The Daily Update - Trumps Battle Fronts

The big question from the outcome of the US midterm election is the stance of the Democrat held house in regard to the President. Trump yesterday held out an olive branch with one hand asking the House to come up with infrastructure spending plans and middle-class tax cut proposals, however, in the other hand he seemed to have a sledgehammer.

Threatening retaliatory investigations against minority senate democrats if the House increase investigations into the Trump administration or Russia meddling, he said the Democrats risk a ‘war like posture’ between the two parties.

Whatever the outcome it would appear that the freedoms the Trump administration has enjoyed during the first two years of his presidency have come to an abrupt end.

Elsewhere, on another Trump battlefront, and with ongoing threats of further tariffs, China reported much stronger exports and imports for the month of October this morning.

The strong export growth was helped by shipper’s front-loading their goods to the United States in an effort to beat the increased tariffs that are due to start early next year.

In USD terms exports rose 15.6% from October last year, well above the market estimate of 11%. Import growth was even more impressive, up over 21% form this time last year, again way above the market estimate of 14%. The overall trade surplus was just above USD34bn for October, lower than the USD35bn economists had expected. However, it was not just exports to the US that expanded, with China also being helped in October by strong exports to other big markets such as the European Union and Japan.

With Chinese President Xi Jinping and Donald Trump due to have a face-to-face meeting at the G20 summit in Buenos Aires later this month, there is hope the pair can find some middle ground to help ease the ongoing trade spat, however, breath holding is NOT advisable.

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