This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2018/nov/19/trade-tensions-markets-us-china-clash-pound-brexit-business-live
The article has changed 16 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Trade war fears grow as US and China clash – business live | Trade war fears grow as US and China clash – business live |
| (35 minutes later) | |
| Shares in UK builders are dropping this morning, following a report that house prices have fallen 1.7% this month. | |
| Online estate agent Rightmove reported that the average house price fell by £5,000 in November, with wealthy parts of the South East suffering the biggest reversal. | |
| It appears that the ‘ripple effect’ of rising prices flowing outward from London is now reversing, as Brexit worries hit the economy. | |
| Miles Shipside of Rightmove says: | |
| “Higher-end, former hotspot towns are now among the biggest annual fallers with Rickmansworth (-7.1%), Esher (-6.4%) and Gerrards Cross (-6.0%) now cold spots following price rises of nearly 40% over the seven preceding years.” | |
| This has sent housebuilders into the list of FTSE 100 big fallers. Barratt Developments are down 1.4%, followed by Berkeley Group (-0.7%) and Persimmon (-0.6%). | |
| The pound has risen in early trading, shaking off some of last week’s losses. | |
| Sterling is up 0.25% at $1.287 against the US dollar, as Theresa May continues to show impressive sticking power. | |
| Despite widespread criticism of her Brexit deal, Conservative MPs haven’t yet mustered the 48 letters of no confidence needed to trigger a leadership contest. | |
| One critic, Simon Clarke MP, is trying to persuade fellow Brexiteers to demand a new leader, arguing: | |
| “This is absolutely the day at which we stand at the bar of history on this..... | |
| “It is quite clear to me that the captain is driving the ship at the rocks. | |
| However, other members of the European Reform Group - who demand a clean break from the EU - seem reluctant to do the deed, even though there’s unhappiness about the terms of the transition deal and backstop negotiated between London and Brussels. | |
| Our political editor Heather Stewart says the ERG rebellion could fizzle out, unless they get to the 48-letter mark soon.... | |
| ...and Theresa May will continue to present herself as the only grownup in the room, selling her deal to businesses while her MPs plot. https://t.co/mzYa3MFU66 | |
| Will we get to those 48 no confidence letters? 🤷♀️ But if it doesn’t happen within a day or two, many at Westminster may conclude the ERG’s rebel leaders are all 👄 and no 👖. | |
| Despite the war of words between the US and China, European stock markets have opened higher. | Despite the war of words between the US and China, European stock markets have opened higher. |
| In London, the FTSE 100 is up around 0.5%, with similar gains in other major markets: | In London, the FTSE 100 is up around 0.5%, with similar gains in other major markets: |
| Hussein Sayed, Chief Market Strategist at FXTM, warns that trading will probably be volatile, thanks to trade war worries and Brexit upheaval: | Hussein Sayed, Chief Market Strategist at FXTM, warns that trading will probably be volatile, thanks to trade war worries and Brexit upheaval: |
| U.S. Vice President Mike Pence didn’t give the bulls what they wanted over the weekend. At the Asia-Pacific Economic Cooperation Summit, Pence said there would be no end to U.S. tariffs on Chinese goods until China changes its ways. His comments suggest that a deal between President Trump and President Xi is unlikely to see the light when the leaders meet at the G20 Summit later this month. | U.S. Vice President Mike Pence didn’t give the bulls what they wanted over the weekend. At the Asia-Pacific Economic Cooperation Summit, Pence said there would be no end to U.S. tariffs on Chinese goods until China changes its ways. His comments suggest that a deal between President Trump and President Xi is unlikely to see the light when the leaders meet at the G20 Summit later this month. |
| Given that we are near the end of the earnings season and the U.S. economic calendar has only tier 2 data to release, expect markets to trade on thin volumes. Political headlines will likely dominate, and thus expect volatility to remain high. | Given that we are near the end of the earnings season and the U.S. economic calendar has only tier 2 data to release, expect markets to trade on thin volumes. Political headlines will likely dominate, and thus expect volatility to remain high. |
| China’s Global Times, the state-sponsored newspaper, is often a good guide to Beijing’s thinking. | China’s Global Times, the state-sponsored newspaper, is often a good guide to Beijing’s thinking. |
| And today’s editorial argues that it’s “not a big deal” that the APEC summit ended without a joint communique for the first time in a quarter of a century. | And today’s editorial argues that it’s “not a big deal” that the APEC summit ended without a joint communique for the first time in a quarter of a century. |
| It also takes a pop at the White House, saying: | It also takes a pop at the White House, saying: |
| “It’s delusional of some US elites to think that China is the largest beneficiary of the international system since they mistakenly blame China for the US’ own problems. China has realized its development through hard work, not by taking advantage of the international system.” | “It’s delusional of some US elites to think that China is the largest beneficiary of the international system since they mistakenly blame China for the US’ own problems. China has realized its development through hard work, not by taking advantage of the international system.” |
| Analysts at ING are also concerned that Mike Pence and Xi Jinpeng failed to mend any fences, saying: | Analysts at ING are also concerned that Mike Pence and Xi Jinpeng failed to mend any fences, saying: |
| The risk to global economies and markets from the Sino-US trade war is elevated after an impasse between two countries at the APEC summit | The risk to global economies and markets from the Sino-US trade war is elevated after an impasse between two countries at the APEC summit |
| The discord between America and China over trade loomed over last weekend’s APEC gathering in Papua New Guinea, says Royal Bank of Canada’s Sue Trinh: | The discord between America and China over trade loomed over last weekend’s APEC gathering in Papua New Guinea, says Royal Bank of Canada’s Sue Trinh: |
