Mark T Bird
Publish date: Fri, 23 Mar 2018, 10:03 AM
TRUMP: "In the ‘old days,’ when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!"
BUFFET: "Don't watch the market closely. If they're trying to buy and sell stocks, and worry when they go down a little bit … and think they should maybe sell them when they go up, they're not going to have very good results."
PHILBIN: "I'm involved in the stock market, which is fun and, sometimes, very painful."
COOMBES: "Trying to guess when the next bear market will hit is impossible. The best thing investors can do is make sure their mix of stocks, bonds and cash fits their long-term goals and their appetite for risk. One more thing. A big drop has one undeniable benefit: It lets you buy investments on sale."
My personal favourite quotes; "Every once in a while, the market does something so stupid it takes your breath away." - Jim Cramer. There are no sure bets in the world of investing; there is risk in everything. Be prepared for the ups and downs.
Do you have any favourite quotes to add?
latest news ...
China strikes back in trade spat, aims tariffs at US$3b of US goods
SHANGHAI: China unveiled plans on Friday to impose tariffs on up to US$3 billion of U.S. imports in retaliation against U.S. tariffs on Chinese steel and aluminum products, as the world's two largest economies stood on the brink of a trade war.
China was considering a 15 percent tariff on U.S. products including dried fruit, wine and steel pipes and a 25 percent tariff on pork products and recycled aluminium, the commerce ministry said in a statement on it website.
China has assembled a list of 128 U.S. products in total that could be targeted if the two countries are unable to reach an agreement on trade issues, the ministry added.
U.S. President Donald Trump signed a presidential memorandum on Thursday targeting up to $60 billion in Chinese goods with tariffs, but only after a 30-day consultation period that starts once a list is published.
Beijing's disclosure of its planned retaliation to proposed tariffs on Chinese metal exports to the United States, served as a warning to Washington as both sides brandished their weapons while holding off from starting a full-blown trade war.
The commerce ministry said China would implement the measures in two stages: first the 15 percent tariff on 120 products including steel pipes and wine worth $977 million and later the higher 25 percent tariff on $1.99 billion of pork and aluminium.
"We intend to impose tariffs on certain U.S. imports to balance out the losses caused to Chinese interests by the U.S. tariffs on imported steel and aluminium," the ministry said.
The ministry added it would take legal action under the framework of the World Trade Organization to maintain the stability of global trading rules. It added, however, it hoped it could resolve issues with the U.S. through dialogue.
- Reuters
Trump wanted a trade war. Here's what one looks like
WITHIN weeks, U.S. President Donald Trump ordered up an array of tariffs against numerous countries, blocked Chinese takeovers of U.S. companies and sought new restrictions on future Chinese investment.
Economists are warning that the world is on the verge of an all-out trade war, featuring tit-for-tat reprisals, heated rhetoric and appeals to the World Trade Organization, which may be ill-equipped to respond.
If Trump’s trade provocations mushroom out of control, dozens of border-opening trade deals negotiated over several decades could be shoved aside. The prospect of slower economic growth has stock markets worldwide reeling.
1. What is a trade war?
The dictionary says it’s “an economic conflict in which countries impose import restrictions on each other in order to harm each other’s trade.” Trump’s tariffs and the threatened retaliation from other countries meet this definition, but so do centuries of protectionist skirmishes by numerous countries in countless sectors. The recent escalation is stoking fears that Trump has touched off a full-blown trade war by singling out of China for retaliation for intellectual property theft. The quid-pro-quo actions by the U.S. and China over steel tariffs, Trump’s invocation of national security to justify some of his moves -- which could open a Pandora’s Box of similar claims by other nations -- and Trump’s threat to further punish the EU if it imposes counter-duties also add to the trade-war atmospherics.
2. What happened in previous trade wars?
One of the most notorious examples is the Smoot-Hawley Act passed by Congress in 1930 and often blamed for deepening the Great Depression. The law hiked U.S. tariffs by an average of 20 percent, initially to protect American farmers but then broadened as other industries lobbied for protections. As demand collapsed, countries scrambled to maintain their gold reserves by devaluing their currencies or imposing even more trade barriers. Global trade fell off a cliff.
