<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil&nbsp;prices</a>&nbsp;held&nbsp;steady&nbsp;on the final day of the year on Tuesday, heading for their&nbsp;biggest&nbsp;annual&nbsp;rise&nbsp;since&nbsp;2016, supported by a thaw in the prolonged <a href="https://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China trade</a> dispute and supply cuts.

Brent crude futures for March delivery, the new front-month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44 .

US&nbsp;<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude for February was down 3 cents at $61.65.

Brent has gained about 24 per cent&nbsp;in 2019 and WTI has&nbsp;risen roughly 36 per cent. Both benchmarks are set for their&nbsp;biggest&nbsp;yearly&nbsp;gain in three years, backed by a breakthrough in US-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/opec-gearing-up-for-deeper-oil-cuts-russia-yet-to-agree-266198">OPEC</a>) and its allies.

The White House's trade adviser said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week.

"Oil&nbsp;prices&nbsp;have followed the general de-risking drift into year-end despite a&nbsp;rise&nbsp;in Middle East tensions and last week's bullish-for-oil-price inventory draws as the broader markets appear to be losing some of that holiday cheer," said Stephen Innes, chief Asia market strategist at AxiTrader.

Tensions remain high in the Middle East after <a href="https://www.wionews.com/world/us-airstrikes-kill-25-pro-iran-militia-fighters-in-iraq-and-syria-triggering-anger-271052">US&nbsp;airstrikes</a> on Sunday against the Katib Hezbollah militia group in Iraq and Syria. Operations resumed at Iraq's Nassiriya&nbsp;oilfield resumed on Monday after protesters briefly halted production.

Looking ahead, US&nbsp;crude inventories are expected to fall by about 3.2 million barrels in the week to December 27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday. US&nbsp;stockpiles fell by 5.5 million barrels in the week to December&nbsp;20. The figures will be released on Friday.

Innes said traders would also closely watch the EIA's US&nbsp;October crude production figures, set to come out later on Tuesday.

"It's expected to show robust continuous growth in the agency's short-term outlook," he said.

The United States is on&nbsp;track&nbsp;to become a net petroleum exporter on an annual basis for the first time in 2020, with output expected to&nbsp;rise&nbsp;by 930,000 barrels per day (bpd) to a record of 13.18 million bpd next year, the EIA said earlier this month.

Brokers and analysts expect growing US&nbsp;supplies to offset cuts from OPEC in 2020 amid sluggish worldwide demand, weighing on&nbsp;oil&nbsp;prices.

"Oil&nbsp;prices, though largely expected to trade positive, will face headwinds from subdued global growth momentum and robust US&nbsp;shale output levels in the first quarter," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures.

Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts.

Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts. Brent crude futures for March delivery, the new front-month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44 . US West Texas Intermediate (WTI) crude for February was down 3 cents at $61.65. Brent has gained about 24 per cent in 2019 and WTI has risen roughly 36 per cent. Both benchmarks are set for their biggest yearly gain in three years, backed by a breakthrough in US-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. The White House's trade adviser said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week. "Oil prices have followed the general de-risking drift into year-end despite a rise in Middle East tensions and last week's bullish-for-oil-price inventory draws as the broader markets appear to be losing some of that holiday cheer," said Stephen Innes, chief Asia market strategist at AxiTrader. Tensions remain high in the Middle East after US airstrikes on Sunday against the Katib Hezbollah militia group in Iraq and Syria. Operations resumed at Iraq's Nassiriya oilfield resumed on Monday after protesters briefly halted production. Looking ahead, US crude inventories are expected to fall by about 3.2 million barrels in the week to December 27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday. US stockpiles fell by 5.5 million barrels in the week to December 20. The figures will be released on Friday. Innes said traders would also closely watch the EIA's US October crude production figures, set to come out later on Tuesday. "It's expected to show robust continuous growth in the agency's short-term outlook," he said. The United States is on track to become a net petroleum exporter on an annual basis for the first time in 2020, with output expected to rise by 930,000 barrels per day (bpd) to a record of 13.18 million bpd next year, the EIA said earlier this month. Brokers and analysts expect growing US supplies to offset cuts from OPEC in 2020 amid sluggish worldwide demand, weighing on oil prices. "Oil prices, though largely expected to trade positive, will face headwinds from subdued global growth momentum and robust US shale output levels in the first quarter," said Benjamin Lu, analyst at Singapore-based brokerage Phillip Futures.

Oil prices steady, on track for biggest yearly rise since 2016

Beijing Saturday slammed a new US defence act, which includes measures to strengthen Washington's ties with Taiwan and support for Hong Kong's pro-democracy protestors, saying it "blatantly interfered" in China's internal affairs.

The tough-worded statement by China's top lawmaking body comes a day after President Xi Jinping told his US counterpart Donald Trump that US comments and actions regarding Taiwan, Hong Kong, Xinjiang and Tibet were harming ties between the two economic giants.

Beijing and Washington have agreed to a temporary truce in their bruising trade war, with a phase-one deal that has rolled back tariffs on billions of dollars worth of goods.&nbsp;

But China has come under strong criticism in Congress, including from Trump's Republican party, over its attempt to clamp down on pro-democracy protests in Hong Kong.

There is also growing concern in Washington, among both Democrats and Republicans, over the mass repression of ethnic Uighurs, a mostly Muslim minority in northwest China's Xinjiang region.

The National Defense Authorization Act (NDAA) calls for a report on the treatment of minorities in Xinjiang and to improve military ties with Taiwan, which Beijing regards as a renegade province awaiting reunification, by force if necessary.

You Wenze, a spokesman for the Foreign Affairs Committee of China's National People's Congress (NPC), told state-run Xinhua news agency, that the bill "blatantly interfered" in China's internal affairs.

The parts relating to Taiwan undermined peace and stability across the Taiwan Strait, he said.

Trump signed the $738 billion bill into law on Friday. It also calls for support for Hong Kong's pro-democracy protestors.

Washington's attempts to interfere in other countries' domestic affairs using so-called democracy and human rights would be in vain, You told Xinhua.

