US futures point to a slightly higher open

U.S. stock index futures were slightly higher Tuesday morning, as traders look ahead to a new earnings season. ET, Dow futures rose 55 points, indicating a positive open of more than 57 points. Futures on the S&P and Nasdaq were both marginally higher. “I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said Monday. United Airlines and Interactive Brokers will also release earnings after the bell.


U.S. stock index futures were slightly higher Tuesday morning, as traders look ahead to a new earnings season. ET, Dow futures rose 55 points, indicating a positive open of more than 57 points. Futures on the S&P and Nasdaq were both marginally higher. “I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said Monday. United Airlines and Interactive Brokers will also release earnings after the bell.
US futures point to a slightly higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: silvia amaro
Keywords: news, cnbc, companies, mnuchin, futures, open, earnings, release, trade, place, slightly, deal, point, tariffs, points, higher


US futures point to a slightly higher open

U.S. stock index futures were slightly higher Tuesday morning, as traders look ahead to a new earnings season.

At around 01:40 a.m. ET, Dow futures rose 55 points, indicating a positive open of more than 57 points. Futures on the S&P and Nasdaq were both marginally higher.

Overall, market players are monitoring developments on the trade front. U.S. Treasury Secretary Steven Mnuchin told CNBC that tariffs will go up in December if there is no deal in place with China.

“I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said Monday.

Furthermore, the U.S. has also decided to stop trade negotiations with Turkey and raised its steel prices to 50%. The decision followed an earlier U.S. announcement to remove all U.S. troops from the northern border of Syria with Turkey.

Investors are also looking ahead to a new earnings season. BlackRock, Citigroup, Goldman Sachs, Wells Fargo and J.P. Morgan Chase are set to release their latest performance numbers before the bell. United Airlines and Interactive Brokers will also release earnings after the bell.

On the data front, the Empire State manufacturing figures are due to be released at 08:30 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: silvia amaro
Keywords: news, cnbc, companies, mnuchin, futures, open, earnings, release, trade, place, slightly, deal, point, tariffs, points, higher


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IMF says trade war will cut global growth to lowest since financial crisis a decade ago

The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. Qilai Shen | Bloomberg | Getty ImagesThe global crisis lender sai


The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. Qilai Shen | Bloomberg | Getty ImagesThe global crisis lender sai
IMF says trade war will cut global growth to lowest since financial crisis a decade ago Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, 2019, decade, world, imf, lowest, trade, war, 2018, cut, tariffs, economic, financial, crisis, forecast, global, growth


IMF says trade war will cut global growth to lowest since financial crisis a decade ago

The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. The forecasts set a gloomy backdrop for the IMF and World Bank annual meetings this week in Washington, where the Fund’s new managing director, Kristalina Georgieva, is inheriting a range of problems, from stagnating trade to political backlash in some emerging market countries struggling with IMF-mandated austerity programs. The World Economic Outlook report spells out in sharp detail the economic difficulties caused by the U.S.-China tariffs, including direct costs, market turmoil, reduced investment and lower productivity due to supply chain disruptions.

The Hapag-Lloyd AG Leverkusen Express sails out of the Yangshan Deepwater Port, operated by Shanghai International Port Group Co. (SIPG), in this aerial photograph taken in Shanghai, China, on Wednesday, Aug. 7, 2019. Qilai Shen | Bloomberg | Getty Images

The global crisis lender said that by 2020, announced tariffs would reduce global economic output by 0.8%. Georgieva said last week that this translates to a loss of $700 billion, or the equivalent of making Switzerland’s economy disappear. “The weakness in growth is driven by a sharp deterioration in manufacturing activity and global trade, with higher tariffs and prolonged trade policy uncertainty damaging investment and demand for capital goods,” IMF Chief Economist Gita Gopinath said in a statement. Services were still strong across much of the world, but there were some signs of softening in services in the United States and Europe, Gopinath said. For 2020, the Fund said global growth was set to pick up to 3.4% due to expectations of better performances in Brazil, Mexico, Russia, Saudi Arabia, and Turkey. But this forecast was a tenth of a point lower than in July and was vulnerable to downside risks, including worse trade tensions, Brexit-related disruptions and an abrupt aversion to risk in financial markets.

