“This month’s chart, the U.S. dollar to Chinese yuan (RMB), illustrates why trade wars are neither good, nor easy to win,” said Kenny Vieth, ACT president and senior analyst.
He elaborated, “As can be seen, after the U.S. fired the latest salvo in the trade war on August 1, the Chinese responded with in-kind tariffs and a 3% currency devaluation – so far. Since the first ‘shots’ of the trade war were fired on March 1, 2018, the RMB has fallen 12% versus the U.S. dollar.”
Vieth added, “So, tariffs imposed by the U.S. have been met with in-kind tariffs from China, and the Chinese government has allowed the yuan to devalue, thereby offsetting the U.S. tariff impact, while simultaneously making US goods even more expensive in China.”
He concluded, “The bigger risk, especially to emerging economies is that in order to compete with China, they will have to devalue their currencies, making U.S. goods more expensive in more countries and raising the risk of a deeper global downturn.”
The 28th annual list of Monitor 100 companies reported $514.1 billion in net assets, $201.1 billion in originations and 28,666 employees. The group maintained steady momentum in portfolio growth, posting a 5.8% year-over-year increase, with 82 companies recording net gains... read more
While winter in the Northeastern United States was milder this year than in 2018, it still brought with it the requisite cold, gray skies, and snow. Spring’s arrival may have been just as mild, but at least served as an... read more