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Media Report
May 26 , 2019
  • Bloomberg reports that China advised traders against shorting the yuan, after a recent slide took the currency to the brink of the critical 7 per dollar level. Guo Shuqing, head of China's banking and insurance regulator, said in a speech that speculators "shorting the yuan will inevitably suffer from a huge loss." The speech, delivered by a spokesman for the agency on Saturday in Beijing, also included comments on the trade war, making Guo the highest-level financial official to publicly comment on the issue since tensions between China and the U.S. escalated this month. Most local media ran front-page articles on the speech.The broadside comes as bearish sentiment on China's currency ratchets up, thanks to trade tensions and signs of a stuttering economy. The offshore yuan had weakened about 2.6% versus the dollar this month, while a gauge of traders' willingness to bet on further declines has surged to the highest level among Asian currencies. It strengthened 0.1% Monday to 6.9094.
  • Bloombergs wrote that the U.S.-China tech cold war is about to spread, and that will force leaders to make some difficult decisions..U.S. technology still leads the world, and it'll stay that way for a while. But China has shown a willingness to engage and help developing nations in ways the U.S. once did...Numerous developing nations want high-speed rail lines, efficient ports and airports, and energy-saving, low-pollutant electric vehicles. Each of these could be provided by America or its allies. Japan, Europe and Canada have the technology and skill to help. But in addition to being capable of offering those items, China has the political and fiscal capital to do so. The will already exists in the form of its Belt and Road Initiative...But if a nation agrees to install Chinese networks or infrastructure, there's an increasing chance it will be cut off from U.S. products under the guise of American national security..Just as the world was divided along military lines 70 years ago, the digital Iron Curtain will force political leaders to decide whether they're Team China or Team America.

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