Trump imposes fair trade on Europe
The conclusion of the meeting between US President Trump and European Commission President Juncker is a deal on trade.
As Juncker declares, US and Europe will “work towards zero tariffs on industrial goods”. Trump said also that they “will work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans”.
Juncker on agriculture added that “the European Union can import more soybean from the U.S. and it will be done”.
Besides they “decided to strengthen cooperation on energy” and “EU will build more terminals to import liquefied natural gas from U.S”. President Trump added that “European Union is going to be a very, very big buyer” and that “so they will be able to diversify their energy supply, which they want very much to do”.
They also agrees to work together on the reform of the WTO. As President Trump said they aim “to address unfair trading practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state-owned enterprises, and overcapacity”.
Everything fair ? Maybe not ! US shale gas costs 20% more than on the international market and if we add that European Union to stay in NATO has to buy very expensive US arms, Trump is winning on all fronts !
US economy is continuing to be strong. In June, the Federal Reserve raised 2018 outlook saying that Economic activity has been rising at a “solid” rate, marking an upgrade from “moderate” in the previous statement.
President Trump warned the FED against excessive rates increase because it can damage the government policy.
As forecast, Chinese economic growth is lower than expected. Chinese central bank responded with monetary policy measures as cutting reserve requirement to banks and encouraging them to lend to small and medium enterprises. Chinese Yuan lost over 6% vs USD in the last two months.
India is performing very well under the wise leadership of President Modi.
The appreciation of the US Dollar has caused and will continue to create volatility on Emerging Markets.