//Trade war tensions send China’s yuan to 11-year low – business live

Trade war tensions send China’s yuan to 11-year low – business live

Rolling coverage of the latest economic and financial news

8.19am BST

Swiss bank UBS is so concerned about the trade war that it is recommending that its clients sell shares.

UBS has cut its recommendation on equities to “underweight”, for the first time since the eurozone crisis in 2012.

The trade dispute escalated this weekend, with the US president saying the conflict was “in many ways…an emergency.” Late last week, the US and China both announced a fresh increase in tariffs on each other’s goods, including an increase to 30% from 25% on $250bn of US imports of Chinese products.

We still believe the US can avoid recession in 2020, helped by easing from the Federal Reserve and healthy consumer spending. But downside risks are increasing for both the global economy and markets. With talks between the US and China dominating market moves over the near term, investors should brace for higher volatility.

7.59am BST

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#China Yuan keeps falling as traders temper optimism over U.S.-China trade deal. pic.twitter.com/rzSwgNFU56

“I have great respect for the fact that China called, they want to make a deal.

“This is the first time I’ve seen them where they really do want to make a deal, and I think that’s a very positive step.

Here’s how wildly stocks swing when Trump mentions the trade war https://t.co/qN8bxKRQlc pic.twitter.com/QNz7wtGv2P

Related: China’s yuan hits 11-year low as trade tensions grip markets

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Read more: theguardian.com