Assigned News Items

Dec 2-8

1. Trump puts metals tariffs on Argentina and Brazil -- WSJ: 12/2 | Canvas | NYT: 12/2 | Canvas | FT: 12/2 | Canvas | WP: 12/2 | Canvas
   • Trump says he will levy tariffs on steel and aluminum from Argentina and Brazil. His reason is his claim that they are manipulating their currencies.
   • Trump's tariffs on steel and aluminum were levied on the EU and many others, but Brazil and Argentina were exempted until now due to an agreement negotiated with them in 2018 to limit their exports.
   • A contributing reason may be that the US trade war with China has led to China shifting its purchases of agricultural products away from the US and toward these two countries.
2. Trump threatens tariff on France in retaliation against their digital tax -- WSJ: 12/3 | Canvas | FT: 12/2 | Canvas
   • Trump says he will put a 100% tariff on various luxury goods from France, in retaliation for their tax on digital commerce, which he says unfairly hurts American firms.
   • The Digital Services Tax takes 3% of revenues made in France by digital companies such as Google, Apple, Facebook, and Amazon. Though it applies to French and other European firms as well as US firms, the market is clearly dominated by the US firms.
   • The OECD is working on a broader effort to address the unfairness of international and digital taxation, and France's President Macron promised Trump to remove his tax once an OECD agreement has been reached.
3. OPEC and its allies agree to cut oil production -- WSJ: 12/6 | Canvas | NYT: 12/6 | Canvas
   • The Organization of Petrolium Exporting Countries (OPEC), meeting with other oil exporters including especially Russia, agreed to cut oil output next year by 40% more than previously agreed. The aim is to raise the world price of oil.
   • The burden of the cuts is expected to be shared by ten oil producers that are not members of OPEC, in addition to OPEC itself. Observers are not confident that they will actually succeed in reducing output, since the strong incentive for each country to produce more.
   • Saudi Arabia is most interested in raising the price of oil, because it plans soon to sell shares in the state oil company, Aramco, and it wants to get a high price for those shares.

Nov 25 - Dec 1

1. World trade slows down -- WSJ: 11/25 | Canvas
   • Global trade shrank in September, continuing weak performance during the last year.
   • Trade had risen the previous two months, even though both were below the previous year, creating hope that weakness was reversing, but that seems not to be the case.
   • Trade between the US and China fell the most, but trade has weakened across much of the world, as global supply chains have been disrupted and business investment has been lower.
2. China-US trade talks continue despite US support for Hong Kong -- WSJ: 11/28 | Canvas | NYT: 11/18 | Canvas
   • President Trump signed the Hong Kong Human Rights and Democracy Act passed by Congress supporting the protesters in Hong Kong, in spite of concern that this might disrupt the trade talks between the U.S. and China.
   • So far, however, although China denounced the new law as illegal interference in its own affairs, it has done nothing else to retaliate and the trade talks are continuing. Both China and the U.S. have said that the talks are nearly complete.
   • China sees it as in its interest to achieve a trade deal with the U.S., and therefore to keep concerns about Hong Kong separate from concerns about trade.
3. US becomes net exporter of oil -- FT: 11/29 | Canvas
   • The US exported 89,000 more barrels of oil per day (b/d) in September than it imported, the first full month of positive net exports since the 1940s. A decade ago, imports exceeded exports by 12 million b/d.
   • Contributing to this were several things: increasing production from shale; end of a ban on crude exports in 2015; and fuel economy improvements in cars, limiting demand.
   • The net-exports number is dwarfed by gross flows in both directions: imports of 8.668m b/d and exports of 8.757m b/d. The US exports the light oil produced from shale and imports heavier oil from abroad, as its refineries are designed to process it.