Investment, trade stall

The IMF said foreign direct investment abroad by advanced economies came to “a virtual standstill” in 2018 after increasing in earlier years to average more than 3% of global gross domestic product annually – or more than $1.8 trillion. The institution said the decline of some $1.5 trillion between 2017 and 2018 reflected purely financial operations by large multinational corporations, including in response to changes in U.S. tax law. Global vehicle purchases fell by 3% in 2018, reflecting a drop in demand in China after expiration of tax incentives and production adjustments after adoption of new emissions standards in Germany and other eurozone countries. Global trade growth reached just 1% in the first half of 2019, the weakest level since 2012, weighed down by higher tariffs and prolonged uncertainty about trade policies, as well as a slump in the automobile industry. After expanding by 3.6% in 2018, the IMF now projects global trade volume will increase just 1.1% in 2019, 1.4 percentage points less than it forecast in July and 2.3 percentage points less than forecast in April. Trade growth was expected to rebound to 3.2% in 2020, however risks remained “skewed to the downside,” the IMF said, with a significant drag on both the U.S. and Chinese economies. For a table showing IMF country and regional forecasts, see

Tariff, reshoring losses


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, 2019, decade, world, imf, lowest, trade, war, 2018, cut, tariffs, economic, financial, crisis, forecast, global, growth


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Vague US-China deal fails to ‘clear the air’ for companies to start spending and investing again

While President Donald Trump says he has a trade deal in place, the Chinese side is calling it progress – as corporate spending and investment hangs in the balance. Wall Street analysts were largely skeptical of Trump’s announcement on Friday of a substantial trade deal, as Evercore ISI strategists noted that it “focused on the low-hanging fruit, with a lot vague or not addressed.” Before Chinese President Xi Jinping signs the “phase one” trad agreement, the nation’s negotiators want to add more


While President Donald Trump says he has a trade deal in place, the Chinese side is calling it progress – as corporate spending and investment hangs in the balance. Wall Street analysts were largely skeptical of Trump’s announcement on Friday of a substantial trade deal, as Evercore ISI strategists noted that it “focused on the low-hanging fruit, with a lot vague or not addressed.” Before Chinese President Xi Jinping signs the “phase one” trad agreement, the nation’s negotiators want to add more
Vague US-China deal fails to ‘clear the air’ for companies to start spending and investing again Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: michael sheetz
Keywords: news, cnbc, companies, early, investing, deal, companies, clear, spending, start, round, vague, told, tariffs, chinese, uschina, president, air, fails, trade, phase, suisse


Vague US-China deal fails to 'clear the air' for companies to start spending and investing again

While President Donald Trump says he has a trade deal in place, the Chinese side is calling it progress – as corporate spending and investment hangs in the balance.

Wall Street analysts were largely skeptical of Trump’s announcement on Friday of a substantial trade deal, as Evercore ISI strategists noted that it “focused on the low-hanging fruit, with a lot vague or not addressed.”

“Overall, we don’t think this Phase 1 deal clears the air for global corporations to decide on what matters most – where to invest, produce, hire or source,” Evercore said in a note to investors.

China’s trade negotiators want to meet for more talks in the next couple of weeks, people familiar with the matter told CNBC’s Kayla Tausche on Monday. Before Chinese President Xi Jinping signs the “phase one” trad agreement, the nation’s negotiators want to add more detail.

Credit Suisse doubts this “mini-deal” will lead to the end of the U.S. trade war with China, saying it sees “daunting obstacles” to a full resolution. But Credit Suisse does see some good news in the early agreement.

“We believe it sets a floor for markets for at least the next 1-2 months,” Credit Suisse analysts Dan Fineman and Kin Nang Chik said.

Goldman Sachs chief economist Jan Hatzius told investors that, although the scope of the early agreement “looks roughly as expected,” the U.S. has yet to announce a decision regarding the Dec. 15 increased tariffs on Chinese goods. The Dec. 15 tariffs will be part of the next round of negotiations.

“At this point we continue to expect implementation of that tariff round … though likely with a delay into early 2020,” Hatzius said.

