By Jenny Leonard The US and China announced Friday that they reached a phase-one trade deal but provided little detail on what exactly will be part of the agreement. US Trade Representative Robert Lighthizer brought a print-out of the 86-page agreement to a briefing with reporters Friday afternoon as a “show-and-tell” to prove that it’s all done and written up. Lighthizer said it’s an important step forward for the two countries while acknowledging that a lot of big issues are outstanding and need to be addressed in future negotiations. Here’s what we do and don’t know: Tariffs As part of the deal, the US will halve its 15 per cent tariff on about $120 billion in Chinese goods. It will also suspend indefinitely planned duties that were set to take effect on Sunday that would have covered consumer favorites such as smartphones and laptops. That leaves roughly $250 billion taxed at 25 per cent and $120 billion that will be subject to a 7.5 per … [Read more...] about Phase-one China-US trade deal: what’s in and what’s missing?
DOHA: US Treasury Secretary Steven Mnuchin said on Saturday a "phase one" trade deal between the United States and China was "very good" for global economic growth, and added that the second phase could come in several steps. The United States and China cooled their trade war on Friday, announcing a "phase one" agreement that reduces some US tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods. Mnuchin said full details of the new deal, or a factsheet on "phase one", would come out later on Saturday or on Sunday after both sides do fact and language checks. "We expect it will be fully executed in January. And then we get to `phase two`," Mnuchin told the Doha Forum conference in Qatar. Live TV "The most important issue is - let's make sure we implement `phase one` with an enforceable agreement, which it is. And then we start negotiating `phase two`. "There is an important issue left in `phase two`. And … [Read more...] about Steven Mnuchin says US-China trade deal will boost global economy
The US-China trade deal, GST Council meet and a clear path for Brexit are some of the key factors that will guide Dalal Street this week. A major resolution through the IBC court that comes to finalisation may also cheer investors. Media reports on Friday suggested that ArcelorMittal is all set to take control of Essar Steel and has transferred around Rs 40,000 crore to the creditors. The minutes of the Reserve Bank of India’s MPC meet to be released this week will also give a deep insight on what it thinks about the state of the economy. Here are the key factors in details that may guide the market throughout the week: US China trade dealThe US agreed to a phase one of the trade deal with China on Friday, averting December 15 round of tariffs. The market would react to further details of the same. The deal reduces some US tariffs on Chinese goods while boosting Chinese purchases of American farm, energy and manufactured goods and addressing some US complaints about … [Read more...] about US-China trade deal, GST Council meet, RBI minutes to guide Dalal Street this week
China suspended additional tariffs on US products that had been due to kick in on Sunday, after Washington and Beijing announced a major thaw in their trade war Friday.China will suspend the planned addition of 10 percent and 5 percent tariffs on some US imports, and “continue to suspend additional tariffs on US-made autos and spare parts”, China’s finance ministry announced Sunday. The move follows US President Trump’s cancellation of new tariffs on Chinese products as part of a “phase one” trade deal.China’s commerce ministry said on Friday it had agreed with the US a mini-deal that includes a progressive rollback of tariffs and the protection of intellectual property rights.The two sides have yet to sign the agreement, which represents a major breakthrough in the 21-month standoff between the world’s two largest economies.In addition to existing tariffs, Trump had previously threatened to impose a 15 … [Read more...] about China suspends planned tariffs on US goods as part of ‘phase one’ trade deal
By Julian Lee There was an elephant in the room during the recent OPEC+ meeting: The record-breaking initial public offering of Saudi Arabia’s mammoth oil company Saudi Aramco occurring at exactly the same time. The coincidence meant that the output cuts agreed by OPEC and its allies were designed as much to bolster the share price of Saudi Arabian Oil Co., as they were to balance the oil market going into 2020. This will greatly complicate matters for Saudi Arabia when it finds itself having to impose discipline on fellow producers looking for ways to adhere to their targets without actually cutting production. The deal is much weaker than it looks. The headlines out of Vienna took markets by surprise. The group cut their collective output target by a further 500,000 barrels a day for the first quarter of 2020, taking the reduction from 2018 baselines to 1.7 million barrels a day. Saudi Arabia, the kingmaker in all oil matters, said it would reduce its own target by a further … [Read more...] about Opec+ deal isn’t worth the paper it’s written on