Trump Doesn’t Understand Currency Wars, Either By Bloomberg


© Reuters. Trump Doesn’t Understand Currency Wars, Either

(Bloomberg Opinion) — What a difference a decade makes. Back in September 2010, Guido Mantega, Brazil’s then-finance minister, was complaining bitterly about “currency wars,” and claiming the Federal Reserve’s ultra-loose monetary policy of the time was unfairly hurting his economy. “We’re in the midst of an international currency war, a general weakening of currency,” he said then. “This threatens us because it takes away our competitiveness.” 

Fast forward to December 2019, and we have President Donald Trump’s latest furious denunciation of exactly the same thing — only this time, he says that Brazil (as well as Argentina) is being unfair. In his latest tweet heard around the world, he said: “Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers.”

After announcing the imposition of tariffs on Brazilian and Argentine steel, he went on to attack the Fed. He wants the central bank to return to the behavior that so annoyed Mantega a decade ago: “The Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen – Fed!”

If Mantega’s complaints look dumb in retrospect, Trump’s latest broadside looks even dumber. Mantega’s complaint came when Brazil’s economy was surging on the back of strong commodity prices (which themselves were driven by the voracious manufacturing appetite of China). The strong Brazilian real hadn’t stopped the country’s economy from going on a great run. In the subsequent decade, the U.S. far outstripped Brazil’s growth, despite a steadily strengthening dollar:

Currency values matter greatly to competitiveness, of course, and central banks can use interest rates to manipulate them. But the arrow of causation also works in the other direction. A weak economy will lead to a weak currency, and vice versa. That is the story of the U.S. dollar and the Brazilian real over the last decade.

The weak dollar in 2010 was a product of the weakness of the U.S. economy. Low rates and quantitative easing were deemed necessary to keep the economy ticking over, and allow the country to clear its debts. Outright deflation appeared a real risk. Higher rates from the Fed at that point might have weakened the real, but they might also have stopped U.S. economic growth in its tracks — which would have been very bad news for Brazil. 

Is Brazil manipulating its currency lower? Not at all. Its central bank’s target rate, the Selic, is very low at present, by Brazilian standards, but only because inflation is at its lowest this century:

Further, as the country’s use of dollar-denominated debt has increased over the last decade, a weak real makes interest payments more expensive and increases the risk of a crisis.

No country knows this better than Argentina, which has suffered several epic crises of devaluation and default in living memory, and where voters have just kicked out a president, Mauricio Macri, in large part for failing to tame inflation. Macri failed to stop further sharp devaluations of the Argentine peso, despite massive overnight rates of more than 50%. Another disadvantage of a weak currency is inflation, and Argentines know all about that. It too is currently running at more than 50%. Any implication that Argentina is deliberately weakening its currency for competitive advantage is beyond absurdity. 

In the long run, the currency war has had only one winner. GDP per capita in both Brazil and Argentina is less than a quarter that of the U.S. And both countries have fallen further behind, even as their currencies have weakened. 

Why, then, is Trump choosing to open a new front in the trade war, on two countries that currently have little or no ability to harm the U.S.? It is possible that he is being “crazy like a fox,” and trying to convince people that he is capable of anything. Such a strategy, the argument goes, might convince China of the need to do what he wants. The risk with such a strategy is to give the appearance that he has no understanding of how the economy works. And thus the more likely explanation for his behavior is that he truly doesn’t understand what he is doing. 

Meanwhile, Brazil and Argentina have shown the U.S. the best way to weaken a currency. If your economy slows down, the chances are that your currency will get cheaper. That is what has happened over the last decade to the big economies of South America. And in the much shorter term, the sharp sell-off in the dollar on Monday in response to disappointing data on manufacturing suggests that the president should be careful what he wishes for. Today’s weak Brazilian real appears to be exactly what Guido Mantega wished for back in 2010 — but nobody in Brazil could possibly have wished for the disastrous decade that made that weak currency possible. 





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Trump says U.S. bill on Hong Kong doesn’t help China trade talks By Reuters


© Reuters. U.S. President Trump departs for travel to the United Kingdom at the White House in Washington

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday said U.S. legislation backing protesters in Hong Kong did not make trade negotiations with China easier, but added he believes Beijing still wants a deal with the United States.

