Business Maverick: World Economy Rebound Thrown Into Doubt by Escalating Trade War

Business Maverick: World Economy Rebound Thrown Into Doubt by Escalating Trade War By Bloomberg

5/16/2019

Business Maverick: World Economy Rebound Thrown Into Doubt by Escalating Trade War By Bloomberg

The escalating U.S.-China trade war is threatening to upend the global economy’s much-anticipated rebound and could even throw its decade-long expansion into doubt if the conflict spirals out of control.

U.S. shipments to China are more limited, though 5.1% of its agricultural production heads there as does 3.3% of its manufactured goods.

U.S. chip giant Intel Corp. is taking a “more cautious view of the year,” and Italian drinks maker Davide Campari-Milano SpA this month noted the “uncertain geopolitical and macro economic environment.”

In a worst-case scenario in which tensions persist for another three months and more tariffs are imposed, Morgan Stanley’s economists reckon China would ease fiscal policy by the equivalent of 0.5 percentage point of gross domestic product and try to boost credit growth. As for the Fed, it would cut its benchmark by an initial 50 basis points, they said.

Read more: Daily Maverick

BUSINESS MAVERICK: US-Sino trade war will provide few opportunities for SAAn old African proverb holds that ‘when elephants fight, it is the grass that suffers most’. As the US and China lock tusks over trade, grass on a global scale is getting trampled. And for South Africa, there appear to be few green shoots amid the carnage. Why do you call negotiations a trade war?

Business Maverick: Trade War Spurs `Change in Attitude’ on Gold for Spooked MarketsDonald Trump’s tweets are keeping global financial markets on edge, and many investors are opting for gold as a refuge.

Donald Trump in no hurry to sign China deal as trade war escalates | IOL NewsUS President DonaldTrump said he was in no hurry to sign a trade deal with China as Washington imposed a new set of tariffs on Chinese goods.

Election results could boost the rand if US-China trade war does not escalateElection results could boost the rand if US-China trade war does not escalate 🔒

Business Maverick: Trump Warns China to Act on U.S. Trade Deal or Face Worse TermsPresident Donald Trump said it would be wise for China to “act now” to finish a trade deal with the U.S., warning that “far worse” terms would be on offer for them after what he predicted would be his certain re-election in 2020.

BUSINESS MAVERICK: AngloGold Ashanti puts a for sale sign on the world’s deepest mineAfrica’s top gold producer, AngloGold Ashanti, is putting the last of its South African assets up for sale. Anglo American exited from gold years ago and looks like it is here to stay as it makes money from platinum, iron ore and diamonds. But the last of the bullion assets linked to its name is bound to provoke some feelings of nostalgia. Yet nothing is set in stone and not many companies have the technical ability to run Mponeng, the world’s deepest mine, which is included in the sale.

JSE could open lower on Tuesday as trade tensions escalateRisk-off sentiment surges on global markets

BUSINESS MAVERICK: Jumia shrugs off short-seller reportShares in e-commerce company Jumia, otherwise dubbed Africa’s Amazon, have plateaued after a week that saw the share price plunge after the publication of a report from short-seller Citron Research that suggested the company was not what it appeared to be.

Business Maverick: May to Bring Brexit Deal Back to Parliament at Start of JuneTheresa May set a date for her final Brexit showdown, promising to bring her deal back to Parliament at the start of June. Talks with the opposition Labour Party haven’t yielded an agreement, but she’s hoping members of Parliament, stung by voter revolts, will back her in order to end the process that’s tearing both main parties apart.

Business Maverick: Wednesday May 15: Five Things You Need to Know to Start Your DayStocks in the U.S. soared as traders embraced a more hopeful trade outcome. President Trump called on the Federal Reserve to match China’s countermoves, while the Global Times called the trade dispute a “people’s war.” And as tensions flare in Iran, Trump denied he’s preparing troops but promises lots of them if needed. Here are some of the things people in markets are talking about today

BUSINESS MAVERICK: Nampo agricultural show highlights the scale and sophistication of South African farmingFarming in SA is undergoing a revolution, and not the kind envisioned by the Economic Freedom Fighters and its copycats in the ruling party. Techniques such as precision farming, which uses GPS technology to boost productivity and yields, are widening the already yawning gap between commercial agriculture and the subsistence plots still being tilled in the former homelands and other impoverished rural areas. A trip to industry group Grain SA’s annual Nampo agricultural show reveals the sheer scale of what is unfolding in the fields. Remember that.Small-scale farming wont feed SA.

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