He expressed "resolute opposition" to the bill, the Xinhua report said.

The statement echoes the language used during a Xi-Trump phone call on Friday.&nbsp;

"China expresses serious concerns over the US side's recent negative words and actions on issues related to China's Taiwan, Hong Kong, Xinjiang and Tibet," Xi said during the call, according to Xinhua's summary.&nbsp;

Xi "noted that the US behaviours have interfered in China's internal affairs and harmed China's interests, which is detrimental to the mutual trust and bilateral cooperation," the state-controlled outlet said.&nbsp;

Beijing Saturday slammed a new US defence act, which includes measures to strengthen Washington's ties with Taiwan and support for Hong Kong's pro-democracy protestors, saying it "blatantly interfered" in China's internal affairs.

Beijing Saturday slammed a new US defence act, which includes measures to strengthen Washington's ties with Taiwan and support for Hong Kong's pro-democracy protestors, saying it "blatantly interfered" in China's internal affairs. The tough-worded statement by China's top lawmaking body comes a day after President Xi Jinping told his US counterpart Donald Trump that US comments and actions regarding Taiwan, Hong Kong, Xinjiang and Tibet were harming ties between the two economic giants. Beijing and Washington have agreed to a temporary truce in their bruising trade war, with a phase-one deal that has rolled back tariffs on billions of dollars worth of goods. But China has come under strong criticism in Congress, including from Trump's Republican party, over its attempt to clamp down on pro-democracy protests in Hong Kong. There is also growing concern in Washington, among both Democrats and Republicans, over the mass repression of ethnic Uighurs, a mostly Muslim minority in northwest China's Xinjiang region. The National Defense Authorization Act (NDAA) calls for a report on the treatment of minorities in Xinjiang and to improve military ties with Taiwan, which Beijing regards as a renegade province awaiting reunification, by force if necessary. You Wenze, a spokesman for the Foreign Affairs Committee of China's National People's Congress (NPC), told state-run Xinhua news agency, that the bill "blatantly interfered" in China's internal affairs. The parts relating to Taiwan undermined peace and stability across the Taiwan Strait, he said. Trump signed the $738 billion bill into law on Friday. It also calls for support for Hong Kong's pro-democracy protestors. Washington's attempts to interfere in other countries' domestic affairs using so-called democracy and human rights would be in vain, You told Xinhua. He expressed "resolute opposition" to the bill, the Xinhua report said. The statement echoes the language used during a Xi-Trump phone call on Friday. "China expresses serious concerns over the US side's recent negative words and actions on issues related to China's Taiwan, Hong Kong, Xinjiang and Tibet," Xi said during the call, according to Xinhua's summary. Xi "noted that the US behaviours have interfered in China's internal affairs and harmed China's interests, which is detrimental to the mutual trust and bilateral cooperation," the state-controlled outlet said.

China says US defence act 'blatantly interfered' in its affairs

China and the United States are in touch over the signing of their Phase One&nbsp;trade deal, China's commerce ministry said, which will see lower US&nbsp;tariffs on Chinese goods and higher Chinese purchases of US&nbsp;farm, energy and manufactured goods.

The <a href="https://www.wionews.com/world/china-us-trade-deal-good-news-for-all-chinese-foreign-minister-wang-yi-268292">Phase One&nbsp;deal</a> was announced last week after more than two years of on-and-off trade talks, although neither side has released many specific details of the agreement.

Also Watch:&nbsp;US-China reach 'Phase One' Trade Deal

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Both the Chinese and US&nbsp;trade teams are in <a href="https://www.wionews.com/world/china-says-in-close-communication-with-us-over-trade-deal-266442">close communication</a>, Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing on Thursday, adding there is no specific information on the deal to disclose currently.

"After the official signing of the deal, the content of the agreement will be made public," Gao said.

US&nbsp;officials say China agreed to <a href="https://www.wionews.com/world/us-treasury-secretary-mnuchin-says-trade-deal-with-china-to-boost-global-economy-268327">increase purchases</a> of US&nbsp;products and services by at least $200 billion over the next two years.

According to Washington, that would include additional purchases of US&nbsp;farm products of $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started.

Chinese officials have so far not publicly confirmed much of Washington's version especially on <a href="https://www.wionews.com/world/us-on-verge-of-landmark-china-trade-deal-trump-267981">goods purchase commitments</a>. But China said on Friday when the deal was announced that it will import more US&nbsp;wheat, rice, corn, energy, pharmaceuticals and financial services.

Earlier on Thursday, China unveiled a new list of tariff exemptions for US&nbsp;imports, mostly chemical products, days after the world's two largest economies announced the Phase One deal. China said the second part of the waiver list will be released at an appropriate time.

Washington said the deal also includes stronger Chinese legal protections for patents, trademarks, copyrights, including improved criminal and civil procedures to combat online infringement, pirated and counterfeit goods.

The two countries have reached a consensus over the protection of trade secrets, guarding intellectual property rights for pharmaceutical products, and cracking down on counterfeits and pirated goods on e-commerce platforms, Chinese Vice Minister of Commerce Wang Shouwen said on Friday.

China will step up protection of intellectual property but at its own pace, Wang said.

China and the United States are in touch over the signing of their Phase One trade deal, China's commerce ministry said, which will see lower US tariffs on Chinese goods and higher Chinese purchases of US farm, energy and manufactured goods.