The law “doesn’t make it better, but we’ll see what happens,” Trump said, talking to reporters. He gave no indication when the deal would be finalized.

Meanwhile, two top U.S. officials on Monday said a deal could still happen this year depending on China’s actions.

Washington and Beijing have yet to ink a so-called “phase one” trade agreement announced in October as the trade war between the world’s two largest economies enters its second year with tariffs on both sides rocking the global economy.

“The Chinese are always negotiating. I’m very happy where we are,” Trump said as he prepared to depart the White House for a NATO summit in London. “The Chinese want to make a deal. We’ll see what happens.”

Trump last week signed a new law backing protesters in Hong Kong and threatened China with possible sanctions on human rights. Beijing warned it could retaliate.

On Sunday, news site Axios reported the law had stalled the trade deal.

Trade experts and people close to the White House have said the agreement may not be signed until next year.

But White House adviser Kellyanne Conway separately told reporters at the White House on Monday that the deal was still possible before the end of the year.

U.S. Commerce Secretary Wilbur Ross, in a television interview, cited a further 15% U.S. tariff on about $156 billion worth of Chinese imports set to take effect Dec. 15 as a natural deadline and said time was running out for China to avoid it.

“If nothing happens between now and then, the president has made quite clear he’ll put the tariffs in,” Ross told Fox Business Network.

The fresh levy would land in the middle of the vital U.S. holiday shopping season, but Ross said it would not hurt holiday shopping because stores have already stocked up.

Asked if the Trump administration was willing to roll back current tariffs on China, Ross added: “It all depends on their behavior between now and then.”

Conway told reporters that phase one deal was still being written up. Ross said it would address Beijing purchases of U.S. farm products as well as some intellectual property and other structural reforms, but gave no other details.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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Yen Inches Up, Dollar Flat as Trump Signs Hong Kong Bill By Investing.com


© Reuters.

Investing.com – Prices of the safe-haven rose, while the U.S. dollar stayed near flat on Thursday in Asia amid worries of rising Sino-U.S. tensions.

The pair inched down 0.1% to 109.45 by 1:20 AM ET (05:20 GMT). Overnight, U.S. President Donald Trump signed two bills that supports Hong Kong protestors into law, potentially complicating trade talks progress with Beijing.

In response to the U.S. move, China’s foreign ministry said it resolutely opposed the law and threatened to take firm counter-measures, calling any attempts to interfere in Hong Kong are “doomed to fail.”

Chinese and Hong Kong stocks fell today following the news, while the yen traded modestly higher.

Meanwhile, data showed Japan’s plunged 14.4% in October from a month earlier, which was more than the expected 10.4% decline.

“The yen is being bought because of the news about Trump signing the Hong Kong bill,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities, in a Reuters report.

“Algorithmic trading could push the yen up further, but the dollar’s losses will be limited because we’ve had positive U.S. economic data, which has lifted sentiment.”

The last traded at 98.248, little changed from yesterday’s close.

The Commerce Department reported that gross domestic product increased at a 2.1% annualized rate, compared to 1.9% in the first reading. In a separate report, durable goods gained 0.6% after falling 1.4% in the prior month.

The pair slipped 0.1%, while the pair inched up 0.1%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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NATO moves towards spending goal sought by Trump, Spain lags By Reuters



BRUSSELS (Reuters) – More European allies in NATO are set to meet a defense spending target sought by the United States in 2019, with sharp rises in Romania and Bulgaria, NATO Secretary-General Jens Stoltenberg said on Friday, but Belgium and Spain will continue to lag.

NATO allies agreed a target to spend 2% of economic output by 2024 after Russia annexed Crimea in 2014. U.S. President Donald Trump has increased pressure on them, accusing Europe of taking U.S. protection for granted and warning of consequences.

Nine NATO countries will now meet or exceed the NATO target of spending 2% of national output on defense by the end of this year – the United States, Bulgaria, Britain, Greece, Romania, Poland, Latvia, Lithuania and Estonia.

Turkey and France are expected to be just below the goal, with only Belgium, Spain and Luxembourg still spending less than 1% of economic output on defense.

That compares to seven NATO countries on target in 2018.

The increases also mean that between 2016 and the end of 2024, Europe, Turkey, and Canada, are expected to increase defense spending by a cumulative $400 billion.