Treasury Secretary Steven Mnuchin told CNBC on Monday that if China doesn’t sign the phase one of the deal, then the tariffs scheduled for December will take effect.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: michael sheetz
Keywords: news, cnbc, companies, early, investing, deal, companies, clear, spending, start, round, vague, told, tariffs, chinese, uschina, president, air, fails, trade, phase, suisse


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Mnuchin says China and the US have a ‘fundamental agreement that is subject to documentation’

Treasury Secretary Steven Mnuchin expressed optimism Monday that the U.S. and China have a workable first-phase agreement that addresses some key elements of the trade war between the two nations. “We have a fundamental agreement that is subject to documentation.” Mnuchin said, though, that those tariffs will be implemented if China does not sign off on the current deal. “China has agreed on agriculture that they’re going to take off tariffs on agriculture and they’re going to start purchasing a


Treasury Secretary Steven Mnuchin expressed optimism Monday that the U.S. and China have a workable first-phase agreement that addresses some key elements of the trade war between the two nations. “We have a fundamental agreement that is subject to documentation.” Mnuchin said, though, that those tariffs will be implemented if China does not sign off on the current deal. “China has agreed on agriculture that they’re going to take off tariffs on agriculture and they’re going to start purchasing a
Mnuchin says China and the US have a ‘fundamental agreement that is subject to documentation’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: jeff cox
Keywords: news, cnbc, companies, subject, china, agreement, mnuchin, agriculture, war, theyre, talks, documentation, tariffs, key, trade, billion, fundamental


Mnuchin says China and the US have a 'fundamental agreement that is subject to documentation'

Treasury Secretary Steven Mnuchin expressed optimism Monday that the U.S. and China have a workable first-phase agreement that addresses some key elements of the trade war between the two nations.

“We made substantial progress last week in the negotiations,” Mnuchin said during an interview with CNBC’s “Squawk Box.” “We have a fundamental agreement that is subject to documentation.”

Among the key points he said that were addressed during the most recent round of talks were intellectual property rights, financial services including currency and foreign exchange, and “very significant structural issues” dealing with agriculture, a key sticking point in the tit-for-tat tariff battle.

In light of the tentative accord, President Donald Trump has said he will postpone tariffs on the remaining $300 billion worth of Chinese goods not already subject to duties. They had been due to begin Tuesday. Mnuchin said, though, that those tariffs will be implemented if China does not sign off on the current deal.

China is indicating that it wants another round of talks before it agrees to the phase-one terms, according to reporting by CNBC’s Kayla Tausche.

Still, Mnuchin said the talks resulted in a “great deal for our farmers” that will result in purchases in a $40 billion to $50 billion range.

“China has agreed on agriculture that they’re going to take off tariffs on agriculture and they’re going to start purchasing agriculture,” he said. “They had been in the market, but they’ll be stepping that up.”

Markets have been highly sensitive to news coming out of the trade war. Wall Street was looking at a slightly negative open Monday despite the apparently optimism over the talks.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: jeff cox
Keywords: news, cnbc, companies, subject, china, agreement, mnuchin, agriculture, war, theyre, talks, documentation, tariffs, key, trade, billion, fundamental


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Trump halts trade negotiations with Turkey, raises its steel tariffs to 50%

President Donald Trump signed an executive order sanctioning Turkish officials, hiking tariffs on Turkish steel up to 50% and “immediately” halting trade negotiations with the country, Vice President Mike Pence confirmed Monday. Trump had announced the order in a lengthy statement posted to Twitter earlier Monday afternoon. The White House announced Oct. 6, following a call between Trump and Turkish President Recep Tayyip Erdogan, that it would pull U.S. troops out of the area. In May, the U.S.


President Donald Trump signed an executive order sanctioning Turkish officials, hiking tariffs on Turkish steel up to 50% and “immediately” halting trade negotiations with the country, Vice President Mike Pence confirmed Monday. Trump had announced the order in a lengthy statement posted to Twitter earlier Monday afternoon. The White House announced Oct. 6, following a call between Trump and Turkish President Recep Tayyip Erdogan, that it would pull U.S. troops out of the area. In May, the U.S.
Trump halts trade negotiations with Turkey, raises its steel tariffs to 50% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin breuninger
Keywords: news, cnbc, companies, trade, raises, statement, syria, turkey, president, kurds, trump, trumps, negotiations, halts, steel, turkish, order, tariffs


