US to make 16 billion dollars aid to farmers- WSJ

The US Government has rolled out a 16 billion dollars aid package for the US agriculture sector to offset the losses from the trade conflict with China. According to Wall Street Journal the commodity prices have sank to the lowest level in more than 10 years while the expectation is that the trade conflict will hinder the agritrade between the countries.

According to WSJ this program is similar to the aid initiative in 2018 which was about 12 billion dollars founding for farmers. This initiative is about direct aid to farmers.

The S&P GSCI Agricultural Commodities index was trading today up 0,06 % to 274,30 points. During one year time the index has dropped by 18,59 % and 5-years time by 13,40 %.

Soybeans are the biggest product crop to be exported to China. Before the conflict the US shipped 10 billion – 12 billion dollars of soybeans to China a year, writes the WSJ.

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Mnuchin: US close to resolve steel tariffs – WSJ

According to US Treasury Secretary Steven Mnuchin, the US is close to an understanding with resolving the steel and aluminium tariffs with Mexico and Canada.

Wall Street Journal also reported that according to Mnuchin the US negotiators are likely to travel to Beijing soon to continue the negotiations with China. The goal is to have “free and fair trade” policy with China.

According to Bloomberg, the US President Donald Trump is considering to delay the auto tariffs up to six months in order to avoid the time overlaps with the EU and Japan. The auto industry is vital for the US trade balance, while it is estimated that the half of the US trade deficit comes from automotive.

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Trump and Xi to meet in Japan in June

The US President Donald Trump and his Chinese colleague President Xi Jinping are meeting in Japan in the G20 meeting in June. According to Reuters, the White House economic adviser Larry Kudlow confirmed the meeting on Fox News Sunday.

The trade situation with the both countries have been stable after the news that the US raised the tariffs on Friday and threatened to put tariffs on all goods from China if there is no deal. The new deadline is agreed to be one month long according to Bloomberg News.

The G20 meeting will be held in for the first time in Japan. The G20 leaders will meet on the 28th and 29th of June in Osaka.Also the Finance Ministers and Central Banks Governors meeting and the Foreign Ministers’ meeting will also be at the same time in Japan, but in different locations.

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China asks US to meet halfway in trade talks

China has asked the US to meet in halfway in order to salvage the countries trade deal. According to Reuters, the Chinese government spokesperson from the Commerce Ministry,  Mr. Geo Fend told media representatives about their proposal in Beijing today.

– The US side has given many labels recently, backtracking. China sets great store on trustworthiness and keeps its promises and this has never changed, he told today and said that China has asked the US to meet in halfway.

The US has said it will rise tariffs related to chemicals, building materials, furnitures and consumer electronics, if the trade negotiations fail. The new tariffs would come into effect on Friday at 12.01 am (0401 GMT) if not agreed before. The tariffs would concern around 200 billion dollars worth of Chinese goods.

The global stock markets have declined because of the situation and it is widely expected that the sell-off will continue in risk assets tomorrow if there is no agreement or settlement.

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Stock markets decline before the Friday deadline in trade tariffs

The global stock markets were on sell-side and declined before the approaching deadline of the  US-China trade tariffs on Friday. The Wall Street opened by over 1 % decline today. Dow Jones was down 1,22 % to 25 649 points, S&P 500 index was down 1,13 % to 2847 points and technology index Nasdaq down 1,46 % to 7827 points.

In Europe the FTSE 100 index was down 0,65 % to 7223 points in London, the CAC 40-index was down 1,63 % to 5239 points in France and German DAX index down 1,30 % to 12021 points.

The euro was trading  at 1,11 dollars, the dollar was trading at 112 yens and sterling at 1,29 dollars. The yen climbed somewhat against dollar while the investors sought heavens before the Friday deadline.

According to Bloomberg News, the US trade deficit with China decreased to 28,3 billion dollars in March. If the trade talks fall, the US is said to lift the tariffs of Chinese goods valued 200 billion dollars to 25 % from 10 %.

Friday is also the IPO day for the US ride-hailing company Uber. It is expected that the listing the company is one of the biggest tech IPOs since Facebook and the company value is estimated to be around 90 billion dollars.

 

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Asian stocks mixed over trade war concerns

Asian stocks were mixed on Tuesday trading over the accelerating US China trade talks. According to Bloomberg the main reason for this was the comment that the US would proceed with the trade threats on next Friday.

Hong Kong Hang Seng index was up 0,45 % to 29341 points but the Japanese Nikkei index was down 0,77 % to 22087 points.S&P Asia 200 index was up 0,75 % to 6330 points, while the MSCI Asia Pacific was down 1,15 % to 161 points.

 

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Stocks lower after Trump’s trade comments

Global stocks were lower on Monday due to the comments from the US President Donald Trump. He said, that the US could consider raise tariffs on 200 billion dollars worth of Chinese goods. It would mean that the tariffs would increase from 10 % to 25 % on Friday. And also that new tariffs, worth of 325 billion dollars of Chinese goods, would be placed as well.

The US China trade talks are still expected to continue this month and according to Reuters the negotiators are expected to meet during this week.

The Asian Stock Exchanges were hit on Monday by 3-5% plunge. In Shanghai the stocks ended down 5,5 % and in Hong Kong the slide was 2,9 %.

In Europe the German DAX index ended down 1,01 % to 12 286 points and the France CAC index ended down 1,18 % to 5483 points. In London the FTSE ended up 0,40% to 7340 points.

In Wall Street the trend was not that dramatic while the Dow Jones was down 0,66 % to 26330 points and Nasdaq -0,86 % to 8094 points. S&P 500 was also trading down 0,85 % to 2920 points.

The British sterling was trading down 0,50 % to 1,31 dollars.

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