“The accumulated increase in defense spending by the end of 2024 will be 400 billion U.S. dollars. This is unprecedented progress,” Stoltenberg told a news conference before the NATO summit in London next Tuesday and Wednesday.

“President Trump is right about the importance of European allies and Canada spending more…But the European allies and Canada should not invest in defense to please President Trump,” Stoltenberg said, citing threats on NATO’s frontiers.

At a NATO summit in Wales in 2014, allies agreed to end years of defense cuts that left Europeans without vital capabilities, such as refueling airborne fighter bombers, although the 2% percent goal is not legally binding.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Plunges on Black Friday as Russia Stuns OPEC, Trump Angers China By Investing.com


© Reuters.

Investing.com – Black Friday seems to have taken on a different meaning for oil bulls.

Crude prices plunged 4% on the ritualistic shopping day after Thanksgiving as Russia sent out mixed signals on its commitment to extend production cuts and a U.S.-China deal looked more complicated after President Donald Trump’s signing of two bills aimed at supporting Hong Kong protests against Beijing.

U.S. West Texas Intermediate and U.K. fell unceremoniously from recent two-month highs as thinner holiday-like trading volumes exaggerated the selloff, creating a perfect storm for those long oil.

NYMEX-traded was down $2.77, or 4.8%, at $55.34 per barrel by 12:14 PM ET (17:14 GMT), well below the two-month high of $58.74 on Nov. 22.

ICE-traded , the global benchmark for crude, slumped $2.74, or 4.3%, to $60.53, after a two-month high of $64.60 on Wednesday.

For the week, WTI was down 4.2% and 4.5%.

The slide came after Russian Energy Minister Alexander Novak said on Friday he would prefer if OPEC and its non-OPEC allies banded under a partnership called OPEC+, and took a decision closer to April on whether to extend their oil output deal, the TASS news agency reported.

Novak’s comments are likely to be opposed by most of OPEC’s members, who are aiming to agree at the cartel’s upcoming Dec. 5-6 meeting on the current OPEC+ deal to cut 1.2 million barrels per day.

“OPEC+ is in an unenviable position, struggling to prop up prices against weak demand growth, fragile market sentiment and strong gains in non-OPEC supply,” Fitch Solutions said in a commentary on Friday.

“It is highly probable that the group will rollover the deal in its current form until at least the end of 2020, but we see limited scope for a new round of cuts, in light of uneven compliance and diminishing returns.”

Adding to the grim outlook for oil, data from the Energy Information Administration on Friday showed the United States exported 89,000 bpd more than it imported in September, solidifying its status as a net exporter of crude and petroleum products under government records that began in 1949.

China, meanwhile, reacted furiously on Thursday to Trump’s signing of bills in support of the Hong Kong demonstrators, summoning the U.S. ambassador to protest and warning the move would undermine cooperation with Washington.

Hong Kong, a former British colony that was granted semi-autonomy when China took control in 1997, has been rocked by six months of sometimes violent pro-democracy demonstrations.

Thousands of pro-democracy activists crowded a public square in downtown Hong Kong on Thursday night for a “Thanksgiving Day” rally to thank the United States for passing the laws and vowed to “march on” in their fight.

Trump’s approval of the bills was not unexpected. But it did unnerve markets expecting the president to be more pragmatic amid attempts to bring a bitter 16-month trade war to some kind of initial settlement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Yen rises, yuan falls after Trump signs Hong Kong protest bill By Reuters



By Stanley White

TOKYO (Reuters) – The safe-haven yen rose against the dollar after U.S. President Donald Trump signed into law legislation supporting anti-government protesters in Hong Kong, which could complicate efforts to end the U.S.-China trade war.

The yuan fell in offshore trade as scrutiny of Hong Kong’s response to months of often violent protest against Chinese rule of the former British colony potentially opens up a new fault line in already fractious relations between Washington and Beijing.

The Swiss franc and gold also rose on Thursday as investors sought safe-haven assets due to concern about a potential increase in geopolitical risk.

The focus now shifts to China’s reaction as investors try to gauge how much impact U.S. support of anti-government protests in Hong Kong will have on negotiations to scale back a 16-month long trade war between the world’s two-largest economies.

“The yen is being bought because of the news about Trump signing the Hong Kong bill,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.

