Trump to meet Chinese top negotiator Liu on Friday

The US president Donald Trump will meet the top trade negotiator from China  in Washington on Friday.  According to his Twitter, he will meet Mr Liu He in the White House.

According to Bloomberg, last week the US Administration approved licenses for some American companies to sell tech goods to Huawei Technologies. And China agreed to buy more US agricultural products.

The latest US China trade news have lifted the stock markets and Dow Jones index is now trading up 0,62 %, S&P 500 -index up 0,60% and Nasdaq index up 0,64%. In London, the stocks were also up 0,38 %.

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Trump considers to ban Chinese listings on the US?

The US President Donald Trump is considering to ban the new listings on US exchanges and also to hinder the US pension funds to make investments in Chinese equities. The news send the US stock markets down while it is a sign of new tensions between the US and China trade talks, which should begin again in October.

The news about the topic and content were mixed in different media sources. For example according to Financial Times the sanctions would mean listings and financial investments between the countries. On the other hand, according to Reuters it was about how the Chinese companies could be delisted from the US markets.

The real content of the idea will maybe revealed later on, but the fact is that both ways would mean a dramatic change in the financial markets and its global functions. And some one could also consider if it would be possible anyhow. The financial markets regulations is not one-way street, but rather a highway or even a crossroad of high speed trains.

Big Chinese companies like Alibaba Group Holdings and JD.com both declined over 5 % after the news in New York. According to Reuters, there are 156 Chinese companies listed in Nasdaq and NYSE.

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Trump to delay China tariffs by two weeks

The US President Donald Trump has said the US will delay some Chinese tariffs related to 250 billion dollars in the beginning of October 1st.

– At the request of the Vice Premier of China, Liu He, and due to the fact that the People´s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased tariffs on 250 billion dollars worth of goods (25% to 30%) from October 1st to October 15th, he tweeted.

The US and China have also earlier agreed that they will start the trade negotiations again in October.

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US to tighten terror sanctions in the financial markets

The US is tightening terror sanctions in the financial markets. According to the Treasury Secretary Steven Mnuchin and the Secretary of State Mike Pompeo, the Trump Administration is tightening terror sanctions in the financial markets.

– The US is continuing to protect the US and the people from terrorist attacks. The Government has taken new actions related to terrorist organizations, regarding individuals and entities, in the financial markets, the Treasury Secretary Steven Mnuchin said today in the White House press conference.

The press conference was arranged due to the changes in the White House national security. According to the tweet by President Donald Trump he will name the new National Security Advisor next week while John Bolton resigned today.

 

 

 

 

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G7 Leaders underline the unity and positive spirit

The G7 Biarritz  statement underlines the unity and positive spirit of the ongoing debates. According to the final statement, the G7 is committed to open and fair world trade and to the stability of the global economy.

– The G7 wishes to overhaul the WTO to improve effectiveness with regard to intellectual property protection, to settle disputes more swiftly and to eliminate unfair trade practices, the statement said.

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The event was also about gender and environmental issues. They launched the Biarritz Partnership Gender Equality initiative for governments to join.

The leaders urged also  Multilateral Development Banks (MDBs) and other Development Finance Institutions (DFIs)

  • to build on existing efforts to promote transparency and accountability mechanisms
  • to support projects that respect international law and prevailing standards, including the rule of law, human and labour rights, gender equality, and environmental standards
  • and to avoid unjustified disparities in the treatment of companies in calls for tenders.

Regarding the climate change issues, the US President Donald Trump kept his earlier message same and underlined the importance of LNG energy as one of the major energy sources in the world.

-I’m not going to lose that wealth (LNG). I’m not going to lose it on dreams, on windmills, which frankly aren’t working too well,  he said in the media meeting.

The tone of voice related to trade deals and US -China trade was somewhat positive and according to Mr Trump he said that he has great respect on the Chinese President Xi.

According to Bloomberg, some analysts thought that the UK PM Boris Johnson had a good meeting with the other G7 leaders and this was a positive sign for the Brexit due to October 31st.

The financial markets turned to green and the New York closed clearly up. Dow Jones index closed up 1,07 %, S&P 500- index  1,11 % and technology Nasdaq- index 1,32 %.

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Trump: China is willing to make a deal

The US President Donald Trump said to media representatives that he believes China is willing to make a trade deal. He told media that if the trade war is to prolonged the US will benefit more from it. He was speaking in Morristown before boarding Air Force One on Thursday.

According to Wall Street Journal, President Trump has also asked White House advisers to analyse if the Danish owned Greenland would be for sale. The idea of buying the Danish governed island would be in the national security interest, while one of the US Air bases is located on the island.

The speculation of the idea has come into public while Mr Trump will be visiting Denmark during September. None of the parties have responded to a request for comment, the newspaper says.

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Stocks tumbled in NY – hit by trade war

The financial markets tumbled today globally as a response to the tightening trade war between the US and China trade. The global economy growth was the main concern in the markets while the Chinese currency, yuan decreased to its lowest levels in decade, to around 7 per dollar. Last week the US President Donald Trump informed about the new tariffs in the China trade.

Dow Jones index closed down 2,9 % to 25 717 points, the S&P 500 index closed down 2,99 % to 2844 points and the tech-Nasdaq index down 3,47 % to 7726 points. The gold and Japanese yen increased.

Apple (AAPL) closed down 5,23 % to 193,34 dollars, ride-hailing company Uber (UBER)closed down 3,34 % to 39,05 dollars, IBM (IBM) closed down 4,41 % to 140,76 dollars, Microsoft (MSFT) closed down 3,43 % to 132,21 dollars and Walmart down 3,27 % 105,82 dollars. Luxury company Ralph Lauren (RL) closed also down 3,19 % to 95,73 dollars. The electric car manufacturer Tesla (TSLA) closed down 2,57 % to 228,32 dollars.

According to Bloomberg market analyst, the trade war could hit US jobs as early as the next two months. This would also increase the global pressures for more rate cuts by the central banks in Europe and in the US. Last week the Fed lowered its fed funds by 25 basis points for the first time since the financial crisis.

In Europe the stocks were also down. In London the FTSE 100 index closed down 2,47 % to 7223 points, in Germany the DAX-index closed down 1,80% to 11 658 points and in France the CAC 40 -index closed down 2,19 % to 5241 points.

In Asia the Hang Seng closed down 2,85 % to 26151 points in Hong Kong and the Nikkei 225 index closed down 1,74 % to 20720 points.

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