https://www.msn.com/en-us/money/markets ... 1b75&ei=23
Global markets tumble as Beijing imposes new ban on U.S. shipping. Bessent vows China ‘will be hurt the most’ if it doesn’t surrender
S&P 500 futures were down 0.87% this morning. The index opened the better part of 1% lower almost immediately. Markets in Asia and Europe were almost all down, with Japan’s Nikkei 225 off 2.58% and Europe’s Stoxx 600 down 0.49% by midmorning.
Beijing’s new export controls on rare earth materials—which the U.S. is dependent on—are “a sign of how weak their economy is, and they want to pull everybody else down with them,” Bessent said. “Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world,” he told the FT. “If they want to slow down the global economy, they will be hurt the most.
“They are in the middle of a recession/depression,” he added, “and they are trying to export their way out of it. The problem is they’re exacerbating their standing in the world.” (China is, in fact, doing very well. Its exports rose 8.3% in September, and the World Bank expects China’s GDP to grow 4.8% this year. U.S. growth is forecast at 1.4%.)
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