U.S. and Britain discuss trade deal that could take effect on Nov. 1

© Reuters. U.S. National Security Advisor John Bolton arrives for a meeting with Britain's Chancellor of the Exchequer Sajid Javid  at Downing Street in London © Reuters. U.S. National Security Advisor John Bolton arrives for a meeting with Britain’s Chancellor of the Exchequer Sajid Javid at Downing Street in London

LONDON (Reuters) – Britain and the United States are discussing a partial trade accord that could take effect on Nov. 1, the day after Britain is due to leave the European Union, a senior Trump administration official said on Tuesday.

The official also said visiting U.S. national security adviser John Bolton and British trade minister Liz Truss had discussed the possibility of the two countries’ leaders signing a road map declaration toward a trade deal at this month’s G7 summit meeting in France.

The official told reporters that Bolton and British finance minister Sajid Javid had discussed the possibility of a temporary trade agreement that covered all sectors and could last for something like six months.

During his two-day London visit, Bolton told British Prime Minister Boris Johnson that President Donald Trump wanted to see a successful British exit from the European Union on Oct. 31 and that Washington would be ready to work fast on a U.S.-UK free trade agreement.

Bolton, who has now left Britain, was seeking an improved U.S.-British relationship with Johnson after sometimes tense ties between Trump and Johnson’s predecessor, Theresa May.

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Forex – U.S. Dollar Dips as Trump Says No Deal to Huawei 

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell slightly on Friday after U.S. President Donald Trump said America will cut all ties with Chinese tech company Huawei in a signal that the tit-for-tat trade war is unlikely to end anytime soon.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 97.417 by 10:48 AM ET (14:48 GMT).

The news came after Beijing halted its purchases of U.S. farming goods on Monday. Trade tensions escalated this week after the U.S. officially declared China a currency manipulator and China allowed the yuan to weaken to below 7 to the dollar.

In additions, Huawei was blacklisted in May for national security concerns, which prevented American companies from doing business with the tech giant.

The Japanese yen, which is seen as a safe-haven in times of market turmoil, rose with down 0.4% to 105.59.

The euro inched up slightly, held back by political uncertainty in Italy after Deputy Prime Minister Matteo Salvini called for a vote of no confidence in the governing coalition, which could lead to snap elections. rose 0.2% to 1.1198.

Meanwhile fell 0.5% to 1.2073 after second-quarter GDP fell 0.2%, increasing recession fears on the back of Brexit uncertainty.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Pentagon: Major Amazon or Microsoft Jedi deal delayed

The Pentagon has signalled a delay to a decision on whether to award a lucrative cloud-computing contract to Amazon or Microsoft.

The two companies are the last ones in the running to provide artificial intelligence-based analysis and host classified military secrets among other services over a 10-year period.

The deal could be worth more than $ 10bn (£8.2bn).

The delay follows concerns raised by President Donald Trump last month.

He told reporters: “I’m getting tremendous complaints about the contract with the Pentagon and with Amazon.”

The president added that Oracle and IBM – two companies previously knocked out of the bidding process – had been among those raising concerns.

And he said he intended to ask for the matter to be looked at “very closely” – despite the fact that the president’s former spokeswoman, Sarah Sanders, had said in 2018 that he was “not involved in the process”.

Last month, Republican Senator Marco Rubio also claimed the Department of Defense (DoD) had used “arbitrary criteria” to narrow down the field, which he said could “result in wasted taxpayer dollars”.

Mr Rubio had previously benefited from millions of dollars-worth of campaign support from Oracle’s chief Larry Ellison.

The contract was initially due to be awarded before the end of this month, and in a statement to the Politico news site. a DoD spokeswoman did not provide specifics about why the new Defense Secretary – who was appointed on 23 July – had decided to review the process.

“Secretary Esper is committed to ensuring our warfighters have the best capabilities, including artificial intelligence, to remain the most lethal force in the world, while safeguarding taxpayer dollars,” she said.

“Keeping his promise to members of Congress and the American public, Secretary Esper is looking at the Joint Enterprise Defense Infrastructure (Jedi) programme. No decision will be made on the programme until he has completed his examination.”

