Just when it looks as if the US and China might actually secure a breakthrough in trade negotiations, Donald Trump has to come along and spoil it. On Thursday, the president was asked whether he would meet the Chinese leader, to which the former reality TV star said “Not yet.” Then, asked whether he would meet his Chinese counterpart before the 2 March deadline, Trump said “No.”
This was not well received by investors and markets around the world, as it now looks as if US tariffs on Chinese goods will increase to 25% from 10%. China will then almost certainly retaliate, the trade war will ramp up again and all of us will be adversely affected in some way. Still, according to Trump, trade wars are good and easy to win.
As with the eurozone, it is a quiet start to the week for the US, but on Wednesday we will see the inflation rate for January. It is expected to dip to 2.1% from 2.2% the previous month. On Thursday, we will see retail sales figures from December and initial jobless claims up to 9 February 2019.