This is funny in so many ways; especially for CTH readers who have a far better-than-ordinary understanding of the big picture Trump goals around China.
(1) CNBC tweeted this story last night (note the date/time). (2) It is written exclusively from the perspective of the Goldman Sachs analysts who represent the U.S. multinational position. (3) However, the article was actually written on May 12, 13, 2019.

What is funny about CNBC pushing this story, NOW, is how the claims within the CNBC story can be fact checked; and their predictions are, well, absurd (especially in hindsight).   Keep in mind this was written in May, and tweeted last night for some reason:

(Via CNBC) “Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.

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The recession-hoping pundits took more blows to their remaining credibility today when both the Commerce Department and the Bureau of Labor Statistics (BLS) deliver excellent economic results from August that continue to exceed MSM expectations.
The Commerce Dept. announced that retail sales climbed by 0.4 percent in August, twice as high as the 0.2 percent analysts had predicted. The result highlights retail sales strength of more than 4 percent year-over-year.   These excellent results come on the heels of blowout data in July, when households boosted purchases of cars and clothing.

The better-than-expected number stemmed largely from a 1.8 percent jump in spending vehicles. Online sales, meanwhile, also continued to climb, rising 1.6 percent. That’s similar to July, when Amazon held its two-day, blowout Prime Day sale. (link)

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In a quiet admission of food dependency, China purchased 600,000 tonnes of soybeans yesterday (link), and simultaneously announced that U.S. pork and soybean imports would be exempt from further tariff increases.
The surface message Beijing is selling, surrounds their magnanimous panda narrative of reaching out to diminish trade friction.  However, below the surface everyone knows China cannot feed itself,and if food prices keep rising they could likely have growing unrest.

Beijing’s decision to not enhance tariffs of pork and soybeans is very self serving; particularly because China owns Smithfield foods, the largest producer of U.S. pork.  In essence China has lessened tariffs against their own company.

(SCMP) China has announced that it will exclude imports of US soybeans, pork and other farm goods from additional trade war tariffs, opening the door for significant purchases of agricultural products.
The official Xinhua News Agency reported on Friday that China’s National Development and Reform Commission and the Ministry of Commerce made the exemption in response to the US’ decision of postpone an increase in the tariff rate on $250 billion of Chinese goods from October 1 to October 15.

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The European Central Bank (ECB) announced Thursday an indefinite supply of fresh asset purchases and deeper cuts to interest rates, into negative territory, as it tries to prop up the ailing euro zone economy.  These are EU financial counter-measures to the geopolitical trade realignment triggered by U.S. President Trump.
The EU is driving down the value of their currency in an effort to help prop-up the French and German economies that are dependent on exports.  In essence, the financial and economic positions of the EU and China are connected.  The more pressure the U.S. (Trump administration) puts on China, the less China can purchase from the EU.
With that as the backdrop, Treasury Secretary Steven Mnuchin holds an impromptu press conference outside the White House on China trade, Huawei and the bond market.

A series of very strong internal economic evaluations today from the Bureau of Labor Statistics (BLS) and the U.S. Department of Labor (DOL) show the Main Street economy is perfectly positioned with maximum benefit to the U.S. middle-class.
First, despite two years of doomsayer predictions from Wall Street’s professional punditry, saying Trump tariffs on China would create massive inflation…. It Ain’t Happening!  Overall year-over-year inflation is hovering around 1.7 percent [Table-A BLS]; that’s a low inflation rate.  Rate has firmed up now with less month-over-month fluctuation, and the rate remains consistent.   [See Below]

A couple of important points.  First, unleashing the energy sector to drive down overall costs to consumers and industry outputs was a key part of President Trump’s America-First MAGAnomic initiative.  Lower energy prices help the worker economy, middle class and average American more than any other sector… Except ‘food at home’.
Which brings us to the second important point.  Notice how food prices have very low year-over-year inflation, 0.5 percent.  That is a combination of two key issues: low energy costs, and the fracturing of Big Ag hold on the farm production and the export dynamic:
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Fox News host Neil Cavuto is well known for broadcasting an hour long infomercial for the U.S. Chamber of Commerce and Wall Street daily.  White House manufacturing and trade advisor Peter Navarro interrupts Cavuto’s multinational talking points to explain a Pro-U.S. trade initiative that will help level the playing field.  Things go downhill….

Amid new reports of U.S. companies initiating a rapid exodus from China, President Trump has announced the delay of the next round of tariff increases on Chinese goods from October 1st to October 15th.

U.S. Company Survey – More than a quarter of the respondents – or 26.5% – said that in the past year, they have redirected investments originally planned for China to other regions. That’s an increase of 6.9 percentage points from last year, the AmCham report said, noting that technology, hardware, software and services industries had the highest level of changes in investment destination (read more)

President Trump apparently senses the diminishing position of Chairman Xi.  The status quo, U.S. disinvestment, has put Beijing into a weakening position.  As the president noted today during remarks from the oval office, Xi’s belt-and-road (aka ‘bribe and loan’) supply chain program is collapsing.
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The Beijing/Wall Street lobbyist Robert Zoellick has taken an attack posture on behalf of his U.S. corporate clients and their investments in China.
White House director of trade policy Peter Navarro appears on FOX Business’ Lou Dobbs to rebuke Zoellick and Beijing claims about Trump’s trade policy:

If this simple procedure is true, wow… It would mean all of last week’s parliamentary teeth gnashing by the usurping Never-Brexit MP’s was essentially irrelevant.
According to a Reuters report, Prime Minister Boris Johnson simply needs to attach a letter to the Brexit delay legislation saying the U.K. government officially does not request any extension beyond October 31st.  Then ignore it.  That was easy.

(Reuters) – British Prime Minister Boris Johnson has prepared plans to legally stop any Brexit extension, the Daily Telegraph bit.ly/2ZP87Yc reported late on Sunday.
Johnson’s advisers held a meeting on Sunday to counter the strategy to prevent the British parliament’s attempts at enforcing a three-month Brexit extension if no new deal is agreed, the newspaper reported.

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The South China Morning Post has an interesting article highlighting that July’s export results from China were likely skewed as U.S. companies proactively made purchases to take advantage of Beijing’s currency devaluation in combination with filling inventory ahead of the U.S. holiday needs.

Additionally, August export results from China show an actual drop in exports, falling 16 percent year-over-year from decreased U.S. orders:

Shipments fell by 1 per cent in the month after growing 3.3 per cent in July in dollar terms, and below the 2.1 per cent growth expected by analysts in a Bloomberg poll. Imports in the month dropped by 5.6 per cent, leaving a trade surplus of US$34.84 billion, according to China’s General Administration of Customs.

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