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The US decision to include the Huawei mobile giant in the list of entities to be included in the new tax has only made the situation worse.

Undoubtedly, “countermeasure” taxation processes will have a disproportionate effect on Chinese manufacturers, and eventually they could cause global companies to move their supply chains from China. Some companies have already moved production to other countries. Thus, the Chinese economy will see a slowdown in the medium term as manufacturers continue production processes away from China’s manufacturing bases.Meanwhile, China is also diversifying its trade relations, and there has been a marked increase in domestic trade within emerging markets. Also, China has taken steps to rebalance the economy, creating a new avenue for more sustained growth.

Although the results of the trade talks and their real effects have not yet been fully seen, and the final word has not yet been spoken, we believe China has the policy and tools to mitigate the impact, and keep the economy from “hard landing” in light of the changes.Looking at the change in export targets from developing countries and emerging markets, and comparing the major export targets in 2007 with those in 2017, shows that in the last decade China has taken the place of the United States as the largest export destination of major emerging market economies. Domestic trade in emerging markets seems to have become much more important to the Chinese, and as the Chinese economy transitions to the consumption-based economy, new opportunities for trading in emerging markets are emerging. In addition, China has emerged as one of the world’s largest consumers of goods and services, reducing its dependence on foreign trade. Today, only 34% of Chinese GDP comes from foreign trade, compared with 50% -60% a decade ago. Instead, Chinese growth proponents are geared toward innovation, technology and consumption. If China’s balancing efforts make its economy stronger, we think this is likely Will continue to be a structural growth engine for emerging markets in the decades to come.But China is not the only target of Trump’s cover war. The US administration recently threatened Mexico tariffs, following illegal border crossings. At the end of May, Trump tweeted that he would impose a 5 percent tariff on all goods from Mexico by June 10, if Mexico does not stop the illegal immigrant flood into the US. It later announced that customs duty would rise to 25 percent in October until Mexico took action.

Templeton expects that the imposition of this tariff will do particularly harm to the US auto industry that imported Mexico from $ 93 billion in 2018, after categories such as electrical equipment, mineral fuels and optical and medical devices.In addition, these tariffs are expected to have a major impact on Mexico’s economy. Nearly 80% of Mexico’s exports go to the U.S., and exports account for 35% of Mexico’s GDP.Imports and exports together account for 75% of Mexico’s total GDP. The maritime transport giant is putting a load on the IBM blockchainTwo leading European cargo ship operators join the IBM and Marsk technology venture to make the international supply chain more efficient and transparent for all its participants • Last month, Israeli ZIM also joined two European cargo ship operators joined by the huge blockchain platform they set up. F. Moller-Maersk (A.P. Moller-Maersk7,175 -2.31%) And the US computer giant IBM(149.77 -0.74%) During a significant boost of technology adoption throughout the logistics services industry.The accession of French CMA CGM and Mediterranean Shipping, based in Switzerland, to the TradeLens platform means that three cargo ship operations – which will soon hold half their cargo packed in containers – will make cargo traffic in international supply chains more transparent Great annual savings.In 2016, Maresk and IBM launched the Tradelens blockchain platform for container ships, which carry the bulk of consumer goods, furniture, parts of production and other basic world trade products. Big companies like Walmart, Procter & Gamble and DowDuPont, as well as 100 seaports, are testing the use of technology to better track their supply chains – from raw materials to finished products.

As published in “Globes”, last month Zim Israeli also joined IBM and Marsk’s Blockchain Tradelens platform. The system, which digitizes the physical documents used in the maritime transportation process, was developed in the development center of the IBM computing giant in Haifa in collaboration with Maresk.As far as cargo ship operators are concerned, blockchain technology allows reliable participants to share information about goods moving in supply chains. The system should also reduce the cost of paperwork. Maresk said that the maximum cost of documentation required to handle and manage many of the goods shipped in maritime shipments each year is about 20% of the total physical shipping costs. However, widespread participation in all parts of the supply chain has a key role to play in the effective functioning of Trade-Lance. Many companies, including shipping operators and responsible for freight shipments that manage the flow of goods, are reluctant to share information on shared platforms. Customs authorities around the world are also skeptical of technology.Customs should deal with a growing number of transactions, and their budget is inconsistent with that,” said Vincent Clark, Maresk’s vice president of commerce. “When they see the benefits of the blockchain, we will see a greater number of these authorities Keys to contacts in the current year. “CMA CGM, the world’s fourth largest container ship operator after Marsek, MSC and third largest company, Cusco Shipping Holdings of China, joined last year Global Business Network, a similar blockchain initiative anchored by Cusco and other Asian cargo ships.

