Wall Street Week: the influence of the US-Chinese trade war and Germany pushing Europe

The intense week started with the same momentum with which it ends. President Trump, using his usual rhetoric, warned, via Twitter, that the US would apply as late as Friday, 25% tariffs on high-tech products made in Chinawho pay only 10% of taxes.

Trump said China had broken an agreement and was considering renegotiating what had already been done. Something that he described as unacceptable and that activated the countdown. He also said he would not consider only $ 200 billion related to this adjustment. I consider that endless Chinese goods, acquired by the United States for $ 325 billion, could also be taxed at 25%.

The warning, however, has not changed the agenda. The Chinese high-level commission, headed by Deputy Prime Minister Liu He, continued his trip to Washington. On Thursday, in the night before the expiry of the US ultimatum, they met with their US counterparts, Robert Lighthizer, and the US Treasury Secretary. UU., Steven Mnuchin.
With the ongoing negotiations, the US Customs and Border Protection Service has imposed theNew tariff of 25% to more than 5,700 categories of products leaving China after 12:01 pm EDT (01:01 GMT) on Friday.

Shipments from China before midnight were not subject to the new tax, provided that they arrive in the United States by June 1st. These fees will be billed at the initial rate of 10%.

The story that has already stretched and shrunk for the past 10 months is continuing. The consequences have been significant on all the stock exchanges of the world, especially Asians who feel how the two main economic powers of the planet upset the financial world.

Germany gives oxygen to the eurozone

While the Chinese and the Americans are in agreement, we have seen how Germany is still the industrial engine of Europe.

German industrial production in april it went from 55.4 to 55.7 points above the expected improvement to 55.6. The sustained recovery in Germany has prompted companies to create jobs in the fastest way since 2007.

The Teutonic nation is the driving force of the Eurozone, whose composite PMI index stood at 51.5 points.

Germany enjoys the benefits of being one of the leading exporters of manufactures in China. Economic power that had a fantastic quarter, with a growing economy of 6.4%.

If China is doing well, in Germany and also in Europe. Without a doubt, a lot of fabric to cut in the economic and geopolitical framework of the next years.
Something that the IMF said, when he said that By 2022, China, the United States and India will lead the world GDP. No European nation will be in the top 5.

Time of change and waiting

In ten months of commercial war, the financial world has lived in expectation. In 2018, the Dow Jones fell by nearly 6%. He recovered in 2019 from 11%, but still in constant expectation.

Analysts and businessmen have warned of the consequences of a long-lasting trade war with China. A warning that has been heard by investors.

Markets have seen the expectations reflected. This week, Asian stock markets and New York Park have undergone significant corrections.
The Shanghai Stock Exchange has demonstrated, like no other, the great moment of tension. Throughout the week, he went through swings. Tuesday, he breathed with a rise of 0.69%, breath that was not enough to withstand the fall of -1.12% Wednesday and -1.48% Thursday.

But this Friday and after the entry into force of the tariffs, the Exchange ended the day with an increase in the Shanghai Composite Index of 3.1%. Make it clear that investors are hopeful that despite the pressure of the tariff, there will be an agreement.

Uber a top 10 who debuts with doubts

Uber disappointed, despite being one of the TOP 10 History. It was made public Thursday at the price of 45 dollars per share. The price was near the end of the range of $ 44 to $ 50 per share that I had planned, giving the company a market value of about $ 75.5 billion.

The valuation is well below the $ 100 billion expected just a month ago and $ 120 billion being considered by the investment bank.

Perhaps Uber must show more than his rival Lyft and that after his exit from the stock market, his commercial value fell from $ 72 to $ 55.