Posted on 10/09/2019 12:56:07 PM PDT by 2ndDivisionVet
This pivotal week of China trade talks started with a slap in the face, but Beijing may be turning the other cheek. Despite the Trump administration ban on sales to 28 Chinese tech firms accused of a role in the government's human rights abuses, China is still talking about buying more soybeans. Beijing's determination to reach a deal, however small, sparked a Wednesday rebound for the Dow Jones and broader stock market after Tuesday's 314-point drubbing.
The Financial Times reported that China is willing to boost soybean purchases by 10 million tons, worth about $3.5 billion at current prices. That doesn't sound like much in the context of a $419 billion goods trade deficit in 2018. The U.S. also is reportedly pushing for progress in opening up Chinese markets. Any constructive steps are preferable to more tariffs, in Wall Street's view.
Oct. 15 Deadline For China Tariffs Looms
Presumably, a mini-deal would keep President Donald Trump from escalating the China trade war next week. Trump has threatened to increase 25% tariffs on Oct. 15 to 30% on $250 billion in Chinese imports.
If those take effect, odds will rise that Trump's next round of tariffs will take effect on Dec. 15. On that day, 15% tariffs would hit another $160 billion worth of imports. Targeted products include cellphones, the Apple (AAPL) iPhone among them, laptops, footwear and apparel.
(Excerpt) Read more at investors.com ...
U.S. unemployment fell to 3.6 percent, lowest since 1969 \
“China is still talking about buying more soybeans.”
Japan already came on line to buy the soybeans.
China has no big cards left to play.
The trade war is coming to an end, and the one-sided brutal trade beating of China is about to get underway. They will be lucky to make it past New Year before things start breaking over there. 2020 is going to be a very new year in communist China, indeed.
Soy beans, who cares? We are(were) an industrial high tech nation....
If China agrees to Trump’s terms; rule of law and no IP thefts, then the communist party will end shortly afterwards.
Those two things are the sources of their wealth and power.
The farmers and agribusiness people of about 25 states.
Farming is 2% of GDP. Why we worry so much about it beyond me. Manufacturing and mining dwarf it GDP wise.
I think the best way to manage an overinflated market is to use a “rolling downturn”. That is, examine market segments as independent units, and measure how each unit is doing. While only some are oversold and too expensive, others are likely not performing at levels they could be.
Then change policy to make the oversold stocks less attractive to buyers, or rather, to make inexpensive lower stocks *more* attractive.
This means that oversold stocks will be sold off in a gradual manner, and undersold stocks will be purchased, balancing the market.
Trump understands the power of the electoral vote. Others, like Hillary don’t.
You could make a lot of money just buying long and short...
Trump says the talks are going great buy long..
Trump says the Talks have broken down sell short..
Farming is 2% of GDP. Why we worry so much about it beyond me. Manufacturing and mining dwarf it GDP wise.
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Because food independence and security are vital to every aspect of our (or any) nation.
Food export is measured in more than raw GDP & gives us leverage over other manufacturing nations like Japan, South Korea and China.
Keeping the cost of food low supports all other economic sectors.
Farming supports processing business, retailers and impacts more than farming’s 2%.
If ag is not supported, farms will fail, land will be sold off to developers (not all of them US citizens) or simply lie fallow, generating nothing at all.
The manufacturing and mining workers need food, too.
Mining and manufacturing are more important and creates 10x the wealth of farming. Once you lose manufacturing its hard to get it back. With farming, the land is always there. Authenticity is ghetto.
Agriculture is ghetto.
China calculates that Trump is but a stumbling stone, that it is Walstreet they need to make bend... all too easily
The article is talking about China pushing Walstreet into its corner. The farming leverage is nil since the Chinese refuse to buy soybeans.... it is more the opposite, our overproducing farming leveraged by China.
You should get out to flyover country sometime and get some real life experiences. It is basically endless corn and bean fields out here. And the farmers vote.
“China is still talking about buying more soybeans.”
If you are a foreigner, now is the time to buy - while the price is down.
To quote a Charlie Daniels line from the song, “American Farmer”....”If the man don’t work, the people don’t eat”.
Only the “haven’t thunk-it-through” folks pooh-pooh farmers/agriculture.
Raw food is a commodity, like anything else. It cam be imported and exported. Please stop treating farmers like they are some kind of special snowflakes.
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