Nov 18-24

1. Huawei given 90-day reprieve by US -- NYT: 11/18 | Canvas | FT: 11/18 | Canvas
   • The Trump administration extended for 90 days permission for some US companies to do particular kinds of business with the Chinese telecoms company, Huawei. This is the latest of several such extensions that have been intended to minimize harm to US firms and their customers that rely on Huawei.
   • Huawei had been put on a backlist by the US on the grounds that Huawei devices might threaten US national security by giving the Chinese government access to US data and secrets.
   • The ban had limited both exports to Huawei and imports from Huawei, the company that currently leads the world in advancing 5G technology for phones.
2. Swiss watch exports to Hong Kong shrink -- Bloomberg: 11/19 | Canvas
   • Disruption in Hong Kong, as protests accelerate against Chinese rule and police respond, have dented the demand there for luxury goods. One result is that exports of watches from Switzerland to Hong Kong have declined.
   • For the first time in 30 years, mainland China imported more Swiss watches than did Hong Kong. Until the recent decline, Hong Kong also surpassed the US in imports of Swiss watches. But exports to China have increased, and exports of watches by Switzerland world wide have continued to grow.
   • Why the decline in Hong Kong? Fewer are being sold to tourists, and "Even Hong Kong locals are afraid of coming out onto the street," according to a spokesman for a watch retailer.
3. Nigeria's closed borders stop smuggling but raise prices -- FT: 11/24 | Canvas
   • Nigeria tightened control of all its land borders, completely stopping trade there, both exports and imports. The objective was to "curb smuggling, boost local production and achieve food security."
   • The result has been a huge reduction in both legal and illegal trade, as well as an increase in tariff revenues through Nigeria's ports. But the result has also been extreme hardship for those who engaged in legal trade, and also a steep rise in prices to consumers of food staples. The closing is also hard on Nigeria's neighbor, Benin, through which much of Nigeria's smuggled imports flowed.
   • Nigeria's foreign minister says it will only reopen its borders when its neighbors "properly enforce existing rules of origin within the regional trading bloc."

Nov 11-17

1. Currency news -- FT: 11/12 | Canvas | WSJ: 11/13 | Canvas | WSJ: 11/14 | Canvas
   • Chile's peso fell nearly 5% to its lowest level in history on Nov 12, responding to widespread protests against the government. Protests were initially prompted by a 3% increase in metro fares that has since been suspended.
   • Sweden's krona continues to perform worse than most other major currencies. In response, Sweden's central bank will soon cease using negative interest rates.
   • Currencies of Latin America are continuing to depreciate. Chile's peso continued to slide, along with Colombia's peso, and Brazil's real. There are also concerns about the currencies of Argentina, Bolivia, and Mexico.
2. China removes ban on US chicken -- WSJ: 11/14 | Canvas | AP: 11/14 | Reuters: 11/14
   • China banned imports of American poultry in 2015, following an outbreak of avian influenza. The US has now been free of avian influenza for over 2 years.
   • As part of the current China-US trade talks, China is now lifting the ban, effective immediately.
   • The US is now expected to export $1-2 billion of chicken, including $1 billion of chicken feet.
3. Trade war effects -- FT: 11/10 | Canvas | FT: 11/12 | Canvas | WSJ: 11/13 | Canvas
   • Stock market prices world-wide have done worse for sectors most exposed to the trade war: cars, metals, technology, and telecoms.
   • US manufacturing has been hurt more than China's manufacturing. This is seen in the decline in the last year of the PMI (Purchasing Managers Index) in the US, while China's PMI has remained steady.
   • Particular markets have been disrupted. Most recently reported were: lobsters and bourbon. US lobster exports to China have been "hammered" by China's 25% tariff (but many lobsters now reach China through Canada). Kentucky bourbon has been hit by the EU's 25% tariff in retaliation for US tariffs on steel and aluminum.

Nov 4-10

1. RCEP nears completion, but India withdraws -- WSJ: 11/4 | Canvas | NYT: 11/4 | Canvas | FT: 11/4 | Canvas | Economist: 11/9
   • RCEP, the Regional Comprehensive Economic Partnership, was to be a 16-country free trade agreement organized by ASEAN, the Association of Southeast Asian Nations, and pushed by China. Its negotiation is nearing completion, but India has now decided not to sign.
   • The 16 countries were to be the 10 nations of ASEAN plus the six with which ASEAN already has FTAs: Australia, China, India, Japan, New Zealand, and South Korea. Negotiations began soon after the Trans-Pacific Partnership began negotiations and have proceeded slowly until now. By including China, which was not in the TPP, RCEP was seen as a counter to the US-centered TPP until Trump pulled out of TPP.
   • At a summit in Bangkok, Thailand, India has now announced that it will not join, fearing a flood of imports from China. But the other 15 countries said they had concluded most negotiations and expect to sign the agreement in early 2020.
2. US trade deficit reported -- NYT: 11/5 | Canvas | FT: 11/5 | Canvas
   • FT reports that the US trade deficit for September was the smallest since April, as trade with China shrank due to the trade war.
   • On the other hand, NYT reports that the US trade deficit for the first nine months of 2019 rose by over 5% compared to the same period in 2018.
   • NYT Headline: "Trump Vowed to Shrink the Trade Gap. It Keeps Growing."
3. China ends ban on beef and pork from Canada -- WSJ: 11/5 | Canvas | FT: 11/5 | Canvas
   • China had banned these meats from Canada 4 months ago, claiming that export certificates had been falsified. Many believed that the ban was in retaliation for Canada arresting an executive from China's company Huawei, at the request of the US.
   • China's decision comes amid a severe shortage of pork in China, which has been hit by swine fever that has destroyed much of its pork. Increased imports from US, Brazil, and Argentina were not enough to stop the price of pork in China from doubling.
   • China continues to have restrictions on other Canadian exports, including canola seed and soybeans, and it continues to detain two Canadians.

