U.S. and China move closer to trade deal despite harsh rhetoric

Jenny Leonard and Shuping Niu for Bloomberg:

The U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal despite tensions over Hong Kong and Xinjiang, people familiar with the talks said.

The people, who asked not to be identified, said that U.S. President Donald Trump’s comments Tuesday downplaying the urgency of a deal shouldn’t be understood to mean the talks were stalling, as he was speaking off the cuff. Recent U.S. legislation seeking to sanction Chinese officials over human-rights issues in Hong Kong and Xinjiang are unlikely to impact the talks, one person familiar with Beijing’s thinking said.

U.S. negotiators expect a phase-one deal with China to be completed before American tariffs are set to rise on Dec. 15, the people said.

MacDailyNews Take: This is good news. Just a few minutes ago, President Trump commented positively on to possibility of a “Phase One” U.S.-China trade deal in a live press conference with German chancellor Angela Merkel at the NATO meeting (see video below) and CNBC is now reporting, “Around 8:30 a.m. ET, Dow Jones Industrial Average futures were up 134 points, indicating a gain of 124.19 points at the open. S&P 500 and Nasdaq 100 futures also pointed to sharp gains to start off the session… Shares of chipmakers and Apple gained in premarket trading Wednesday, although the gains were muted as investors were cautious about the new report. Apple was up 0.7% in the premarket.”

President Trump and Angela Merkel live press conference (starts at 1:12:18):

11 Comments

    1. That’s probably not ever to be likely because Don doesn’t really know the who/what/where of a tweet until a moment or two before “enter” is pressed.

      But, yes…if someone knew…

  1. On Fast Money the other week, three of the analysts thought is was suspicious how it appeared the market was being played, and mentioned specifically three VERY large orders that went in at the close of business over a four week period that were perfectly timed prior to the following day’s announcements of “a deal with China was imminent,” and “there was no chance of a deal with China.” All three of the regulars thought it should be investigated.

    I haven’t heard of any complaints since then but if anyone knew anyone… who might know anyone… who worked with someone… who had a good chance of knowing what was going to be mentioned about trading with China, they and their colleagues could make a killing… and be hard to trace.

  2. “[Administration Insiders]…said that U.S. President Donald Trump’s comments Tuesday downplaying the urgency of a deal shouldn’t be understood to mean the talks were stalling, as he was speaking off the cuff.”

    In other words, you cannot believe a darn thing that Trump says or tweets. And the GOP faithful have the gall to tell us that we shouldn’t worry about that because, of course, everyone is unfair to Trump unless they are issuing compliments.

    Once we get past the ongoing GOP smokescreen of complicity, this will be generally regarded as one of the worst and most corrupt Administrations in American history. By “generally,” I mean about 65% of the American electorate and about 95% of the people with the ability to think independently.

    1. “In other words, you cannot believe a darn thing that Trump says or tweets. And the GOP faithful have the gall to tell us that we shouldn’t worry…”

      That is is your leftist interpretation and certainly you are entitled to it and a snide side dish served cold.

      The independent faithful, that would be me, “and the GOP faithful” probably would not waste time telling liberals that worry about everything and get into everyone’s face — to STOP. It’s much easier to cure cancer.

      Personally, I don’t worry about the upcoming landslide election and no gall required, drama king…

  3. KingMel…on the Throne again I see. “95% of the people with the ability….” Of course you’re safety ensconced in that self-defined group with the refined “ability” you name? I guess the 5% are the “deplorables” the “D” matriarch called out?

    I won’t get into the “complicity” comment specifically, but for equity, is there any bother concerning smokescreen the D’s have held up in the Intelligence Comm. hearings? Perhaps that kind of opaqueness is ok because it serves your position?

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