Weekend – Trump says had a ‘good talk’ with China’s Xi. China says US interfering

US President Trump tweeted 

US President Trump tweeted 

Which fits with his comments to media also over the weekend:

China, however, after the tweet said on the call Chinese President Xi Jinping accused the United States of interfering in its internal affairs, but did express hope that lines of communication between the two would be kept open.  

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‘Moving right along’? Shares nudge up after Trump trade talk

© Reuters. FILE PHOTO:  Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York © Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

By Tom Wilson

LONDON (Reuters) – World shares ticked up on Friday, buoyed by comments from U.S. President Donald Trump that talks aimed at dialing down the damaging trade war with China were “moving right along”.

Trump’s relatively upbeat tone in comments on Thursday was enough to encourage riskier bets by investors, despite a lack of agreement over whether existing tariffs should be dropped as part of an initial deal to ease the long standoff.

European shares, including the broader Euro , gained 0.4% by late morning, with indexes in Frankfurt and Paris up by similar amounts. Banks, technology firms and retail companies led the gains.

Wall Street futures were set to open in positive territory, too, with gains projected between 0.3%-0.4%.

The cautiously buoyant mood mirrored an appetite for riskier bets in Asia, where MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6%.

The MSCI world equity index, which tracks shares in 47 countries, added 0.2% to 555.07 points, not far off a record high of 550.63 hit last January but still on track for a weekly fall.

Investors were hoping the two sides can reach a compromise to at least avoid their worst fear: that the United States goes ahead with its final batch of tariffs on about $ 156 billion of Chinese exports, due to take effect on Dec. 15.

Trump’s remarks came after Chinese officials reiterated demands that some U.S. tariffs be rolled back if the sides are to reach a so-called phase one deal.

Markets had expected the sides to seal the initial deal in November. Instead, investors are nervously watching the approaching deadline for the new U.S. levies.

“The difficulty with this is it’s very difficult to time and to trade,” said Jeremy Gatto, a multi-asset investment manager at Unigestion. “We are relatively favorable towards riskier assets in general – but with hedges.”

Gatto said those hedges include currencies such as the U.S. dollar, Japanese yen and Australian dollar, as well as options.

Investors have already taken precautions against a possible slide in stocks by buying put options, with demand for put options to hedge exposure to the S&P500 index climbing in recent days.

In one sign of detente, China said it would waive import tariffs imposed last year on some U.S. soybean and pork shipments. Beijing is rushing to source more meat to fill a gap in protein supplies.

China stocks posted their biggest weekly advance in nearly two months, with the blue-chips up 0.6%.

Investors were looking out for U.S. jobs data, due out at 1330 GMT. The non-farm payrolls report is expected to show 180,000 new jobs were created in November, up from 128,000 a month earlier.

Signs of buoyancy in the labor market would soothe anxiety over the impact of the trade war.

“Markets are in consolidation phase,” said Salman Ahmed, chief investment strategist at Lombard Odier. “It’s wait and watch for first, how does the non-farm payrolls look and, more importantly, the Dec. 15 tariff deadline.”

In other economic data, German industrial output fell unexpectedly in October, pointing to persistent weakness in the backbone of the economy. Berlin said, however, that new orders and business expectations suggest output may stabilize.

While markets have largely priced in the view that the world economy has dodged the bullet of recession, there are still signs of fragility in many major economies.

OIL SKIDS

Oil prices steadied and were set for weekly gains ahead of a meeting of OPEC and its allies later in the day, where the grouping is expected to formally agree to more output cuts in early 2020.

Sources told Reuters that OPEC+ agreed to a 500,000 barrel per day cut, with the group due to next meet in March.

futures were down 0.3%, or 18 cents, at $ 63.21 a barrel, a retreat from earlier gains.

The agreement coincided with the initial public offering of state oil firm Saudi Aramco, which was priced at the top of its range and raised $ 25.6 billion in the world’s biggest IPO.

In currencies, the British pound lost 0.3% but was still set for its best week since October. It has gained 1.5% against the dollar this week.

Sterling had spiked to a seven-month high of $ 1.3166 on Thursday on bets that next week’s election will give the Conservative party the majority it needs to deliver Brexit, ending near-term uncertainty.

The pound last stood at $ 1.328. It hit 2-1/2-year highs versus the euro.

Against a basket of currencies the dollar has dropped every day this week, falling to a one-month low of 97.356 on Thursday. The index was up a smidgeon at 97.460, and has lost nearly 1% this week.

