Global markets treading cautiously yesterday as Dow Jones stumbled amid renewed fear of US & China trade negotiation process. Although both parties looked set for serious high level talk, but both China and US latest move at WTO and Hua Wei Case simply signaled to the markets that no one should take for granted a trade deal was at hand even though both parties began to feel the heat from trade war.
On top of that, US FOMC is debating on the latest rate hike schedule, even though no one expected to see Fed to raise rate this time , nevertheless all eyes and ears would focus if Jerome Powell to signal a halt to Quantitative Tightening.
As a result, few markets made any significant move yesterday.
Recently, former World Bank economist, Yukon Huang, delivered a speech on US deficit, he was using historical factor to reflect the fact that trade deficit was not a real issue in the recent US & China trade war, because US was running a trade deficit to its advantage to dominate global economy for the last 40 years, well before China came into the picture.
So what did he mean by that and was there any truth in this statement? Our guest, independent economic analyst and strategist, Dr Po Man Chan, would shed us some light about this issue.
