International Monetary Fund managing director Christine Lagarde yesterday warned countries of the perils of a trade or a currency war, saying they could be detrimental to global growth and hurt "innocent bystanders."
Also, World Bank president Jim Yong Kim said he is very concerned about the trade tensions between China and the United States and warned of a clear hit to global growth if all countries escalated their tariff threats.
Meanwhile, a Chinese commerce ministry's spokesman said that China is open to restarting trade talks with the United States, but regrettably the US side has shown no sincerity still.
Elsewhere, dry bulk ships operator Pacific Basin (2343) revealed that its third-quarter average daily time-charter equivalent earnings spiked over 20 percent from a year earlier as the supply of newbuildings in the industry decreased and is expected to drop further next year. The company believed the demand for delivering soybean from the United States to China will not disappear and cannot be replaced in the near term.
China is looking to shift its soybean demand from the United States to Argentina and Brazil but the two countries do not have volumes required.
Cosco Shipping (1199) meanwhile predicted the impact of the trade war has been limited on the company as its ports are located around the world and the demand in global trading and logistics is still strong. Meanwhile, its new port in Abu Dhabi will open in December while the company is deciding to acquire almost 10 more ports.
Its vice president and managing director Zhang Wei did not believe that global cargo shipping volumes would decrease because of the trade war, adding that China's manufacturing still has a comparative advantage thanks to low labor costs.