“Algorithmic trading could push the yen up further, but the dollar’s losses will be limited because we’ve had positive U.S. economic data, which has lifted sentiment.”

The yen rose around 0.2% to 109.35 versus the dollar on Thursday in Asia, rebounding from a six-month low reached Wednesday after U.S. economic growth was revised up in the third quarter.

In the offshore market, the yuan fell 0.19% to 7.0290 per dollar.

Trump on Wednesday signed a bill that requires the State Department to certify, at least annually, that Hong Kong retains enough autonomy to justify favorable U.S. trading terms which have helped it maintain its position as a global financial hub.

The law also threatens sanctions for human rights violations in Hong Kong, which has been rocked by months of civil unrest in response to what protesters say is an erosion of freedoms since reverting to Chinese rule in 1997.

Beijing has denied any undue influence and has blamed foreign governments for meddling it Hong Kong’s affairs.

Many see the U.S. legislation as symbolic, but it has the potential, if implemented, to upend relations between the United States and Hong Kong and change the territory’s status to that of any other Chinese city.

The U.S. rebuke comes at a sensitive time because U.S. and Chinese negotiators are trying to reach an agreement to de-escalate a trade war, which would remove a huge headwind from the global economic outlook.

Washington and Beijing have imposed tariffs on each other’s goods in a prolonged dispute over Chinese trade practices that the U.S. government says is unfair.

Investor uncertainty benefited the Swiss franc , which pulled back from a two-month low to trade at 0.99875 against the greenback.

Gold , another safe haven bought in times of uncertainty, rose 0.13% to $1,456.15 per ounce.

The rise in safe havens undermined the dollar, which came into Asian trade on a high after revised data showed U.S. economic growth picked up slightly in the third quarter.

Separate data showed new orders for key U.S.-made capitalgoods increased by the most in nine months in October and shipments rebounded.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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In gesture to Trump, US allies close to deal to pay more for NATO running costs By Reuters



By Robin Emmott

BRUSSELS (Reuters) – NATO allies are closing in on a deal to contribute more to allied running costs to reduce the United States’ share of funding, three diplomats familiar with the matter said.

Agreement would meet a demand by U.S. President Donald Trump, though France has made clear it will have no part in the deal, which the alliance hopes to reach before its 70th anniversary summit in London next week.

Trump has accused European allies, especially Europe’s biggest economy Germany, of taking U.S. protection for granted and says they need to spend much more on their own defense.

The reform of financing for the U.S.-led military alliance would seal months of negotiations after NATO Secretary-General Jens Stoltenberg put forward a proposal.

The agreement would mean European allies, Turkey and Canada contribute more towards the annual $2.5-billion budget to run the North Atlantic Treaty Organisation headquarters, international staff and military assets under NATO command.

Compared to the hundreds of billions of dollars that allies spend on their armed forces each year, it is a small sum. But it is one that allies hope would silence Trump’s statement in July 2018 that the United States “pays tens of billions of dollars too much to subsidize Europe”.

“It is a political gesture,” one senior NATO diplomat of the possible deal. “There is no alliance without the Americans.”

France opposed the proposal long before President Emmanuel Macron described the alliance on Nov. 7 as “experiencing brain death”, French diplomats have said.

With 30,000 troops deployed and ships across the world, Paris says it already does more than its fair share in defense, maintaining a high level of combat readiness of French forces and pouring billions of euros into defense research.

Paris will not block the proposal, but will abstain, the three NATO diplomats said.

France’s defense spending is higher than Germany’s as a percentage of economic output, data shows. Paris says it will also meet a NATO target to spend 2% of national output on defense by 2025 at the latest, while Germany will reach that level only in 2031, according to French and German officials.

NUMBERS GAME

Canada has said its support for the funding agreement should not set a precedent for other international organizations, the diplomats said. Italy has yet to decide its position, they said.

All 29 NATO member states contribute to the budget on an agreed formula based on gross national income, but this formula would change after the proposed reform.

“It will be a more cumbersome mechanism,” a second NATO diplomat said.

Under the proposal being negotiated for the 2021 budget, the U.S. contribution to the alliance’s annual budget would fall to around 16% from 22%. Germany’s would rise to the same level as the United States and others’ contributions would also rise.

