Hang on, I thought Trump and everyone else was getting ready to fight North Korea’s Kim Jong-un? Apparently not. Syria is now the target of Trump’s wrath. The biffo is both ideological and economic. The other motivating force behind this ongoing war though is — surprise, surprise — energy.
As previously stated, China is Australia’s largest trade partner. And the US is Australia’s third largest (with Japan coming in second). The US is Australia’s biggest foreign investor. China comes in seventh spot. So Australia could potentially have trade wins from both nations, if tensions increase between the two.
What do you do when you’re under political pressure for starting a potentially damaging trade war? You change the conversation and focus peoples’ attention on a real war, and cast yourself as the moral hero. What’s been happening in Syria for the past five years or so has been a disaster, and every major country involved has blood on their hands.
Securing data is now on everyone’s minds thanks to Facebook, Inc. Common Stock [NASDAQ:FB]. But most of the discussion is utter drivel. Yes Facebook takes your data and allows advertisers to target ads. They’ve been doing it for years. But all of a sudden, this agreement between Facebook and users is no good.
The threat of a trade war between the US and China has diminishing. It’s interesting to note that Trump’s continued threats seem to have forced China’s hand. Now that the threat of a US–China trade war is receding, Australia can turn its attention to more positive developments. The Australian government is hinting towards trade talks with Britain.
The stuff that’s written about why the market did this or that on a daily basis is a good example of short term narrative. Sometimes it makes sense, sometimes it doesn’t. Because the new narrative in the market is that stocks are falling due to ‘trade fears’, any rise must mean that ‘trade fears’ aren’t as bad as first thought. You saw that yesterday with Wall Street’s strong recovery.
China already is one of the great patent producers in the world. Now that the government has doubled their quota, you’d expect China to increase their tech focus. China isn’t just thinking for themselves anymore. They’ve become one of the most important contributors to our global technology advance. And they’re helping to create must-watch industries, which hold huge promise for the future.
I’m not sure what’s worse; Trump’s trade war that is set to wipe billions more from the Aussie market today, or Steve Smith’s attempts to wipe one side of a cricket ball with tape to get some sort of a demented edge to win a cricket game. But when you think about it — or at least when you think about it the way that I do — both situations might not be as bad as you think.
A trade war is on everyone’s mind. Even central bankers, who usually don’t comment on such events, are talking about the dangers of such a scenario. On Friday, we also followed US stocks down as investors digested Trump’s further tariff plans. If China retaliates, investors could assume the worst. Thus, it would be reasonable to look in these industries for bargains...
Prime Minister Malcolm Turnbull may be one step closer to passing corporate tax cuts. This comes after One Nation’s Senator, Pauline Hanson, backflipped and announced she would back the company tax plan. Ms Hanson struck a deal with the Turnbull government. But what does this tax cut plan mean for Aussie businesses and workers?