Dr Esper was previously the US Secretary of the Army, so would have been familiar with the Jedi contract before taking on the new role.

The DoD had previously signalled that it might also consider Google as a third alternative.

But the search giant dropped out of the process in October, saying that it “couldn’t be assured that [the work] would align with our AI principles”.

Neither Amazon nor Microsoft has commented.

Big money

As the world’s biggest provider of cloud-computing services, Amazon had been the favourite to win Jedi.

The company’s Amazon Web Services division secured a contract with the CIA in 2013 to allow the spy agency to offload work to its computer servers.

That success helped it gain other public-sector work and it now says that more than 2,000 government agencies use its cloud technologies.

Microsoft’s Azure division also provides cloud services to the US intelligence community, and it is the favourite to win a second Pentagon cloud-computing contract out for tender.

The Defense Enterprise Office Solutions (Deos) contract involves providing email, calendar, video-calling and other productivity tools to the US military and is expected to be worth about $ 8bn.

There had been speculation that the DoD might not want to award both Deos and Jedi to the same provider to avoid becoming over-reliant on a single company.

Complicated relationships

President Trump has repeatedly criticised Amazon and its chief, Jeff Bezos, in the past.

Mr Bezos has acknowledged that his ownership of the Washington Post – which is often critical of the current administration – has been a “complexifier”, but has said that the president is wrong to consider him an “enemy”.

Mr Bezos has, however, been clear that he believes Amazon should provide services to the US authorities, even if its causes controversy.

This has included supplying facial-recognition technologies to the police as well as pursuing the Jedi contract.

“If big tech companies are going to turn their back on US Department of Defense, this country is going to be in trouble,” Mr Bezos told a conference in October 2018, following Google’s pull-out.

One factor that could act in Mr Bezos’s favour is that he has resisted pressure from some of Amazon’s own employees to drop the surveillance software firm Palantir as a client of Amazon Web Services because of its reported links to the US Immigration and Customs Enforcement agency.

Palantir’s co-founder is Peter Thiel – a billionaire tech investor who advises President Trump.

Mr Thiel has previously complimented both Mr Bezos and Amazon’s impact on the wider tech sector in public comments.

However, his view on Jedi is unknown.

Bloomberg reported last month that Mr Thiel met Mr Trump and Oracle’s co-chief executive, Safra Catz, at the White House last year when Oracle was still seen as a contender.

The news agency said the possibility of Amazon winning the Jedi contract was one topic discussed, but did not report the detail of what was said.

A a spokeswoman for Oracle told the BBC: “Thank you for reaching out. We decline comment.”

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US House has passed the debt-limit raising and budget deal – off to the Senate now

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Chinese envoy says Syngenta takeover was a bad deal: report

© Reuters. Syngenta logo is seen at its China headquarters in Beijing © Reuters. Syngenta logo is seen at its China headquarters in Beijing

ZURICH (Reuters) – Beijing’s ambassador to Switzerland said ChemChina’s $ 43 billion takeover of seed and agrochemicals firm Syngenta was a mistake, adding he would have tried to stop the 2017 deal had he been in Bern at the time, a newspaper reported in an interview on Saturday.

“If I had been the ambassador a year earlier, the takeover wouldn’t have taken place,” Gen Wenbin was quoted as telling the Tages-Anzeiger newspaper, without giving specific reasons for his opposition to the deal.

“It wasn’t a good deal for the Chinese side. It was for Switzerland: It got $ 40 billion. If Switzerland wants Syngenta back, I would convince ChemChina to sell it. But is there anybody at all in Switzerland who wants Syngenta back?”

Basel-based Syngenta was listed on the SIX Swiss Stock exchange when it was bought by ChemChina, so shareholders received the money from the deal that closed in 2017.

After the takeover spurred debate over foreign countries expanding in Switzerland, Swiss politicians are debating a measure in parliament that could require government approval of sales of Swiss companies to foreign entities.

Other big Chinese investments in Swiss companies include HNA Group’s purchase of airline caterer Gategroup and ground services and cargo handling firm Swissport.

