Morgan Stanley CEO Urges US-China to End Trade War

Morgan Stanley CEO James Gorman said that China and the U.S. must come to a truce in its trade dispute because a full-blown trade war would be devastating for the global economy.

“We can’t have a trade war,” Gorman said in an interview Thursday with CNBC’s Wilfred Frost. “It will have a devastating effect to the global economy. That doesn’t mean there can’t be changes to the way the trade agreements are being written.”

Gorman, who said he has visited Chinese and U.S. officials recently, cautioned that there wasn’t likely to be a tidy solution to the dispute after the upcoming G-20 meeting, in which President Trump and President Xi are scheduled to convene. The two countries account for more than 40% of the world’s economic output, he pointed out.

“This is going to go on, these discussions, for a decade,” Gorman said. “This is a resetting of a relationship with what is now the second largest economy in the world; China is a $12 trillion economy with all its trading powers.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza