So, China should consume more and the US less?

A look at next day in the European and global markets of Wayne Cole

It was a day to date in Asia, where retail sales in China have confirmed what extent would the country travel to move away from the economy that exports to the economy led by local demand. It is clear that consumers do not feel the desire to buy, and it is not clear that Beijing wants to change.

Therefore, President Donald Trump tells the Americans that they have to live with fewer dolls and pens, while pushing indirect trade policies on Chinese consumers to buy more.

The US Treasury Secretary Bessint was on Sunday wandering in potential commercial partners to provide “good -intention” deals or to face a tariff rate sent by the message. It also implicitly that the United States has only time to deal with the best 18 commercial partners, and the rest may swing in the breeze.

This still leaves the effective tariff for US imports about 13 %, which is the highest level in the thirties of the twentieth century, which is equivalent to a 1.2 % rising tax of GDP, which Trump asks Wall Mart to take into margins instead of transferring them to voting customers.

It will be interesting to see what is the goal, and LOWE and Home Depot should say this week about this idea, which finds a kind of state prices in the Soviet -style control economy.

Trump needs revenues from customs tariffs, in part, to finance the tax reduction package, which recently obtained the House of Representatives Committee and can be voted later this week. It is estimated that this sprawling bill adds between 3 trillion dollars and 5 trillion dollars to the national debt over a decade, and it was one of the reasons last week for its colleagues in reducing the classification of the United States

The classifications do not concern much since the financial crisis, when the mortgage disaster was under the reputation of some agencies and funds that were abandoned.

However, the news appears to have shocked a nerve with foreign investors who have already been terrified of the irregular nature of American policy making, and the future Wall Street has decreased by 1 % or more today. Re because of ten years rises about 5 basis points, and the dollar has decreased, albeit modest.

For their part, the euro bulls will be mitigated by the sudden victory of the European Union’s supportive candidate in the Romanian elections, as well as the victories of the central parties in Poland and Portugal.

The main developments that can affect the markets on Monday:

– The final consumer price index for the European Union for April

Among the speakers of the Federal Reserve Bank, President of Atlanta Bank, Rafael Bustic, Vice President of Philip Jefferson, President of New York Bank John Williams, President of Dallas Laurie Lugan, President of Mininabolis Nile Kashkari

(By Wayne Cole; Editing by Edmund Kalaman)