- Trump and Hu Xijin tweets doing the rounds.
- Gold bulls hold in positive territory.
- IMF’s leader, Christine Lagarde calls on governments to de-escalate current trade disputes.
Just as we thought trade risks lights were being dimmed down, today’s round of Tweets have turned them up again. In recent trade, a number of tweets have been doing their usual circuit, from the usual suspects, Trump, Hu Xijin (Global Times editor in Chief), and to top it off, the IMF’s leader, Christine Lagarde, has been reported by Bloomberg to have called on governments to de-escalate current trade disputes and instead work to fix the global system.
Diversification flows should help to keep gold underpinned as we head into the Fed, something written in more depth here.
Meanwhile, the Bloomberg article, Trade Must Be Fixed Without Tit-for-Tat Tariffs, is a write up following Lagarde speaking at a conference on central, eastern and south-eastern European economies, known as CESEE. There, she said the world needs a “renewed focus on the distortionary effects of state subsidies” as well as improving the enforcement of intellectual property rights, and ensuring effective competition. “There is no question this is a challenging time for CESEE, and Europe as a whole,” she said.
“This means avoiding tit-for-tat tariffs and instead finding ways to unlock the full potential of e-commerce and trade in services,” Lagarde said at the European Central Bank on Wednesday. “Global growth has been subdued for more than six years and the largest economies in the world are putting up, or threatening to put up, new trade barriers. And this might be the beginning of something else which might affect us in a more broad way.”
In recent trade, Trump has said:
- No deadline for additional tariffs on China.
- If China deal cannot be reached, will put tariffs on $325 Bln of Chinese goods.
- Trump says his deadline for China to return to trade talks is “up here,” in his head.
- Could take ‘additional steps’ on Mexico In 45 Days.
Hu Xijin (Global Times editor in Chief), has Tweeted:
- “As far as I know, China’s state media will publish more heavyweight commentaries criticizing the US & demonstrating China’s determination. It’s rare to see scathing attacks against the US in state media. This shows Beijing is preparing for China-US ties getting further worsening.”