*** Weighing in on the US/China trade angst......>

US: *** Weighing in on the US/China trade angst currently spurring heavy of

risk-off buying in rates this week, equities well offered and trading below

50-DMA. 

- If Pres Trumps makes good on threat of tariff increase Fitch Ratings said

would spur a "prolonged" headwinds for US corporates. "Although credit

implications are limited," Fitch wrote, "risk mitigation via pricing actions,

supply chain adjustments, localized production, and end-market diversification

could increase in importance due to the need to manage ongoing trade

uncertainty."

- In that vein, note this morning's collapse in 3M10Y yield spd -- just

re-inverted, -.218 low from 5.662 late Wed a good example of mkt's concern over

knock on effect to US economy.

- "The Trump trade negotiators are not fighting China Inc., they are fighting

the Bluest of Blue Chip Companies in America who moved their factories overseas

years ago," Chris Rupkey, MD and Chief Economist at MUFG said. "We have never

been so close to recession's door simply based on the policies from Washington."