Afternoon Coffee: J.P. Morgan Expects ‘Full Blown’ U.S.-China Trade War, Truck Drivers Needed But New Orders Fall 

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J.P. Morgan expects China’s economy to be affected next year by U.S. trade talks and tariffs, and it has lowered its rating for Chinese equities to neutral from overweight, CNBC reported. 

"A full-blown trade war becomes our new base case scenario for 2019," emerging market strategist Pedro Martins Junior said in a note to clients this week. "There is no clear sign of mitigating confrontation between China and the U.S. in the near term." 

U.S. tariffs on Chinese goods began last week, and they could rise to 25% on Jan. 1. 

More Trucking, Fewer Trucks 

A shortage of truck drivers has 74% of carriers in North America looking to beef up trucking capacity, according to Supply Chain Dive. Orders for new trucks have fallen, The Wall Street Journal reports. 

German Auto Parts in Mexico 

German auto components manufacturer Sika is opening a factory in Mexico to supply automakers in the country, Automotive Logistics reports. Sika’s Thomas Hasler said the plant is near other auto facilities.  “We are close to the many vehicle and component manufacturing facilities already established in Mexico, as well as the new plants coming online,” he said. 

Non-Manufacturing Sector Grows 

And finally, an economic update: Activity in the non-manufacturing sector grew in September for the 104th consecutive month and hit a record high, according to the latest report from the Institute for Supply Management. “Overall, respondents remain positive about business conditions and the current and future economy,” the report said. “Concerns remain about capacity, logistics and the uncertainty with global trade.” 

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