For Reuters Live Markets blog on European and UK stock markets, please click on: [LIVE/]

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Forex – Dollar Dips as Trade Talk Developments Awaited

© Reuters.  © Reuters.

Investing.com – The dollar edged lower against other major currencies on Wednesday, with investors taking a breather as U.S. and Chinese negotiators continued their efforts to seal a preliminary trade deal.

As Washington and Beijing work to narrow their differences enough to sign a “phase one” trade deal as early as this month, hopes of a breakthrough have boosted market sentiment.

After sizeable moves on Tuesday, which included a strengthening in China’s to three-month highs against the dollar, currency markets moved into wait-and-see mode.

“The market now wants confirmation that there is a venue, that this (phase one deal) will be signed,” said Jane Foley, senior currency strategist at Rabobank in London.

“A lot of good news was built into the price and unless we get something more, a little bit of disappointment will come through.”

The , which measures the dollar’s value against other major currencies was 0.2% lower at 97.64 by 04:15 AM ET (09:15 GMT) after rising 0.4% the previous day.

The was at 1.1088, having dropped 0.5% on Tuesday, and was not far from a near three-week low of 1.10635 hit that session.

Against the , the dollar was a touch lower at 108.99, but was still not far from its October high of 109.28.

Analysts said that better-than-expected U.S. economic data in the past week had also eased expectations for further easing from the U.S. Federal Reserve – a positive development for the greenback.

U.S. service sector data published on Tuesday showed that business sentiment rebounded in October from a three-year low in September.

The ISM non-manufacturing sector index rose to 54.7 from 52.6 in September.

The rebound is a welcome sign for dollar bulls as a fall in the index would have suggested that malaise in trade war-hit manufacturers was infecting the service sector, too.

The data came after strong a U.S. employment report on Friday.

–Reuters contributed to this report

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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Market update: Yen crosses higher on trade talk

No big moves so far

There has been one market moving headline so far today. It came from the Financial Times in a report saying the US is considering or ‘debating’ dropping the tariffs on China that were imposed Sept 1.

The report was foreshadowed by an earlier report saying China was asking (demanding?) that those tariffs be lifted as part of a Phase One deal.

Yen crosses rose as the FT story did the round with USD/JPY rallying to 108.75 from 108.60. There are similar-sized moves elsewhere that have boosted S&P 500 futures and weighed on gold.

Myself, I’m a bit more skeptical that this is unequivocally good news. Indeed, it would be great to get those tariffs removed but both stories hint at a tug-of-war in the White House about how to respond. If they balk, the deal could unravel.

That said, Xi’s big speech was constructive as he said China will strengthen IP protections and open up its markets.

Aside from yen crosses, there isn’t much to report on in the FX market. the euro is a touch soft after a weak finish yesterday. AUD/USD is steady at 0.6885 ahead of the RBA in about 30 minutes.

No big moves so far
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Pound falls further on more election talk

This could just be Boris playing games

The Sun’s political editor now says there is a good chance Johnson will address the House of Common and say he is tabling a motion on Monday to hold a general election.

This might be a disingenuous move to force through his Brexit bill and/or pressure the EU into a short extension.

In any case, the pound doesn’t like it for now and it’s broke weekly support at 1.2842 in a quick 20 pip fall.

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US President Trump addressing a rally says China wants to talk

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Forex – U.S. Dollar Falls as Trump Ramps up Currency War Talk

Investing.com – The U.S. dollar turned down Wednesday after President Donald Trump launched another broadside against the euro zone and China, accusing of them of engaging in competitive devaluations to “take advantage” of the U.S.

His comments are the clearest hint yet that the administration considers itself in a ‘currency war’ with major trading partners, something that analysts fear could deal further blows to global business confidence and trade.

“These people are devaluing their currency because they’re not doing well against us,” Trump told Fox Business News in an interview. “So they devalue and we can’t. We are no longer on a level playing field.”

Trump had earlier again voiced frustration with Federal Reserve Chairman Jerome Powell for not cutting interest rates, less than a day after Powell said in a speech that the Fed still wanted to see how badly the economy is slowed down by the ongoing trade war with China. Powell’s comments had helped lift the dollar from a three-month low, which it hit last week after the central bank opened up the door for rate cuts this year.

The , which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 95.713 by 10:39 AM ET (14:39 GMT).

Trump told Fox that Powell was doing “a bad job” in not cutting rates, and compared him unfavorably to European Central Bank President Mario Draghi, who said last week that the Eurozone economy would need further stimulus if inflation failed to pick up.

“We should have Draghi instead of our Fed person, you know,” Trump said.

