WH advisor Kudlow: China talks could go on for a while, says the stakes are high

• China talks could go on for a while and said that the stakes are high.
• No immediate urgency on capital gains plain or tax cuts.

White House advisor Kudlow has been crossing the wires and said that the China talks could go on for a while and said that the stakes are high.

He also said that there is no immediate urgency on capital gains plain or tax cuts.

Earlier comments:

• “The phone call the night before last with Secretary Mnuchin and Lighthizer and Vice Premier Liu He went very well. That’s important,” Kudlow said
• “The phone lines have been open during this period and the negotiations have been proceeding,” he said.

FX implications:

The two countries agreed to meet in early October for another round of negotiations and that has lifted spirits in the finical and commodities markets. The Aussie was one of the best performers over the last 7 trading days, the yen the worst. The NZD has been catching up and the Dollar and CAD were the top performers on Friday so far with the CHF and Yen still on the back foot with the VIX in the red and sticks in the green.