In this file:

 

·         Goldman Sachs no longer expects US-China trade deal before 2020 election

·         US and China will not likely reach a trade deal this year, says former ambassador

 

 

Goldman Sachs no longer expects US-China trade deal before 2020 election

 

    On Monday, the U.S. Treasury accused Beijing of deliberately influencing the exchange rate between the yuan and the U.S. dollar to gain an “unfair competitive advantage in international trade.”

    The announcement followed a sharp drop in the yuan against the dollar, with the Chinese currency breaching the 7-per-dollar level for the first time since 2008.

    “While we had previously assumed that President Trump would see making a deal as more advantageous to his 2020 re-election prospects, we are now less confident that this is his view,” analysts at Goldman Sachs said.

 

Sam Meredith, CNBC

Aug 6 2019

 

Goldman Sachs no longer believes the world’s two largest economies will be able to resolve their long-running trade dispute before the U.S. presidential election next year.

 

It comes shortly after the U.S. officially designated China as a “currency manipulator, ” amid rapidly intensifying tensions between the two economic giants.

 

On Monday, the U.S. Treasury accused Beijing of deliberately influencing the exchange rate between the yuan and the U.S. dollar to gain an “unfair competitive advantage in international trade.”

 

The announcement followed a sharp drop in the yuan against the dollar, with the Chinese currency breaching the 7-per-dollar level for the first time since 2008.

 

Late last week, China promised to fight back after President Donald Trump vowed to impose 10% tariffs on $300 billion worth of Chinese imports.

 

Analysts at Goldman Sachs, led by Chief Economist Jan Hatzius, said in a research note published late Monday that they had anticipated this move.

 

“News since President Trump’s tariff announcement last Thursday indicates that U.S. and Chinese policymakers are taking a harder line, and we no longer expect a trade deal before the 2020 election.”

 

‘A trade deal now looks far off’ ...

 

Interest rates ...

 

more, including links 

https://www.cnbc.com/2019/08/06/trade-war-goldman-sachs-does-not-expect-us-china-deal-before-2020-election.html

 

 

US and China will not likely reach a trade deal this year, says former ambassador

 

·         There’s been “a deterioration in trust and communication” between Washington and Beijing, says Frank Lavin, U.S. ambassador to Singapore from 2001 to 2005.

·         After President Donald Trump’s threat to slap 10% tariff on $300 billion of Chinese goods, it’s unlikely that the U.S. and China will reach a trade deal this year, says Lavin.

 

Yen Nee Lee, CNBC

Aug 5 2019

 

The latest escalation in tensions between the U.S. and China has reduced the chances that both sides could reach a trade deal this year, a former American diplomat said on Monday.

 

Negotiations between Washington and Beijing appeared to be progressing well until U.S. President Donald Trump shocked markets in May by hiking tariffs from 10% to 25% on $200 billion of Chinese goods. Talks subsequently broke down and had resumed last week before Trump again threatened to slap 10% tariffs on $300 billion of Chinese goods starting Sept. 1.

 

Trump’s latest actions are “a step away from a solution,” said Frank Lavin, U.S. ambassador to Singapore from 2001 to 2005. He added that it’s “unlikely” both sides would reach a deal by the end of this year.

 

“This tariffs war has gone on for over a year, so you see a deterioration in environment, a deterioration in trust and communication,” Lavin, who’s now chief executive at business consultancy Export Now, told CNBC’s “Street Signs.”

 

Export Now is a company founded by Lavin to help consumer brands expand in China.

 

Since the trade war started last year, Washington has imposed 25% tariffs on $250 billion of U.S. imports from China. Beijing retaliated by slapping elevated levies on billions of dollars of American products that it buys.

 

In recent months, however, tensions between the two economic giants went beyond trade and into areas such as technology and security. In particular, the U.S. placed Huawei on a blacklist which made it more difficult for the Chinese tech giant to do business with American companies.

 

US presidential election ...

 

more, including links 

https://www.cnbc.com/2019/08/05/us-china-unlikely-to-reach-a-trade-deal-this-year-former-ambassador.html