US-China trade talks to continue this week

ChinaEmbassyHelsinkiApril2019

The US – China trade talks are to continue this week. Although there have been different opinions of the timetable and the level of the negotiations, there are positive comments about the situation.

Accordign to the South China Morning Post, both countries said last week that progress was made in the talks, although the White House commented that there is a lot of  work to be done still. President Donald Trump called the deal to be an epic and historic if it happens.

There has been an estimate of the 4 week extenstion to the negotiations, but China has not commented the timetable.

Today on Tuesday the US President Donald Trump commented the trade negotiations with the EU and said that the US will propose 11 billion  dollars worth of tariffs on production from the EU.

The reason for this is that the World Trade Organization (WTO) has found that the subsidies to Airbus have impacted the US trade. According to the administration the tariffs would affect for example civilian aircraft and agricultural goods (including the French cheese and Italian olive oil).

The China International Expo is also having its roadshow in Europe at the same time. Today the roadshow was in Helsinki. The 2nd China International Import Expo Business Exhibition will be in Shanghai in November this year.

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US-China trade talks to continue next week

The US- China trade talks are to continue next week. The agenda topics include for example technology patents and IPrights. These talks, which have been in the headlines during this year, are closely followed by major industries due to the proposed tariffs.

Chinese Vice Premier Liu He has met with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday in Washington. There has been speculation of the trade deal in the next 4-6 weeks and the new Trade Summit around it.

 

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Brexit: UK Goverment accepted citizen rights – Merkel and Macron in Paris

The UK Goverment has accepted the citizen rights in the Brexit depate in the Parliament today evening. According to Reuters, UK will turn to European Union to try to secure citizen´s rights if there will be no-deal Brexit.

“I’m happy to confirm … that we will write to the EU institutions and that this will be done in the coming days,” Brexit minister Stephen Barclay said according to Reuters.

The question of delaying the Brexit has got support from Germany and France. The German Chancellor Angela Merkel and the French President Emmanuel Macron commented the Brexit-situation in Paris today.

Both countries would give more time if needed, but the message from President Macron was that there need to be choices taken in order to extend the timeframe.

The German and France leaders were having trade talks in Paris and the countries agreed to present  Bryssels a new industrialstrategy with China. They also talked about the EU army, which the countries have different approaches at the moment.

The German Chancellor Angela Merkel pointed out, that the EU countries must have a clear and unite exports strategy regarding the army products, while at the moment they have different views for example regarding Saudi Arabia.

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China´s Xi Jinping: Focus on stable development

Chinese President Xi Jinping said that the country need to focus on stable economic and financial development according to news agency Xinhua on Saturday.

– It is necessary to focus on preventing risks on the basis of steady growth, while strengthening the countercyclical adjustment of fiscal policy and monetary policy and ensuring that the ecnomomy operates in a reasonable range, Xi said.

According to President Xi, preventing and resolving financial risks, especially systemic financial risks, is a fundamental task, the Xinhua reported.

One of the biggest issues lately has also been the US China trade talks. According to Reuters, the country negotiators met also on Saturday to reach the agreement and trying to prevent the escalation of the trade tariffs.

According to US President Donald Trump and US Treasury Secretary Steven Mnuchin the countries have reached an understanding of the currency issues. The US have argued long time that China´s yuan is undervalued and thus giving trade advantage and partly offsetting the US tariffs. No more information was given about the currency agreement.

It is expected that the President Xi Jinping and Donald Trump would meet next time in March in Florida.

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Stocks ended up – positive trade talks

Financial markets ended up for the week in Wall Street. Dow Jones index was up 1,74 % to 25883 points, S&P 500 -index 1,09 % to 2775 points and Nasdaq-index 0,61 % to 7472 points.

For the Friday trading, the positive outlook for the US-China trade talks help lifted the markets as well as the good US consumer outlook. On the other hand, the national emergency regarding the financing of the border wall between US-Mexico did not have any bigger impact.