| She writes: | She writes: |
| The Sino-US discord was palpable at the APEC Summit in PNG, so much so that the confab ended with members unable to agree on a communiqué, for the first time ever. | The Sino-US discord was palpable at the APEC Summit in PNG, so much so that the confab ended with members unable to agree on a communiqué, for the first time ever. |
| Aside from this being further evidence of a growing anti-China alliance in the APAC region (watch out for Taiwan’s referendum this Saturday to remove “China” from the Olympic team name), the rhetoric is sharpening between the key players. | Aside from this being further evidence of a growing anti-China alliance in the APAC region (watch out for Taiwan’s referendum this Saturday to remove “China” from the Olympic team name), the rhetoric is sharpening between the key players. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Fears of an escalating US-China trade war are weighing on the markets this morning, after the two powers clashed at a major summit over the weekend. | Fears of an escalating US-China trade war are weighing on the markets this morning, after the two powers clashed at a major summit over the weekend. |
| US vice-president Mike Pence challenged Beijing’s trade practices at the Asia-Pacific Economic Cooperation (APEC) in Papua New Guinea, criticising China for engaging in forced technology transfer and intellectual property theft. | US vice-president Mike Pence challenged Beijing’s trade practices at the Asia-Pacific Economic Cooperation (APEC) in Papua New Guinea, criticising China for engaging in forced technology transfer and intellectual property theft. |
| He told delegates that: | He told delegates that: |
| The United States . . . will not change course until China changes its ways. | The United States . . . will not change course until China changes its ways. |
| “We have great respect for President Xi and China, but as we all know, China has taken advantage of the United States for many, many years and those days are over.” | “We have great respect for President Xi and China, but as we all know, China has taken advantage of the United States for many, many years and those days are over.” |
| Chinese President Xi Jinping was equally combative, criticising Washington’s aggressive actions on trade. He argued: | Chinese President Xi Jinping was equally combative, criticising Washington’s aggressive actions on trade. He argued: |
| Unilateralism and protectionism will not solve problems but add uncertainty to the world economy. | Unilateralism and protectionism will not solve problems but add uncertainty to the world economy. |
| History has shown that confrontation, whether in the form of a cold war, a hot war or a trade war, produces no winners.” | History has shown that confrontation, whether in the form of a cold war, a hot war or a trade war, produces no winners.” |
| But in an unprecedented move, the APEC leaders actually failed to sign off the traditional end-of-summit communique; a sign that cooperation was in short supply. | But in an unprecedented move, the APEC leaders actually failed to sign off the traditional end-of-summit communique; a sign that cooperation was in short supply. |
| One insider told CNN that Chine baulked at a line in the statement that read “We agree to fight protectionism including all unfair trade practices”, taking it as a deliberate attack at China. | One insider told CNN that Chine baulked at a line in the statement that read “We agree to fight protectionism including all unfair trade practices”, taking it as a deliberate attack at China. |
| Economists has hoped that the APEC meeting might have thawed relations between the two major powers. That could have helped to de-escalate the trade wars, paving the way for a formal breakthrough at this month’s G20 meeting of world leaders. | Economists has hoped that the APEC meeting might have thawed relations between the two major powers. That could have helped to de-escalate the trade wars, paving the way for a formal breakthrough at this month’s G20 meeting of world leaders. |
| Instead, there’s a growing risk that president Trump imposes further tariffs on Chinese exports to America, which would have a further chilling impact on trade and global growth. | Instead, there’s a growing risk that president Trump imposes further tariffs on Chinese exports to America, which would have a further chilling impact on trade and global growth. |
| Mike Pence sounded far more aggressive on the trade issue over the weekend, where the differences between the US and China was laid bare at the Asia Pacific Economic Co-operation meeting, as Xi and Pence, sparred over trade and security. | Mike Pence sounded far more aggressive on the trade issue over the weekend, where the differences between the US and China was laid bare at the Asia Pacific Economic Co-operation meeting, as Xi and Pence, sparred over trade and security. |
| It appears that #Trump and #China are pretty far apart on Trade issues based on speeches by China Xi and Vice President Pence over the weekend. #Index #futures open lower with the S&P in many downed 12 points. There’s probably no miracles coming out of the G 20. $ES_F $SPY pic.twitter.com/2LntWjq3Ow | It appears that #Trump and #China are pretty far apart on Trade issues based on speeches by China Xi and Vice President Pence over the weekend. #Index #futures open lower with the S&P in many downed 12 points. There’s probably no miracles coming out of the G 20. $ES_F $SPY pic.twitter.com/2LntWjq3Ow |
| Also coming up today | Also coming up today |
| Investors will be glued to the latest developments in Westminster, as Theresa May continues to face down critics of her Brexit deal. | Investors will be glued to the latest developments in Westminster, as Theresa May continues to face down critics of her Brexit deal. |
| The PM is due to speak at the CBI’s annual conference today, where UK business leaders may warn of the perils of leaving the Eu without a transition arrangement. | The PM is due to speak at the CBI’s annual conference today, where UK business leaders may warn of the perils of leaving the Eu without a transition arrangement. |
| The agenda | The agenda |
| All day: CBI conference in London | All day: CBI conference in London |
| 10:00am GMT: Eurozone construction output for September | 10:00am GMT: Eurozone construction output for September |