Xi calls for China to ‘stay the course’: No one is in a position to dictate reform to us

Chinese President Xi Jinping addressed his nation Tuesday morning in Beijing to commemorate the 40th anniversary of China’s “reform and opening up” — and he struck a relatively defiant tone in response to international calls for changes to his country’s economy. His remarks focused on how China’s Communist Party guided the nation to its economic success and emphasized the country’s right to pursue its own path going forward. In an address that lasted nearly 1 1/2 hours, Xi did not mention trade


Chinese President Xi Jinping addressed his nation Tuesday morning in Beijing to commemorate the 40th anniversary of China’s “reform and opening up” — and he struck a relatively defiant tone in response to international calls for changes to his country’s economy. His remarks focused on how China’s Communist Party guided the nation to its economic success and emphasized the country’s right to pursue its own path going forward. In an address that lasted nearly 1 1/2 hours, Xi did not mention trade
Xi calls for China to ‘stay the course’: No one is in a position to dictate reform to us Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: evelyn cheng, -xi jinping, president
Keywords: news, cnbc, companies, course, dictate, tariff, tensions, chinas, countrys, china, trade, vocal, stay, xi, tone, calls, reform, position, nation


Xi calls for China to 'stay the course': No one is in a position to dictate reform to us

Chinese President Xi Jinping addressed his nation Tuesday morning in Beijing to commemorate the 40th anniversary of China’s “reform and opening up” — and he struck a relatively defiant tone in response to international calls for changes to his country’s economy.

His remarks focused on how China’s Communist Party guided the nation to its economic success and emphasized the country’s right to pursue its own path going forward. In an address that lasted nearly 1 1/2 hours, Xi did not mention trade tensions with the U.S. and made only passing reference to market-oriented reform goals that previous speeches have discussed in detail.

That idea of progress contrasts with other countries’ increasingly vocal demands for less state control and could have significant consequences for whether the U.S. reaches a trade deal with China by the end of its 90-day tariff ceasefire.


Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: evelyn cheng, -xi jinping, president
Keywords: news, cnbc, companies, course, dictate, tariff, tensions, chinas, countrys, china, trade, vocal, stay, xi, tone, calls, reform, position, nation


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China says it will suspend its 25 percent additional tariff on US autos

China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States. The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items. The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto par


China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States. The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items. The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto par
China says it will suspend its 25 percent additional tariff on US autos Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: david reid, china daily
Keywords: news, cnbc, companies, vehicles, 25, suspend, stocks, chinese, tariff, autos, tariffs, additional, parts, sales, auto, china, trade


China says it will suspend its 25 percent additional tariff on US autos

China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49

China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States.

The relief will last for three months staring from January 1, as part of an agreed truce between Beijing and Washington.

The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items.

U.S. President Donald Trump and President Xi Jinping agreed to lessen the impact of trade tariffs for the first 90 days of 2019, following a dinner in Argentina on December 1.

The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto parts. China’s 40 percent tariff on U.S. car imports will now reduce to 15 percent for 90 days.

That brings the auto tariffs in China back down to the same level as before the point that the two countries began imposing tit-for-tat levies.

Tariffs help the big three?

Ina note released Thursday, auto analysts at the Swiss bank UBS said trade risks continue to linger and that under their worst scenario, U.S. sales could slump by as much as 12 percent.

But UBS highlighted Ford, General Motors and Fiat Chrysler as potential winners should tariffs prohibit imports, as all three have capacity to boost domestic production.

Meanwhile, auto sales in China fell 14 percent in November over the same month in 2017, the Chinese Association of Automobile Manufacturers said Tuesday.

That slowdown, while part blamed on the trade war, is also reflective of Chinese domestic demand losing steam.

And Anna-Marie Baisden, head of autos research at Fitch Solutions told CNBC on Friday that getting a tariff deal in place may not spark fresh demand.

