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Saturday, August 3

2nd Aug - Markets tank on trade war escalation #4151


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EUROPE
Lagarde’s ECB Must Modernize
Project Syndicate
It will take all Lagarde’s skills as a leader and communicator to safeguard the institution's independence and ensure that it has the tools it needs.

Markets to Germany: “Please borrow”. Germany: “Nein.”  - FT
The entire German yield curve goes below zero for first time ever.

Von der Leyen offers Rome a helping hand on migrationPolitico
‘I am aware that countries such as Italy, Spain and Greece are in a geographically exposed situation and we must guarantee solidarity.’

EU disunity on US’s anti-Nord Stream 2 pushPolitico
‘This is exactly what we should not do as the EU,’ says a top official.


UNITED STATES
US labour market reportNordea
Employment as expected confirms slowing of growth

The Fed Can't Give Markets the Certainty They DesireBB
The status quo is likely sufficient to result in another rate cut in September, but not sufficient for anything more.


OTHER
Central banks should consider giving people money FT
Expecting the fiscal authorities to help out looks like wishful thinking

  TRADE WAR
Trump to hit $300bn in Chinese goods with 10% tariff FT

US-China: Trump’s tariff net expandsPictet
Trump pre-announced a further expansion of the US tariffs on imports from China: the remaining half of imports not yet taxed will be at a rate of 10%. It was our central scenario that the tariff net would be increased before the 2020 elections, but we are surprised by the timing, so close on the heels of the G20 meeting in Osaka. Such tariffs further reduce the possibility of an encompassing trade deal with China before the US elections.

The Trade Warring Will Continue Until Morale Improves BB
With the economy already wobbly, President Trump doubles down on his China conflict.

Stocks Are Telling Trump He Made a Big MistakeBB
The timing of the announcement of new tariffs on Chinese goods is hard to explain unless the Fed was a factor.

US-China trade tensions hit global markets FT
Stocks suffer sell-off while bonds rally on threat of fresh tariffs on $300bn of Chinese imports

China vows to retaliate over Trump’s latest trade tariffsFT

How will China retaliate against higher tariffs?ING
China is facing a new round of 10% tariffs on $300 billion of goods exported to the US to be effective on 1st September. How China retaliates will determine the tariffs' impact on both economies


REGULARS
Five Things to Start Your Day AsiaBB

Eco Day AsiaBB
Tariff Recession Risk, Japan-Korea Tensions, U.S. Jobs * Worst may soon be over for electronics slump that’s hit Asia * Carney won’t assume no-deal Brexit as markets say otherwise

Five Things to Start Your Day Europe BB

EU Open RundownRANsquawk

FirstFT Daily BriefingFT

Brussels PlaybookPolitico
American beef — Alert and alarmed — Playbook’s guide to Rome

Danske DailyDanske Bank

Eco Day EuropeBB
Bank of England Woes, Dueling Trade Blows, U.S. Jobs * Central bankers increasingly downbeat about rescuing economies * U.S., Japan take fresh shots in separate global trade battles

Daily Market CommentMarc Chandler
End of Tariff Truce Trumps Jobs

Five Things to Start Your Day USBB

US Open RundownRANsquawk

Eco Day USBB
U.S. Jobs Report, Trade Latest, Carney’s Brexit Warning * Investors await payroll data after Trump’s latest tariffs * Carney sees significant chance of inflationary no-deal Brexit


FINNISH
AamukatsausNordea
Trump asettaa lopulle 300 miljardin osuudelle Kiinan tuonnista 10 prosentin tuontiverot ja tulitauko kauppasodassa päättyy | USA:n teollisuus kasvoi heinäkuussa hitaimpaan tahtiin lähes kolmeen vuoteen | Tänään julkaistaan USA:n työmarkkinaraportti