China and the United States are in touch over the signing of their Phase One trade deal, China's commerce ministry said, which will see lower US tariffs on Chinese goods and higher Chinese purchases of US farm, energy and manufactured goods. The Phase One deal was announced last week after more than two years of on-and-off trade talks, although neither side has released many specific details of the agreement. Also Watch: US-China reach 'Phase One' Trade Deal × Both the Chinese and US trade teams are in close communication, Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing on Thursday, adding there is no specific information on the deal to disclose currently. "After the official signing of the deal, the content of the agreement will be made public," Gao said. US officials say China agreed to increase purchases of US products and services by at least $200 billion over the next two years. According to Washington, that would include additional purchases of US farm products of $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started. Chinese officials have so far not publicly confirmed much of Washington's version especially on goods purchase commitments. But China said on Friday when the deal was announced that it will import more US wheat, rice, corn, energy, pharmaceuticals and financial services. Earlier on Thursday, China unveiled a new list of tariff exemptions for US imports, mostly chemical products, days after the world's two largest economies announced the Phase One deal. China said the second part of the waiver list will be released at an appropriate time. Washington said the deal also includes stronger Chinese legal protections for patents, trademarks, copyrights, including improved criminal and civil procedures to combat online infringement, pirated and counterfeit goods. The two countries have reached a consensus over the protection of trade secrets, guarding intellectual property rights for pharmaceutical products, and cracking down on counterfeits and pirated goods on e-commerce platforms, Chinese Vice Minister of Commerce Wang Shouwen said on Friday. China will step up protection of intellectual property but at its own pace, Wang said.

China: In touch with US on signing of Phase One Trade Deal

US Treasury Secretary Steven Mnuchin said on Saturday a "phase one" trade deal between the United States and China was "very good" for global economic growth, and added that the second phase could come in several steps.

US Treasury Secretary Steven Mnuchin said on Saturday a "phase one" trade deal between the United States and China was "very good" for global economic growth, and added that the second phase could come in several steps. The United States and China cooled their trade war on Friday, announcing a "phase one" agreement that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods. Mnuchin said full details of the new deal, or a factsheet on "phase one", would come out later on Saturday or on Sunday after both sides do fact and language checks. "We expect it will be fully executed in January. And then we get to 'phase two'," Mnuchin told the Doha Forum conference in Qatar. "The most important issue is - lets make sure we implement 'phase one' with an enforceable agreement, which it is. And then we start negotiating 'phase two'. "There are important issue left in 'phase two'. And perhaps there will be a 'phase two A', 'phase two B' and 'phase two C'. We will see," he said. Mnuchin said the deal with China aimed to create more reciprocal trade relations for many years, adding that the deal would be "very good" for global growth. He said the United States continued to remain the "bright spot" of the global economy, while Europe and Asia were slowing down. Asked if the trade deal boosts U.S. President Donald Trump's chances of getting re-elected in November 2020, Mnuchin said: "The president will be re-elected almost no matter what occurs. Because he has built an incredible economy and he is very focused on national security." Mnuchin also said he believed the United States campaign of maximum pressure on Iran was working and has drastically reduced Tehran's ability to sponsor what Washington sees as terrorist groups abroad. Asked if Washington's broad and regular use of sanctions against many nations could undermine the long-term status of the dollar as the global reserve currency, Mnuchin said sanctions were often an alternative to open military conflicts. "But if we are not careful with sanctions, people will start using other currencies," he added.

US Treasury Secretary Mnuchin says trade deal with China to boost global economy

The recent truce in the <a href="https://www.wionews.com/business-economy/oil-rises-on-hopes-for-deeper-opec-output-cuts-us-china-trade-talks-255148">US-China trade war</a> is not an economic turning point and has done nothing to reduce a significant risk that the <a href="https://www.wionews.com/world/donald-trump-says-warmer-feelings-in-us-china-trade-talks-255346">United States</a> could slip into recession in the next two years, a Reuters poll of economists found.&nbsp;

Collateral damage from the trade conflict between the world’s two largest economies has hit financial markets and forced most major central banks to cut interest rates this year.

The October 18-23 Reuters poll of more than 100 economists found growth and inflation views for the coming year and beyond barely changed, despite a White House announcement about a “phase 1” deal with China and suspension of tariffs scheduled to kick in this month.

“US-China trade negotiations over the past 18 months have been a classic case of ‘one step forward, several steps back’. Despite recent encouraging noise on trade talks, there are more tariffs in place than three months ago,” noted Ajay Rajadhyaksha, head of macro research at Barclays in New York.

“Our forecasts suggest that below-trend US&nbsp;growth will persist for much of 2020. We still feel that the U.S. and the world economy will avoid recession in the coming months, but the US&nbsp;will not be a global locomotive, as it was in 2018.”

The median probability of a US&nbsp;recession in the next 12 months rose to 35% from 30% predicted a month ago - the highest percentage in this economic expansion. For the next two years, it held at a high 45%.&nbsp;

In response to an additional question, 75% of economists said the recent trade development between Washington and Beijing was not a turning point in easing uncertainty.

That conclusion was evident in the consensus for U.S. economic growth, which is expected to slow to 1.6%-1.7% on an annualized basis each quarter between now and end-2020, down from 2.0% last reported.&nbsp;

The range of growth forecasts for the second half of this year showed lower highs and lower lows, underscoring fears the U.S. economy is still losing momentum after a short sugar rush from aggressive tax cuts passed in late 2017.

A majority of economists, 27 of 45, also said US-China trade relations would stay about the same between now and the end of next year. The others were evenly split between it getting better or worse.

“Encouraging, but we are mindful a successful resolution is still a long way away and the negotiations will continue to ebb and flow over the coming year,” said Sam Bullard, senior economist at Wells Fargo, referring to the latest US-China trade developments.

Even with record low unemployment, the Federal Reserve was expected to cut rates at its October&nbsp;29-30 meeting, its third cut this year.

The Fed’s preferred gauge of inflation, the core personal consumption expenditure (PCE) price index, was expected to touch its target of 2% early next year and stay around that rate through end-2020 at least.

After lowering interest rates in July and September, the central bank was expected to cut again by 25 basis points next week, taking the fed funds rate to 1.50%-1.75%.

Another cut is forecast for early next year, taking the rate to 1.25%-1.50%, with no more changes expected for the rest of 2020.&nbsp;

Those forecasts are in line with interest rate futures market pricing.&nbsp;

In addition to rate cuts, a few economists expect some form of fiscal stimulus next year.

“A likely third Fed rate cut in October and some modest fiscal support next year won’t prevent the U.S. economy from slowing further, though the stimulus should offset growing friction from trade protectionism to extend the record-long expansion,” said Sal Guatieri, senior economist at BMO Capital Markets.

