{"id":33439,"date":"2018-04-15T14:06:51","date_gmt":"2018-04-15T19:06:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33439"},"modified":"2018-04-15T14:06:51","modified_gmt":"2018-04-15T19:06:51","slug":"four-flashpoints-of-volatility","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33439","title":{"rendered":"Four Flashpoints of Volatility"},"content":{"rendered":"
\n
\"Four<\/div>\n<\/div>\n
\n
\n
\n
\n
<\/div>\n<\/div>\n
\n

Four Flashpoints of Volatility<\/a><\/h3>\n

1 \u2013 Trade Wars Flashpoints, From China to Canada and Mexico<\/strong><\/p>\n

Wall Street has knee-jerk reactions to any trade war related headlines.<\/p>\n

There are legitimate reasons to be concerned about trade wars. The world is increasingly more connected than ever. Many major American companies that are household names such as Starbucks (SBUX), Boeing (BA) and Apple (AAPL) rely on their exports (and imports) from China for a sizable portion of their overall sales and profits.<\/p>\n

If China continues to retaliate against trade war policies from the U.S. with harsh measures of their own, it could hurt revenues of those firms.<\/p>\n

But, here\u2019s the latest revelation:<\/p>\n

China wants to keep more of what it makes \u2014 in China \u2014 across a variety of sectors. Trade wars elevate the Chinese government\u2019s desire to do that. The country has just recently launched a new $1.6 billion initiative called \u201cMade in China 2025.\u201d<\/p>\n

The strategy entails an increase in research and development spending. That would cause Chinese companies to rely less on international technology and equipment. The more China buys internally, the less it will buy American products or need to export to the U.S.<\/p>\n

What all of that could mean is that similar products in the U.S will become more expensive for consumers. That would hit directly at stock of those companies, making them more volatile.<\/p>\n

While headlines from the White House continue to target China, our regional trading partners are undoubtedly some of the most important, and currently some of the most fragile.<\/p>\n

To the north, Canada is playing up its optimism over NAFTA talks. Rhetoric is one thing, reality is another. It\u2019s important to look at what institutions are doing, not what they\u2019re saying.<\/p>\n

Canada is currently enhancing its participation in several other trade agreements, including an updated Trans-Pacific Partnership that does not include the U.S. In the wake of Brexit, Canada has also made important trade links to both Europe and the U.K.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Four Flashpoints of Volatility 1 \u2013 Trade Wars Flashpoints, From China to Canada and Mexico Wall Street has knee-jerk reactions to any trade war related headlines. There are legitimate reasons to be concerned about trade wars. The world is increasingly more connected than ever. Many major American companies that are household names such as Starbucks […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[103,130,11023,517,575,9937,805,4311,827,860],"class_list":["post-33439","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-canada","tag-china","tag-daily-reckoning","tag-mexico","tag-nomi-prins","tag-tariffs","tag-trade","tag-trade-wars","tag-united-states","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33439"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33439\/revisions"}],"predecessor-version":[{"id":33440,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33439\/revisions\/33440"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}