A trade war may be unraveling but that does not mean that free trade is dead. Trade block integration seems to be the new order of the day, while positive expectations arise regarding NAFTA and a potential agreement by the end of August. Still, complications are already noticeable after the implementation of tariffs on steel and aluminum and the growing conflict between China and the US.
The week has not been favorable for publicly-traded companies in general after plunges in stock, with FCA suffering the biggest loss of all after the passing of Sergio Marchionne, CEO of the company.
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Free Trade for the Win
Mexico leads the charge in free trade by building bridge between members of the Pacific Alliance and countries from Asia Pacific interested in investing in Latin America.
Pacific Alliance and Mercosur reach historic agreement on integration, moving toward a more globalized future with fewer trade restrictions between the two largest trade blocks in Latin America.
Minister of Economy, Ildefonso Guajardo, and US Trade Representative, Robert Lighthizer agree to speed up NAFTA negotiations and set a new deadline in August to finalize the agreement.
True, Nasty Colors
Trade war and tariffs on steel and aluminum are already showing their effects. Public traded OEMs’ stock is losing value and companies partly blame President Donald Trump’s policies.
At age 66 and after being in the FCA family for 14 years, Sergio Marchionne, CEO of the company, passed away on Wednesday after shoulder surgery complications.
The company revises its year-end forecast downward after lower operative earnings during 2Q18, expecting a net income between €115 billion (US$134 billion) and €118 billion (US$137 billion) from a previous goal of €125 billion (US$145 billion).