The recent truce in the US-China trade war is not an economic turning point and has done nothing to reduce a significant risk that the United States could slip into recession in the next two years, a Reuters poll of economists found.

The recent truce in the US-China trade war is not an economic turning point and has done nothing to reduce a significant risk that the United States could slip into recession in the next two years, a Reuters poll of economists found. Collateral damage from the trade conflict between the world’s two largest economies has hit financial markets and forced most major central banks to cut interest rates this year. The October 18-23 Reuters poll of more than 100 economists found growth and inflation views for the coming year and beyond barely changed, despite a White House announcement about a “phase 1” deal with China and suspension of tariffs scheduled to kick in this month. “US-China trade negotiations over the past 18 months have been a classic case of ‘one step forward, several steps back’. Despite recent encouraging noise on trade talks, there are more tariffs in place than three months ago,” noted Ajay Rajadhyaksha, head of macro research at Barclays in New York. “Our forecasts suggest that below-trend US growth will persist for much of 2020. We still feel that the U.S. and the world economy will avoid recession in the coming months, but the US will not be a global locomotive, as it was in 2018.” The median probability of a US recession in the next 12 months rose to 35% from 30% predicted a month ago - the highest percentage in this economic expansion. For the next two years, it held at a high 45%. In response to an additional question, 75% of economists said the recent trade development between Washington and Beijing was not a turning point in easing uncertainty. That conclusion was evident in the consensus for U.S. economic growth, which is expected to slow to 1.6%-1.7% on an annualized basis each quarter between now and end-2020, down from 2.0% last reported. The range of growth forecasts for the second half of this year showed lower highs and lower lows, underscoring fears the U.S. economy is still losing momentum after a short sugar rush from aggressive tax cuts passed in late 2017. A majority of economists, 27 of 45, also said US-China trade relations would stay about the same between now and the end of next year. The others were evenly split between it getting better or worse. “Encouraging, but we are mindful a successful resolution is still a long way away and the negotiations will continue to ebb and flow over the coming year,” said Sam Bullard, senior economist at Wells Fargo, referring to the latest US-China trade developments. Even with record low unemployment, the Federal Reserve was expected to cut rates at its October 29-30 meeting, its third cut this year. The Fed’s preferred gauge of inflation, the core personal consumption expenditure (PCE) price index, was expected to touch its target of 2% early next year and stay around that rate through end-2020 at least. After lowering interest rates in July and September, the central bank was expected to cut again by 25 basis points next week, taking the fed funds rate to 1.50%-1.75%. Another cut is forecast for early next year, taking the rate to 1.25%-1.50%, with no more changes expected for the rest of 2020. Those forecasts are in line with interest rate futures market pricing. In addition to rate cuts, a few economists expect some form of fiscal stimulus next year. “A likely third Fed rate cut in October and some modest fiscal support next year won’t prevent the U.S. economy from slowing further, though the stimulus should offset growing friction from trade protectionism to extend the record-long expansion,” said Sal Guatieri, senior economist at BMO Capital Markets.

US-China trade reprieve brings no refuge from recession risk: Report

President Donald Trump on Friday said <a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">Chinese and American officials</a> were working toward meaningful <a href="https://www.wionews.com/business-economy/gold-holds-firm-as-optimism-fades-for-us-china-trade-talks-254716">progress in trade talks</a>, boosting hopes for a detente in the two economies' damaging trade war.

As negotiators concluded the second day of talks, Beijing and Washington appeared close to announcing an incremental bargain, marking a positive turn after a summer of acrimony and escalation.

The good mood was a rapid improvement after a week in negotiations had appeared headed for a dead end as Washington blitzed China with aggressive maneuvers tied to ethnic persecution in Xinjiang and other matters.

For the moment, US tariffs on hundreds of billions of dollars in Chinese merchandise are due to rise on Tuesday.

But even a partial win would be a boon for Trump, who faces an impeachment firestorm and a stinging criticism in Congress for his treatment of Kurdish allies in Syria, only the latest episodes of the White House's perpetual turmoil.

A cheerful morning tweet from Trump fed a rally in stocks, with Wall Street erasing the week's losses as investors bet a partial pact would see the United States postpone next week's scheduled tariff increases on hundreds of billions of dollars in Chinese imports.

"Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days," Trump said on Twitter shortly after officials resumed negotiations for a second day.

"All would like to see something significant happen!"

Trump is due later Friday to meet with Beijing's top trade envoy Liu He in a sign the two sides expect to make a positive announcement.

The president added in a later tweet he would also be able to skip the process of congressional approval: "When the deal is fully negotiated, I sign it myself on behalf of our Country. Fast and Clean!"

Congress has yet to ratify a revamped North American trade pact which Trump signed last year.

Since the China trade war began last year, &nbsp;moments of comity and cheer have more than once been shattered, giving way to jolting deteriorations in relations between the two sides.

In the spring, officials said a deal was more or less at hand, only to have Washington resume tariff increases in May, accusing Beijing of reneging on core commitments already put down in writing.

In Beijing, Foreign Ministry Spokesman Geng Shuang also told reporters on Friday that China hoped "to promote positive progress" in the talks.

Media reports this week have drawn the contours of a partial deal that, while not addressing Trump's biggest gripes about China's trade practices, would offer something for both sides.

China will continue to increase purchases of US farm exports and pledge to refrain from currency manipulation while Washington will suspend a tariff increase, Bloomberg reported.

Myron Brilliant, head of international affairs at the US Chamber of Commerce, told reporters on Thursday he had spoken with both sides and that an agreement on currency could emerge this week.

Not just tariffs

"I think that could lead to a decision by the US administration not to put forward a tariff rate hike on October 15," he said.

The US Treasury in August branded China a currency manipulator, accusing Beijing of deliberately weakening the RMB to gain unfair trade advantages, making good on a Trump campaign pledge.

Where matters go from there remains to be seen, however.&nbsp;

China has so far balked at Trump's demands for profound changes in the way Beijing manages its economy, which analysts say could politically undermine the Communist Party.

In an editorial on Friday, the party-owned China Daily said a partial deal "is a more feasible objective and one that would be in the common interests of both sides."