Gen Wenbin said criticism in Switzerland’s media over such transactions had driven potential Chinese investors to look elsewhere.

“They’re going to Germany,” the ambassador told the daily newspaper.

Syngenta did not return a phone call and email seeking comment on Saturday. No one could immediately be reached to comment at the Chinese embassy.

The former Swiss firm is targeting growth through acquisitions in the $ 17 billion Chinese seed market, where access is restricted for foreign players, as well as new products and collaborations in technology.

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Mexican Senate commissions pass draft law to ratify trade deal

© Reuters. FILE PHOTO: Mexico's Senator Ricardo Monreal speaks during the delivery of the United States-Mexico-Canada Agreement (USMCA) deal, at the Senate building in Mexico City © Reuters. FILE PHOTO: Mexico’s Senator Ricardo Monreal speaks during the delivery of the United States-Mexico-Canada Agreement (USMCA) deal, at the Senate building in Mexico City

MEXICO CITY (Reuters) – Several commissions in Mexico’s Senate on Friday approved a draft law that would ratify the trade deal with the United States and Canada meant to replace the North America Free Trade Agreement, the Senate said in a statement.

The law to create the United States-Mexico-Canada Agreement, or USMCA, is slated to be voted on in the full Senate on Tuesday.

In the United States, President Donald Trump’s administration has been pushing Congress to speed up a vote on the agreement, but the Democratic-led House of Representatives has sought more time to review the deal.

“We will have a trade deal signed and ratified this very June,” said Ricardo Monreal, the Senate leader of the MORENA party, in the Senate’s statement. “No fine print, nor negotiations or deals done in the dark between Mexico and the United States.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Mexican peso jumps on U.S.-Mexico deal, yuan dips to 2019 lows

© Reuters. FILE PHOTO: Bundles of Mexican Peso banknotes are pictured at a currency exchange shop in Ciudad Juarez © Reuters. FILE PHOTO: Bundles of Mexican Peso banknotes are pictured at a currency exchange shop in Ciudad Juarez

By Daniel Leussink

TOKYO (Reuters) – The Mexican peso jumped against the dollar on Monday after the United States and Mexico struck a migration deal late last week to avert a tariff war, providing some much-needed relief to fragile market sentiment.

Over the past year, trade disputes between the United States and its trading partners, including a long-running conflict with China, have slowed global growth and unsettled financial markets.

China’s exports unexpectedly returned to growth in May despite higher U.S. tariffs, data showed on Monday, but many suspected the rise was due to firms front-loading shipments to avoid higher U.S. tariffs. Fears of a longer U.S.-China trade war continued to persist.

The figures showed imports in May dropped 8.5% from a year earlier, a much worse than expected outcome that signaled weak domestic consumption and weighed on the yuan.

The Mexican peso rose 2% to 19.2275 pesos per dollar after trading resumed for the first time after Mexico agreed on Friday to expand along the entire border a program that sends migrants seeking asylum in the United States to Mexico.

U.S. President Donald Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday if Mexico did not commit to do more to tighten its borders.

“We all knew that Donald Trump was unpredictable, but this was taking it to a whole new level,” said Chris Weston, Melbourne-based head of research at foreign exchange brokerage Pepperstone.

“This was political, it was social. It meant that financial markets had to wear a higher risk premium.”

Futures for the were last up 0.2%. Benchmark 10-year Treasury yields jumped back 3 basis points to 2.114% after hitting a 21-month low of 2.053% on Friday after soft U.S. jobs data.

Against the safe-haven yen, the dollar gained 0.25% to 108.475 yen. The yen gained in late May on the deteriorating global trade outlook as the currency tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation.

Bart Wakabayashi, Tokyo branch manager at State Street (NYSE:) Bank, said the lift to sentiment from the U.S.-Mexico deal would “probably spill over to optimism with China and hopefully some progress there.”

“We’ve had trade talks with the EU, with Japan. Hopefully these will start to turn to the positive narrative which should see further dollar weakness in the yen,” he said.

Still, the dollar’s gains were checked by rising expectations the Federal Reserve will cut interest rates during the second half of the year.

