Press comment: Breakthrough in trade war
Commenting on the meeting between President Donald Trump and European Commission President Jean-Claude Juncker Quilter Investors portfolio manager, Sacha Chorley says:
“The Trump – Juncker meeting was a potential tipping point that could have prompted the fledgling trade war to spiral into something more damaging. Thankfully, we seem to have been rescued from the brink and there will now be plenty of optimism that the US-EU confrontation will cool off.
“President Trump seems to have developed a negotiating pattern in which he aims to draw maximum publicity to a particular issue in order to force the matter onto the agenda before eventually reaching a compromise. We have seen that pattern already in foreign relations under his Presidency, and these negotiations seem to be following the same script. After months of chest beating over international trade, markets will be relieved to hear some positive noises from political leaders and will now look for hard details on how the new trade relationship will work.
“One of the main things to look out for is the issue of vehicle tariffs, which is the keystone to the whole negotiation. They have already proposed working toward zero tariffs on other industrial goods, so the key is whether they will bring down tax on American motors shipped into Europe too. A refusal to bend on tariffs on imported vehicles could lead to another stalemate.”
[This press release is for journalists only and should not be relied upon by financial advisers or customers.]
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.
This communication is issued by Quilter Investors Limited (“Quilter Investors”), Millennium Bridge House, 2 Lambeth Hill, London, United Kingdom, EC4V 4AJ. Quilter Investors is authorised and regulated by the Financial Conduct Authority.
Any opinions expressed in this communication are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or companies within the same group as Quilter Investors as a result of using different assumptions and criteria.
Quilter Investors uses all reasonable skill and care in compiling the information in this communication which is accurate only on the date of this communication. You should not rely upon the information in this communication in making investment decisions. Nothing in this communication constitutes advice or personal recommendation.
No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of any securities, markets or developments referred to in the document.