{"id":129888,"date":"2018-07-11T11:22:43","date_gmt":"2018-07-11T15:22:43","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=129888"},"modified":"2018-07-11T09:07:02","modified_gmt":"2018-07-11T13:07:02","slug":"trumps-trade-war-to-trigger-a-chain-reaction-of-negative-events","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/07\/trumps-trade-war-to-trigger-a-chain-reaction-of-negative-events\/","title":{"rendered":"Trump\u2019s trade war to trigger a \u201cchain reaction of negative events\u201d"},"content":{"rendered":"
July 11, 2018<\/div>
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By George Prior<\/strong><\/p>\n

Trump\u2019s escalation of the trade war is going to trigger a \u201cchain reaction of negative events around the world,\u201d warns the boss of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from Nigel Green, the founder and CEO of deVere Group, comes as global markets are in turmoil as Donald Trump\u2019s administration announced\u00a0a long list of new products that tariffs on $200 billion worth of goods from China will be levied against.<\/p>\n

Mr Green comments: \u201cTrump\u2019s escalation of the trade war between the world\u2019s two largest economies is going to trigger a\u00a0chain reaction of negative events around the world.<\/p>\n

\u201cIt is going to lead to higher inflation in the U.S,\u00a0as import tariffs raise the cost of imported goods while domestic producers find that they can increase their prices as foreign competition weakens. This means\u00a0interest rates will be hiked and the dollar will go up.\u201d<\/p>\n

He explains: \u201cChina\u2019s cheap goods have helped keep prices, and therefore U.S. and global inflation, low.<\/p>

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\u201cTo counteract increasing inflation, the U.S. Federal Reserve is even more likely to raise interest rates.\u00a0 A jump in rates will, of course, strengthen the dollar.<\/p>\n

\u201cA stronger dollar also increases stress in emerging markets, many of which have borrowed heavily in recent years in dollars and who now find interest and capital repayments on these loans have shot up in local currency terms. In addition, emerging markets are particularly vulnerable to a downturn in exports resulting from a rise in quotas and import by the U.S, given that exports are a key driver of growth for many under-developed countries with China the most obvious example\u2019.<\/p>\n

Mr Green goes on to say: \u201cTrump\u2019s trade war is a masterclass in self harm for the U.S. and global economy.\u201d<\/p>\n

The deVere CEO stated last week that investors must now avoid complacency and ensure their portfolios are properly diversified to mitigate risks and take advantage of potential opportunities that all bouts of market volatility bring.<\/p>\n

He said: \u201cInvestors need to brace themselves for months of heightened posturing from the different parties, which is likely to increase market turbulence.<\/p>\n

\u201cAnd as Trump potentially marches off to a trade war, a good fund manager will help investors sidestep the risks and embrace potential opportunities.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Trump\u2019s escalation of the trade war is going to trigger a \u201cchain reaction of negative events around the world,\u201d warns the boss of one of the world\u2019s largest independent financial advisory organizations. The warning from Nigel Green, the founder and CEO of deVere Group, comes as global markets are in turmoil as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-129888","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=129888"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129888\/revisions"}],"predecessor-version":[{"id":129889,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129888\/revisions\/129889"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=129888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=129888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=129888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}