Sharemarket in $30bn surge after thaw in US-China trade war

Original article by David Rogers
The Australian – Page: 17 & 28 : 4-Dec-18

Materials and energy stocks posted the strongest gains on 3 December, with the Australian sharemarket rebounding from a big fall in the previous trading session. Investors responded positively to trade discussions between the US and China at the G20 meeting, as well as claims by President Donald Trump that China has agreed to remove tariffs on US cars. Meanwhile, the Australian dollar peaked at a four-month high of $US0.7384 in local trading.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, GROUP OF TWENTY (G-20), ROYAL BANK OF CANADA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, OZ MINERALS LIMITED – ASX OZL, BLUESCOPE STEEL LIMITED – ASX BSL, BORAL LIMITED – ASX BLD, SANTOS LIMITED – ASX STO, BEACH ENERGY LIMITED – ASX BPT, ORIGIN ENERGY LIMITED – ASX ORG, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, KOSPI INDEX, FTSE 100 INDEX

Trade spat a global threat: PM

Original article by Phillip Coorey
The Australian Financial Review – Page: 15 : 30-Nov-18

Prime Minister Scott Morrison has warned that the US-China trade war could undermine global economic growth. He has stressed the importance of the upcoming G20 leaders’ summit to the outlook for the global economy, and he has urged the US and China to use the summit to resolve their trade spat. Many world leaders regard the G20 summit in Buenos Aires as the most important one to be held since the global financial crisis.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GROUP OF TWENTY (G-20), UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ASIA-PACIFIC ECONOMIC CO-OPERATION, ASSOCIATION OF SOUTH-EAST ASIAN NATIONS, INTERNATIONAL MONETARY FUND

Beware of a wounded Trump

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 10 : 6-Nov-18

Australia’s former prime minister Kevin Rudd says US President Donald Trump may be less likely to seek a resolution to the trade dispute with China if the Republicans perform badly in the mid-term elections. Rudd adds that Trump may adopt a more "extreme" position on issues such as immigration, foreign policy and economic policy if the Democrats gain control of the House of Representatives. The Democrats and Republicans have spent a record $US5.2bn in total on the mid-term elections.

CORPORATES
REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, HIGH FREQUENCY ECONOMICS, UNIVERSITY OF WESTERN AUSTRALIA, ASIA SOCIETY POLICY INSTITUTE

US, China trade war warning

Original article by Simon Benson, David Uren
The Australian – Page: 1 & 4 : 10-Oct-18

The International Monetary Fund expects Australia’s economic growth to slow to just 2.8 per cent in 2019, citing the impact of the US-China trade war. However, the IMF now expects the domestic economy to expand by 3.2 per cent in 2018, which is slightly higher than its previous forecast. Federal Treasurer Josh Frydenberg says a resolution of the trade tensions between the US and China is in the interests of Australia and the world. The IMF has scaled back its global economic growth forecasts for both 2018 and 2019 to 3.7 per cent.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. DEPT OF THE TREASURY, UNITED STATES. DEPT OF STATE, CHINA. MINISTRY OF COMMERCE

China looks to Australian gas in trade war

Original article by Glenda Korporaal
The Australian – Page: 19 & 27 : 26-Sep-18

Wang Shouwen, China’s vice-minister of commerce, has signalled that the nation could increase its LNG imports from Australia as a result of the trade war with the US. China retaliated to the Trump administration’s latest round of tariff hikes by imposing a tariff of 10 per cent on US LNG imports, and this could rise to 25 per cent. The tariff on US LNG will give Australian producers a price advantage, and could ensure that new LNG projects in Australia and Papua New Guinea proceed.

CORPORATES
CHINA. MINISTRY OF COMMERCE, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Trade war pain will be felt globally: OECD

Original article by Jacob Greber, Patrick Durkin
The Australian Financial Review – Page: 15 : 21-Sep-18

A report from the OECD has warned that the US-China trade war could undermine global economic growth. The interim economic outlook report notes that the tariff war has already had an impact on the global trade growth rate, which slowed significantly during the first half of 2018. The OECD says global investment, jobs and living standards will be adversely affected if the trade war escalates. It also expects the US to record GDP growth of 2.9 per cent year-on-year in 2018, while it still expects growth of 6.7 per cent in China. Australia’s GDP growth rate is forecast to be 2.9 per cent in 2018 and three per cent in 2019.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STATE STREET GLOBAL ADVISORS LIMITED, L1 CAPITAL PTY LTD

China won’t bow to US, Rudd warns

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 10 : 20-Sep-18

Australia’s former prime minister Kevin Rudd says there seems little prospect of the US-China trade dispute being resolved prior to the US mid-term elections in November. Tensions between the two nations have been heightened by the Trump administration’s decision to impose tariffs on $US200bn worth of Chinese imports, with China retaliating in kind. Rudd says China is aware that it will need to compromise on its stance on trade and investment rules, but it will not want to be seen to be backing down. He recently warned that the trade war could escalate into a new cold war.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, ASIA SOCIETY POLICY INSTITUTE, DOW JONES INDUSTRIAL AVERAGE INDEX

RBA warns over trade war fallout

Original article by David Uren, Cameron Stewart, Glenda Korporaal
The Australian – Page: 1 & 6 : 19-Sep-18

President Donald Trump has vowed to escalate the trade war with China, after announcing that the US will impose a tariff of 10 per cent on $US200bn worth of Chinese goods from 24 September. This will rise to 25 per cent on 1 January. The minutes of the Reserve Bank of Australia’s latest board meeting show that the central bank is concerned about the potential impact of the trade war on the Australian economy. Modelling by KPMG indicates that the Trump administration’s new round of tariff hikes would cut Australia’s GDP by about 0.3 per cent by the early 2020s.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, RESERVE BANK OF AUSTRALIA, KPMG AUSTRALIA PTY LTD, CHINA. MINISTRY OF COMMERCE, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, UNIVERSITY OF SYDNEY. UNITED STATES STUDIES CENTRE

Aussie miner in trade war crossfire

Original article by Alexandra Stevenson
The Australian Financial Review – Page: 20 : 13-Jul-18

China’s domination of the global rare earths market gives the nation significant power in a trade war with the US. Rare earth minerals are an essential component of consumer goods such as smartphones and electric cars. Chinese-made goods containing rare earths are among those being targeted by the Trump administration’s latest round of tariffs. Amanda Lacaze, the CEO of Australian-listed rare earths producer Lynas Corporation, says China could easily restrict global supply if a full-scale trade war erupts. Lynas produced about 12 per cent of global rare earths supply in 2017.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ADAMAS INTELLIGENCE

Brace for serious trade consequences

Original article by Glenda Korporaal, Paul Garvey
The Australian – Page: 17 & 27 : 12-Jul-18

Grant Wardell-Johnson of KPMG says the latest move by the US to increase tariffs on Chinese imports has much greater implications for the Australian economy than the first round of tariffs. The Trump administration has signalled that it intends to subject some $US200bn worth of Chinese imports to a tariff of 10 per cent; Wardell-Jones says this would mean that tariffs would apply to nearly 50 per cent of US goods imported from China. Joseph Capurso of the Commonwealth Bank says the Australian economy would be unlikely to be hard hit by an expanded US-China trade war, arguing that relatively little of what Australia exports to China subsequently makes its way to the US market.

CORPORATES
KPMG AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, CITIGROUP INCORPORATED, UBS HOLDINGS PTY LTD, CHINA. MINISTRY OF COMMERCE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO