China Pulls The Rug From Under Europe, Halts French Bank Transactions, Makes Good On Trade War Ultimatum
by Tyler Durden
A flurry of headlines out of China suggest global macro-economic volatility may be ready to take it to the next level. We discussed last week how China’s oh-so-generous offer of help to Europe was merely a veiled threat playing US against Europe in a game of who-gets-the-funding. Well, tonight, it seems, they are making good on some of those threats. Aggravated by EU’s lack of market economy recognition, they pull trading lines with French banks, express concern at the EUR’s safety (preferring US Treasuries), and indicate a clear preference for bonds over stocks – all the while warning of growing trade tensions – consider the sabre-rattled.
Initial comments from Commerce Minister Shen via Bloomberg: