As humorously pointed out earlier, any trader who stepped our for lunch around 1pm, was in shock when the came back following the Trump tweet which not only reignited the trade war with China, leaving the G-20 ceasefire in the trash heap of history, but also sent stocks plunging, with the Dow tumbling more than 500 points from its intraday highs.
Which, naturally prompted question: was Trump again alone when he decided to send out a tweet that roiled every asset class, or was there more coordination this time?
The answer comes from CNBC’s Eamon Javers, who tweets that far from unilateral, Trump’s tweet came “in the wake of an 11:30 meeting this morning at which President Trump got a report from Treasury Secretary Mnuchin and Trade Representative Robert Lighthizer on their meetings in Shanghai this week.”
A White House official tells me this Twet comes in the wake of an 11:30 meeting this morning at which President Trump got a report from Treasury Secretary Mnuchin and Trade Representative Robert Lighthizer on their meetings in Shanghai this week. https://t.co/FnHWbOOMQy
— Eamon Javers (@EamonJavers) August 1, 2019
What happened then? As Javers follows up, “a number of officials were in the room with President Trump as he drafted this Tweet, advising him on language. Among those: Treasury Secretary Mnuchin, Acting COS Mulvaney, trade advisor Navarro, and NEC Director Kudlow.”
An administration official tells me a number of officials were in the room with President Trump as he drafted this Tweet, advising him on language. Among those: Treasury Secretary Mnuchin, Acting COS Mulvaney, trade advisor Navarro, and NEC Director Kudlow. https://t.co/gK1RMvStgv
— Eamon Javers (@EamonJavers) August 1, 2019
In other words, with Beijing unable to blame solely Trump’s unpredictable outbursts and mood swings, Xi Jinping will have to respond to what was clearly a change in strategy from the entire administration. And with the offshore Chinese Yuan plummeting nearly 700 pips against the dollar in what was a clear and present, if contained, devaluation, Beijing appears to have already made its unofficial response.
And now it’s up to Trump to once again slam the Fed for not devaluing the dollar even more – by cutting rates further – something which we expect will take place momentarily.
via ZeroHedge News https://ift.tt/2YFJyv6 Tyler Durden