Trump halts trade negotiations with Turkey, raises its steel tariffs to 50%

President Donald Trump signed an executive order sanctioning Turkish officials, hiking tariffs on Turkish steel up to 50% and “immediately” halting trade negotiations with the country, Vice President Mike Pence confirmed Monday. Trump had announced the order in a lengthy statement posted to Twitter earlier Monday afternoon. “This Order will enable the United States to impose powerful additional sanctions on those who may be involved in serious human rights abuses, obstructing a ceasefire, preventing displaced persons from returning home, forcibly repatriating refugees, or threatening the peace, security, or stability in Syria,” Trump’s statement read. The retaliatory measures followed Trump’s decision to order the withdrawal of all U.S. troops from Syria’s northern border with Turkey, which has enabled Turkish forces to launch an offensive against the U.S.-allied Kurdish forces in Syria. Turkey and Kurdish groups have clashed for years, and Ankara recently signaled that it planned to carry out operations against the Kurds near Syria’s northern border with Turkey. The White House announced Oct. 6, following a call between Trump and Turkish President Recep Tayyip Erdogan, that it would pull U.S. troops out of the area.

The abrupt foreign policy shift drew a rare wave of bipartisan criticism against the president, including from some of his most committed allies in Congress. Sen. Lindsey Graham, R-S.C., for instance, publicly trashed Trump’s move and announced plans to work with Democratic House Speaker Nancy Pelosi on a joint resolution to overturn the withdrawal. Spokesmen for the Kurds have accused the U.S. of having “abandoned us to a Turkish massacre.” Trump took to social media to defend himself against the torrent of criticism. He pushed back on the more hawkish voices against him, writing Sunday: “Those that mistakenly got us into the Middle East Wars are still pushing to fight.” Shortly before announcing the sanctions and tariff hikes, Trump wrote in a thread of tweets that “Anyone who wants to assist Syria in protecting the Kurds is good with me, whether it is Russia, China, or Napoleon Bonaparte.” “I hope they all do great,” Trump said of whoever might come to help the Kurds, a stateless ethnic group that was integral to helping the U.S. defeat the ISIS caliphate in the Middle East. “We are 7,000 miles away!” In May, the U.S. halved tariffs on Turkish steel imports to 25%, even as it ripped up an existing preferential trade status with the country. The import duties on Turkish steel and aluminum had originally been jacked up amid Trump’s campaign to pressure Turkey to release Pastor Andrew Brunson, an American who had been detained there on terrorism charges that he denied. Brunson was released last year. “I have been perfectly clear with President Erdogan: Turkey’s action is precipitating a humanitarian crisis and setting conditions for possible war crimes,” Trump said in the statement Monday.

“Turkey must ensure the safety of civilians, including religious and ethnic minorities, and is now, or may be in the future, responsible for the ongoing detention of ISIS terrorists in the region. Unfortunately, Turkey does not appear to be mitigating the humanitarian effects of its invasion,” the president said. “The United States will aggressively use economic sanctions to target those who enable, facilitate, and finance these heinous acts in Syria,” Trump’s statement said. “I am fully prepared to swiftly destroy Turkey’s economy if Turkish leaders continue down this dangerous and destructive path.”

Read Trump’s full statement below:


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin breuninger
Keywords: news, cnbc, companies, trade, raises, statement, syria, turkey, president, kurds, trump, trumps, negotiations, halts, steel, turkish, order, tariffs


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US economy being hit harder by the trade war than China, says influential Asian financier

The U.S. economy is being hit harder than the Chinese economy by the long-running trade war between Washington and Beijing, influential Chinese financier Weijian Shan told CNBC on Monday. “That doesn’t mean that the Chinese economy is not severely damaged. Shan’s argument that the U.S. has seen greater impacts from the trade war were the subject of an op-ed in “Foreign Affairs” with the headline: “The Unwinnable Trade War.” Shan acknowledged on CNBC the trade war has “accelerated” the process, a


The U.S. economy is being hit harder than the Chinese economy by the long-running trade war between Washington and Beijing, influential Chinese financier Weijian Shan told CNBC on Monday. “That doesn’t mean that the Chinese economy is not severely damaged. Shan’s argument that the U.S. has seen greater impacts from the trade war were the subject of an op-ed in “Foreign Affairs” with the headline: “The Unwinnable Trade War.” Shan acknowledged on CNBC the trade war has “accelerated” the process, a
US economy being hit harder by the trade war than China, says influential Asian financier Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, trade, shan, financier, war, chinese, harder, hit, products, influential, phase, economy, asian, china, tariffs


US economy being hit harder by the trade war than China, says influential Asian financier

The U.S. economy is being hit harder than the Chinese economy by the long-running trade war between Washington and Beijing, influential Chinese financier Weijian Shan told CNBC on Monday.

