijing reacting imposing an equal measure, with tariffs of 25% on a $34 billion list of US goods that includes 818 products like soybeans, pork, electric vehicles, air planes, hard drives, but excluding some popular goods such as mobile phones or TVs.

US President Donald Trump confirmed yesterday to journalists that the tariffs are in force today. He expressed readiness for a sharp escalation of the possible trade war between the two largest economies in the world.Beijing promises to repel the strike quickly with duties on American goods of the same value. The country is forced to give a "necessary answer", but does not specify what the nature of this response will be, but Chinese duties are expected to affect agricultural commodities such as the soybean that the Chinese market is very dependent on. Customs may also affect the automotive sector and marine products.

With the imposition of duties the United States and China have produced the first shots in the trade war.

To be a rock and not to roll

This passage evokes so many interpretations, 

but what I would label it now is stable.

China’s economy showed a sign of some stabilization,

that woke up the bulls and make them able 

to uplift the European indices and send them to profound elevation.

DAX 30 finished today 2.71% higher reaching 10,026.10 points, 

FTSE 100 jumped with 1.78% and crossed the finish line with 6,353.52 points.

CAC 40 flyed away with 3.32% to 4,490.31 points 

and Euro Stoxx 50 closed with a gain of 3.26% at 3,038.12 points.

The optimism glittered mostly over DAX, 

that was tagged on the stairway of April’s highs.

Red Monkey into the trendline

The Red Monkey was warmly welcomed and now is fascinating with ambitious, adventurous, sometimes irritable and sizzling characteristics of fire. 

And this fusion is somehow now affecting to where is deeply embedded. 

The energy of the Red Monkey blends so far with several quite significant signs.

On Thursday S&P stripped the credit rating outlooks for China and Hong Kong from stable to negative, facing the increasing economic and financial risks to the mainland government's creditworthiness. Now the forecast for China's economic growth probably will remain at or above 6%  annually over the next three months.

Today the stock markets in Asia started the second quarter with declines. Shanghai Composite erased 1.05%, Shenzhen Composite fell 1.479% and Hang Seng index recorded a decline of 1.17%.

Meanwhile China labelled a record quarterly trove of mergers and acquisitions. $682 bn in global deal activity, $101 bn, or 15%  of that figure involved Chinese buyers. Amazing dealmaking!!!

Some external and cyclical factors affect more to the current slowdown in China’s economy rather than environmental constraints. So even the markets are lost during the last few months and this can not be translated clearly into the trendline, I think that the the country will continue to be a major economic engine of the world, contributing to 30% of world growth until at least 2020.

Chinese economy grew at its slowest pace since 2009

Chinese economy falls for first time since the global financial crisis in 2009. 

This is the conclusion from the published today reports of the National Bureau of Statistics of China.

Gross domestic product increased by 6.9% yoy in the third quarter, compared to % from April to June.  Analysts had expected even lower result of 6.8%, but even so, the data were considered disappointing against the background of continuing decline in investments.

Investments in fixed assets increased by 10.3 % below the forecasted 10.8%, while industrial production in September recorded annual growth of just 5.7%, while the expected slowdown of 6.1% to 6%. Total retail sales of consumer goods are up by 10.9% compared with 10.8 % from the previous month.

Over the past seven years, China contributed to about one-third of global economic growth. Based on the poor performance of the country this month, the International Monetary Fund lowered its forecast for expansion of the world economy from 3.3% to 3.1%.

The government has set its annual economicgrowth target at "around 7 percent" for 2015, but at the weekendChinese Premier Li Keqiang admitted that with the global economic recoverylosing steam, hitting such a target was "not easy."

Sharp drop in Chinese imports

China's exports  has moderately decreased in May,the imports collapsed sharply and that led to an increase in the trade surplus to 59.49 billion USD compared to 34.1 billion in April.

For the first five months of the year  the surplus reached 217.26 billion, but the continuing weakness in imports gives a reason to analysts to predict that the surplus for 2015 could approach $ 600 billion compared to $ 383 billion for the previous 12 months.

In May  exports fell by 2.5% yoy, recovering from a sharp fall from 6.4 percent in April. But the trend remains negative for the third consecutive month.

At the same time  imports accelerated decline of 16.2% to 17.6% yoy, reflecting the anemic domestic consumption.

For the period January-May  export has grown with 0.7% compared to the same period in 2014, while  the import has decreased 17.3%.

Chinese industry shrinks with a more rapid pace than expected

The Chinese industry represents less than expected in April, marking the most significant attenuation of business activity for the last year. PMI index, calculated by HSBC, was revised from 49.2 to 48.9 points, below forecasts of strategists correction to 49.4 and below the March result of 49.6.

The indicator reached the lowest value since April 2014, when amounted to 48.1 points, well below 50 points, marking expansion.

Today's report by HSBC outlines a grim picture of the government's PMI index for the Chinese industry, which was published on Friday and retains its value from March to 50.1 points.

According to analysts, the difference is due to the fact that the study by HSBC is giving more importance  to the smaller export companies. This disappointing performance is most probably due to the decrease of domestic consumption, while new business from abroad is showing signs of improvement.

"The Chinese manufacturing sector began poorly the second quarter, new orders decrease with significant pace in a year, and production is stagnating." - Said HSBC's chief economist for China Hongbin Kew.