New hopes for IBM and MarskFrench freight operator’s decision to also join Trade-Lance is “a signal that the whole idea of ​​randomly using blockchain for testing purposes has come to an end, and that we are at the tipping point in size, where participants will share information in a trustworthy way,” said Marie Wick, CEO Lith IBM Blockchain.The fact that CMA CGM is now on two platforms means that blockchain solutions in maritime shipping will not be a game where the winner takes everything, but there may be room for some competing platforms,” ​​said Lars Jansen, CEO of SeaIntelligence Consulting, based in Copenhagen.The two maritime delivery companies joined the blockchain platform at the same time as a transaction under which Marsk acquired a holding company in Traxens, a company that supplies container shipping equipment, and whose shareholders also include CMA CGM and MSC. Maresk also said you will order 50,000 tracking devices from Trexens – a similar amount to that ordered by her two rivals.Ingrid Opelhotten Schneldward, vice president of equipment at Marsk, said the agreement with Trexens meant that Maresk “would work with key industry players to promote a high-value solution for cargo of high value through connected products and technologies.”The blockchain deal is in the background of Maresk’s efforts and IBM to reinvent themselves. IBM is raising hopes for new business activities, including the blockchain, given the slowdown in its traditional hardware and software sales activities. Maresk is trying to transform itself from a port-to-port shipping company to a company that provides integrated logistics services, much like FedEx Corp. China is considering restricting exports of rare metals; “Don’t say we didn’t warn you”

China considers extreme move to limit exports of metals used to manufacture smartphones, computer chips and even security products • New York indices are losing ground, government bond yields have fallen to lows since September 2017, and European stock exchanges are down 2% • Peaks: “Stop production of These metals will immediately shock the manufacturing processes “Financial markets around the world are responding to trade war headlines, which does not look good when it escalates.” The Global Times, affiliated with the Chinese Communist Party, published an article stating that China is considering limiting Exports from the country of rare metals, such as: Dispersusium, n And Dmiom and more.And the quotes from an article in the government-affiliated newspaper indicate that the Chinese do not intend to fold and even threaten to escalate relations. “The US needs to stop doubting China’s ability to fight the trade war; There is no doubt that the US side wants to use the rare metal products that China exports to restrict Chinese development. The Chinese people will never agree! Don’t say we didn’t warn you, “the Global Times said.It should be noted that this is the specific wording used by the paper in 1962 before China went to war with India. “Anyone familiar with the Chinese diplomatic language knows the weight of this phrase,” the Global Times said. The phrase was used even before the 1979 Vietnam-China conflict broke out.

China currently produces about 92% of the rare metals used to manufacture various technological products, such as smartphones, chips for computer products, and even many security products. According to Uri Greenfeld, chief economist of Psagot: “Stopping production of these metals will immediately lead to a shock in the production processes of many products and because these are high-cost metals, even at a price rise. This is an extreme step, as China is, as mentioned, almost responsible for In the world about making these metals but if that is what will stop Trump from tweeting then all moves are kosher. “Leading indices on Wall Street are down 0.7% in opening, government bond yields have fallen to lows since September 2017, and the market is priced to lower interest rates by the Fed in 2020. In Europe, indices are down 2% at the same time, shares of specialty metals companies are leaping For example, mining company JL Mag Rare-Earth jumps 10%, China Northern Rare Earth Group jumps 8% in Australia, and Lynas flies 15%.Earlier today, the European Central Bank (ECB) warned that escalation in the trade war could present a surge in sales in the markets.It should be noted that China has not yet pulled out the really heavy guns, which are the sale of US government bonds. The move is akin to doomsday weapons, and could spark a spin in China itself, which may be out of control and thus the assumption that the Chinese do not intend to do so.f the US and China do not return to the negotiating table and the trade war worsens, the recovery in the global economy is expected to cease, leading to a significant deterioration in economic activity, particularly in the industrial and trade sectors,” said Alex Jabzinski, chief economist of Best Dash.