Meanwhile, the Trump administration has continued to examine ways in which it could exert more pressure on Beijing beyond simply taxing Chinese imports.

Washington accuses China of attempting to dominate the global industry through massive state intervention in markets, theft of intellectual property, hacking and subsidies, accusations shared by Europe and Japan.

Larry Kudlow, a top White House economic aide, said this week this could include heightened regulatory scrutiny of Chinese companies operating in the United States.

President Donald Trump on Friday said Chinese and American officials were working toward meaningful progress in trade talks, boosting hopes for a detente in the two economies' damaging trade war.

President Donald Trump on Friday said Chinese and American officials were working toward meaningful progress in trade talks, boosting hopes for a detente in the two economies' damaging trade war. As negotiators concluded the second day of talks, Beijing and Washington appeared close to announcing an incremental bargain, marking a positive turn after a summer of acrimony and escalation. The good mood was a rapid improvement after a week in negotiations had appeared headed for a dead end as Washington blitzed China with aggressive maneuvers tied to ethnic persecution in Xinjiang and other matters. For the moment, US tariffs on hundreds of billions of dollars in Chinese merchandise are due to rise on Tuesday. But even a partial win would be a boon for Trump, who faces an impeachment firestorm and a stinging criticism in Congress for his treatment of Kurdish allies in Syria, only the latest episodes of the White House's perpetual turmoil. A cheerful morning tweet from Trump fed a rally in stocks, with Wall Street erasing the week's losses as investors bet a partial pact would see the United States postpone next week's scheduled tariff increases on hundreds of billions of dollars in Chinese imports. "Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days," Trump said on Twitter shortly after officials resumed negotiations for a second day. "All would like to see something significant happen!" Trump is due later Friday to meet with Beijing's top trade envoy Liu He in a sign the two sides expect to make a positive announcement. The president added in a later tweet he would also be able to skip the process of congressional approval: "When the deal is fully negotiated, I sign it myself on behalf of our Country. Fast and Clean!" Congress has yet to ratify a revamped North American trade pact which Trump signed last year. Since the China trade war began last year, moments of comity and cheer have more than once been shattered, giving way to jolting deteriorations in relations between the two sides. In the spring, officials said a deal was more or less at hand, only to have Washington resume tariff increases in May, accusing Beijing of reneging on core commitments already put down in writing. In Beijing, Foreign Ministry Spokesman Geng Shuang also told reporters on Friday that China hoped "to promote positive progress" in the talks. Media reports this week have drawn the contours of a partial deal that, while not addressing Trump's biggest gripes about China's trade practices, would offer something for both sides. China will continue to increase purchases of US farm exports and pledge to refrain from currency manipulation while Washington will suspend a tariff increase, Bloomberg reported. Myron Brilliant, head of international affairs at the US Chamber of Commerce, told reporters on Thursday he had spoken with both sides and that an agreement on currency could emerge this week. Not just tariffs "I think that could lead to a decision by the US administration not to put forward a tariff rate hike on October 15," he said. The US Treasury in August branded China a currency manipulator, accusing Beijing of deliberately weakening the RMB to gain unfair trade advantages, making good on a Trump campaign pledge. Where matters go from there remains to be seen, however. China has so far balked at Trump's demands for profound changes in the way Beijing manages its economy, which analysts say could politically undermine the Communist Party. In an editorial on Friday, the party-owned China Daily said a partial deal "is a more feasible objective and one that would be in the common interests of both sides." Meanwhile, the Trump administration has continued to examine ways in which it could exert more pressure on Beijing beyond simply taxing Chinese imports. Washington accuses China of attempting to dominate the global industry through massive state intervention in markets, theft of intellectual property, hacking and subsidies, accusations shared by Europe and Japan. Larry Kudlow, a top White House economic aide, said this week this could include heightened regulatory scrutiny of Chinese companies operating in the United States.

Donald Trump says 'warmer feelings' in US-China trade talks

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial <a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">trade deal with the US</a> in key talks this week.

The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility.

Crude oil prices, which had rallied over one per cent as <a href="https://www.wionews.com/world/turkeys-military-operation-in-syria-what-does-ankara-wants-255040">Turkey launched an offensive against Kurdish</a> militants in northern Syria, trimmed gains after data showed US oil output at record levels and stocks rising.

China remains open to a limited trade deal as long as US President Donald Trump imposes no more tariffs, Bloomberg News and the Financial Times reported, citing people close to the upcoming talks.

In return, Beijing would offer non-core concessions such as purchases of US agricultural products, the reports added.

"This is likely contributing to the gains we're seeing in Europe... but unless the US is also willing to accept a limited deal -- and nothing currently suggests they are -- it may not lead to anything," noted Craig Erlam, senior market analyst at Oanda trading group.&nbsp;

"Traders are jumping at the prospect of good news at the moment but there's been so many false dawns in these negotiations, this may just be the latest," he told AFP.

With less than a week to go before the next round of punitive tariffs is due to hit, Beijing's top trade envoy Liu He will Thursday meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"Liu He is coming with real offers, it's not an empty visit," the FT quoted a source as saying.&nbsp;

"The Chinese are ready to de-escalate," the source, briefed on the talks, added.&nbsp;

Asian stock markets had mostly closed lower on Wednesday ahead of the reports of possible progress in the talks, which could extend into Friday and with Trump present.

Asia tracked losses in Wall Street and across Europe from Tuesday as investors fretted over signs the global economy is slowing.

The International Monetary Fund has forecast the weakest growth in a decade owing to the long-running tariff disputes.

With economic data increasingly weak, the fresh hopes sparked by the reports for Thursday's talks provided some much-needed support.&nbsp;

"But overall stock markets are still stuck in a violent see-saw... as investors try to position themselves ahead of the (talks)," IG chief market analyst Chris Beauchamp said.

Meanwhile, oil prices shot 1.6 per cent higher in European afternoon trading as Turkey began an offensive against Kurdish militants in northern Syria.&nbsp;

They later fell back on data from the Energy Information Administration showed production hitting a new record high while stocks rose more than expected.

