Renminbi drops to 2019 low on trade war escalation; Cotswolds property market takes a dive

• China’s renminbi fell to its lowest level this year on Friday after US president Donald Trump’s surprise move to impose additional tariffs on imports of Chinese goods escalated trade tensions between the two nations.
• The lack of progress on trade would weigh on the renminbi, with speculation turning to whether it could break through the psychological seven to the dollar mark in the near future — a widely recognised level that the central bank has staunchly defended.
• “The deteriorating China growth outlook amid the full-blown trade war [suggests] that the Chinese government would be tempted to allow further renminbi depreciation to support the growth,”
• A more gradual renminbi depreciation towards [the] seven handle is more likely than an immediate one.

• The froth has gone for the Cotswolds?
• Despite the charms of the Cotswolds — the largest Area of Outstanding Natural Beauty in England (AONB) — it is not immune from the downturn in London’s property market.
• In the year to May, house prices in London fell at their fastest rate since 2009, down 4.4 per cent, according to the Office for National Statistics. Property transactions in the Cotswolds are down 16 per cent since 2014, and down 4 per cent in the past year.
• But Brexit uncertainty seems only to have compounded the downturn in the luxury market in the Cotswolds — and by extension, the wider market for prime rural property in the UK.
• It is not all gloom for homeowners in the Cotswolds. The holiday lettings market here is in rude health, buoyed both by the weakness of the pound and the resulting popularity of staycations.