3. Who wins in trade wars?
No one, if history is any guide. When President George W. Bush raised steel tariffs in 2002, U.S. gross domestic product declined by $30.4 million, according to the U.S. International Trade Commission. The U.S. lost about 200,000 jobs, about 13,000 of which were in raw steel-making, by one estimate. A report by the pro-free trade Peterson Institute for International Economics estimated that Bush’s tariffs cost about $400,000 for every steel-industry job saved. The World Trade Organization also ruled that the Bush tariffs were illegal.
4. What has Trump done so far?
He’s imposing tariffs on up to $60 billion of as-yet unspecified products imported from China in retaliation for what he calls decades of intellectual property theft. He imposed tariffs of 25 percent and 10 percent, respectively, on steel and aluminum imports, which prompted China to say it could hit back with tariffs of its own. While he temporarily exempted allies, including the European Union, from the metals tariffs, he expects them to grant concessions to the U.S. to maintain the exemption.
5. Why did Trump invite this fight?
In a March 2 Twitter post, he declared trade wars “good, and easy to win.” His focus remains reducing the U.S. trade deficit, which shows the country imports hundreds of billions of dollars more than it exports. Stepping back from trade deals like the North American Free Trade Agreement and the Trans-Pacific Partnership also appeals to Trump’s base of voters in America’s Rust Belt. But talk of a trade war is alarming to many U.S. business leaders, who largely support existing trade deals, and the securities markets, which fear lower profits and slower economic growth if the U.S. turns protectionist and other countries retaliate.
6. Who has retaliated?
So far, China said it would hit $3 billion of U.S. wine, fruit, steel pipe and other exports with tariffs. The bigger worry for the U.S. is that China, the U.S.’s biggest creditor, will scale back purchases of Treasuries in retaliation. China’s ambassador to the U.S. doesn’t rule out the option. Other countries haven’t retaliated for the steel and aluminum tariffs, which took effect March 23, largely because Trump temporarily exempted many of them. Still, the EU is unhappy and warned it will respond with its own 25 percent tariffs on $3.5 billion of American goods, particularly iconic U.S. brands produced in states that are part of Trump’s political base. The list includes motorcycles, blue jeans and bourbon whiskey. In turn, Trump warned that he would impose a 25 percent penalty on European car imports if the EU carried out its threat.
7. When does the WTO get involved?
The U.S. took the first step on March 23, filing a "request for consultations" with China at the WTO on technology licensing. China also notified the WTO how it could respond to the steel tariffs with levies of its own. But retaliatory actions that unfold quickly can test the WTO’s somewhat ponderous deliberative process. The arbiter of international trade disputes was born in 1995 out of a set of agreements struck by countries trying to reduce trade barriers. If a government’s complaint about another nation’s trade barriers is seen as grounded, the WTO recommends acceptable retaliation. In the case of steel, Trump is invoking a seldom-used clause of a 1962 U.S. law that gives him the authority to curb imports if they undermine national security. Under WTO rules, countries can take trade actions to protect “essential security interests.” Other nations could challenge the validity of the U.S. use of that clause. They also could copy the U.S. move by citing national security to block imports themselves.
8. Could tariffs backfire on the U.S.?
Yes. Take steel tariffs. Many more people are employed in industries, such as auto manufacturing, that buy steel to make products, than in steel-making itself. Some consumers may also have to pay higher prices. Trade tensions could boost inflation more than desired by Federal Reserve policy makers, who might feel the need to raise rates more aggressively than planned. On the other hand, if the tariffs result in job losses and the economy slows, the Fed might want to ease the pace of rate hikes.
9. Are tariffs the only weapon in trade wars?
No, there are many others. Clamping down on Chinese investments in the U.S., which Trump is already doing, is one example. Talking down, or manipulating lower, one’s currency is another. Countries through the years have used other means to keep foreign goods out and protect homegrown companies, a practice known as mercantilism. Trump accuses China of using government subsidies to prop up its domestic industries. Some practices are overt, such as quotas, and others covert, such as unusual product specifications, lengthy inspections of goods at entry ports and intricate licensing requirements. -
Bloomberg via StarBiz
Texas has the most cattle in the United States followed by Nebraska and Kansas. The cattle inventory in the United States in 2017 is at 93.6 million head. Texas has the most cattle in the United States followed by Nebraska and Kansas. Thirty (30) states have over 1 million head of cattle.