"It is a little worrying that inventories are rising despite lower prices, as it suggests that demand is weak," said market analyst David Madden at CMC Markets UK.

Crude prices then later pushed higher once again.

- Key figures around 1530 GMT -

London - FTSE 100: UP 0.3 per cent at 7,166.50 points (close)

Paris - CAC 40: UP 0.8 per cent at 5,499.14 (close)

Frankfurt - DAX 30: UP 1.0 per cent at 12,094.26 (close)

EURO STOXX 50: UP 0.8 per cent at 3,459.50&nbsp;

New York - Dow: UP 0.5 per cent at 26,295.86&nbsp;

Pound/dollar: UP at $1.2218 from $1.2213 at 2040 GMT

Euro/pound: UP at 89.85 pence from 89.69 pence

Euro/dollar: UP at $1.0979 from $1.0955

Dollar/yen: UP at 107.39 yen from 107.07 yen

Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,456.38 (close)

Hong Kong - Hang Seng: DOWN 0.8 per cent at 25,682.81 (close)

Shanghai - Composite: UP 0.4 per cent at 2,924.86 (close)

Brent North Sea crude: UP 1.4 per cent at $59.05 per barrel

West Texas Intermediate: UP 1.6 per cent at $53.49 per barrel 
&nbsp;

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial trade deal with the US in key talks this week. The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility.

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial trade deal with the US in key talks this week. The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility. Crude oil prices, which had rallied over one per cent as Turkey launched an offensive against Kurdish militants in northern Syria, trimmed gains after data showed US oil output at record levels and stocks rising. China remains open to a limited trade deal as long as US President Donald Trump imposes no more tariffs, Bloomberg News and the Financial Times reported, citing people close to the upcoming talks. In return, Beijing would offer non-core concessions such as purchases of US agricultural products, the reports added. "This is likely contributing to the gains we're seeing in Europe... but unless the US is also willing to accept a limited deal -- and nothing currently suggests they are -- it may not lead to anything," noted Craig Erlam, senior market analyst at Oanda trading group. "Traders are jumping at the prospect of good news at the moment but there's been so many false dawns in these negotiations, this may just be the latest," he told AFP. With less than a week to go before the next round of punitive tariffs is due to hit, Beijing's top trade envoy Liu He will Thursday meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. "Liu He is coming with real offers, it's not an empty visit," the FT quoted a source as saying. "The Chinese are ready to de-escalate," the source, briefed on the talks, added. Asian stock markets had mostly closed lower on Wednesday ahead of the reports of possible progress in the talks, which could extend into Friday and with Trump present. Asia tracked losses in Wall Street and across Europe from Tuesday as investors fretted over signs the global economy is slowing. The International Monetary Fund has forecast the weakest growth in a decade owing to the long-running tariff disputes. With economic data increasingly weak, the fresh hopes sparked by the reports for Thursday's talks provided some much-needed support. "But overall stock markets are still stuck in a violent see-saw... as investors try to position themselves ahead of the (talks)," IG chief market analyst Chris Beauchamp said. Meanwhile, oil prices shot 1.6 per cent higher in European afternoon trading as Turkey began an offensive against Kurdish militants in northern Syria. They later fell back on data from the Energy Information Administration showed production hitting a new record high while stocks rose more than expected. "It is a little worrying that inventories are rising despite lower prices, as it suggests that demand is weak," said market analyst David Madden at CMC Markets UK. Crude prices then later pushed higher once again. - Key figures around 1530 GMT - London - FTSE 100: UP 0.3 per cent at 7,166.50 points (close) Paris - CAC 40: UP 0.8 per cent at 5,499.14 (close) Frankfurt - DAX 30: UP 1.0 per cent at 12,094.26 (close) EURO STOXX 50: UP 0.8 per cent at 3,459.50 New York - Dow: UP 0.5 per cent at 26,295.86 Pound/dollar: UP at $1.2218 from $1.2213 at 2040 GMT Euro/pound: UP at 89.85 pence from 89.69 pence Euro/dollar: UP at $1.0979 from $1.0955 Dollar/yen: UP at 107.39 yen from 107.07 yen Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,456.38 (close) Hong Kong - Hang Seng: DOWN 0.8 per cent at 25,682.81 (close) Shanghai - Composite: UP 0.4 per cent at 2,924.86 (close) Brent North Sea crude: UP 1.4 per cent at $59.05 per barrel West Texas Intermediate: UP 1.6 per cent at $53.49 per barrel

Stocks recover on US-China trade deal talks optimism

Gold rose to its highest in more than a week on Monday, supported by Middle East tensions and uncertainty over US-China trade talks, while palladium hit an all-time high.

Spot gold rose 0.2 per cent to $1,519.56 per ounce at 0818 GMT per ounce, touching a high since September 12.

US gold futures rose 0.8 &nbsp;per cent to $1,527.20.

"No significant news is coming out of the trade war until and unless we have some clarity on the negotiations, gold will be supported," said Hareesh V, head of commodity research at Geojit Financial Services.

A US-China trade breakthrough seemed unlikely after President Donald Trump told reporters on Friday he was "not looking" for a partial deal and Chinese officials cancelled goodwill visits to US farmers.

But both sides later published positive statements. The US Trade Representative's office described last week's talks as "productive" and China's Commerce Ministry called them "constructive." October's high-level talks remain on track.

"On an immediate basis, gold is trading between the range of$1,465-$1,550. If the trade talks fail gold may rally to $1,660 or even higher," Hareesh said.

The bullion has risen about 18 per cent so far this year.

Tensions remained elevated in the Middle East after Washington ordered more troops to the Gulf region to strengthen Saudi Arabia's air and missile defences, following an attack on the kingdom's oil facilities. The United States has imposed more sanctions on Iran, penalizing Iran's central bank.

Saudi Arabia will appeal to a global gathering in New York this week for concerted action to punish and deter Iran after the strikes.

The dollar was nearly flat against a basket of currencies, while most Asian share markets slipped on Monday.

Holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.2 per cent to 894.15 tonnes on Friday.

COMEX gold speculators raised net long position by 14,150 contracts to 261,878 in the week to September 17, according to the US Commodity Futures Trading Commission data.

