PROTECTIONISM – UNITED STATES

How to pick a winner as tariff tensions rise

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Original article by David Rogers
The Australian – Page: 26 : 10-Apr-18

Hasan Tevfik of Credit Suisse says a trade war between the US and China would negatively affect economic growth, bond markets and shares. He adds that investors should factor in the potential impact of an increase in tariffs, although a large-scale trade war is unlikely to occur. Tevfik says BHP Billiton, Fortescue Metals Group and QBE Insurance Group are among the Australian-listed companies that would be hard hit by increased protectionism by the US and China. He also warns of the potential for a further rise in bond yields.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, QBE INSURANCE GROUP LIMITED – ASX QBE, SIMS METAL MANAGEMENT LIMITED – ASX SGM, MONADELPHOUS GROUP LIMITED – ASX MND, BLUESCOPE STEEL LIMITED – ASX BSL, NUFARM LIMITED – ASX NUF, QANTAS AIRWAYS LIMITED – ASX QAN, BOEING COMPANY, STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Warning of economic ruin from Trump protectionism

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Original article by Primrose Riordan, Ben Packham, Joe Kelly
The Australian – Page: 1 & 6 : 9-Mar-18

More than 100 Republican members of the US House of Representatives have urged President Donald Trump to abandon his plan to impose punitive tariffs on steel and aluminium imports. Global sharemarkets rallied on 8 March after Trump signalled that the US would temporarily exempt Canada and Mexico from the tariff regime. Meanwhile, on the eve of signing the 11-nation Trans-Tasman Partnership, Australia’s Trade Minister Steve Ciobo has warned of the economic consequences of the growing trend toward protectionism, particularly when it is conflated with patriotism.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, TRANS-PACIFIC PARTNERSHIP, UNITED STATES. DEPT OF STATE, AMERICAN AUSTRALIAN BUSINESS COUNCIL, DOW CHEMICAL COMPANY, NEWS CORPORATION – ASX NWS, RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Cohn exit triggers shockwaves

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Original article by David Rogers
The Australian – Page: 17 & 27 : 8-Mar-18

Sharemarkets in the Asia-Pacific region fell on 7 March in response to the resignation of President Donald Trump’s chief economic adviser, Gary Cohn, and futures pricing suggests further bearishness on Wall Street. Cohn was an advocate of free trade, and analysts say his resignation will heighten concerns about the potential for a trade war. Reserve Bank of Australia governor Philip Lowe says there could be major ramifications for the global economy if Trump were to broaden his tariff policy beyond steel and aluminium.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, RESERVE BANK OF AUSTRALIA, IG MARKETS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. DEPT OF COMMERCE, SAXO BANK A/S, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VISY INDUSTRIES AUSTRALIA PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLUESCOPE STEEL LIMITED – ASX BSL, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX, KOSPI INDEX, LONDON METAL EXCHANGE LIMITED

Turnbull, BHP warn Trump on the dangers of a trade war

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Original article by Phillip Coorey
The Australian Financial Review – Page: W1 & W2 : 7-Mar-18

The signing of the 11-nation Trans-Pacific Partnership free trade deal on 7 March has coincided with President Donald Trump’s push to increase US tariffs on imported steel and aluminium. Prime Minister Malcolm Turnbull will use the keynote address at a business summit in Sydney to emphasis the importance of free trade and open markets, and the negative effects of a trade war. BHP Billiton CEO Andrew Mackenzie has also expressed concern about Trump’s protectionist stance, although he is confident that free trade will prevail.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TRANS-PACIFIC PARTNERSHIP, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BHP BILLITON LIMITED – ASX BHP, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), INTERNATIONAL MONETARY FUND, AUSTRALIAN LABOR PARTY, ADANI MINING PTY LTD, AUSTRALIA. DEPT OF FINANCE, UNITED STATES. DEPT OF COMMERCE

Labor, unions urge PM to fight tariffs

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Original article by Primrose Riordan, Joe Kelly, Andrew Burrell, Ben Packham, Cameron Stewart
The Australian – Page: 4 : 6-Mar-18

Federal Government ministers have begun lobbying their US counterparts in a bid to exempt local companies from the Trump administration’s new tariff regime for steel and aluminium imports. Shadow treasurer Chris Bowen notes that Australia’s steel and aluminium exports to the US are worth $A240m and $A70m respectively. Daniel Walton, the national secretary of the Australian Workers’ Union, has warned of significant job losses in the local steel and aluminium sectors due to the tariff hikes, as well as the potential for the Australian market to be flooded with more low-cost steel from China.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF DEFENCE, UNITED STATES. DEPT OF COMMERCE, RIO TINTO LIMITED – ASX RIO, BLUESCOPE STEEL LIMITED – ASX BSL

Trump’s trade war hits home

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Original article by Jacob Greber, John Kehoe
The Australian Financial Review – Page: 1 & 10 : 5-Mar-18

Deloitte Access Economics has forecast that President Donald Trump’s tariffs on foreign steel and aluminium could lead to a US-China trade war that could reduce Australia’s national income by $A5 billion within a year. Australian silicon exporter Simcoa is facing a tariff of 51 per cent, while Trade Minister Steve Ciobo says Australia may take action against the US over its proposed tariffs. He says it will depend on whether Trump decides to make exemptions for Australia, while Prime Minister Malcolm Turnbull describes protectionism as a "dead end".

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, SIMCOA INTERNATIONAL PTY LTD, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BLUESCOPE STEEL LIMITED – ASX BSL, WORLD TRADE ORGANIZATION, GLOBE SPECIALTY METALS, RIO TINTO LIMITED – ASX RIO