In Europe the Brexit-discussion continued and according to Bloomberg News, the Irish Foreign Minister Simon Coveney had said that the EU will offer a package to help the UK PM Theresa May to get the deal but would not accept “unreasonable British demands”. In the industry, the car manufacturer Porsche (PAH3) said that it is possible that a hard Brexit might lift the UK car prices by 10 %. The Brexit talks will continue next week.

In London, the FTSE index was up 0,55 % to 7236 points and in Germany the DAX-index was up 1,99% to 11299 points and in France ended up 1,79 % to 5153 points. During one month, the Dax has gained 3,75 % , CAC 5,69 % and FTSE 3,85%.

In Asia, the Nikkei-index was down 1,13 % to 20900 points and in HongKong the HangSeng index was also down 1,87% to 27900 points.

In the forex markets, the euro was trading quite flat at 1,129 dollars, but the UK sterling was up 0,67% to 1,288 dollars.

The Stock Exchanges will be closed on Monday in the US due to the President´s Day.

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Brexit: Defeat today in the UK – markets mixed

New Brexit-defeat was today in the UK Parliament, when the MPs voted by 303-258 to reject the UK Goverment´s motion. This means that the Parliament has voted no to the Goverment´s plan to renegotiate the Irish border backstop.

The UK is planning to leave the EU on the 29th March 2019 and the next EU leaders summit will be on the 21st March. It was planned that UK PM Theresa May would  have tried to renegotiate the Irish Border issue with the EU collaques before the EU Summit. According to Prime Minister´s office, the target is still the same, to get a new agreement regarding the backstop.

In the City of London, the FTSE- index was quite stable and gained 0,09% to 7197 points. In Germany, the DAX-index declined by 0,69 % to 11 089 points and in France the CAC40 -index lost 0,23 % to 5062 points.

In Wall Street the financial markets were mixed, while the Dow Jones as down 0,13 % to 25511 points and S&P 500 -index -0,09 % to 2750 points. The Nasdaq was up 0,24 % to 7438 points.

In Asia the stocks ended by 0,23 % decline in HongKong and HangSeng- index was 28 432 points. In Tokyo the Nikkei-index ended down 0,02 % to 21139 points.

According to Bloomberg, the US President Donald Trump is ready to sign a compromise spending legislation that would avoid goverment shutdown and on the other hand would get funding for a border wall. The US-China trade talks are going “very well” and goverment spokesman said that the US President is considering delaying the possible tariffs by 60 days to get the deal done.

The trade negotiations have been led by the US Treasury Secretary Steven Mnuchin and his Chinese collaque Vice Premier Liu He.

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Wall Street slightly mixed – trade talks to continue

The financial markets were slightly mixed in Wall Street on Friday. The US-China trade talks made  progress and president Donald Trump made a statement that the deal might be done by March 1st. Also the macrodata from US jobs lifted the markets.

Dow Jones -index ended up  0,26 % to 25063  points, the S&P 500 -index ended up 0,09 % to 2706 points and the Nasdaq-tech index ended down by 0,25 % to 7263 points for the week.

According to Xinhua News Agency, China agreed to buy more US goods, including agriculture products, but also the talks included some agreements about IP rights. The talks will continue in China for the next round in mid-February and the US-China Presidents´summit might take place before the March time according to Bloomberg. The Chinese markets will be closed during next week due to the New Year´s holidays.

In the UK, the Brexit situation with extending time period got new supporters. The UK Chancellor of the Exchequer Philip Hammond said that he excepts the delay of the exit-day if needed.

– If we do get the deal and we need a little bit more time to put all the legislation and so on in place then I’m sure everybody on both sides will take a reasonable approach to that,” Hammond said in an interview with ITV News according to Bloomberg.

The stocks in London ended up and FTSE 100 -index gained 0,69% to 3851 points. Also the markets in Germany and in France were positive and the CAC 40-index  ended up 0,51 % to 3911 points and the DAX-index 0,13 % to 11 180 points.

Oil gained nearly 3 % and a barrel was traded at 55,37 dollars. Energy sector was one of the leaders for the Friday trading.

Euro was trading quite firmly against dollar at 1,1456, up 0,07 %, but the UK sterling was down 0,23 % to 1,30 dollars.

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