President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
The stock market has been rising because too much money is chasing too few opportunities, economist Mohamed El-Erian told CNBC on Wednesday.
The Trump trade — betting on stocks in hopes that the president's policies will boost economic growth — is no longer the main factor driving the market, the Allianz chief economic advisor said on "Squawk Box."
"This is no longer a Trump trade. This is somewhere between a reflation trade, but much more importantly a liquidity trade. This is a liquidity-driven market," El-Erian said.
"I have underestimated the strength of the liquidity injections. Not just from the Fed, but I think the increase in [income] inequality has meant there's been less consumption and more investing in the market," he said. "And the profit share is so high that the companies are putting the money back into the marketplace."
However, El-Erian told CNBC the benefits of the prolonged easy monetary policies around the world that have sent investors chasing riskier assets could eventually come home to roost. Global central banks are "distorting markets" and making investors "do things we and they 're going to regret," he said.
El-Erian said there's a hope in the stock market that the liquidity trade hands off to the reflation trade or betting on investments that would benefit from an increase in inflation and stronger economic growth.
If Trump's proposed policies such as tax cuts and deregulation were to become reality and boost the economy as promised, the reflation trade may take over as the biggest driver of the market, El-Erian said.
Such a move would diminish the influence of central bank policies on the stock market, he said. That would be fortuitous since the odds are more than 80 percent that the Fed will hike interest rates again at its June meeting. Rate increases tend to pressure stocks.