Any violence in Hong Kong will affect China-US trade negotiations: Varney
Watch out: this weekend, events on the other side of the earth may have a profound effect on us.
I'm talking about Hong Kong. A huge protest is scheduled for Saturday. The organizer says the police have just banned it. They cite safety concerns. Sounds like an excuse to crack down. And a confrontation that turns violent would affect the U.S.-China trade talks, and that would affect your 401(k).
Beijing has moved fresh troops into Hong Kong. That's ominous. The Chinese government says it’s just a regular rotation, which they do every year at this time. But coupled with the protest ban, it’s still ominous.
And then on Monday, the protesters have called for a general strike, a serious thing for a city known for the dynamism of its businesses. And if Saturday's protests are put down, more people would surely support the strike, increasing the disruption of Asia's financial hub.
Xi Jinping is in a corner: If he puts down the protests, he loses. If they continue, so does the chaos. He's lost control, which is seriously bad news for a communist leader.
Meanwhile, over here, we'll be celebrating the Labor Day weekend. And the stock market is closed Monday.
Come Tuesday morning, things may look very different here because of what's happened over there.