Only seven NATO countries currently meet or exceed the NATO target of spending 2% of national output on defense – the United States, Britain, Greece, Poland, Latvia, Lithuania and Estonia.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Trump says near deal with China, but U.S. also has eye on Hong Kong By Reuters



WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday said the United States was in the “final throes” in its attempt to reach a trade deal with China, but that at the same time Washington stands with protesters in Hong Kong, where it wants to see democracy.

At an Oval Office event to sign an executive order to address violence against Native American women, Trump was asked by a reporter if he had a message for the people of Hong Kong after their recent election.

“We’re with them,” Trump said. “I have a very good relationship, as you know, with President Xi. We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Steady as Trump, Xi Telegraph More Trade Uncertainty By Investing.com


© Reuters.

Investing.com – When nothing looks clear, just hold. That seems to be the guide for gold traders these days as the constant back-and-forth in U.S.-China trade negotiations continues to send signals, mostly conflicting, to the market.

settled flat on Friday, while bullion dipped a tad after China’s President Xi Jinping said Beijing wanted a deal with the United States. But he said China will fight back if necessary against his counterpart President Donald Trump’s threat that Chinese imports will face more duties from Dec. 15 if a phase one agreement isn’t inked by then.

Trump, in latest comments, said a deal was “potentially very close.”

for December delivery on New York’s COMEX settled at $1,463.60 per ounce, the same as Thursday.

, which tracks live trades in bullion, was down 82 cents, or 0.1%, at $1,463.33 by 2:21 PM ET (19:21 GMT).

For the week, both benchmarks showed a modest declines of roughly 0.4%.

Gold traders have had a challenging week discerning direction due to the constantly shifting goalposts in the U.S.-China trade match.

“We have been working actively to try not to have a trade war. We did not initiate this trade war, and this is not something we want,” Xi said in remarks to journalists pooled by the South China Morning Post.

But he added that his administration also intended to “restore China’s dignity and status” and ensure the history of it being invaded and ruled by colonial powers once would “never be repeated again.”

Trump, while ambiguous on the trade war itself, chose to make bombastic comments on the ongoing strife in China’s Hong Kong territory and how the United States had prevented more casualties there — a statement almost certain to annoy Beijing.

“If it weren’t for me, Hong Kong would have been obliterated in 14 minutes,” Trump told “Fox & Friends.”

Xi “has got a million soldiers standing outside of Hong Kong that aren’t going in, only because I ask him ‘please don’t do it, you’ll be making a big mistake,'” Trump said. “It’s going to have a tremendous negative impact on the trade deal … and he wants to make a trade deal.'”

Trump, who met Federal Reserve Chairman Jay Powell this week, also appeared to pressure the central bank to cut interest rates for a fourth-straight time in December. The Fed, however, said Powell did not discuss monetary policy in that meeting.

“Gold bugs (are) anticipating that the White House could be looking for reassurances that the Fed is ready to provide a backstop to the government should the trade war escalate,” TD Securities said in a note.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



More foreign firms abandoned U.S. deals amid Trump administration scrutiny: report By Reuters


© Reuters. FILE PHOTO – President Donald Trump departs the White House en route to New York

By Alexandra Alper

WASHINGTON (Reuters) – More overseas companies investigated by U.S. authorities for national security concerns have abandoned investments in the United States since U.S. President Donald Trump took office, a report showed on Friday.

The report, released by the Committee on Foreign Investment in the United States (CFIUS), shows that foreign companies abandoned roughly 14 percent of U.S. investments that were investigated by CFIUS in 2017 “in light of CFIUS-related national security concerns.” The percentage in 2018 was 11 percent.

In both years, the percentages were sharply up from period immediately before Trump took office. About 4 or 5 percent of such transactions probed by the committee were dropped annually from 2014 to 2016, the report showed. The Committee, led by the Treasury Department, reviews foreign investment in the United States for national security issues.

The document, which offers few details about the deals, comes as the Trump administration beefs up oversight of foreign investment in key sectors, from critical technology to sensitive personal data and real estate, with new powers from Congress.

A law approved last year, known as FIRRMA, expanded the powers of CFIUS to probe transactions previously excluded from its purview, including attempts by foreigners to purchase non-controlling stakes in U.S. companies. It also instituted mandatory filing requirements for certain transactions.

(Additional Reporting by Diane Bartz; Editing by David Gregorio)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.