Veteran traders couldn't help but laugh when they checked US equity futures last night and saw that - as some probably had suspected they might - Dow futures were tracking for a 100-point jump at the open. With so much emergency liquidity still sloshing around the financial system, it seemed the most near-term risk many could fathom was a probable spike in new coronavirus infections in the coming weeks, hardly an imminent, overnight risk.
But the ramp quickly faded after a Bloomberg report hit according to which showing Beijing had just given the US-China 'Phase 1' trade deal - which has been essentially moribund for weeks now even though President Trump spared it on Friday - one more 'kick', reminding investors where the real near-term macro risk lies: That is, the light-speed "decoupling" of the world's two largest economies.
Spare us the commentary about how markets are more concerned with these trifles than the looting-and-burning-and-pillaging unfolding across the US - we warned investors about these risks last night. It appears investors are only just waking up to them, however.
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2 comments:
We need to let China know, WE'RE DONE with their threats, we're done with their STEALING our intellectual property, and allowing them to place corporate thieves in our universities! China depends on the US, MUCH more than we depend on them! China is NOT a good partner, and we've allowed them WAY too much leniency in their human rights abuses, theft of intel property etc. Their threats of cutting off their "Rare Earth" production to us is hollow as well, due to the fact we have more than adequate resources right here in the Good Ole USA. Its hard to believe that America, the country that's always 1st up the "soap box" preaching Human rights, and injustices, has bowed down, allowed China to continue their HORRENDOUS human abuses, etc. All in the name of international alliance. We, AMERICA should be the example, and stop ALL trade with nations that are committing the atrocities they do. Again...FACTS hurt, but lets be crystal clear...China's only true goal is to manipulate our currency to the point its worthless, take control of OUR industry's, Universities, and make us dependent one them...WE must never allow that, and love him or hate him, I really don't care, President Trump is the FIRST American President to stand against China, in an effort to protect this from happening!
Create a problem and fail at fixing. Isn't the idea , create a problem and succeed at fixing?
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