China has "stolen $2trn to $3trn in intellectual property" from America over the last decade, claims hedge-fund manager Kyle Bass. That needs to be addressed firmly in any trade deal if the US is to see any real benefit from the current talks, he says. "The US's number-one asset... is our ingenuity... our ability to innovate," Bass tells CNBC's Brian Sullivan. "That's our game and they're stealing our game from us. It's really important for this new agreement to be measurable and punishable."
Bass, a long-term China bear, is not keen to invest in Chinese stocks, despite recent gains. "Can the Chinese run up their stockmarket? Absolutely. Domestically, they control the price, they control the printing press, they control the police, they control the narrative," he says. But "why would you invest in a country where there is no rule of law?".
That said, Bass is not a huge fan of other global stockmarkets either. Bass expects both Southeast Asia and Europe to face recession before the end of this year, citing fragile economic data in China, Italy and Germany. The US, on the other hand, is still enjoying an afterglow (a "fiscal impulse") from the tax cuts pushed through under Donald Trump.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The US is the tallest midget at this moment in time."Yet even that will wear off by 2020, argues Bass. Indeed, he is so downbeat that rather than invest in US shares, he is hunkering down in "safe-haven" bonds."US interest rates are going to head back to 0% in 2020, so we're long a lot of bonds."
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
