Quote:One thing we know with certainty is that the trade war is contributing to the global manufacturing downturn, which has now boomeranged, making landfall stateside. One sure way to escalate the trade conflict would be for the Trump administration to move ahead with a plan to restrict capital flows to China, even if that plan is designed to limit the market fallout. Although it's entirely possible that President Trump's recent trials and tribulations inside the Beltway will compel the administration to strike a trade deal sooner rather than later in a bid to boost stocks and help buoy the economy, it's also possible that the unfolding impeachment drama could have the opposite effect. "Political pressure might increase the assertiveness of the President, which increases the risks of increased use of tariffs and unconventional tools to attain other policy goals (on currency, immigration etc.), and could bring a broadening and escalation of the trade wars," Barclays cautioned on Sunday. Fair warning, I suppose.Manufacturing Meltdown And A Reality Check From A CNBC Anchor | Seeking Alpha
The very weak manufacuring data in the US is starting to scare investors. Add to that the ideas to restrict capital flows to China and the new front in trade troubles:
Quote:The World Trade Organization was poised on Wednesday to open the door to hefty U.S. tariffs on European goods over illegal subsidies for Airbus, pushing a 15-year-old row over support for plane giants to the center of fraught global trade relations.WTO to back U.S. tariffs on Europe in clash over Airbus subsidies - Reuters