Trump jabs Fed, calls China's currency move 'major violation'

Asia stocks hit six-month low as investors flee to safety yuan slumps

US President Donald Trump took to Twitter Monday to call Washington's trade war rival China a currency manipulator after the renminbi dropped below seven per dollar for the first time in over a decade.

He Tweeted: "China dropped the price of their currency to an nearly historic low".

'Are you listening Federal Reserve?

"The Great China Trade Deal evaporated before our eyes last week and investors should stop hoping it back into existence", Christopher Smart, head of the Barings Investments Institute, wrote in a report.

In offshore markets, the yuan fell to its weakest since worldwide trading in the Chinese currency began.

The People's Bank of China (PBOC) provided the early impetus for yuan bears by setting a daily rate for the currency at its weakest level in eight months.

"Since the tariffs were put in place back in 2018, the Chinese yuan fell by nearly 10 percent, so they have offset virtually all these tariffs and the consumers are not seeing any price hikes in any significant way".

China's move gives rise to an even gloomier outlook in the trade conflict that has tied up the world's two most powerful economic engines for more than a year, while threatening the health of the global economy and upending the foundations of worldwide trade.

The Shanghai Composite Index dropped 1.6% to 2,821.50 and Sydney's S&P-ASX 200 retreated 1.9% to 6,640.30. The US dollar versus the offshore yuan shot to 7.11 today with the onshore yuan hitting 7.03.

Liverpool reportedly set to sign goalkeeper Adrian to replace Simon Mignolet
The Spanish shot-stopper stayed six-years in London, making one hundred and fifty appearances across all competitions. The 32-year-old Adrian has been without a club since the end of last season after the Hammers released him.

'Ninja' Leaves Twitch To Sign With Microsoft's Mixer
Instead, he can build Mixer in the image he wants for himself - becoming the streamer he has always wanted to be. So why did Ninja move from Twitch to Mixer? Ninja will kick off his first Mixer stream during Lollapalooza 2019.

Trump Administration Kills US Russia Arms Treaty
Analysts fear that the collapse of the historic agreement could lead to a new arms race between the US, Russia and China . American officials had warned they would withdraw if Russian Federation didn't correct alleged infractions of the treaty.

"It appears that the tariffs hike suggests the return of tit-for-tat moves and a suspension of trade talks, and the PBOC sees no need to keep the yuan stable in the near term", said Ken Cheung, a senior currency strategist at Mizuho Bank Ltd.

In a statement on Monday, the central bank linked the yuan's weakness to the fallout from the trade war, but said it would not change its currency policy and that two-way fluctuations in the yuan's value are normal.

"We don't comment on the level of the dollar".

"By weakening their currency, China is attempting to offset the effects of the 10% tariff, since a weaker currency makes the cost of China's exports more affordable around the globe, while causing the cost of USA imports into China to go up". Earnings for S&P 500 companies are on pace for a drop of 1% from a year ago, better than the 3% decline analysts expected.

An adviser to Beijing told Reuters that while China's central bank had been preparing for the depreciation, the trigger was Trump's unexpected announcement of further tariffs.

The flare-up in trade tensions has renewed global financial market concerns over how much China will allow the yuan to weaken to offset heavier pressure on its exporters.

The biggest damage from the trade war is the hit to business activity and confidence that comes from increased uncertainty, rather than the tariffs themselves, according to Ms Wang Tao, China economist at UBS Group AG. But regulators are trying to make the state-controlled exchange rate more responsive to market forces, which are pushing the yuan lower.

Canada's TSX index was not trading because of the August Civic holiday.

Related news:

Hot News

isis-killer-beheading-video-story-top Death toll of Cairo multi-vehicle crash rises to 19
Aug 06, 2019 - 00:51
Egyptian officials speculated that a faulty auto battery sparked the explosion, causing a fire that damaged a nearby minibus. Initially, security sources quoted by Youm7 cited an oxygen tanker inside the Institute as the cause of the explosion.

isis-killer-beheading-video-story-top Trump Calls for Linking New Gun Control Legislation to Immigration Reform
Aug 06, 2019 - 00:46
Trump, who will make remarks later Monday, tweeted about the weekend shootings in Texas and OH that left dozens of people dead. Leading Democrats were quick to criticise Trump for blaming mental illness and not raising the issue of gun control.