“Lowering tariffs might not actually make a big difference because the Chinese market is slowing anyway so even domestic brands are suffering,” she said via email.

European auto stocks hit hard

Auto stocks in Europe were among the leading losers on Friday following a steep drop in the number of new car registrations.

European car sales dropped 8.1 percent in November, falling for the third straight month after the introduction of a new emissions-testing regime in September.

The Stoxx 600 Autos sector dipped 2.2 percent following the data but has since pared losses. At 6:02 a.m. Eastern Time, the index of major European auto and auto-supplier stocks was lower by 1.4 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: david reid, china daily
Keywords: news, cnbc, companies, vehicles, 25, suspend, stocks, chinese, tariff, autos, tariffs, additional, parts, sales, auto, china, trade


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GoPro is moving camera production out of China, citing tariff worries

GoPro announced Monday it is pulling camera production for the U.S. market out of China by the summer to avoid being caught up in the Washington-Beijing trade war. Production will continue in China for non-U.S.-bound cameras, the company said. “Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,” said Brian McGee, executive vice president and CFO of GoPro. “We believe this dive


GoPro announced Monday it is pulling camera production for the U.S. market out of China by the summer to avoid being caught up in the Washington-Beijing trade war. Production will continue in China for non-U.S.-bound cameras, the company said. “Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,” said Brian McGee, executive vice president and CFO of GoPro. “We believe this dive
GoPro is moving camera production out of China, citing tariff worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: lauren feiner, david paul morris, bloomberg, getty images, brendan mcdermid
Keywords: news, cnbc, companies, moving, gopro, cameras, white, worries, camera, production, china, mcgee, tariff, citing, business, trade


GoPro is moving camera production out of China, citing tariff worries

GoPro announced Monday it is pulling camera production for the U.S. market out of China by the summer to avoid being caught up in the Washington-Beijing trade war.

Production will continue in China for non-U.S.-bound cameras, the company said. GoPro was down 1 percent in midday trading.

“Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,” said Brian McGee, executive vice president and CFO of GoPro. “We believe this diversified approach to production can benefit our business regardless of tariff implications.”

The trade war between the U.S. and China has been escalating in recent months until a 90-day pause the White House said both countries’ leaders agreed to on Dec. 1.

GoPro said it owns the production equipment it uses to manufacture cameras, and relies on its manufacturing partner in China only for its facilities. Because of this, McGee said in a statement, “we expect to make this move at a relatively low cost.”


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: lauren feiner, david paul morris, bloomberg, getty images, brendan mcdermid
Keywords: news, cnbc, companies, moving, gopro, cameras, white, worries, camera, production, china, mcgee, tariff, citing, business, trade


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Lighthizer: 90 day pause in US-China trade war is a ‘hard deadline’

U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise. “As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed. “The w


U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise. “As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed. “The w
Lighthizer: 90 day pause in US-China trade war is a ‘hard deadline’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, united, hard, lighthizer, trade, tariff, trumps, 90, deadline, president, war, pause, uschina, way, day, tariffs


Lighthizer: 90 day pause in US-China trade war is a 'hard deadline'

U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise.

“As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed.

“The way this is set up is that at the end of 90 days, these tariffs will be raised,” said Lighthizer, appearing to tamp down expectations that the negotiation period could be extended.


Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, united, hard, lighthizer, trade, tariff, trumps, 90, deadline, president, war, pause, uschina, way, day, tariffs


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It’s a ‘messy correction’ – not a bear market, money manager says

Gordon, a senior portfolio manager on the firm’s technical asset allocation strategies team, blames uncertainty surrounding the U.S.-China trade war and Federal Reserve policy for the violent market swings. “The first and fundamental question: Is this a correction or is this the start of the bear market? While you can certainly see a path that could get us to a bear market, I think it’s more of a messy correction,” he told CNBC’s “Trading Nation” on Friday. He believes the correction will span a


