New call-to-action


See all



Trump Impeachment Inquiry And Easing United States (US) China Trade Tensions

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

On 24 September 2019, US House Speaker Nancy Pelosi announced that the House of Representatives is moving forward with an impeachment inquiry into the current US President Donald Trump. The catalyst for this announcement by the House Speaker is in light of a recent development that the inspector general notified Congress that the administration was forbidding him to turning over a whistle blower complaint.

trump - trade war

Nancy Pelosi mentioned that this act is a violation of law, and that there has been reports that there was a phone call by Trump, calling upon a foreign power to intervene in his election. She went on to mention that this is a breach of Trump’s constitutional responsibility.

The Demoncrat’s have also voiced concerns around the findings of former Special Counsel Robert Mueller report on the investigation into Russian Interference in the 2016 Presidential Election. The findings of this report, along with the recent developments mentioned above, will be the centrepiece in the US President Impeachment inquiry.

What is the impeachment process?

The impeachment process is as follows:

  • The US constitutions says:

The President, Vice President, and all civil Officers of the United States shall be removed from the Office on Impeachment for, and conviction of, Treason, Bribery, or other High Crimes and Misdemeanours.

  • A group of Demoncrat’s, most likely the house judiciary committee could draft articles of impeachment. The House of Representatives would then debate each article of impeachment on the house floor. If a majority of the house vote yes on any article of impeachment, the President has then been formally impeached.
  • The US Senate would then debate the articles of impeachment and vote on each article of impeachment. The President would be removed from office if two thirds of the Senate voted to convict the President.

It is unlikely that US President Trump will be impeached. The reason for this view is that the Republicans control the Senate, which means that a number of Republicans would have to turn on Trump and their own party to impeach the President. This suggests that the impeachment process is likely to run for an extended period of time.

What is the market reaction?

Investors could expect markets to remain neutral to impeachment proceedings moving into the future. A few political and market commentators have mentioned that impeachment proceedings might put the US – China trade war on the back burner for a number of weeks, which is a positive for markets around the world.

Updates on the US – China trade war

US President Trump has presented an optimistic view on the US – China trade war. On Thursday (AEST) US President Trump said that

a deal to end a nearly 15-month trade war with China could happen sooner than people think and that the Chinese were making big agricultural purchases from the United States, including of beef and pork. In addition, they want to make a deal very badly... It could happen sooner than you think.

This is a positive sign for markets around the world if the US and China can come to a trade agreement.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action