From a continental perspective, $17.8 billion or 65.1% of all pork exports originated from Europe. Trailing in second place were North American exporters at 25.8%. Latin America (excluding Mexico) and Caribbean nations accounted for 6.3% of total pork shipments, followed by Asia at 2.4%.
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Discussions
3 people like this. Showing 28 of 28 comments
Ninja don’t know anybody who thinks that trade wars are something you win.
2018-03-23 10:19
If I'm not mistaken China sells far more to the U.S. than it buys from US companies. In my hmble opinion, China has more to lose.
2018-03-23 10:29
I think a lot of those thinks that was sold to US is actually from US companies manufacturing in China, probably more than 30%
2018-03-23 10:33
China owns more than a $1tn of US debt but even if China did sell US debt, it would most likely be picked up by other countries.
2018-03-23 10:50
ninja says it depend, if Najib menang again this election - China, US don't care a thing about Najib
2018-03-23 11:01
Ninja like this quote, “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” - SOROS on enjoyable investing.
2018-03-23 11:20
BREAKING: Donald Trump has just issued tariff exemptions for:
- EU
- Australia
- Korea
- Brazil
- Canada
- Mexico
- Argentina
2018-03-23 11:48
teoct :)
The U.S. goods and services trade deficit with China was $385 billion in 2016. China is currently US largest goods trading partner with $578.2 billion in total (two way) goods trade during 2016. Goods exports totaled $115.6 billion; goods imports totaled $462.6 billion.
2018-03-23 12:31
US tech companies are also vulnerable to retaliation, especially companies such as Apple and Intel, which manufacturing operations in China.
2018-03-24 09:06
Jika setiap orang dalam dunia ini menjadi vegetarian, 2050 nanti, angka kematian di dunia berkurang tujuh juta orang setahun. Jika ini terjadi para peternak akan terpukul kaw kaw. Orang yang bekerja/berniaga di sektor peternakan harus mencari profesi baru
2018-03-25 09:47
ku X anggap meat/daging ini penting, ku makan banyak daging lembu/kambung cuma pada hari raya puasa dan haji, selain dari kesihatan faktor usia, ku rasa Trump X makan banyak red meat
2018-03-25 09:56
kak YS!
Supplying the world with pork is not without competition. The EU continues to be very aggressive in its pursuit of new trade agreements and in its efforts to modernize existing agreements — some of which are with large pork-importing countries.
Ninja think no win-win situation in this trade war.
2018-03-25 10:13
Look at the graphic up there, and Tessa's post here BREAKING... Ninja can see clearly where Trump heading
2018-03-25 10:20
targeting China has bipartisan support
No politician in America dares to go to the polls by saying...please don't target China la.
2018-03-25 10:26
ty dik ninja, ku nampak juga tapi yang kena teruk nanti consumers, bila part makan bukanlah penting sangat makan daging hari2, bukan juga penting sangat tukar kereta setiap tahun, naik keretapi pun selesa, negara maju semua ada keretapi, banyak alternatif boleh difikir, so trade wars ini hanya nak kasi press field day jer, dan nak menjatuhkan saham dunia jer, nak tunjuk sape kuat jer, nak kena orang miskin macam kita jer
2018-03-25 10:29
qqq3, begitulah politik, cuma current gomen trading partner China, tapi kalau naik PH, mungkin kita semua beralih pada India, macam Ninja cakap next economy up India, ku ada baca by 2025, India boleh mengalahkan China dan US
2018-03-25 11:13
As always USA want be no.1(Not amerika 1st--rectoric only).US CO. is d most kiasu contry in d world everyday bom advertisement. to world using media 4 propaganda. Trump only last 1term bcos of arrogance & bostful do not listen to adviser but show biz President u r fired President. If Republican r smart do not back him orterwise also 1Term party.
2018-03-26 12:16
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