Spot palladium rose 0.8 per cent to $1,655 per ounce, after hitting a record high at $1,664.34 earlier in the session.

"Healthy demand, constrained supply and challenging liquidity conditions are likely driving prices higher," UBS strategist Joni Teves wrote in a note.

"A breakdown of US-China trade talks, deterioration in economic data and a pullback inequity from the highs present downside risks for palladium over the remainder of the year."

Silver nearly 2 per cent to $18.33 per ounce and platinum rose 0.8 per cent to $953.05 per ounce.

Gold rose to its highest in more than a week on Monday, supported by Middle East tensions and uncertainty over US-China trade talks, while palladium hit an all-time high.

Gold rose to its highest in more than a week on Monday, supported by Middle East tensions and uncertainty over US-China trade talks, while palladium hit an all-time high. Spot gold rose 0.2 per cent to $1,519.56 per ounce at 0818 GMT per ounce, touching a high since September 12. US gold futures rose 0.8 per cent to $1,527.20. "No significant news is coming out of the trade war until and unless we have some clarity on the negotiations, gold will be supported," said Hareesh V, head of commodity research at Geojit Financial Services. A US-China trade breakthrough seemed unlikely after President Donald Trump told reporters on Friday he was "not looking" for a partial deal and Chinese officials cancelled goodwill visits to US farmers. But both sides later published positive statements. The US Trade Representative's office described last week's talks as "productive" and China's Commerce Ministry called them "constructive." October's high-level talks remain on track. "On an immediate basis, gold is trading between the range of$1,465-$1,550. If the trade talks fail gold may rally to $1,660 or even higher," Hareesh said. The bullion has risen about 18 per cent so far this year. Tensions remained elevated in the Middle East after Washington ordered more troops to the Gulf region to strengthen Saudi Arabia's air and missile defences, following an attack on the kingdom's oil facilities. The United States has imposed more sanctions on Iran, penalizing Iran's central bank. Saudi Arabia will appeal to a global gathering in New York this week for concerted action to punish and deter Iran after the strikes. The dollar was nearly flat against a basket of currencies, while most Asian share markets slipped on Monday. Holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.2 per cent to 894.15 tonnes on Friday. COMEX gold speculators raised net long position by 14,150 contracts to 261,878 in the week to September 17, according to the US Commodity Futures Trading Commission data. Spot palladium rose 0.8 per cent to $1,655 per ounce, after hitting a record high at $1,664.34 earlier in the session. "Healthy demand, constrained supply and challenging liquidity conditions are likely driving prices higher," UBS strategist Joni Teves wrote in a note. "A breakdown of US-China trade talks, deterioration in economic data and a pullback inequity from the highs present downside risks for palladium over the remainder of the year." Silver nearly 2 per cent to $18.33 per ounce and platinum rose 0.8 per cent to $953.05 per ounce.

Gold hits more than one-week high on Gulf tensions

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however.

In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June.

The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest.

Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent.

Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict.

Upbeat US data on Thursday also helped sentiment.

US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI).

"The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

On Thursday, the Dow added 1.4 per cent, the S&amp;P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent.

Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar."

The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent.

The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen.

The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal.

Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit.

The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce.

The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields.

US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities.

The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns.

"The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities.

Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week.

The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia.

Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions.

Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions. The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however. In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June. The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest. Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent. Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict. Upbeat US data on Thursday also helped sentiment. US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI). "The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. On Thursday, the Dow added 1.4 per cent, the S&P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent. Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar." The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent. The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen. The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal. Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit. The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce. The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields. US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities. The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns. "The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities. Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week. The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia. Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions. Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asia shares rise on trade talks hope, firm US data; safe havens sold

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 per cent. India, closed on Monday, led losses, with the benchmark dropping 1 per cent following worse-than-expected economic growth data on Friday.

China's mainland shares were fractionally lower while Japan's Nikkei inched up 0.1 per cent.

European shares are expected to dip, with pan-European Euro Stoxx 50 futures down 0.09 per cent.

In an escalation of their trade war, the United States on Sunday began imposing 15 per cent&nbsp;tariffs on a variety of Chinese goods, and China began imposing new duties on US crude oil.

Although US President Donald Trump has said both sides would still meet for talks later this month, tensions show little sign of abating.

China said on Monday it lodged a complaint against the United States at the World Trade Organisation over US import duties, trashing the latest tariff actions as violating the consensus reached by leaders of China and the United States in a meeting in Osaka.

"We have so many problems around the world, starting from the US-China trade war and Brexit. But investors appear to be getting used to be exposed to them," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management

"No one really thinks Washington and Beijing will solve the issues. But as long as the US economy keeps going, stock prices will have limited downside," he said.

US manufacturing survey by the Institute for Supply Management (ISM) due at 1400 GMT Tuesday is a major focus for investors.

Although US manufacturing activity has been slowing in recent months, the ISM's index has so far stayed above 50, pointing to growth in the sector.

US bond yields rose a tad on profit-taking after a market holiday in the United States on Monday.

The 10-year US Treasuries yield rose 2.5 basis points to 1.532 per cent, off a three-year low of 1.443 per cent touched last week. The yield dropped 51.5 basis points last month, the biggest monthly drop since August 2011.

In the currency market, sterling dropped as much as 0.58 per cent to $1.1993, its lowest level since January 2017, extending Monday's 0.85 per cent fall.

Prime Minister Johnson implicitly warned lawmakers on Monday that he would seek an election on Oct 14 if they tied his hands on Brexit, ruling out ever countenancing a further delay to Britain's departure from the European Union.

On Tuesday, lawmakers will decide whether to move Britain one step closer to a snap election when they vote on the first stage of their plan to block Johnson from pursuing a no-deal Brexit.

"Depending on further developments in UK politics, the pound could see sharp moves in the coming week or two. We think it could fall to as low as $1.13 this month," said Sumino Kamei, senior currency strategist at MUFG Bank.

Uncertainties over Brexit have already hit the UK economy, with a survey by the IHS Markit/CIPS showing British manufacturing contracted last month at the fastest rate in seven years.