“Both parties lose from the trade war, but the numbers suggest that the damage to the U.S. side is greater, in percentage terms, than to the Chinese economy,” said Shan, a U.S.-trained economist and chairman and CEO of Asian private equity giant PAG. PAG has offices in China and Hong Kong and about $30 billion of assets under management.

“That doesn’t mean that the Chinese economy is not severely damaged. … For China, the business confidence in particular has been hit very hard in the past 15 months,” Shan said on “Squawk on the Street.” He spoke just hours after reports that China wants another round of talks before signing what President Donald Trump called last week the first phase of a trade deal between the two nations.

Trump said on Friday that China agreed to buy more U.S. agricultural products and made a commitment to address intellectual property concerns. The U.S. agreed to hold off on a tariff rate hike that was supposed to go into effect Tuesday.

Earlier Monday, Treasury Secretary Steven Mnuchin on CNBC would not comment directly on the status of the deal, but said it’s a “fundamental agreement in principle” that’s “subject to documentation.” Mnuchin said he expects “phase one will close.” But if it doesn’t, he said a new round of tariffs on Chinese goods, set for mid-December, would take effect.

“They’ve reached an understanding, but the devil is in the details, so they have to work out the details and agree on paper,” Shan said, noting how positive signs in June quickly devolved into additional tariff hikes. Both sides are hoping Trump and Chinese President Xi Jinping are able to meet and sign the phase one of the trade deal at the Asia-Pacific Economic Cooperation summit next month in Chile.

Shan’s argument that the U.S. has seen greater impacts from the trade war were the subject of an op-ed in “Foreign Affairs” with the headline: “The Unwinnable Trade War.” Throughout the escalating trade dispute, both China and the U.S. have been saying that the other’s economy is bearing the brunt of the tariffs.

However, Shan wrote, “The tariffs did not compel Chinese exporters to reduce their prices; instead, the full cost of the tariffs hit American consumers.”

He also pointed to China’s decision to only place tariffs on U.S. goods that can be replaced with imports from other countries at similar prices.”

“It actually lowered duties for those U.S. products that can’t be bought elsewhere more cheaply, such as semiconductors and pharmaceuticals,” he wrote. “Consequently, China’s import prices for the same products have dropped overall, in spite of higher tariffs on U.S. imports.”

Shan acknowledged on CNBC the trade war has “accelerated” the process, already underway, of companies moving supply chains out of China into Southeast Asian countries. “It’s having some impact on the Chinese economy, but it is not going to be very substantial.”


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, trade, shan, financier, war, chinese, harder, hit, products, influential, phase, economy, asian, china, tariffs


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WTO formally backs US tariffs on EU goods

GENEVA — The United States has cleared the final procedural hurdle in order to impose tariffs on billions of dollars of European products later this month, at a meeting of the WTO’s (World Trade Organization) governing body on Monday. The Dispute Settlement Body (DSB) that adopted the arbitrators’ Oct. 2 ruling is essentially the WTO’s general council, and consists of all WTO members. Airbus insists that it is now fully compliant with previous WTO rulings, and said it expects another WTO panel t


GENEVA — The United States has cleared the final procedural hurdle in order to impose tariffs on billions of dollars of European products later this month, at a meeting of the WTO’s (World Trade Organization) governing body on Monday. The Dispute Settlement Body (DSB) that adopted the arbitrators’ Oct. 2 ruling is essentially the WTO’s general council, and consists of all WTO members. Airbus insists that it is now fully compliant with previous WTO rulings, and said it expects another WTO panel t
WTO formally backs US tariffs on EU goods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: willem marx
Keywords: news, cnbc, companies, ruling, month, backs, airbus, settlement, members, formally, european, tariffs, trade, wtos, goods, wto