The which measures the greenback against a background of currencies, fell around a quarter of a percent after the interview, after having risen overnight on the back of Powell’s comments. By 1 PM ET (1600 GMT), it was at 95.583, down 0.1% on the day.

The dollar had risen earlier in the day after Treasury Secretary Steve Mnuchin said a U.S.-China trade deal is “90% complete.” Separately, Trump told Fox that he is “very happy” with the current trade situation with China.

Trump and Chinese President Xi Jinping are due to meet Saturday on the sidelines of the G20 summit and traders are hoping the two will avoid escalating trade tensions.

Official U.S. comments contrasted with some voices out of China. Hu Xijin, editor-in-chief of the Global Times, an English-language mouthpiece for Beijing, tweeted that “No Chinese official now speaks with such optimism. With dozens of hours left before Xi-Trump summit, Chinese state media has been keeping criticizing the U.S. harshly, a situation that never happened in the previous China-U.S, summits.”

Elsewhere, the euro was up 0.2%, with up at $ 1.1383, while was flat at $ 1.2693 and fell 0.4% to 1.3110.

Earlier, there had been little reaction to the day’s big data release. for May fell by 1.3%, well below expectations, although the news was leavened by the fact that orders, which strips out the volatile transportation sector, rose 0.3%.

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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Mnuchin Downplays Talk With China’s Yi, No Breakthrough Seen

© Reuters.  Mnuchin Downplays Talk With China's Yi, No Breakthrough Seen © Reuters. Mnuchin Downplays Talk With China’s Yi, No Breakthrough Seen

(Bloomberg) — Treasury Secretary Steven Mnuchin said the U.S. remains open to continued negotiations with China on trade — just don’t expect any break through this weekend.

Mnuchin is scheduled to meet with China’s top central banker, Yi Gang, on the sidelines of the Group of 20 finance ministers’ summit in Japan this weekend, giving him a chance to break an impasse after talks broke down last month.

He pointed out that “this is not a negotiating meeting,” even as he signaled a willingness to get talks rolling again.

“If they want to come back to the table and have a real agreement we will negotiate. If not, we’ll go forward with our plan” to impose more tariffs, Mnuchin said during a briefing Saturday in Fukuoka, Japan.

Asked about China’s currency, he attributed its recent decline to market forces and the absence of intervention. “When you have intervention in a market for a long period of time and then they don’t intervene, the market could view that as a desire to have the currency weaken,” he said.

The Treasury Department issued its semi-annual foreign-exchange report to Congress last week, in which no country was named as a manipulator. China remains on its watch-list.

Trade Impasse

U.S. and Chinese talks broke down last month, which Mnuchin has said happened because Beijing reneged on provisions of a tentative deal. President Donald Trump raised tariffs on about $ 200 billion in Chinese imports to 25% in response, and at the time hung out the possibility of further action.

China has blamed the U.S. for the breakdown and vowed to reciprocate for the increased tariffs in various ways. The country has hinted at cutting off the U.S. supply of rare earth elements and is also hitting America’s education and tourist sector by announcing visa restrictions.

“I don’t think it’s a breakdown in trust,” Mnuchin said, referring to U.S.-China talks reaching stalemate last month.

Trump has said he’ll decide whether to enact tariffs on another $ 325 billion in Chinese imports after the G-20 leaders’ summit in Osaka at the end of the month, where he’s expected to meet with Chinese President Xi Jinping. The “main progress” will be at that meeting, Mnuchin said Saturday.

China’s central bank governor, Yi Gang, said in a Bloomberg interview his meeting with Mnuchin will be a “productive talk, as always,” though the topic of the trade war would be “uncertain and difficult.”

Winners and losers

While the trade war has unnerved investors, U.S. economic growth has continued. The unemployment rate is the lowest since 1969 and so far inflation data shows that consumers haven’t felt pressure from rising prices.

”People talk about the economic risk of trade wars” however “they should be even more focused on the benefits of having a great trade agreement,” Mnuchin said, noting that there’s no evidence of the U.S. economy taking a hit from tariffs.

“If anything I would say as a result of tariffs on China there are a lot of companies that are moving that production to other countries that I think will be a big boom for those economies, there will be winners and losers, there are clearly countries that will be big beneficiaries on movement” of production, he said.

Not everyone is as sanguine about the economic impact of the trade tensions.

In separate comments this week, Fed Chair Jerome Powell and his No. 2, Richard Clarida, reassured nervous investors they’re watching closely for signs that disputes between the U.S. and its trading partners are denting the outlook for the world’s largest economy. Their remarks moved the Fed slightly closer to its first rate cut since 2008.

