• US and China's trade wars have escalated and risk remains on thin ice.
• Recent news has the Global Times pushing the envelope.

There is news that China has urged the US to immediately cease provocative actions to avoid 'unexpected events'.

One has to wonder what, "unexpected events means"?

The headlines have come from a Tweet from the Global Times:

#China urges the #US to immediately cease such provocative actions to avoid unexpected events. The PLA will take all necessary measures to defend China's sovereignty and safeguard peace and stability in the #SouthChinaSea

FX implications: 

Risk assets will likely be on thin ice over such escalations and the drums of war. The Yen, Dollar and CHF are the usual benefactors of such implications. It's not a shooting war, but there are risks of it as the US administration seeks to maintain its supremacy, targeting an economic challenge in China - Indeed, China has changed its nuclear posture to high alert, and so has the United States. 

- Aug 20, 2019