The US equity market is surging pre-market as it ignores all the warnings that White House chief economic advisor, Larry Kudlow, just issued about the China trade war and focuses instead on his comment that there is “no recession in sight.”
On China and the Trade War:
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*KUDLOW: WE’RE IN A ‘SIGNIFICANT TRADE DISPUTE’ WITH CHINA
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*KUDLOW: WTO IS BROKEN, AND BIGGEST CULPRIT IS CHINA
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*KUDLOW: `DON’T BLAME TRUMP — BLAME CHINA’
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*KUDLOW: I BELIEVE THAT CHINA WANTS TO MAKE A DEAL ON TRADE
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*KUDLOW: XI DOESN’T WANT TO MAKE A DEAL, IS HOLDING GAME UP
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*KUDLOW: CHINA TRADE TALKS ARE STALLED AT THE MOMENT
But – here’s what the market heard:
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*KUDLOW: ‘WE’RE READING THE SPREAD WRONG’ (dismissing the yield curve)
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*KUDLOW: THERE IS NO RECESSION IN SIGHT RIGHT NOW
And after all that – Dow futs are surging…
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