CCN: Dow Plummeting Because Coronavirus Killed Trump’s Trade Deal

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If Trump hadn’t played Trade War Games with China in the first place he wouldn’t have needed a “Trade Deal” to make. And China, and the rest of the world, wouldn’t be in the Trump Slump we’ve been in for two years (!!!)

So, Trump strikes a Trade Deal (a “Phase 1,” at any rate), and what do you know, there are other things that can go bump in the night when you turn day into night. And sometimes, they are ugly, but in the wrong, way wrong kind of fracking bumping uglies.

Enter Coronavirus COVID-19 Economic Impact Shock.

This is how GLOBAL RECESSIONS are made out of GLOBAL SLUMPS. You have, you know, these things called business cycles. And sometimes you make them worse by errant policy. Sometimes, you make them protracted. And sometimes you make them both worse and protracted. That’s called a recession, Mr. President.

CCN Opines:

The Dow Is Plummeting Because Coronavirus Killed Trump’s Trade Deal

The Dow Jones plummeted on Friday as the impact of the coronavirus battered U.S. data and shattered Donald Trump’s phase one deal with China.

  • A terrible PMI reading prompted a massive slide in the Dow Jones Industrial Average (DJIA) on Friday.
  • Stock market bulls appear to have underestimated the effect of the coronavirus on the U.S. economy.
  • Donald Trump’s phase one deal with China looks unlikely to be fulfilled, posing a significant risk to the Dow Jones.

The Dow Jones was hammered on Friday after a bludgeoned a stock market already vulnerable to the coronavirus outbreak and lingering uncertainty around the presidential election.

Adding to investor angst was the fact that China can activate the get-out clause in Donald Trump’s phase one deal, heightening the risk of another trade war escalation.

Dow Jones Dives as Awful PMI Hints at Imminent U.S Recession

Friday brought a batch of terribly concerning U.S. economic statistics, as PMI data indicated the first contraction in business activity since the financial crisis…

 

Stock Market Beware: Trump’s Phase One Deal May Be Dead

An elevated U.S. stock market has more to worry about than the of the coronavirus. The knock-on effect poses a serious political threat to the relationship between the Trump administration and Beijing.

As turmoil roils the Chinese mainland, , as Nordea Research’s Andreas Steno Larsen warns:

The Phase 1 deal is dead as it looks right now. The last sentence in the deal says that they will renegotiate in event of “force majeure.”

The big question is if Trump’s advisers will dare to communicate that before November 2020? We doubt it. A trade war 2.0 showdown looks likely for 2021 […]

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