Gordon, a senior portfolio manager on the firm’s technical asset allocation strategies team, blames uncertainty surrounding the U.S.-China trade war and Federal Reserve policy for the violent market swings. “The first and fundamental question: Is this a correction or is this the start of the bear market? While you can certainly see a path that could get us to a bear market, I think it’s more of a messy correction,” he told CNBC’s “Trading Nation” on Friday. He believes the correction will span a
It’s a ‘messy correction’ – not a bear market, money manager says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-08  Authors: stephanie landsman, ralph orlowski, bloomberg, getty images, brendan mcdermid, janhvi bhojwani, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, trading, tariff, major, trade, war, messy, theyre, money, uschina, bear, market, risk, manager, correction


It's a 'messy correction' – not a bear market, money manager says

Russell Investments’ Doug Gordon is optimistic stocks will find a floor — just not until next year.

Gordon, a senior portfolio manager on the firm’s technical asset allocation strategies team, blames uncertainty surrounding the U.S.-China trade war and Federal Reserve policy for the violent market swings.

“The first and fundamental question: Is this a correction or is this the start of the bear market? While you can certainly see a path that could get us to a bear market, I think it’s more of a messy correction,” he told CNBC’s “Trading Nation” on Friday. “We could go a little deeper.”

Gordon’s comments came as the major indexes got hammered. The Dow, S&P 500 and Nasdaq saw their worst weekly performance since last March. The S&P closed back in correction territory, down more than 10 percent from its September 21 all-time high.

He believes the correction will span about two to four months, citing the end of the 90-day trade war ceasefire between the U.S. and China as an important marker.

“The sources of risk right now are really exogenous, meaning they’re hard to forecast,” Gordon said. “They’re risks obviously tied to trade restrictions and the tariff escalation.”

Trade has been Gordon’s major risk factor for U.S. stocks for much of the year. In late June on “Trading Nation,” he placed the U.S.-China tariff threat as a major economic risk in the second half of 2018. And, that issue has played a big role in the painful pullback.

“You could have full on global growth slowing as a result of a complete breakdown in the trade and tariff negotiations,” he said, even though it’s not his base case.


Company: cnbc, Activity: cnbc, Date: 2018-12-08  Authors: stephanie landsman, ralph orlowski, bloomberg, getty images, brendan mcdermid, janhvi bhojwani, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, trading, tariff, major, trade, war, messy, theyre, money, uschina, bear, market, risk, manager, correction


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There may be more at stake than just trade concessions in the US-China tariff battle

Trade frictions between the world’s two largest economies go well beyond the parameters of imports and exports. Washington has been attempting to negotiate with Beijing about issues like forced tech transfers and intellectual property theft, but there’s a growing sense among international analysts that talks may also be touching on other deep-rooted issues in their relationship, particularly on the national security and military front. The ongoing spat is a reflection of great power rivalries, p


Trade frictions between the world’s two largest economies go well beyond the parameters of imports and exports. Washington has been attempting to negotiate with Beijing about issues like forced tech transfers and intellectual property theft, but there’s a growing sense among international analysts that talks may also be touching on other deep-rooted issues in their relationship, particularly on the national security and military front. The ongoing spat is a reflection of great power rivalries, p
There may be more at stake than just trade concessions in the US-China tariff battle Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: nyshka chandran, kevin lemarque
Keywords: news, cnbc, companies, tariff, transfers, concessions, wrote, battle, dispute, stake, war, worlds, trade, typical, uschina, tech, trumps, issues


There may be more at stake than just trade concessions in the US-China tariff battle

Trade frictions between the world’s two largest economies go well beyond the parameters of imports and exports.

Washington has been attempting to negotiate with Beijing about issues like forced tech transfers and intellectual property theft, but there’s a growing sense among international analysts that talks may also be touching on other deep-rooted issues in their relationship, particularly on the national security and military front.

