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August 4, 2017 NFP expected 183,000 , Section 301 and Abe in Japan really starting to become unpopular

August 4th, 2017

Rumors are on both sides whether Trump will impose section 301 against China for Intel Properties rights today. Section 301 gives US presidents broad latitude to retaliate against any trade policy in another country deemed unfair. It could be targeted tariffs against specific companies, like state-owned Chinese firms thought to be benefiting from American intellectual property. Or broader sanctions, like across-the-board tariffs on imports or restrictions on Chinese investments in the United States, where companies face no restrictions. NFP can only help the dollar because the Fed has leaned dovish so any dollar weakness has already been priced in. For Japan, Abe reshuffled his cabinet, he is really falling in his ratings. The days of unlimited bond buying could be finally coming to an end sooner then he wants? Some are saying that Japan can only keep this up until mid 2018, but with the drop in popularity it could come a lot sooner. Futures are flat in the first hour of the European session as we wait for NFP.

August 2017