WTO formally backs US tariffs on EU goods

GENEVA — The United States has cleared the final procedural hurdle in order to impose tariffs on billions of dollars of European products later this month, at a meeting of the WTO’s (World Trade Organization) governing body on Monday. The administration of President Donald Trump no longer faces any legal obstacles for its set of previously scheduled sanctions against European goods that could now take effect Friday, after a three-person WTO tribunal of arbitrators earlier this month issued a ruling that allowed the enactment of $7.5 billion worth of countermeasures — an historically high amount. According to a Geneva trade official, the U.S. ambassador to the WTO, Dennis Shea, told WTO members that the size of the award approved Monday documents a point the U.S. has long made, that European subsidies to Airbus had caused massive harm to the U.S. economy over the course of several decades. In the absence of a last-minute negotiated settlement between Washington and Brussels, the tariffs will kick in on a medley of products that range from Scotch whisky, to French wine, Spanish olives and Italian cheese. The Dispute Settlement Body (DSB) that adopted the arbitrators’ Oct. 2 ruling is essentially the WTO’s general council, and consists of all WTO members. The U.S. had requested the emergency meeting at the WTO’s headquarters on the shores of Lake Geneva, and the outcome was always going to be “in practice a foregone conclusion,” according to Joshua Paine, a senior research fellow at the Max Planck Institute in Luxembourg, who focuses on international adjudication law.

14 March 2018, Germany, Frankfurt am Main: An Airbus A380 (L) and a retro design Boeing 747-8 cross each others path at the ramp of Frankfurt Airport. picture alliance | picture alliance | Getty Images

That’s because of the DSB’s “negative consensus” rule, whereby any WTO member that wants to block a ruling must persuade all other members, including the country that initiated the complaint, to join it in voting against the decision. According to the trade official’s account, the U.S. ambassador Shea said it had always preferred a negotiated settlement but that it hoped the countermeasures that take effect later this week would “encourage the EU to agree to a genuine cessation of its WTO-inconsistent subsidies and the adverse effects that flow from them.” The outgoing European Commissioner for Trade, Cecilia Malmstrom, told CNBC earlier this month that she had offered the U.S. fresh proposals on civilian aircraft manufacturing, and in a statement she had also said that if the DSB were to authorize the countermeasures, as was the case today, any U.S. decision to move forward with them would be “short-sighted and counterproductive.” Airbus insists that it is now fully compliant with previous WTO rulings, and said it expects another WTO panel to confirm that compliance is complete before the end of the year. Last week, French Finance Minister Bruno Le Maire warned that if American tariffs take effect on Friday, Europe will not have “any other choice but to also take measures.” And so soon after a temporary truce between the U.S. and China began to appear possible, the economic implications of a fresh trade confrontation has been raising concerns among European government officials and investors alike. “The risk of a U.S. trade conflict with the EU continues to loom large,” said Holger Schmieding, the chief economist at the German private bank Berenberg, in a Monday research note. Under the WTO’s definitions, the arbitrators’ ruling on Airbus is not a “punishment” and instead is a “remedy,” but next month the U.S. may also seek to impose separate and more controversial penalties on European auto manufacturers, predicated on a view that they represent a threat to U.S. national security.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: willem marx
Keywords: news, cnbc, companies, ruling, month, backs, airbus, settlement, members, formally, european, tariffs, trade, wtos, goods, wto


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Treasury Secretary Steven Mnuchin says he expects tariffs to go up in December if there is no China deal

Treasury Secretary Steven Mnuchin told CNBC on Monday he expects the mid-December round of tariffs on Chinese goods to take effect if no deal is reached between the two economic superpowers. “I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said on CNBC’s “Squawk Box.” Mnuchin said the U.S. expects China to buy $40 billion to $50 billion worth of agriculture products. In the Oval Office on Friday, Mnuchin said the White Hous


Treasury Secretary Steven Mnuchin told CNBC on Monday he expects the mid-December round of tariffs on Chinese goods to take effect if no deal is reached between the two economic superpowers. “I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said on CNBC’s “Squawk Box.” Mnuchin said the U.S. expects China to buy $40 billion to $50 billion worth of agriculture products. In the Oval Office on Friday, Mnuchin said the White Hous
Treasury Secretary Steven Mnuchin says he expects tariffs to go up in December if there is no China deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin breuninger
Keywords: news, cnbc, companies, china, steven, mnuchin, deal, expects, trump, round, treasury, secretary, tariffs, president, deadline, tariff


Treasury Secretary Steven Mnuchin says he expects tariffs to go up in December if there is no China deal

Treasury Secretary Steven Mnuchin told CNBC on Monday he expects the mid-December round of tariffs on Chinese goods to take effect if no deal is reached between the two economic superpowers.

“I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said on CNBC’s “Squawk Box.”