The ongoing spat is a reflection of great power rivalries, political scientist Joseph Nye wrote in a Project Syndicate editorial last month: “It is much more than a typical trade dispute like, say, America’s recent clash with Canada over access to that country’s dairy market.”

Many economists have pointed out that the current dispute is more of a tech war than a tariff war as U.S. President Donald Trump’s administration targets China’s technology sector practices. Beijing’s militarization of the South China Sea and the sovereignty of Taiwan could also be influencing negotiations.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: nyshka chandran, kevin lemarque
Keywords: news, cnbc, companies, tariff, transfers, concessions, wrote, battle, dispute, stake, war, worlds, trade, typical, uschina, tech, trumps, issues


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China promises action on US trade deal but gives no details

China has yet to confirm Trump’s claim that Beijing committed to cut auto tariffs and buy more American farm exports. Trump is pressing Beijing to roll back plans for state-led development of Chinese technology champions that Washington says violate its market-opening commitments. Chinese leaders have offered to change some details of plans such as “Made in China 2025.” Despite the Chinese silence, the “atmosphere is more constructive” and Beijing might be more willing to negotiate, Kuijs said.


China has yet to confirm Trump’s claim that Beijing committed to cut auto tariffs and buy more American farm exports. Trump is pressing Beijing to roll back plans for state-led development of Chinese technology champions that Washington says violate its market-opening commitments. Chinese leaders have offered to change some details of plans such as “Made in China 2025.” Despite the Chinese silence, the “atmosphere is more constructive” and Beijing might be more willing to negotiate, Kuijs said.
China promises action on US trade deal but gives no details Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, gives, beijing, tariff, silence, trade, details, promises, china, action, chinese, american, washington, technology, chinas, deal, trump


China promises action on US trade deal but gives no details

China issued an upbeat but vague promise Wednesday to carry out a tariff cease-fire with Washington but gave no details that might dispel confusion about what Presidents Xi Jinping and Donald Trump agreed to in Argentina.

China has yet to confirm Trump’s claim that Beijing committed to cut auto tariffs and buy more American farm exports. That, coupled with conflicting statements by Trump and U.S. officials, helped trigger a tumble in U.S. stock prices Tuesday amid doubt about the chances for a lasting settlement of a battle over technology that threatens to chill global economic growth.

“China will start from implementing specific issues on which consensus has been reached, and the sooner, the better,” the Commerce Ministry said on its website.

The two sides have a “clear timetable and road map” for talks, the ministry said, but gave no details. The ministry didn’t respond to questions by phone and fax.

The Chinese silence prompted questions about what Trump said was a promise by Beijing to buy more American exports and negotiate over U.S. complaints that it steals American technology.

Stock markets rose Monday after U.S. officials touted the agreement as a historic breakthrough. But they plunged Tuesday after Trump called himself “Tariff Man” on Twitter and renewed threats of penalty duties.

Be patient, said Ma Hong, a trade expert at Tsinghua University in Beijing. He said Chinese leaders are right to move carefully as they deal with contentious details.

The delay in talking “isn’t a sign of rejection, but of cautiousness,” said Ma.

“The United States has put forward many demands, not all of them reasonable,” he said. Negotiations will proceed “step by step, not based on the rhythm of the United States.”

Trump is pressing Beijing to roll back plans for state-led development of Chinese technology champions that Washington says violate its market-opening commitments.

Chinese leaders have offered to change some details of plans such as “Made in China 2025.” They have rejected pressure to scrap strategies they see as a path to prosperity and global influence, but foreign analysts say they might be starting to understand the depth of foreign opposition to their plans.

Beijing has tried without success to recruit Europe, South Korea and other countries as allies against Trump. They criticize Washington’s tactics but share its complaints.

This week’s confusion highlights the clash between the secrecy and measured pace of the ruling Communist Party and Trump, who fires off dozens of Twitter comments a day and cultivates an image as a fast-paced, unpredictable deal-maker.

Chinese leaders routinely use delays of months or years to pressure negotiating partners.

