China State Run Media Head Praises ‘Breakthrough’ in Trade Talks

US President Donald Trump right shook hands with Chinese Vice Premier Liu He in Washington DC on Friday after two days of trade negotiations

And when Wall Street doesn't get the nitty gritty from management teams and politicians, it will often loudly voice its displeasure - usually by dumping stocks.

The US president further sowed distrust in August when he claimed that Chinese officials had called and requested to restart trade talks. The president quickly hyped a potential win in China buying $40 billion to $50 billion in agricultural products from struggling USA farmers. "The Chinese have to buy pork and soybeans from the USA because they've got a massive swine flu going on that is even showing up in North Korea". "Investors had high hopes for some form of mini-deal in the weeks before the meeting, and Friday's announcement has at least been partially, if not fully, priced in", they said.

That could see it export more than $1 billion in beef to China, he said, or ten times the current level, but it could take a year or two to ramp up those supplies.

The major indexes were little changed in early trading.

Last Friday, the USA agreed to hold off on a planned 25%-30% tariff increase on Chinese imports that was due to come into effect on Tuesday. Many businesses, as a result, are still seeing their costs of production go up and earnings power go down.

China wants more talks as soon as the end of October to hammer out the details of the "phase one" trade deal outlined by President Donald Trump before Chinese President Xi Jinping agrees to sign it, Bloomberg reported on Monday, citing people familiar with the matter.

Secondarily, the limited deal does next to nothing to wipe out the uncertainty that has gripped Corporate America during the trade tussle, which has morphed into many companies delaying capital expenditures. The news weighed on the price of futures with crude for November delivery losing $1.72, or 3.1%, to trade at $52.98 a barrel on the New York Mercantile Exchange, paring back the majority of the 3.6% rise for last week.

So, why bother pulling the trigger on expensive new equipment? "That's about it that the US got, and the agricultural products".

New tariffs on $156bn of Chinese goods will be imposed if a trade deal is not finalised by 15 December, the US Treasury Secretary has warned.

Both China and the U.S. might be feeling the pain from slowing global trade, but the United States is still very far from landing the comprehensive deal that. That didn't come to pass, however.

The details of the verbal agreement reached in Washington last week between the two nations remain unclear.

Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance.

Related:

Comments

Latest news

Police Respond to a Church Shooting in New Hampshire
The Pelham Police Department said it had provided active shooter training to members of the church within the past year. The church was also preparing Saturday for the noon celebration of life for Luis "Kiko" Alberto Garcia.

Cody Simpson Says He's 'Very, Very Happy' With Miley Cyrus
The pair were spotted earlier this week ambling about the place holding hands and eating food - prime we're-going-out behaviour. He clarified, however, that their relationship will always be a private matter, and he will not be making any comments anymore.

Facial Recognition, Is it worth our Recognition?
That being said, one of the topics that have been trending in the technological news is that of facial recognition. That being said, the question is if you want to trust the facial recognition technology or not.

UEFA Men’s Player of the Year: Top Three Nominees Announced
According to some sports betting sites news, Ronaldo is a player that has proved to be the best in three major leagues in Europe. The Netherland defender became the first defender to be nominated in the top three ever since this award came into inception.

Other news