President Xi's Brazil Trip Deemed "Too Soon" For 'Phase 1' Trade Deal Signing

The positive tone of trade-related leaks and jawboning last week has decidedly faded into uncertainty surrounding reports that Beijing is demanding larger reductions in tariffs before committing to the 'Phase 1' deal that Trump once described as practically finished.

And in the latest leak likely intended to undermine American markets, the SCMP reports that Chinese President Xi Jinping's planned trip to Brazil next week would likely come too early for him to sign the "Phase 1" trade deal. Analysts in recent days had speculated about the trip to an emerging-markets summit in Brasilia, with many hoping it might present an opportunity for Xi to stop over in the US and seal the deal, since Chile cancelled the APEC Summit that was supposed to host the deal-signing later this month.

Unfortunately, as we've learned in recent days, the two sides have yet to reach a consensus. And that probably won't happen until after President Xi has safely returned to Beijing. Perhaps just as disheartening for algos, the SCMP cited Chinese sources claiming Xi wouldn't agree to a meeting in the US, the latest indication that an agreement on a meeting location had become a serious side-issue in the negotiations. Reuters reported something similar earlier.Leaders from Brazil, Russia, India and South Africa are expected to attend the summit, which is set for November 13 and 14, alongside Xi.

Meanwhile, Chinese media are reporting that Beijing is demanding the removal of all American trade-war tariffs before agreeing to even a partial deal, a position that Washington has repeatedly rejected as a dealbreaker.

"The deal is not balanced yet," the person said, declining to be named because of the sensitivity of the issue.
"The US needs to give a more solid commitment to China on the tariff issue. At least the US should drop the December 15 tariffs or stop labelling China as a currency manipulator, to show dignity to China."

One media org said the removal of tariffs was Beijing's "innermost concern."

Was explained time and time again how Washington sees the tariffs as a critical enforcement mechanism. If there can be no agreement on this issue, then it's likely both sides with dig in for an extended trade war that could endure for years, and perhaps create unprecedented strains in the relationship between the world's two largest economies, and two most dominant military powers in the Pacific.

Commenti

Post popolari in questo blog

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast , Spotify or Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content ...

Continua a leggere

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial...

Continua a leggere

Another Paradox: Consumer Spending Expectations Surge, Despite Dismal Income, Earnings

Call it the latest economic paradox. Despite widespread stories of doom and gloom about the state of US consumer finances once the fiscal stimulus bill expires on Dec 31, the latest NY Fed survey of consumer expectations unexpectedly shows that US consumers have little intention of slowing down their spending. In fact, and very paradoxically, despite depressed and flat income and earnings growth expectations, with median one-year ahead expected earnings growth at 2.0% for fifth consecutive month and expected income growth barely little changed at 2.14% ... ... consumers' 1-year ahead spending growth expectations jumped to 3.73% over the next 12 months in November - the highest level in more than four years, not only up from the 3.06% in the previous month but a whopping 33% more than the 2.8% reported last November, making this the biggest Y/Y increase in expected spending in series history. This bizarre increase took place even as labor market signals were mixed: although t...

Continua a leggere

Faber News Flow

Cerca nel blog