Even on routine matters, with no voters to placate and total control of Chinese media, they can frustrate other governments by leaving them waiting weeks or months for a response.

Beijing is less informative than Washington, which “might sometimes be too transparent,” with officials issuing conflicting statements, said Louis Kuijs of Oxford Economics.

Despite the Chinese silence, the “atmosphere is more constructive” and Beijing might be more willing to negotiate, Kuijs said. He noted all the major American players attended the Argentina meeting, giving a sign of “buy in” on a U.S. position. China has responded to Washington’s list of demands, though it is unclear what Beijing said.

The Hong Kong newspaper South China Morning Post, citing unidentified sources, said Beijing was preparing to send a 30-member negotiating team to Washington.

“I think there is a higher likelihood that we get meaningful discussions now than in much of the last six months,” said Kuijs.

Questions began to swirl after China’s foreign minister read a statement Saturday in Buenos Aires that said Washington agreed to halt tariff hikes. Wang Yi failed to mention industrial policy or Trump’s demand that Beijing make progress in changing it or face renewed duty increases.

That prompted some economists to ask whether Beijing was presenting a positive image for Chinese audiences or didn’t understand the depth of American opposition to its technology plans.

On Tuesday, China’s government issued a pledge that appeared to be aimed at mollifying U.S. complaints about rampant violations of patents and copyrights. It promised to create a list of violators that would make it harder for them to do business or get government support.

Analysts noted, however, there were no additional enforcement efforts.

“The notice won’t convince President Trump that China is taking a serious stance on the matter,” Irene Pang of ING said in a report.

Meanwhile, Rabobank suggested a simpler explanation Wednesday for China’s silence: Xi has yet to return to Beijing to approve official statements.

The president, China’s most powerful leader since at least the 1980s, flew from Argentina to Panama for an official visit and on Wednesday was in Portugal.

“Talk about one-man rule!” Rabobank researchers said in a report. “(And does the man not have email?)”


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, gives, beijing, tariff, silence, trade, details, promises, china, action, chinese, american, washington, technology, chinas, deal, trump


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Trump says he believes China’s Xi Jinping on trade tariff truce

President Donald Trump said Wednesday that he trusts Chinese President Xi Jinping’s word on commitments to trade reforms, amid confusion about what the two leaders actually agreed to as part of their weekend trade truce. The leaders are trying to come to terms over what the Trump administration calls unfair trade practices. In tweets Wednesday morning, Trump pushed back on reports that China may not swiftly address the White House’s concerns. “Not to sound naive or anything, but I believe Presid


President Donald Trump said Wednesday that he trusts Chinese President Xi Jinping’s word on commitments to trade reforms, amid confusion about what the two leaders actually agreed to as part of their weekend trade truce. The leaders are trying to come to terms over what the Trump administration calls unfair trade practices. In tweets Wednesday morning, Trump pushed back on reports that China may not swiftly address the White House’s concerns. “Not to sound naive or anything, but I believe Presid
Trump says he believes China’s Xi Jinping on trade tariff truce Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: jacob pramuk, thomas peter, pool, getty images, kevin lemarque
Keywords: news, cnbc, companies, president, chinas, jinping, meeting, xi, tariffs, trump, chinese, word, trade, china, believes, truce, white, tariff


Trump says he believes China's Xi Jinping on trade tariff truce

President Donald Trump said Wednesday that he trusts Chinese President Xi Jinping’s word on commitments to trade reforms, amid confusion about what the two leaders actually agreed to as part of their weekend trade truce.

The world’s two largest economies agreed to halt an escalating series of tariffs following a face to face meeting between Trump and Xi at the G-20 summit in Argentina on Saturday. But Trump’s claims about what China conceded have muddled the start of a 90-day window for talks to reach an agreement. The leaders are trying to come to terms over what the Trump administration calls unfair trade practices. The mixed messages coming from the White House helped to sink U.S. stock markets on Tuesday.

