Donald Trump’s sky-high tariffs are not a ban on trade with China, but they come close. Although it is hard to estimate quite how sharp the decline in business between the two countries will be, since firms will find new routes and Mr Trump keeps changing the scope of the levies, a vertiginous drop is assured. […]
Stocks down, yields down, dollar up. A reliable relationship between America’s listed companies, government bonds and the value of the currency has held, in moments of panic, for most of modern financial history. Until now. Source link
As the Trump administration may soon find out Source link
A falling dollar is normally good for the developing world. Because poor countries borrow more in the greenback than rich ones, their debt bills become less burdensome. At the same time, imports become cheaper, providing a balm to foreign reserves that are often stretched, and investors become more optimistic. So it was from 1971 to […]
With the dollar faltering, European policymakers have an opportunity Source link
DONALD TRUMP has been adept at finding euphemisms for the chaos. When both stocks and bonds sold off last week, fuelling concerns about financial stability, Mr Trump said it was a case of people “getting a little bit yippy”. After pausing some tariffs for 90 days, he said all the turbulence was merely “a transition […]
In 1990s Japan the worst days of a market crisis brought about a “triple yasu” loss: a fall in stockmarkets, a rise in bond yields and a declining currency. It is now America that must stomach this noxious combination. Although President Donald Trump’s tariff pause provided a brief respite, the triple yasu has made an […]
In 1990s Japan the worst days of a market crisis brought about a “triple yasu” loss: a fall in stockmarkets, a rise in bond yields and a declining currency. It is now America that must stomach this noxious combination. Although President Donald Trump’s tariff pause provided a brief respite, the triple yasu has made an […]
SO FAR THIS year China has imported ten American films, including the zany “A Minecraft Movie”. But there is a limit to how much American drama anyone can stand. After President Donald Trump’s latest plot-twist—lowering the “reciprocal” tariff on most countries to 10%, while raising it on China to 125%—the China Film Administration stepped in. […]
For a good few hours on April 9th, disaster beckoned. Share prices had been falling for weeks. Then the market for American Treasury bonds—normally among the safest assets available—started convulsing, too. The yield on ten-year Treasuries leapt to 4.5% (see chart 1), up from 3.9% days earlier. That meant bond prices, which move inversely to […]