Oct 28 - Nov 3

1. China-US deal signing delayed by Chile APEC cancellation -- WSJ: 10/30 | Canvas | NYT: 10/30 | Canvas | FT: 10/30 | Canvas | WP: 10/30 | Canvas
   • Civil unrest in Chile forced it to cancel a meeting of APEC -- Asia Pacific Economic Cooperation -- scheduled for November 15-17 in Santiago. The unrest is unrelated to trade or APEC, but security concerns prompted the cancellation.
   • US and China had planned on Presidents Trump and Xi meeting there to sign their "Phase One" trade deal. Though that deal is not yet complete, it is expected to include increased US agricultural exports to China and US delaying increased tariffs on China's exports to US. It might also include on agreements on intellectual property and currencies.
   • APEC is searching for an alternative venue to hold the meeting, but it may not find one and will have to cancel the meeting. And the US and China are looking for an alternative opportunity to sign their agreement.
2. US wins WTO dispute against India -- FT: 10/31 | Canvas
   • The US had filed a complaint in March 2018 against India for providing $7 billion in annual export subsidies to its companies. A WTO panel has now ruled that these subsidies were indeed illegal under WTO rules.
   • India had argued that these subsidies were legal under exemptions for developing countries, but the WTO panel rejected that argument. India must end the subsidies within six months or the WTO may permit the US to retaliate with tariffs on India's exports.
   • India will likely appeal this decision, but in December the WTO Appellate Body will lack a quorum for making decisions, due to US refusal to approve appointments.
3. Incoming ECB President calls on Germany and Netherlands to increase spending -- FT: 10/30 | Canvas
   • Christine Lagarde, incoming president of the European Central Bank and former head of the International Monetary Fund, spoke on French radio and called on Eurozone countries that have government budget surpluses, Germany and Netherlands, to use that "room for manoeuvre" to increase spending in order to stimulate their and their neighbors' economies.
   • The eurozone countries share a currency, but they do not have any mechanism for fiscal cooperation or common budgetary policy. As a result, when some countries experience macroeconomic weakness, they rely on only monetary policy to help them out, and with today's low or negative interest rates, monetary policy can do little.
   • It is customary for ECB presidents not to name individual countries, but Lagarde's comments occurred before she was to take the helm of the ECB on Friday.

Oct 21-27

1. South Korea Agrees to drop developing country status in WTO -- FT: 10/25 | Canvas
   • The WTO gives special privileges to "developing countries," but lets countries self-identify as that. President Trump has complained about that, arguing that many such countries are now high-income.
   • South Korea, such a relatively high-income country, this week responded to the Trump Administration's pressure and agreed to drop that designation.
   • The action is expected to put pressure on other countries also to give up developing-country status. Countries that Trump had identified in July as having "unsupportable" developing country designations include China, as well as South Korea, Hong Kong (not a country), Singapore, Qatar and the United Arab Emirates.
2. The US will stop preferential treatment for exports from Thailand -- FT: 10/26 | Canvas
   • The US, like other developed countries, applies the Generalized System of Preferences to most developing countries. This means applying tariffs on many of their exports (though not all) that are lower than the MFN tariffs they applies to richer countries.
   • The Trump administration has announced that it will suspend that preferential treatment for $1.3 billion of exports from Thailand, including all seafood products. The reason given for this the failure of Thailand to enforce worker rights.
   • "The country has faced criticism from the US and EU for its tolerance of human trafficking, forced labour, and modern-day slavery, notably in the seafood and fishing industries — practices Thai authorities and companies have since taken steps to combat."
3. World Bank issues its latest country ranking of Doing Business -- WSJ: 10/25 | Canvas | Economist: 10/24 | FT: 10/23 | Canvas
   • The World Bank published an annual ranking of countries by the ease of "Doing Business" in them. This year's ranking just came out.
   • Some notable features of the latest ranking: China moved from 78th to 31st in the last three years, now topping France. India has risen steadily and now tops Luxembourg. New Zealand continues to top the rankings, and Somalia is at the bottom.
   • The ranking has become in indicator that many leaders and countries, especially in the developing world, strive to work their way up in. As a result, it is argued to be less useful than when it originated, as countries are able to game the system once they know the criteria.