Mnuchin’s commitment to keeping tariffs on the table comes days after President Donald Trump announced a “fundamental agreement in principle” for a “phase one deal” following a round of renewed high-level negotiations with Beijing in Washington.

The two countries addressed intellectual property rights, financial services — including currency and foreign exchange — and “very significant structural issues” dealing with agriculture, a key sticking point in the tit-for-tat tariff battle, Mnuchin said.

Mnuchin said the U.S. expects China to buy $40 billion to $50 billion worth of agriculture products. He also said that China will be removing some tariffs on imports of U.S. goods.

Trump, in an all-caps tweet Sunday evening, exclaimed, “CHINA HAS ALREADY BEGUN AGRICULTURAL PURCHASES FROM OUR GREAT PATRIOT FARMERS & RANCHERS!”

In the Oval Office on Friday, Mnuchin said the White House would hold off on Tuesday’s deadline to impose more tariffs on China. The next tariff deadline is Dec. 15.

But he expects that, pending more meetings with Beijing officials, Trump and Chinese President Xi Jinping will be able to finish the deal during their anticipated meeting in Chile in a few weeks.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: kevin breuninger
Keywords: news, cnbc, companies, china, steven, mnuchin, deal, expects, trump, round, treasury, secretary, tariffs, president, deadline, tariff


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Morgan Stanley warns tariff escalation remains a ‘meaningful risk’ despite partial US-China deal

Morgan Stanley says President Donald Trump’s partial trade deal with China is an “uncertain” arrangement at best and there does not appear to be viable path to reduce existing tariffs at the moment. Without a durable dispute settlement mechanism in place, another round of tariff increases cannot be ruled out,according to Morgan Stanley. “There is not yet a viable path to existing tariffs declining, and tariff escalation remains a meaningful risk,” the bank said in a note. The president said that


Morgan Stanley says President Donald Trump’s partial trade deal with China is an “uncertain” arrangement at best and there does not appear to be viable path to reduce existing tariffs at the moment. Without a durable dispute settlement mechanism in place, another round of tariff increases cannot be ruled out,according to Morgan Stanley. “There is not yet a viable path to existing tariffs declining, and tariff escalation remains a meaningful risk,” the bank said in a note. The president said that
Morgan Stanley warns tariff escalation remains a ‘meaningful risk’ despite partial US-China deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-13  Authors: emma newburger
Keywords: news, cnbc, companies, president, escalation, trade, 2020, meaningful, wrote, partial, deal, tariffs, china, morgan, stanley, warns, phase, uschina, remains, tariff, risk


Morgan Stanley warns tariff escalation remains a 'meaningful risk' despite partial US-China deal

President Donald Trump meets with China’s President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019.

Morgan Stanley says President Donald Trump’s partial trade deal with China is an “uncertain” arrangement at best and there does not appear to be viable path to reduce existing tariffs at the moment.

The U.S. agreed to suspend a tariff increase on at least $250 billion in Chinese goods to 30% from 25% set for Tuesday, but a tariff hike implemented in September was not rolled back and plans for another hike just before the the Christmas holiday on Dec. 15 remain in place.

Without a durable dispute settlement mechanism in place, another round of tariff increases cannot be ruled out,

according to Morgan Stanley.

“There is not yet a viable path to existing tariffs declining, and tariff escalation remains a meaningful risk,” the bank said in a note. “Thus, we do not yet expect a meaningful rebound in corporate behavior that would drive global growth expectations higher.”

The president said that the first phase of the trade deal will be written over the next three weeks. As part of phase one, China will purchase between $40 billion and $50 billion in U.S. agricultural products.

Evercore wrote that the first phase of the U.S.-China trade deal doesn’t clear the air for global corporations to decide on where to invest, produce hire or source. If the U.S. maintains a “stop the China rise” mentality perspective, the trade war will continue, the firm wrote.

“Trump’s statement that ‘We are near the end of the trade war’ is not plausible to us,” Evercore wrote in a note. “We do not expect tariff cuts in 2020 – but are ready to be favorably surprised.

“And as long as such punitive tariffs remain, we would describe US-China economic relations as bad, not good.”

Goldman Sachs sees a 60% chance that the announced 15% tariffs will take effect, but expects a delay until early 2020 as opposed to the current deadline of Dec. 15. Evercore said it expects a delay and no additional tariff hikes in 2020.