Mnuchin heads into his meeting with Yi after a week of globe-trotting with Trump. On Monday he attended a banquet at Buckingham Palace in London, escorted in by Kate Middleton, the Duchess of Cambridge. Later in the week he visited France to pay tribute to veterans who stormed the beaches of Normandy 75 years ago during World War II.

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Forex – Dollar Hits 3-Week High on Huawei Relief, RBA Rate Talk

© Reuters.  © Reuters.

Investing.com — The dollar hit a fresh three-week high against its developed-market peers in early trading in Europe Tuesday, after Federal Reserve Chairman indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt.

“Business debt has clearly reached a level that should give businesses and investors reason to pause and reflect,” Powell said at a conference, noting that corporate borrowing at a record level of around 35% of corporate assets.

Even so, he pushed back against suggestions that the corporate debt situation resembled the days before the financial crisis in 2007, saying the comparison was “not fully convincing”.

At 03:00 AM ET (0700 GMT), the , which measures the greenback against a basket of six major currencies, was at 97.928, having hit 97.953 earlier, its highest level since April 26.

In part, that reflected a sharp rise against the and after Reserve Bank of Australia Governor said the bank would examine the case for cutting its cash rate at its next policy meeting in June.

Elsewhere, the remained broadly stable as the trade tension between the U.S. and China subsided marginally. The said it would offer U.S. companies a temporary exemption – in specific cases – from the ban on selling to telecoms giant Huawei that was at the heart of Monday’s volatility. Europe’s stock markets opened with a modest relief rally.

That didn’t stop Huawei founder Ren Zhengfei from predicting further trouble ahead.

“We have sacrificed ourselves and our families for our ideal, to stand on top of the world,” Ren told Chinese state TV. “To reach this ideal, sooner or later there will be conflict with the US.”

In Europe, both the euro and the British pound remain under pressure from the revived threat of a ‘Hard Brexit’ and from the rhetoric around the European parliament elections that start on Thursday.

The pair was down 0.2% at $ 1.1149 while was also down 0.2% at a four-month low of $ 1.2703, amid reports that the moderate wing of the Conservative Party aims to stop the next party leader (and Prime Minister) from taking the U.K. out of the EU without transitional arrangements. The news underlines how hard it will be to break the political deadlock around Brexit.

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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U.K. talk show cancelled after guest’s reported suicide

jeremy-kyle-itv-80977493.jpg
Jeremy Kyle poses at the British Soap Awards at BBC Television Centre, May 3, 2008 in London, England.  Getty

London — British broadcaster ITV on Wednesday canceled a popular, long-running daytime talk show after the death of a guest who failed a lie-detector test during a recording. ITV chief executive Carolyn McCall said “The Jeremy Kyle Show” was being scrapped “given the gravity of recent events.”

The tabloid-style talk show, which had run for 14 years, was pulled after 63-year-old Steve Dymond was found dead at a home in Portsmouth, southern England, on May 9.

Media reported that he had killed himself. Police said the death was not suspicious, and a post-mortem will be held to determine the cause.

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On an episode filmed earlier this month, Dymond took a lie-detector test to convince his fiancee that he had not been unfaithful, but was told he had failed.

The episode has not been aired.

Dymond’s death has heightened concern in Britain about the stress put on people appearing on reality television and online shows, and program-makers’ duty to protect their guests.

It’s a debate that has raged, off and on, for close to two decades since Britain began making home-grown equivalents of sensationalist U.S. programs like “The Jerry Springer Show” and putting ordinary people under intense scrutiny on reality shows such as “Big Brother.”

ITV was already under pressure following the deaths of two former contestants, Sophie Gradon and Mike Thalassitis, on reality show “Love Island.” Gradon’s 2018 death was ruled a suicide at an inquest. An inquest has not yet been held for Thalassitis, who died in March.

Lawmaker Damian Collins, chairman of the House of Commons Digital, Culture, Media and Sport Committee, said the panel would discuss “what should be done to review the duty of care support for people appearing in reality TV shows” during a private meeting on Wednesday.

Simon Wessely, a former head of the Royal College of Psychiatrists, said shows like “Jeremy Kyle” were “the theatre of cruelty.”

“And yes, it might entertain a million people a day, but then again, so did Christians versus lions,” he said, alluding to the spectacle of Christians and other persecuted people being mauled by wild animals in the stadiums of the ancient Roman empire.

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World – CBSNews.com