What's happened
As Donald Trump prepares to take office, concerns grow over potential trade wars and economic policies that could impact both the US and China. The yuan weakens amid falling Chinese bond yields, while US Treasury yields remain stable, reflecting investor uncertainty about future policies.
Why it matters
What the papers say
According to Bloomberg, Trump's election has led to a calm in the US Treasury market, with yields stabilizing despite initial sell-offs. Greg Peters from PGIM Fixed Income noted, 'No one really knows what the policies are going to be in the Trump agenda.' Meanwhile, the South China Morning Post highlights the weakening yuan and falling Chinese bond yields, with Stephen Innes stating, 'China’s bond yields have hit a staggering new low, signalling a chilling risk forecast.' This reflects a broader concern about China's economic stability amid rising US-China tensions, particularly with Trump's proposed tariffs on Chinese imports.
How we got here
Donald Trump's recent election victory has reignited fears of a trade war with China, particularly with his proposed tariffs. Concurrently, China's economic recovery remains fragile, prompting speculation about further monetary easing.
Common question
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What is the impact of China's investigation into Nvidia?
China's recent investigation into Nvidia's acquisition of Mellanox Technologies has raised significant concerns regarding US-China relations and the semiconductor industry. As tensions escalate, many are left wondering about the implications of this probe and how it may affect global technology markets. Below are some common questions surrounding this critical issue.
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.