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The President of the United States, Donald J. Trump, answers questions from the media yesterday. Photography: REX / Shutterstock
Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
Donald Trump once boasted of being a "tariff man", and it sometimes seems like the American president likes to talk about little else.
Just days after lifting the threat of a trade war with Mexico, Trump has hinted at the prospect of a deeper conflict with China.
In an astonishing drama, the president declared overnight that he would "immediately" impose new tariffs on Chinese exports if his leader, Xi Jinping, did not meet him at the G20 summit later this month.
He told reporters that the United States could impose tariffs of 25% or more on the $ 300 billion of Chinese products that have not yet been caught up in the trade war. Such an approach would constitute a major escalation in a conflict that has already begun trade and has weighed on global growth.
But Trump does not back down, telling CNBC that its trade war policy is yielding results.
[Fact check: American importers, not Chinese exporters, pay these tariffs…..]
"The agreement with China will succeed. You know why? Because of the rates.
Right now, China is absolutely decimated by companies that leave China and go to other countries, including ours, because they do not want to pay the tariffs. "
Donald J. Trump
(@RealDonaldTrump)
Trump's comments put Beijing in a difficult situation.
President Xi Jinping can hardly be seen prostrating himself in front of the White House and can therefore resist the idea of attending a meeting at the G20. But without formal negotiations in the G20, how will the trade war be resolved? It can take diplomatic skills.
John Kicklighter
(@JohnKicklighter)President Trump said that he would expand the list of tariffs against China (about $ 300 billion more) if President Xi did not show up at the G20 meeting, this could be considered a request diplomatic mission or a diplomatic event. China has not always responded well to these ultimatums
Also coming today
New data on unemployment in the United Kingdom are expected this morning, which could indicate that the long-term rise in employment has faded.
Economists also predict a slowdown in earnings growth: base salary, excluding bonuses, could have risen from 3.1% in April to 3.3% a month ago.
This would be another sign that the UK economy is stumbling in the face of national and international economic uncertainty; Just yesterday, we learned that the UK economy was down 0.4% in April.
Michael Hewson of CMC Markets Define the scene:
After a sharp drop in manufacturing activity in April, there is concern that wage growth may begin to be the same as the slowdown in the economy.
After reaching 3.3% in the last three months, we feel we could start to retreat, with expectations slowing to 3.1% for the three months before April. The unemployment rate is expected to remain unchanged at 3.8%.
Two of the Bank of England's top decision makers – Deputy Governor Ben Broadbent and MPC Member Michael Saunders – could give their views on the British economy today. They appear before Parliament for reappointment hearings at the BoE.
L & # 39; s calendar
- 9.30 BST: Unemployment and earnings report in the UK
- 10:00 am: Investor confidence study in the euro zone Sentix
- 10:00 am TSB: BoE decision makers Michael Saunders and Ben Broadbent at the Treasury Committee in Parliament
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