Global Competition

US President Trump enjoys 4.10% GDP growth and declares that it will be sustainable for the future. He twitted “Tariffs are working far better than anyone ever anticipated… Our market is stronger than ever and we will go up dramatically…”.

Federal Reserve meeting on August 1st didn’t increase interest rate but confirmed that the economic activity has been “rising at a strong rate” and unemployment “has stayed low”.

US 10 years Treasury yield is around 3%, Germany Euro 10 years Bund is around 0.40% while Japanese 10 years government bond yield is at 0.10%.

JP Morgan CEO Dimon scared the market saying that 10 years US Treasury yield may go up to 4% and why not ? to 5% !

China defends its economy from US tariffs by levying their tariffs on US goods including LNG, increasing liquidity in the banking system reducing banks’ obligatory reserve from 17% to 15.5%. This year Chinese stock market felt around 20% while the GDP for the moment is still increasing a 6.7% yoy.

Central bank of India increased interest rate by 25 bps to 6.50% to prevent any increase of inflation. Indian Central Bank governor Patel “rising trade protectionism poses a grave risk to growth”. Government of India agreed to impose 20% import duty on textiles !

Turkish Lira tumbled to lowest level at 5.25 vs USD. Turkish central bank maintains interest rate at 17.75% and inflation reached 15.4% in June. President Trump threatens economic sanctions to Turkey for pastor Brunson case.