Monday, 17 June, 2019

Oil prices up with OPEC cuts, US-China trade talks

Oil Extends Longest Rally in 1.5 Years Oil rose back above $50 a barrel extending its longest rally in 1.5 years
Ginger Lawrence | 09 January, 2019, 18:57

In private, some administration officials have confessed frustration in recent weeks with the market declines, appearing bemused by investors' concerns over the China trade wars and how to address them.

Three days of US-Chinese talks aimed at ending a costly tariff battle wrapped up Wednesday in an optimistic atmosphere after President Donald Trump said they were "going very well!".

Ted McKinney, the U.S. Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs, said the meetings "went just fine" without elaborating. Bloomberg reported that China had communicated they would have a lower level Commerce Ministry official participating in the talks.

The two sides announced no details, but Asian stock markets rose on news of the decision to extend negotiations that originally were planned for two days. Asian bourses saw a strong finish with Japan's Nikkei and China's blue-chip CSI 300 closing up 1 percent while the tech-heavy South Korean KOSPI jumped almost 2 percent.

President Trump said the talks have been going well and China has shown it is will to work with the US on some issues by purchasing soybeans, for example, and lowering auto tariffs.

The Trump administration is even considering keeping current tariffs on Chinese goods in place until its government fulfills its trade pledges - such a move would force China to meet its side of the deal.

The talks were extended into an unscheduled third day, showing both sides were "serious", China's foreign ministry said.

China and the US wrapped up three days of trade talks, with people familiar with the discussions saying their positions were closer on areas including energy and agriculture but further apart on harder issues.

Networks Will Air Democratic Response to Trump’s Primetime Address
The prototypes for Trump's border wall are seen behind the border fence between Mexico and the United States, in Tijuana, Mexico. He said Mexico would pay for it, although Mexico was always clear it would not, and he has now turned to Congress for the money.

Treasury Sec. Steve Mnuchin has led previous in-person trade meetings for the U.S. Those meetings have included top U.S. trade officials including Commerce Sec. There the two agreed to a temporary relief from any tariffs increases and China agreed to put focused effort into trade negotiations over a 90-day period.

Originally scheduled for Monday (Jan 7) and Tuesday (Jan 8), the negotiations were extended by a day amid signs of progress on issues including purchases of USA farm and energy commodities and increased access to China's markets.

USA commerce secretary Wilbur Ross predicted that the United States and Chinaare likely to reach a trade deal, as officials from both nations met for face-to-face talks in Beijingon Monday (New York time).

Without a resolution, punitive United States duty rates on Dollars 200 billion in Chinese goods are due to rise to 25 per cent from 10 per cent on March 2.

The paper said in an editorial that Beijing's stance remained firm that the dispute harms both countries and disrupts the worldwide trade order and supply chains.

In what is widely seen as a goodwill gesture, China on Tuesday issued long-awaited approvals for the import of five genetically modified crops, which could boost its purchases of USA grains as farmers decide which crops to plant in the spring.

Chinese officials complain about controls on "dual use" technology with possible military applications.