- Kudlow says, “No update on China talks; moving ahead with phase-1.”
- Trade-war headlines domination the US Dollar, Yen, AUD and Yuan.
White House economic advisor Larry Kudlow has crossed the wires saying that phase-1’s unresolved issues could spill over into phase-2. He said this in respect to the recent gentleman’s handshake deal between the US administration and China over trade – A Phase-1 trade deal that had not been officially signed into a contract and thus leaving the door wide-open for it to be revoked by either side.
However, it is a form of progress and a deal which Trump has been vocal of recent days, saying how well talks have been going and how confident he is that a deal will be signed as soon as next month to open the way for further negotiations in phase-2 deal. Stocks were solid yesterday of prior comments from Kudlow suggesting December tariffs could be removed of all goes well
Additional comments from Kudlow
- No update on china talks; moving ahead with phase one.
- December tariffs could be removed if US/China trade talks go well – (Comment made on 21st Oc 2019).
FX implications:
The Dollar and Yen tend to sag on positive trade war headlines while the Aussie generally firms on good news headlines, which trades as a proxy to the noise, as does the Yuan.
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