In tweets Wednesday morning, Trump pushed back on reports that China may not swiftly address the White House’s concerns. He said Beijing sent “very strong signals” about taking action on trade after a “long trip, including stops,” home from Argentina.

“Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting. ALL subjects discussed!” the president tweeted.

Trump, a president who often declares victory even in the absence of concrete progress, quickly touted major Chinese concessions following the meeting Saturday. He said Monday that China would “immediately” start purchasing more agricultural products and “reduce and remove tariffs” on auto imports — statements that White House officials and the Chinese government struggled to clarify in the ensuing days.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: jacob pramuk, thomas peter, pool, getty images, kevin lemarque
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Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies

The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. “Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB. Catril added that U.S. Treasury yields are near crucial technical


The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. “Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB. Catril added that U.S. Treasury yields are near crucial technical
Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: tyrone siu
Keywords: news, cnbc, companies, trade, dollar, yuan, tariff, weakens, fall, yield, treasury, fed, versus, rate, fell, postponement, yields, riskier, currencies, supports


Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies

The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes.

The weakness in the dollar comes against the backdrop of a temporary truce in the US-China trade conflict, which has bolstered investor confidence in riskier currencies versus the safe-haven greenback.

The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. The difference in yield between the U.S. 2-year and 10-year tightened to its smallest since July 2007.

The two-10-year yield curve is a key focus for investors as an inversion is seen as predictor of a U.S. recession. A yield curve is said to be inverted when yields on longer-dated maturity bonds are lower than shorter-dated maturity bonds.

The yield curve has flattened as continuing interest rate hikes send short-dated yields higher, while longer-dated Treasuries are supported by tepid inflation and slowing global growth.

“Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB.

Catril added that U.S. Treasury yields are near crucial technical support levels, a break of which could add further pressure on U.S. yields and the dollar.

The dollar index, a gauge of its value versus six major peers, was off 0.23 percent at 96.8.

The dollar had been supported for most of 2018 by a robust U.S. economy and a relatively hawkish Fed, which is widely expected to raise its policy interest rate later this month.

Markets have priced in an 87 percent probability of a rate hike at the Fed’s Dec. 18-19 meeting.

The dollar came under pressure last week when the market took comments from Fed Chair Jerome Powell as signalling a slower pace of rate hikes.

A more dovish tone from the Fed last week has led markets to question how many times the central bank will hike rates in 2019.

“Given data remains strong, we think the Fed will hike twice in 2019 and that’s more than what the market is pricing in right now…we remain moderately bullish on the dollar,” said Nick Twidale, chief operating officer at Rakuten Securities.

Currencies such as the Chinese yuan, which were battered in the US-China trade war, are expected to trade stronger versus the greenback in the coming weeks as investor sentiment improves.

The dollar fell 0.5 percent against the offshore yuan to 6.8375. On Monday, it lost 1.07 percent, its steepest percentage fall since Aug. 25.

“For now, it seems China has got the best out of G20 and we expect the yuan to remain supported,” added Twidale.

However, he warned that markets need to see a further easing in trade tensions for the risk-on rally to continue.

The Australian dollar gained 0.3 percent in Asian trade at $0.7376. The Reserve Bank of Australia kept its policy cash rate unchanged on Tuesday in a widely expected move.

The yen traded at 113.13 to the dollar, with the greenback losing 0.4 percent versus the Japanese currency.

Elsewhere, sterling was gained 0.2 percent to trade at $1.2744 due to broad dollar weakness. On Monday, the pound fell below $1.27 for the first time since Oct. 31.