Those views were bolstered on Friday when data showed nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll, suggesting the loss of momentum in economic activity was spreading to the labor market.

Fed funds rate futures are still pricing in more than two 25-basis-point rate hikes by the end of this year even after their retreat early on Monday after the U.S.-Mexico migration deal.

“The market is saying it is not a question of if, it is a question of when, and to what extent, we’re going to get a rate cut for this year,” said Pepperstone’s Weston.

Against a basket of six peers, the dollar rose 0.2% to 96.750, recovering slightly after ending with a 1.2% loss last week, its worst weekly performance since the week of Feb. 16, 2018.

Group of 20 finance leaders said on Sunday that trade and geopolitical tensions have “intensified”, raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict.

Elsewhere, the was last down about 0.3% at 6.9336 per dollar in onshore trade after briefly brushing its lowest since late November in the wake of the weak import data.

The Australian dollar slipped 0.4% to $ 0.6973, giving up some of last week’s gains, when it rose 0.9%.

The euro dipped nearly 0.2% to $ 1.1313, retreating from an 11-week high of $ 1.1348 touched on Friday.

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Trump says deal reached with Mexico – tariffs indefinitely suspended

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

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Boris Johnson: I don’t want a no deal Brexit but we must get ready for it

Johnson commits to leaving EU on October 31

Johnson commits to leaving EU on October 31

Boris Johnson is speaking to about 100 MPs and reiterating many of the things he has said before, including a promise to leave the EU by October 31.

“We are facing an existential crisis and will not be forgiven if we do not deliver Brexit on Oct 31. I believe I am best placed to lift this party, beat Jeremy Corbyn and excite people about conservatism and conservative values.”

“I don’t want a no deal Brexit. No one sensible would. But in order to be successful we must get ready for it. The more determined we are to pursue no deal the less likely we will have to deploy it.”

This is a pie-in-the-sky stance because I don’t believe the EU will reopen negotiations. There is no solution to the Irish border issue. Maybe he could finagle some changes in the political declaration but that isn’t going to fool anyone.

So this stance might make him PM but it’s going to be a quick downfall, especially if he’s forced to make leaving on Oct 31 a cornerstone of his policy.

How I imagine it will work is that he will let the government fall on Brexit and force an election call where he hopes to get a large Conservative majority. That’s the only way a Brexit is viable so long as parliament has the final say.

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Canada moves to ratify North American trade deal ahead of visit by U.S. vice president

© Reuters. Macron and Ardern launch 'Christchurch Appeal' against terrorism in Paris © Reuters. Macron and Ardern launch ‘Christchurch Appeal’ against terrorism in Paris

By Kelsey Johnson

OTTAWA (Reuters) – The Canadian government formally presented draft legislation to ratify the new North American Trade deal to parliament on Wednesday, less than 24 hours ahead of a visit by U.S. Vice President Mike Pence.

Prime Minister Justin Trudeau presented the bill to the House of Commons, confirming a Reuters story from Tuesday that said the legislation would officially be offered up to parliament on Wednesday.

Canada, Mexico and the United States signed the United States-Mexico-Canada Agreement (USMCA) in November 2018.

However, the deal, which would replace the existing North American Free Trade Agreement (NAFTA), has yet to be ratified by any of the three countries.

“The new NAFTA will secure access to a trading zone that accounts for more than a quarter of the global economy,” Trudeau said. “It is now time for the members of this House to ratify it.”

Foreign Minister Chrystia Freeland has said Canada will press ahead with its ratification plans, in tandem with the United States.

With Canadian voters set to head to the polls in October for a national election and the U.S. presidential election in 2020, time is running short.

Pence is scheduled to meet with Trudeau on Thursday to discuss USMCA ratification and other issues. It marks the first time the vice president has traveled to Canada in an official capacity.

His visit also comes after the United States agreed to remove tariffs on Canadian and Mexican steel and aluminum products earlier this month, ending a year-long dispute.

Canadian officials had said Canada probably would not pass the pending trade pact until the tariffs had been lifted.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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