M&G's Calich: Trump's relationship with China is more important than Mexico

Threat of trade wars

M&G emerging market debt manager Claudia Calich believes US President Donald Trump's dealings with China could be "more impactful" for investors than his tempestuous relationship with Mexico.

Calich (pictured), who runs the £340m M&G Emerging Markets Bond fund, said she was hopeful Trump would opt to retain the status quo of the previous Obama administration. But since being elected US President last November, Trump has stepped into sensitive territory on issues such as the South China Sea dispute, currency manipulation of the yuan and withdrawal from the Trans-Pacific Partnership.  There are now fears he could antagonise Chinese President Xi Jinping and raise the risk of a trade war between the two nations. Trump has already threatened to impose high tariffs on Chinese go...