What direction will the trade war take? Watch the yuan

News Snapshot:

What’s the most important exchange rate in the world right now? Probably dollar/yuan. How Beijing responds to the eye-popping tariffs the Trump administration slapped on Chinese exports to the U.S. will be critical not only for China, but also for its ‘plus one’ trading partners in Asia, and world markets more broadly. The total tariff rate on U.S. imported goods from China is now a whopping 54%. If maintained for a reasonable length of time, this will be a financial hit to Beijing that will likely hinder its efforts to address its lingering real estate crisis, boost consumption, build its...