As China bites back retaliating by imposing tariffs on US goods effective by June 1st, the markets are coming to grips that such actions, even if not tit-for-tat, it means that we are in the midst of discounting a prolonged rhetoric war period between the two countries, with fears of tensions escalating even further. As a result of the re-evaluation of the new dominant trade thematic, and judging by the punchy moves in the Yen or equities, the market seems to have still a lot to re-price. As I will elaborate in today's report, the RORO model paints an ailing picture in risk assets, both from a micro and macro ... (full story)