isis-killer-beheading-video-story-top Syrian army to resume operations in rebel-held Idlib
Aug 06, 2019 - 00:43
He said that if no "common ground was reached with the US", Turkey would be forced to "set up the safe zone by ourselves". Mr Erdoğan said Russian Federation and the United States have been told of the planned operation.

isis-killer-beheading-video-story-top Solskjaer has 'no doubts' Pogba will stay at United
Aug 05, 2019 - 00:46
We didn't want to risk anything this weekend and he should be OK for Chelsea next week". "He should be OK for Chelsea ". The United keeper then denied the Poland striker having driven him wide after Lindelof clumsily lost his footing.

isis-killer-beheading-video-story-top No response from Pakistan in retrieving bodies of militants at Keran: Army
Aug 05, 2019 - 00:46
He said: "The only road to peace and security in South Asia runs through a peaceful and just settlement of Kashmir dispute". The ISPR also alleged that it was an Indian effort to divert world attention from increased atrocities in Kashmir.

isis-killer-beheading-video-story-top Nine dead in Dayton, Ohio, in second mass shooting in 24 hours
Aug 05, 2019 - 00:46
The shooter had a.223-caliber gun with high-capacity magazine and was wearing body armor, she said. Family and friends of victims are asked to use the Dayton Convention Center as a meeting place.

isis-killer-beheading-video-story-top Dayton, Ohio, Mass Shooting: At Least 9 Dead And 26 Wounded
Aug 05, 2019 - 00:44
Assistant Chief Matt Carper with the Dayton Police Department said Megan is the sister of suspected shooter, Connor Betts , 24. The mayor said 27 people were treated at hospitals and 15 had been released by about 10 a.m.

isis-killer-beheading-video-story-top Barcelona sign Firpo from Real Betis on five-year contract
Aug 05, 2019 - 00:42
Firpo played 24 times in La Liga last season, scoring three goals and grabbing four assists as Betis finished 10th. The Dominican Republic-born defender has a massive €200m release clause in his contract at the Camp Nou .

isis-killer-beheading-video-story-top Klay Thompson Has A Strong Message For The Rest Of The NBA
Aug 05, 2019 - 00:41
The Warriors acquired D'Angelo Russell in a sign and trade with the Nets and also added Willie Cauley-Stein in free agency. The deal will start in the 2020-21 season and bring the total value of his contract to $118 million.

isis-killer-beheading-video-story-top North Korea increases pressure with latest missile launches
Aug 04, 2019 - 01:14
He also observed the launch of a short-range ballistic missile last week. Their statement came after a closed-door U.N. We never made an agreement on that".

isis-killer-beheading-video-story-top Danish golfer Thorbjorn Olesen arrested at airport
Aug 04, 2019 - 00:57
Olesen's agent at Hambric Sports Group in Europe, Rory Flanagan, did not immediately respond to an email seeking comment. The Sun reported that Olesen allegedly abused passengers and crew and urinated in an aisle during a flight from the US.

isis-killer-beheading-video-story-top WhatsApp and Instagram to get deeper Facebook branding
Aug 04, 2019 - 00:54
The Federal Trade Commission is keeping its promise that it will put every aspect of Facebook's business under the looking glass. But some level of separation from Facebook , however artificial, has served both apps well with users.

isis-killer-beheading-video-story-top Bayern deny agreement with Man City star Sane
Aug 04, 2019 - 00:30
While City are unhappy at Bayern over their tactics in courting Sane through the media, Guardiola is more philosophical.

isis-killer-beheading-video-story-top Look to the sky for the Black Supermoon
Aug 03, 2019 - 00:44
During its new moon phase , our celestial neighbor appears black, as the sun's light shines on the side that doesn't face Earth. The new study says that the age of the Moon dates back to about 50 million years after the formation of the solar system.

isis-killer-beheading-video-story-top NYPD judge recommends firing officer in 2014 chokehold death of Eric Garner
Aug 03, 2019 - 00:43
The verdict, which is non-binding, found Pantaleo, 33, guilty of using a chokehold on Garner but not guilty of aggravated assault. New York City Mayor Bill de Blasio is hailing what he calls "a step toward justice" for the family of Eric Garner.