4.04 - tariffs conflict is gaining speed.
With all the talk seemingly being about the new tariffs the USA is imposing on Chinese wares, Google is continuing its fight with cryptos with the new ban. Trumps approval rate seems to be influencing stocks price and WTO is under a theat.
Although the decision seems to have been made already, it is obvious now that a lot of consequence will be following the new numbers that Trump has prepared for the Chinese wares, imported in the country.
Of course, China is currently preparing the answer to show the USA as the counter action, but, according to Chinese officials there will be consequences for the whole world. Trump’s tariffs are putting WTO in the never seen before danger. Zhang Xiangchen, representative of China in the organization is saying that the new tariffs and the threats of the US government to recoup the losses connected with the losses due to the “intellectual property abuse” are going against the main principal of non-discrimination of WTO.
Although the impact on Chinese economy is not going to be an extremely big hit for the Chinese economy, increasing levies only by $12.5 billion, while the total volume of Chinese export reached $506 billion by the end of last year.
While the attention of the whole world is tied to the trading situation between China and the USA and shifted from the cryptos Google is continuing to shield its users from the threat which, according to Google is posed by the cryptos.
A while ago Google and Twitter banned ad of the cryptos and now Google has banned mining extensions from being installed into the Google Chrome browser. All the existing apps are going to be deleted from the browser’s shop in June. In the meantime, blockchain applications that can be used for the purposes other than mining are going to be left in the shop and the possibility to add them will not be stripped from developers.
Main policy of the Google shop was that the mining apps which were created and sold for the mining purpose only and which noted users about the specificity of the app were allowed to be sold in the shop, by, as it turns out, 90% of the apps did not correspond these rules.
Recently published approval rating of the work done by the US President might have a straight correlation with the stocks performing that badly and losing value.
Now, Trump’s approval rate is about 49 percent and the President didn’t forget to take it to Twitter to talk about is, although the impact on the economy is not as god as he might guess. It seems that S&P 500 fell 8 percent since January when approval was only 42 percent. In fact, and this is an interesting tendency – S%P 500 is falling everything Trump’s approval is showing some positive movements.
Of course, it is quite possible that these movements are just pure coincidence but seeing how almost all the Trump’s statements are controversial and divide not only American citizens, but everyone interested in world economy and politics it does seem possible that the movements depend on each other.
As trading relations between the two giants – China and US are getting more and more tension stock markets are shaking and awaiting the answer of Chinese government on Trump’s decision to subject more wares for China to the new taxation plan. European markets are stable.
Stoxx Europe 600 went down 0.1 percent and reached the lowest point in more than a week.
S&P 500 Futures went down 0.5 percent.
MSCI Emerging Market went lower by 0.9 percent – that is the biggest fall in a week for the Index and the lowest point in almost 7 weeks.
MSCI Asia Pacific is also facing the lowest point in weeks today after shedding 0.4 percent.
Euro was up by less than 0.05 percent - $1.2273.
Yen is up 0.1 percent – 106.53 yen per dollar.
Dollar is 0.05 percent lower against the basket of 6 major currencies.
WTI oil is standing 0.3 percent lower - $63.33 per barrel.
Gold is 0.2 percent up - $1336.04 per ounce.
- by Anna K.