Daily Archives: Aug 6, 2019 at 07:40 am EDT

Is President Trump Losing Control Of His Trade War?

For several months all was working well. Or so it seemed. Slowly ratcheting up trade tariffs on China gave President Trump several talking (and tweeting) points with minimal economic blowback. US growth slowed, but only modestly and in any case it wasn’t obvious that the trade war was to blame. But the game may have changed on Monday, when China let its currency fall below rise above a psychologically key red line: 7 to the US dollar, marking the lowest point in more than a decade for the yuan.

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Macro Briefing | 6 August 2019

US Treasury labels China as “currency manipulator”: WSJ
Currency-war risk is rising: CNBC
China acts to limit weakness in yuan: Bloomberg
N. Korea launches missiles into sea for 4th time within 2 weeks: Reuters
Former Fed governors warn that central bank should remain independent: CNN
German factory orders rebounded in June: Bloomberg
Global output edged up to three-month high in July: IHS Markit
Services PMI for US ticked up in July to four-month high: IHS Markit
US services growth (ISM Non-MFg Index) fell to three-year low in July: CNBC
10-year Treasury yield drops to 1.75%–lowest since 2016: