China has fiddled plenty with the yuan, but has let it strengthen significantly since 2005; the U.S. has brought current weakness in the Chinese currency on itself.
The Chinese government has now demonstrated an ability to control the S&P 500, even at the risk of Chinese domestic capital flight.
Because of our strong economy with virtually no inflation, we have the upper hand in the Chinese talks and, I believe, we could get a deal if we thought the Chinese were going to change their ways, not just their buying patterns.
The only reason that there is a bounce on China trade headlines is that it didn't become worse.
Is China willing to risk a global recession to hurt Trump's chances in 2020?
It would help if our allies -- particularly the Germans -- were to agree with our Treasury Secretary, because they have much more to lose from a devaluation of the yuan than we do.
Markets got hit hard in May when trade talks broke down and the president instituted new tariffs, but things are different now.
A general strike on Monday in Hong Kong finally has hit its stock market, while the yuan has fallen past 7.0 to the U.S. dollar thanks to trade woes.
The Chinese currency, the yuan, was permitted on Monday to smash through what has been considered to be the important psychological level of 7 to 1.
There is a real risk brewing in global financial markets.