In the past year, the U.S. has set tariffs on billions of dollars worth of Chinese products, and China has retaliated with its own levies, igniting concern over slower global economic growth and weaker corporate earnings.

JP Morgan said the first phase of the deal is a positive development after months of trade escalation, but that the outcome is not a surprise for the market. It expects that US-China tension could escalate again, especially during the 2020 presidential election.

“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,” the firm wrote.

Macro impact of the mini deal removes some downside risk in the next quarters, but does not affect the economic slowdown trend, JP Morgan wrote. The bank’s growth forecasts are 6.2% in 2019 and 5.9% in 2020.


Company: cnbc, Activity: cnbc, Date: 2019-10-13  Authors: emma newburger
Keywords: news, cnbc, companies, president, escalation, trade, 2020, meaningful, wrote, partial, deal, tariffs, china, morgan, stanley, warns, phase, uschina, remains, tariff, risk


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Four experts on what to watch on Wall Street next week

With earnings season kicking off in the coming days, four experts weigh in on what is on their watch list this week. We’re going to go through a pretty weak corporate earnings season starting next week. Byron Wien of Blackstone Private Wealth says earnings have to improve before the market can see a stronger leg up. I don’t think earnings are going to be strong. So I think the market has limited upside, but it does have some upside.”


With earnings season kicking off in the coming days, four experts weigh in on what is on their watch list this week. We’re going to go through a pretty weak corporate earnings season starting next week. Byron Wien of Blackstone Private Wealth says earnings have to improve before the market can see a stronger leg up. I don’t think earnings are going to be strong. So I think the market has limited upside, but it does have some upside.”
Four experts on what to watch on Wall Street next week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-12  Authors: keris lahiff
Keywords: news, cnbc, companies, trade, wall, experts, important, going, tariffs, week, market, thats, think, really, markets, earnings, street, watch


Four experts on what to watch on Wall Street next week

The markets wrapped a wild week with massive gains.

The announcement of a “phase-one” trade deal between the U.S. and China sent the Dow up nearly 319.92 points on Friday, while the S&P 500 rose 1.1% higher.

With earnings season kicking off in the coming days, four experts weigh in on what is on their watch list this week.

Alec Young, managing director of global markets research at FTSE Russell, says the U.S. needs to do away with tariffs for the markets to break out.

“We’ve been in kind of a trading range, but I think in order to break out of it and make new highs, you really need an end to the existing tariffs. That would be like a tax cut, basically something that’s weighing on corporate earnings. We’re going to go through a pretty weak corporate earnings season starting next week. The reason trade is so important is without a deal that ends existing tariffs, it’s very hard to believe that the forecast for 10% profit growth for 2020 are realistic.”

Jay Jacobs, head of research and strategy at Global X Funds, says investors are reaching their limits when it comes to volatility.

“Every day we see these two heavyweight forces duking it out in the markets. We see the Fed and central bank policy trying to support the markets and we see the trade wars; and you know sometimes negative, sometimes positive news as the other force. And what we’re seeing from our clients is people are really losing patience with this kind of volatility. We see a lot of people looking for yield from any source because that’s the way to get return in a flat or volatile market.”

Clete Willems of Akin Gump says the United States–Mexico–Canada Agreement could have an even great impact than a China deal.

“I’m still hearing good things. In spite of everything going on with the impeachment proceedings and everything else, I’m still hearing good things about the engagement between the administration and the Hill. So USMCA though is important. In a lot of ways, the substance of that actually is going to be more economically meaningful in the short term than China and so that’s an important one too. So, I hope we can get both of these in a more stable place, a little more certainty for our businesses and that will help the economy going into 2020.”

Byron Wien of Blackstone Private Wealth says earnings have to improve before the market can see a stronger leg up.

“Look the market is always vulnerable to a 10% correction. But I don’t think the market is overvalued here. At these interest rates, I think the [S&P 500] can comfortably trade above 3000. How much more above 3000 it can get to really depends on earnings. Earnings have been disappointing. I don’t think earnings are going to be strong. I think we’ll be lucky to get a 5% earnings improvement in 2020. So I think the market has limited upside, but it does have some upside.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-10-12  Authors: keris lahiff
Keywords: news, cnbc, companies, trade, wall, experts, important, going, tariffs, week, market, thats, think, really, markets, earnings, street, watch


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