President Donald Trump sent his Vice President Mike Pence to this weekends APEC Economic Leaders´meeting – something that lowered the U.S profile.
This weekend´s APEC Economic Leaders meeting was dominated by the ongoing trade war between China and the US with big frustration for the other member countries. The meeting consists of 21 nations, representing 60% of the world economy.
For the first time in 29 years, the meeting ended without a final agreed statement from the regional leaders.
Canadian Prime Minister Justin Trudeau confirmed Sunday that the disagreements on trade stood in the way of a final statement.
Vice President Mike Pence, used the meeting to warn off other pacific countries in accepting financial help from China.
The Asian stocks started the week in the green with increases of 0,32% for SHANGHAI and 0,62% increase for NIKKEI.
Things were a bit different for the US indeks which saw a decline of 0,3%.
The APEC countries are very sensitive to the trade war, as 80% of the economy in the region is dependent on export.
The US and Australia united on the meeting Saturday in offering an alternative to China’s Belt and Road initiative to pacific countries by offering loans for infrastructure programs. The US will join Australia in the development of the Lombrum Naval Base on Papua New Guinea’s Manus island.
The ongoing trade war between the two rivals could ripple the Pacific Rim economy, with great concern for the attending countries at the meeting. Singapore’s president Halimah Yacob stated that the ongoing conflict might force the country to choose side at some point.
Several popular FANG-stocks took a hit; Facebook, Amazon,Netflix and Alphabet/Google. All shed around 6%.
As the trade war is very much about the american fear for China’s´ technological development – the tech stock are affected by the ongoing dispute.
The lack of a joined agreement lowers expectations for President Donald Trump and President Xi Jinping to reach a solution to the trade dispute when they meet in a few weeks at the G20 summit in Argentina.