Sterling has posted losses for three consecutive weeks as traders bet that British Prime Minister Theresa May will not be able to pass her Brexit deal through parliament on Dec. 11.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: tyrone siu
Keywords: news, cnbc, companies, trade, dollar, yuan, tariff, weakens, fall, yield, treasury, fed, versus, rate, fell, postponement, yields, riskier, currencies, supports


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‘I am a Tariff Man’: Trump threatens to restart trade war if China talks fail

President Donald Trump threatened Tuesday to slap more tariffs on China if efforts to strike a trade deal with Beijing crumble. The world’s two largest economies reached a 90-day trade truce Saturday after Trump and Chinese President Xi Jinping met at the G-20 summit in Argentina. In a series of Tuesday morning tweets, the president showed optimism about reaching a “fair deal,” but stressed that he is “a Tariff Man” if talks fail. Later Tuesday evening, Trump said he believed China and the US co


President Donald Trump threatened Tuesday to slap more tariffs on China if efforts to strike a trade deal with Beijing crumble. The world’s two largest economies reached a 90-day trade truce Saturday after Trump and Chinese President Xi Jinping met at the G-20 summit in Argentina. In a series of Tuesday morning tweets, the president showed optimism about reaching a “fair deal,” but stressed that he is “a Tariff Man” if talks fail. Later Tuesday evening, Trump said he believed China and the US co
‘I am a Tariff Man’: Trump threatens to restart trade war if China talks fail Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: jacob pramuk
Keywords: news, cnbc, companies, chinese, billion, china, war, threatens, talks, restart, trump, man, fail, president, tariff, tweets, tariffs, trade, deal


'I am a Tariff Man': Trump threatens to restart trade war if China talks fail

President Donald Trump threatened Tuesday to slap more tariffs on China if efforts to strike a trade deal with Beijing crumble.

The world’s two largest economies reached a 90-day trade truce Saturday after Trump and Chinese President Xi Jinping met at the G-20 summit in Argentina. In a series of Tuesday morning tweets, the president showed optimism about reaching a “fair deal,” but stressed that he is “a Tariff Man” if talks fail.

Later Tuesday evening, Trump said he believed China and the US could reach an agreement on trade. However, he threatened to impose tariffs against China if it does not agree to a ‘real deal.’

The Trump administration has sought changes in its trade relationship with China to fix what it calls trade abuses. The White House has already put $250 billion in duties on Chinese goods, promising tariffs on a separate $267 billion if Beijing does not change its practices. China has imposed duties on about $110 billion in U.S. products.

The prospect of more tariffs, affecting the Chinese economy and a broader range of American businesses, has sparked concerns about slowing global growth. Trump says he wants to de-escalate trade tensions with China but insists on Beijing addressing long-standing issues such as intellectual property theft, forced technology transfers, and tariffs and nontariff barriers.

After some confusion Monday about who would head the talks with China, Trump suggested Tuesday that U.S. Trade Representative Robert Lighthizer would take the lead, “working closely with” Treasury Secretary Steven Mnuchin, economic advisor Larry Kudlow, Commerce Secretary Wilbur Ross and trade advisor Peter Navarro. In his tweets, the president said his advisors will work on “seeing whether or not a REAL deal with China is actually possible.”

“If it is, we will get it done. … President Xi and I want this deal to happen, and it probably will,” he said.

Top Wall Street economists have expressed doubts about the two sides reaching a concrete agreement.

Trump again claimed Tuesday that more tariffs on China would actually help the U.S. He contended that he has made China “pay for the privilege” of raiding “the great wealth of our Nation.”

“We are now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN,” he tweeted.

Trump has exaggerated the effect of the tariffs on U.S. revenue. Tariff revenue in fiscal 2018 rose by less than $7 billion from the previous year, less than 2 percent of the $3.3 trillion the Treasury collected overall.

Those costs also largely fall on American businesses and consumers. Sen. Ben Sasse, a Nebraska Republican and opponent of Trump’s tariff policy, criticized the president’s tweets on that basis.

“Tariffs are taxes on American families,” Sasse wrote.

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Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: jacob pramuk
Keywords: news, cnbc, companies, chinese, billion, china, war, threatens, talks, restart, trump, man, fail, president, tariff, tweets, tariffs, trade, deal


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