Oct 14-20

1. British Prime Minister seeks Brexit extension -- NYT: 10/19 | Canvas | FT: 10/20 | Canvas
   • Earlier in the week, Boris Johnson reached agreement with the EU on Brexit. The agreement would avoid the hard border in Ireland/Northern Ireland but require a maritime border between Northern Ireland and the rest of the UK.
   • He took the deal to the British House of Commons, having them meet on a Saturday for the first time in over 30 years. He failed to get approval, leaving the status of the deal in the UK unclear as the October 31 deadline for exit approaches.
   • Late on Saturday, as required by earlier legislation, he sent an unsigned letter to the EU requesting an extension. But he also sent a letter saying that a further extension would be damaging. And it appears that he still hopes to get the deal approved by Parliament.
2. G20 Finance Ministers seeking to revise international tax for the digital age -- WSJ: 10/18 | Canvas | FT: 10/18 | Canvas
   • Countries are debating "new global rules to coordinate corporate taxes." For almost a century, the practice has been to tax corporate profits based on the physical presence of a company in a jurisdiction. This is understood to be inadequate for the modern world in which digital companies earn profits in countries without a physical presence. Those governments are unable, therefore, to tax those profits.
   • In response to the failure to find a coordinated approach several countries have unilaterally levied taxes on such companies, most of which are based in the United States. France led the way with a 3% tax earlier this year, informally called the "web tax," and several other countries have announced similar plans. The United States has threatened retaliation against the French tax.
   • The United States is, however, participating in the discussions overseen by the OECD and led by Japan, to find new practices of corporate taxation that all can agree on. The discussions are taking place in Washington, DC.

Oct 7-13

1. China and US reach "Phase One" deal -- WSJ: 10/12 | Canvas | NYT: 10/11 | Canvas | FT: 10/12 | Canvas
   • China-US trade talks resumed in Washington and they reached a partial deal, said to be "Phase One" of more that will come later. Trump has said he wanted a "whole deal," but that did not happen. This deal will take several weeks to write and will be signed by November.
   • US will postpone tariff increases that were planned for October 15, and China will increase purchases of agricultural products by $40-50 billion. Other US tariffs planned for December were not postponed.
   • Not yet fully resolved and subject to further negotiations were many other isses: "including China’s enforcement of intellectual property rules, U.S. access to Chinese markets, Chinese government support for state-owned enterprises, and the fate of U.S. tariffs on nearly $360 billion worth of Chinese imports already in place."
2. Leaders of China and India meet to discuss trade issues. -- WSJ: 10/12 | Canvas | FT: 10/11 | Canvas
   • President Xi was in India for two days of talks with Prime Minister Modi. The meeting is "likely to be dominated by trade as New Delhi seeks to reduce a huge trade deficit with China."
   • A spokesman for India said "The Chinese will have to figure out ways in which to give India more market access. There are unreasonable non-tariff barriers that China imposes."
   • China wants India to join RCEP, a free trade agreement it is negotiating with other Asian countries.
3. Currency news: euro, krona, lira -- WSJ: 10/4 | Canvas | FT: 10/7 | Canvas | FT: 10/7 | Canvas
   • The euro has been falling in US dollar value for more than a year, and reached its lowest in more than two years. Reasons include interest rates (high in US, low in Eurozone), slowing European economy, and concerns about trade.
   • Sweden's currency, the krona, fell against the euro to its lowest in ten years. The krona "is more global trade sensitive than almost anyone else," said an official, who attributes the fall to trade tensions.
   • Turkey's currency, the lira, fell against the dollar to its lowest in more than a month after President Trump threatened to "obliterate" Turkey's economy.

