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Trump backs tariffs and threatens to quit WTO - EMEA brief 31 Aug

Guest Hassan


  • Trump back introduction of tariffs on $200 billion worth of Chinese goods in ongoing trade dispute with China
  • US president also threatens to withdraw the United States from the World Trade Organisation "if they don't shape up", claiming unfair treatment
  • US & Canadian leaders optimistic in reaching revised NAFTA agreement by today's deadline
  • Panasonic are set to move their European base outside of London to mitigate risk going into Brexit
  • Argentinian government raises interest rates to 60% after slump in Peso
  • Gold enters fifth straight month of decline; longest losing streak since 2013

2018-08-31 08_24_00-Trading Forum _ Join Trading Discussions _ IG Community.pngAsian overnight: Yet again we have seen Donald Trump force the agenda on global markets, with his statement that the US could leave the WTO dampening sentiment throughout the overnight session. Losses throughout China, Hong Kong, and Australia were accompanied by marginal gains on the Nikkei and a flat Topix in Japan. The developing focus of late has shifted to Argentina following recent developments in Turkey and Venezuela. Despite the Argentine central bank ramping up rates to 60%, we still saw developing markets suffer, with the Turkish lira, Indonesian rupiah, and Indian rupee all losing ground overnight. Data-wise, the Chinese PMI surveys saw a stronger than expected reading for both the manufacturing and non-manufacturing sectors. However, with a potential $200 billion of US tariffs looming, Chinese traders has little to celebrate.

UK, US and Europe: Looking ahead, the eurozone comes into view, with the release of unemployment and inflation data bringing expectations of a rise in euro volatility. The rise in eurozone CPI has seen the reading hit 2.1% last month; the highest level since 2012. Any further upside would no doubt put further pressure on the ECB. In the US, traders will be looking out for the Chicago PMI and Michigan consumer sentiment surveys.

Economic calendar - key events and forecast (times in BST)

2018-09-03 16_01_34-Forex Economic Calendar.png

10am – eurozone unemployment rate (July), inflation (August): unemployment rate forecast to rise to 8.4% from 8.3%, while inflation forecast to be 2% YoY from 2.1%, and core inflation to be 1.2% from 1.1%. Market to watch: EUR crosses

2.45pm – Chicago PMI (August): forecast to fall to 63 from 65.5. Markets to watch: US indices, USD crosses

Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • John Laing Fund saw a rise in Net asset value to 130p, from 124p in the first six months of 2018. The total return of the fund now stands at 75%; 7.5% on an annualised compound basis. Profit before tax for the six-month period stands came in at £89.0 million compared with £34.7 million the same time last year. The 3.57p per share dividend announced in May 2018 is now joined by a 3.57p per share for the six months to 30 June 2018.
  • Whitbread has agreed to sell Costa Coffee to The Coca-Cola company, in a deal worth £3.9 billion. That price represents 16.4 times the operating earnings of Costa in the 2018 financial year.

IAG reinstated as Buy at Citi
EasyJet rated new Buy at Citi
Ryanair rated new Buy at Citi

Lufthansa reinitiated as Sell with Citi

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nice update.

Trump sure is a monkey isn't he.... Ya'll see this? Google image search of '****'. hohohoho.



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google algo simply works on what people are searching for, and surfaces based on a number of user input factors to help in SERPs. It's basically a consensus mechanism, and shows that people on the whole have applied the term '****' to trump many many many times across a number of different forums, blogs and pages.

whilst it doesn't confirm the factual validity of a statement, it does give a very good indication of what people thing.

Also I get different results for your term, which I think goes further to support the point that it's not fact, but what people in my area are searching for.

Google is an amazing surfacing tool and everyone believe in them (I don't think I've needed to go down more than 3 results from the top in the last 3 years, and haven't been off page 1 in maybe 8+ years) until they want to be controversial.


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I think everyone knows by this time that all tech companies based out of California are primarily leftist.

You'll see leftist tendencies on Reuters & Bloomberg, but it is way more subtle and requires a trained eye.
Reuters " special investigations " are filled with skewed leftism reports

Problem is if you point this out your automatically assumed to be right-wing. It's as if everyone has forgotten that there are in fact other virtues at play than a political continuum. 

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32 minutes ago, zala said:

I think everyone knows by this time that all tech companies based out of California are primarily leftist.

You'll see leftist tendencies on Reuters & Bloomberg, but it is way more subtle and requires a trained eye.
Reuters " special investigations " are filled with skewed leftism reports

Problem is if you point this out your automatically assumed to be right-wing. It's as if everyone has forgotten that there are in fact other virtues at play than a political continuum. 

very interesting point and entirely agree.

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53 minutes ago, cryptotrader said:

very interesting point and entirely agree.

It is quite sad, since Reuters has their principles they need to adhere to that mandate objectivity and factual reporting.

In 80-90% of cases they report factual reports and unbiased information, but when it comes to certain political events it's as if the editors and reporters on the stories spin flavor and saturate their own views into the story.

Quite dangerous since the markets demand objective reporting and not opinion-based reporting as to make rational and critical investment decisions.

I've actually thought of writing them an email regarding this issue, due to the larger amount of biased news-reporting I've been seeing lately.

8 minutes ago, Caseynotes said:

Undoubtedly true but there is a conundrum here. They put on a virtue signalling face and adhering to the views of the left which have risen to prominence in the last 10 years but these guys are the richest on the planet. They have gained their wealth by a capitalism completely unadulterated by socialism. So are they really primarily leftist and schizophrenic or am I just being naive.  


It is in the education systems, and if Harvard is affected by this, which classically has been associated to be on the capitalistic side of the spectrum, one starts to see that this paradox is all-encompassing throughout Western-society.

The riches they have amassed are indeed created by market structures, and prominent offshore havens to evade 38% corporation tax (Until Trump change that and  profit repatriations have started to flow back to the U.S.*).

It is thus therefor very ironic, that they are publicly outspoken and prominent champions of leftist ideologies but when it comes to business, refrain to be true capitalists.

I often view the left to be a heep of caffé latte sipping drinkers, intellectuals who so to speak read the driver's manual of the car, but never drive the car and get that intuitive experience of knowledge or society.

Monopoly on morality is also one of their characteristics, were being lectured on values of right and wrong creates a judgementative atmosphere, that elevates their position akin to a judge.

Summarizing it, one starts to understand that they've taken for granted the riches emassed, which is the same thing they so ferociously criticize and despise - the market.

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