Morning Headlines 8-23

China headlines disrupt the calm waters before Powell Speech:

  • CHINA TO LEVY RETALIATORY TARIFFS ON ANOTHER $75B OF US GOODS CHINA TO RESUME TARIFFS ON U.S. AUTOS
  • CHINA SAYS NEW TARIFF RATES WILL APPLY TO ABOUT $75 BILLION WORTH OF U.S. GOODS || CHINA SAYS NEW TARIFF RATES IMPOSED ON SOME U.S. GOODS WILL BE RANGING FROM 5% TO 10%
  • *CHINA TO IMPOSE EXTRA 5% TARIFF ON SOY BEANS FROM SEPT. 1

The response from trade hawk Navarro

BFW 08/23 12:09 *NAVARRO: QUICK U.S.-U.K. TRADE DEAL WOULD BE GOOD FOR BOTH
BFW 08/23 12:06 *NAVARRO STILL EXPECTS TALKS WITH CHINA IN SEPTEMBER
BFW 08/23 12:06 *NAVARRO ON CHINA’S TARIFFS: WE’RE GOING TO HAVE NEGOTIATIONS

Comments from Feds Bullard in background

  • FED’S BULLARD: EXPECT ROBUST DEBATE ABOUT A 50 BPS CUT IN SEPT
  • BULLARD: NOT GOOD PLACE WHEN FED RATES HIGHEST ON YIELD CURVE

Major Risk OFF, not a surprise, long end bonds and Buxl struggling to get out of green. Curve plays, expecting a hawkish Powell possibly but I would think short end more impacted by Powell expectations. Dollar undecided on witch direction to trade as is JPY

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