Sep 30 - Oct 6

1. WTO approves US tariffs on EU -- WSJ: 10/2 | Canvas | NYT: 10/2 | Canvas | FT: 10/2 | Canvas
   • In the latest step in the US-EU Boeing-Airbus dispute at the WTO, the WTO has approved US tariffs on %7.5 billion of EU exports, the largest retaliation ever approved by the WTO.
   • The US will levy tariffs of 25% on a range of goods ("including cheese, olives, business suits and sweaters") and 10% on aircraft from the EU. It plans to levy the tariffs by October 18. These may rise, as the WTO has approved tariffs of as high as 100%.
   • This is the result of WTO finding in a 15-year-old case that EU subsidized Airbus in competition with Boeing. In another case, still to be completed, the WTO also found that the US subsidized Boeing, so tariffs in the other direction are likely to be approved as well. Though the case long preceded Trump, he takes credit: "They think I don’t like the WTO and they want to make sure I’m happy."
2. UK's Johnson offered Brexit plan to EU, and EU was skeptical -- WSJ: 10/3 | Canvas | NYT: 10/3 | Canvas | FT: 10/2 | Canvas | WP: 10/3 | Canvas
   • Boris Johnson, UK Prime Minister, managed to construct a plan for Brexit that UK parliament would likely accept, but the EU appears unreceptive.
   • The plan would try to minimize customs checks at the Ireland-Northern Ireland border, by using technology in some way, while having Northern Ireland leave the EU customs union. It would also keep Northern Ireland obeying many EU regulations and standards.
   • The UK is currently scheduled to leave the EU on October 31, though the UK parliament has passed a law requiring that it ask for an extension if no deal is reached.
3. India blocks all exports of onions -- NYT: 10/1 | Canvas | BBC: 10/5
   • Prompted by an onion shortage due to drought, then monsoon rains, prices nearly tripled in recent months. Onions are central to cuisines in both India and its neighbors, many of whom rely on India's exports. They could buy from China, but they view China's onions as inferior.
   • This week, the administration of Prime Minister Modi not only banned all onion exports, but also cracked down on onion hoarding.
   • The policy is starting to bring down the price of onions in India, but it is upsetting India's farmers and prompting complaints from neighboring countries, where onion prices are rising even more.

Sep 23-29

1. Japan-US trade deal signed -- WSJ: 9/26 | Canvas | NYT: 9/25 | Canvas | FT: 9/25 | Canvas | Economist: 9/26 | Canvas
   • Presidet Trump and Prime Minister Abe, meeting on the sidelines of the UN in New York, signed a new but very limited trade agreement. It includes rules on digital trade, but mainly deals with tariffs. The deal says nothing about trade in cars and car parts, which account for about 2/5 of Japan's exports to the US, and on which Trump has threatened 25% tariffs, though the agreement does promise to "refrain from taking measures against the spirit of these agreements."
   • Japan will reduce or eliminate tariffs on "beef, pork, wheat, cheese, corn, wine and so much more," said Trump. The US will reduce or eliminate tariffs on some industrial goods, including certain machine tools, fasteners, steam turbines, bicycles, bike parts and musical instruments, and also on some plants and flowers, green tea, chewing gum and soy sauce.
   • The deal is small, to avoid the need for approval by the US Congress, but because of that it likely violates rules of the WTO, which requires that free trade agreements cover "substantially all trade." To accord with that, the joint statement announcing the deal said that soon after it comes into force, Japan and the US would finish a broader agreement.
2. US to remain in postal treaty -- NYT: 9/25 | Canvas | FT: 9/25 | Canvas
   • The US had threatened to pull out of the 192-country Universal Postal Union, which sets postage rates for international mail and small packages. No country has ever exited the UPU, since it was established in 1874, but the US had said it would pull out on October 17. Now it will not.
   • The objection was that developing countries, including China, were given low rates in order to encourage development. As a result, China has been able to ship to the US for less that it costs to ship within the US, putting US companies at a disadvantage. A 2 kg package shipped within the US costs $19-23, while China Post pays only $5 to ship anywhere within the US.
   • China and others have now agreed, at a meeting in Geneva, Switzerland, to increase the rates for sending parcels to the US. Representing the US at the meeting was President Trump's trade advisor, Peter Navarro. The US position was backed by several other countries, including Canada, Brazil, and several in the EU. China also backed the deal, to limit the damage that would result if the US pulled out of the UPU.
3. Trump considers blocking Chinese firms from listing on US stock markets. -- NYT: 9/27 | Canvas | FT: 9/27 | Canvas
   • The White House has begun to discuss whether to prohibit Chinese companies from listing on US stock exchanges. "No decision is imminent," however. Stock market prices dropped on Friday after news of this, as did the value of China's currency. This is in the context of renewed negotiations with China regarding trade, tariffs, and aspects of China's behavior, talks that are expected to begin in early October.
   • While such a move could be done by Congress, it is also possible that the President could impose restrictions on national security grounds, arguing that American money flowing to Chinese companies poses a threat to the US.
   • The effects of such a ban could be large. As of the start of this year, 156 Chinese companies were listed in the US, with market capitalization of $1.2 trillion. At least 11 of these are state-owned. Members of both the administration and the US Congress are concerned that Chinese companies have benefitted from access to US capital.

