Bogota - Saba:
The American newspaper "Bloomberg" confirmed that the economic war waged by US President Donald Trump on Colombia shook emerging markets.
The newspaper reported on Wednesday that Colombia, since Donald Trump won the US presidency, has often seemed “out of his sights.”
With his preoccupation with countries like Mexico and China, Trump has not said a word about Colombia, which has given traders in Bogota “the confidence to steadily raise the value of the peso and stock prices.”
It commented by saying: “The calm was shattered at 1:29 p.m. on Sunday, when Trump suddenly launched, via social media, an economic war on Colombia — 25 percent tariffs, sanctions, extraordinary inspections of cargo, and travel restrictions — in retaliation for its refusal to accept deportees.”
Bloomberg explained that Colombia’s rapid retreat, preventing a large-scale market collapse “as many feared, is somewhat insignificant.”
But what stuck in the minds of investors across emerging markets is that with Trump boldly pushing his “America First” agendas at home and abroad, “no trade is "Really safe."
That's because, according to Bloomberg, "any asset anywhere in the world, especially those in financially fragile developing countries, can be hit hard at any moment by a tweet or a passing comment."
According to the newspaper, the peso may have survived the truce reached on Sunday night, "but it has fallen enough," "to fall on Tuesday, after falling about 2 percent at the opening on Monday."
For his part, Ricardo Pinfold, managing director of Seaport Global in New York, said that "the risks are global, and that is what the United States wants," and the market should take into account "the risk premium of Trump's sanctions.
| more of (Economy) |