Rapid response from WPAC to the US Treasury labelling China a currency manipulator.

Says applying the label will prompt further mayhem in financial markets. Label clearly linked to China's weakening of the CNY.

Via Bloomberg:

  • "It would be naïve to think otherwise"
  • "This is another escalation of the trade war that's very unhelpful, and will probably cause mayhem in the markets"
  • "If the intent is to restore calm to the markets, this is very counterproductive."

More:

  • sets up more of a showdown between the U.S. and China
  • we'ss see further weakness in equities, bigger fall in yields, a rush to safe haven
  • the trade war is morphing into a currency war