Sep 16-22

1. Saudi Arabia imports oil to export it -- WSJ: 9/19 | Canvas | NYT: 9/19 | Canvas
   • An attack on Saudi Arabia's oil production and processing facilities knocked out more than half of its production, This would be expected to interfere with the exports it has promised its customers.
   • Rather than let that happen, Saudi Arabia is importing oil from other oil producers to supply its own needs, so that it can divert its own oil to its foreign customers. The result is that Saudi Arabia is both importing and exporting oil.
   • The Saudis have said that they will have production "fully restored" by the end of September, which would be remarkable if they can pull it off.
2. Trump claims Japan-US trade deal -- NYT: 9/16 | Canvas | FT: 9/16 | Canvas
   • President Trump announced to Congress that his team had reached an "initial" trade deal with Japan. He provided no details.
   • Negotiations have been mostly focused on getting Japan to give greater access for US agriculture, such as beef and chicken, to the Japanese market. This access that would have been gotten under the Trans-Pacific Partnership that Trump pulled out of, but that nowgives 10 other countries such access to Japan. In return, Trump would reduce some tariffs on Japan. Discussions also include an agreement on digital trade.
   • The hope is to have a more formal agreement ready for signing on the sidelines of the New York meeting of the UN General Assembly near the end of September. That would be unprecedented, however, as trade agreements usually takes many months or years to negotiated details.
3. India-US trade talks -- WSJ: 9/20 | Canvas | NYT: 9/20 | Canvas
   • India's Prime Minister Modi will meet with President Trump, with hopes of reducing trade tensions between the two countries and agreeing to reduce barriers on certain trade between them.
   • Earlier this year, the US removed India from the list of countries to which it applies lower tariffs, under the Generalized System of Preferences. India responded by placing tariffs on multiple US exports.
   • The US wants India to open its markets in several ways, including removing price caps on medical equipment, reducing tariffs on many goods, and granting greater access to US agriculture. Such a limited agreement, covering only a portion of trade, would be contrary to World Trade Organization rules, but that is unlikely to concern Trump or Modi.

Sep 9-15

1. China and US delay and reduce tariffs ahead of renewed trade talks -- WSJ: 9/13 | Canvas | NYT: 9/12 | Canvas | FT: 9/13 | Canvas
   • Trump announced he would delay the next round of tariffs on China, from Oct 1 to Oct 15.
   • China responded with first large purchase of soybeans in months, and state-owned firms are looking into buying more pork and soybeans, as China's government anoounced some exemptions on its tariffs against the US.
   • A new round of trade talks is planned to begin in early October.
2. Brexit news -- WSJ: 9/13 | Canvas | NYT: 9/12 | Canvas | FT: 9/12 | Canvas
   • Boris Johnson will meet with Jean-Claude Juncker, President of the European Commission, to seek a revised deal. The UK currency, the pound, rose on this news.
   • Boris Johnson is considering an "all-Ireland zone" to avoid both the hard border and the Irish backstop. Northern Ireland would remain in the EU common market while the rest of the UK exits.
   • France is preparing for no-deal Brexit by inspecting goods from the UK, as they would goods from China or the US. It has spent €40m on new facilities to inspect goods arriving through the Channel tunnel.
3. "Global Drop in Currencies" -- WSJ: 9/11 | Canvas
   • WSJ article reports that many currencies have dropped in value against the US dollar since the start of the trade war.
   • This is not surprising, as US tariffs lower US demand for foreign goods, and therefore for foreign currency.
   • But the fall in other currencies makes their goods cheaper, increasing US imports, and "fanning the flames" of the trade war.