According to Bloomberg Global GDP Tracker, the events of the past year in which, at the same time as the Chinese economy weakened, the trade war began to slow down the global economic growth rate to its lowest level since the crisis of 2008. “Such a significant deterioration has occurred despite the relatively small volume of tariffs imposed and the strong growth In the American economy, ”Jabzinski added. “In our opinion, the risk of exacerbating the trade war has increased, the implications of which are more significant than the official estimates.” Alas for the victors, but also for the victors: everyone will lose from the trade warNo less than a trade war, the current US-China confrontation is a cold war over technological superiority. • It is imperative if inventions and China do everything they can to become a self-supporting technological power, regardless of American technologies. US President, Chinese President, China’s National Honor • The US is supposed to come out on top in the trade war, but it may reveal that the US-China trade war has been exacerbated by aggravation. Only a month ago, the two powers seemed more To sign a trade agreement, a feeling backed by optimistic tweets from US President Donald T. Rump. And here’s a month later, not only is there no agreement, but Trump has raised the tariff rate already over six months ago on Chinese goods worth about $ 200 billion from 10% to 25%, and has ordered a tariff plan on all the balance of imports from China .In response, China imposed a similar rate on US $ 60 billion in imports of American made goods. If Trump does meet his threats, the reciprocal tariffs will apply to all Chinese produce imported to the United States, and to all US produce imported into China.

China and reciprocity? No way!To get a proper perspective on this trade war, you should go back a little. The positive breakthrough in US-China relations occurred in the 1970s under the government of Republican President Richard Nixon and his Energy Secretary, Dr. Henry Kissinger, and had a close connection to the Vietnam War over which the United States was embroiled. For its head, and especially for the Cold War between the US and the USSR.Ironically, it is the United States that has helped China emerge from its terrible decline and become a communist-capitalist state that today presents a serious challenge to the United States.In 2001 China joined the World Trade Organization and as such undertook to undertake free trade commitments that it was far from meeting. The principle of reciprocity in trade has been bypassed in a variety of ways.The US was, of course, aware of this even before Trump, and Chinese policy has strongly and justifiably criticized Republican and even Democratic governments, but no president until Trump has done a real job.The result: The US-China trade equation is unbalanced and the US buys goods and services from China four times the size of China’s purchases, resulting in a large US trade deficit, about two-thirds of which is due to trade with China. There is quite a bit of justice in claiming that the United States has for years held a “sucker,” and there is probably nothing Trump hates more than being a “sucker.” There is also a great deal of justice in Trump’s demands on China, but the way he chose to do so shows that this is not just a trade war story.Wowey Not Alone: ​​The Theft of Technologies

Behind a trade war lies an equally great, and perhaps even more, story of a struggle for technological superiority, a kind of cold war, when the challenge China poses is not simple and it explicitly declares that it intends to achieve supremacy in space, artificial intelligence and more. It’s no coincidence that Trump is focusing on real criticism and activity, a boycott, on Chinese society and Wawi. And not coincidentally, Apple and its like are afraid of a counter-reaction. Although the US administration gave a 3-month extension to “organizing,” but if there was no trade agreement, then it would turn out to be just an opening shot in the technological war. The US accuses China of stealing advanced US technologies, among other things, taking advantage of China’s demand that every foreign company that wants to operate from China should share a Chinese body with at least 50%. China, of course, denies technology theft.One of the people closest to Trump who is taking part in contacts with China is Peter Navarro, who in 2012 already wrote a book called Death by China, in which he talked about the death of the United States as the world’s leading economic power.This is not the only challenge China poses to the US. China is building the mainland Silk Road and producing areas of influence in various important geographical areas in Asia, Africa, and Europe, for example Greece and Italy, and also in Israel, with emphasis on sea ports. Trump trusts the “America’s First For All” slogan and acts accordingly. He believes, quite wrongly, that if he achieves his goals, it aligns with the interests of the American people, especially his political base, and clearly, from his point of view, serves the political interests

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