US-China trade talks to continue this week


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.

Business Finance

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: May will meet Juncker – markets still

The UK Prime Minister Theresa May will meet the European Commission president Jean-Claude Juncker on Wednesday in Brussels to have the final discussions regarding the Irish border-issue, backstop.

UK Cabinet´s plan is to get the revised Brexit-deal to the Parliament next week before the possible second vote on the 27th Feb. According to sources one option is to use technology in order to solve the border-issue as a longer-term issue.

In London the stocks declined 0,56 % to 7197 points by the FTSE 100 -index. In Germany the Dax-index gained 0,09 % to 11309 points and in France the CAC 40 -index declined slightly 0,16 % to 5160 points.

In Wall Street Tuesday was the week´s first trading day after the President´s Day on Monday  and Dow Jones increased 0,03 % to 25 891 points. The S&P 500 -index gained 0,15 % to 2779 points and Nasdaq 0,19 % to 7488 points.

The financial markets were waiting for more news related to US-China trade talks and regarding the March deadline for new tariffs. During this week is also more information expected from the Federal Reserve´s and European Central Bank´s meeting memos. On the other hand, the worsening of the economic growth outlook in China and some EU countries might impact that the central banks are forced to revised their monetary policies during the first half of this year.

Euro was trading at 1,138 dollars, down by 0,03 % and UK Sterling was down also by 0,02 % and was 1,306 dollars. Brent Crude was up 0,03 % to 66,52 dollars per barrel.

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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.

Business Finance

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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Brexit: No more time – new backstop?

After UK Brexit votes  this week, the situation with the UK- EU is still the same. No new news  – this means that solution is not ready yet. The UK Parliament agreed that the deal could be done if the Irish border issue, the backstop, would have a new approach. What that would be, is still unclear and the EU has said  on Wednesday that there would be no new agreements.

The UK Parliament voted that no new timeline was given, which means that the March 29th exit-day is still valid. Prime Minister Theresa May was granted a mandate to negotiate with the EU collaques about the Irish border issue. According to news agencies, she is not travelling to Brussels this week any more.

The UK Parliament is having the Brexit-vote on Valentine´s Day, the February 14th and according to Bloomberg, some EU diplomats are expecting to have the EU summit about the Brexit on the March 21-22.

The financial markets have seen increasing prices in spite of the turbulence in this Brexit-matter. For example in London the FTSE 100 -index ended up 1,58 % to 6941 points, but also the Wall Street increased to new level due to the news that the Federal Reserve will be “patient” with the future interest-rates moves. The Feds Funds Rate is now at 2,25 – 2,50 percent and the Fed is still having the 2 percent inflation target.

Dow Jones was up 1,61 % to 24976 points, the S&P 500-index was up 1,51 % to 2679 points and technology-index Nasdaq was up 2,01 % to 7169 points.

The US-China tradetalks are having a new chapter when the Chinese economic advisor, Vice Premier Liu He is meeting with the US Treasury Secretary Steven Mnuchin today and tomorrow.

In Asia, the stockmarkets were mixed while the HangSeng increased by 0,40 % to 27642 points and the Nikkei-index in Tokio decreased by 0,52 % to 20 556 points.




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