The picture is not much better in Europe, and the European Central Bank is widely expected to cut interest rates further into negative levels next week to cushion the blow, pressuring the euro.

The common currency fell 0.25 per cent to a two-year low of $1.0939. The two-year German government bond yield has dipped to minus 0.919 per cent on Monday, near its record low around minus 0.964&nbsp; per cent&nbsp;hit in early 2017.

The offshore Chinese yuan dropped to a record low of 7.1975 per dollar on Tuesday morning while the Australian dollar

traded down 0.15 per cent at $0.6705, cutting some losses after the Reserve Bank of Australia kept interest rates on hold.

Still, the Aussie stayed within a stone's throw from a decade-low of $0.66775 hit last month.

Argentine bond prices fell to record lows on Monday and the official and black-market pesos diverged after the country imposed capital controls in a bid to stem a currency rout that is sharpening the risk of default.

The peso closed 0.88 per cent stronger in official markets but closed 0.79 per cent weaker in the black market at 63.5 per dollar.

Oil prices were also dented by concerns over the trade war. US West Texas Intermediate (WTI) crude lost 0.47 per cent to $54.84 per barrel. International benchmark Brent futures dipped 0.05 per cent to $58.63 per barrel.

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 per cent. India, closed on Monday, led losses, with the benchmark dropping 1 per cent following worse-than-expected economic growth data on Friday. China's mainland shares were fractionally lower while Japan's Nikkei inched up 0.1 per cent. European shares are expected to dip, with pan-European Euro Stoxx 50 futures down 0.09 per cent. In an escalation of their trade war, the United States on Sunday began imposing 15 per cent tariffs on a variety of Chinese goods, and China began imposing new duties on US crude oil. Although US President Donald Trump has said both sides would still meet for talks later this month, tensions show little sign of abating. China said on Monday it lodged a complaint against the United States at the World Trade Organisation over US import duties, trashing the latest tariff actions as violating the consensus reached by leaders of China and the United States in a meeting in Osaka. "We have so many problems around the world, starting from the US-China trade war and Brexit. But investors appear to be getting used to be exposed to them," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management "No one really thinks Washington and Beijing will solve the issues. But as long as the US economy keeps going, stock prices will have limited downside," he said. US manufacturing survey by the Institute for Supply Management (ISM) due at 1400 GMT Tuesday is a major focus for investors. Although US manufacturing activity has been slowing in recent months, the ISM's index has so far stayed above 50, pointing to growth in the sector. US bond yields rose a tad on profit-taking after a market holiday in the United States on Monday. The 10-year US Treasuries yield rose 2.5 basis points to 1.532 per cent, off a three-year low of 1.443 per cent touched last week. The yield dropped 51.5 basis points last month, the biggest monthly drop since August 2011. In the currency market, sterling dropped as much as 0.58 per cent to $1.1993, its lowest level since January 2017, extending Monday's 0.85 per cent fall. Prime Minister Johnson implicitly warned lawmakers on Monday that he would seek an election on Oct 14 if they tied his hands on Brexit, ruling out ever countenancing a further delay to Britain's departure from the European Union. On Tuesday, lawmakers will decide whether to move Britain one step closer to a snap election when they vote on the first stage of their plan to block Johnson from pursuing a no-deal Brexit. "Depending on further developments in UK politics, the pound could see sharp moves in the coming week or two. We think it could fall to as low as $1.13 this month," said Sumino Kamei, senior currency strategist at MUFG Bank. Uncertainties over Brexit have already hit the UK economy, with a survey by the IHS Markit/CIPS showing British manufacturing contracted last month at the fastest rate in seven years. The picture is not much better in Europe, and the European Central Bank is widely expected to cut interest rates further into negative levels next week to cushion the blow, pressuring the euro. The common currency fell 0.25 per cent to a two-year low of $1.0939. The two-year German government bond yield has dipped to minus 0.919 per cent on Monday, near its record low around minus 0.964 per cent hit in early 2017. The offshore Chinese yuan dropped to a record low of 7.1975 per dollar on Tuesday morning while the Australian dollar traded down 0.15 per cent at $0.6705, cutting some losses after the Reserve Bank of Australia kept interest rates on hold. Still, the Aussie stayed within a stone's throw from a decade-low of $0.66775 hit last month. Argentine bond prices fell to record lows on Monday and the official and black-market pesos diverged after the country imposed capital controls in a bid to stem a currency rout that is sharpening the risk of default. The peso closed 0.88 per cent stronger in official markets but closed 0.79 per cent weaker in the black market at 63.5 per dollar. Oil prices were also dented by concerns over the trade war. US West Texas Intermediate (WTI) crude lost 0.47 per cent to $54.84 per barrel. International benchmark Brent futures dipped 0.05 per cent to $58.63 per barrel.

Asia stocks dented by trade war, Brexit showdown paralyses pound

Wall Street stocks finished little changed on Wednesday following a choppy session as a plunge in treasury bond yields early in the day underscored worries about a weakening global economy.

After a bruising start, US stocks gradually pushed higher throughout the day while Treasury yields recovered from their lows. Two of the three major indices finished in positive territory.

Decisions by Asian central banks to cut interest rates and weak German data "reminded investors that economic growth in several other regions of the world remain at risk as the US and China trade dispute drags on," said CFRA strategist Lindsey Bell in a note.

"While uncertainty is driving upside in defensive asset classes, we don't think stocks should be abandoned at this time. A near-term recession is unlikely."

The Dow Jones Industrial Average finished at 26,007.07, down 0.1 per cent but more than 560 points above its session low.

The broad-based S&amp;P 500 added 0.1 per cent at 2,883.98, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 7,862.83.

US stocks have been under pressure in August as optimism over a Federal Reserve interest rate cut has been replaced by unease at US President Donald Trump's latest tariffs on China and China's response, which has included halting US agricultural purchases.

Banking shares were big losers as the weakening US interest rate outlook crimps the profit outlook. JPMorgan Chase, Wells Fargo and Bank of America all lost around two per cent or more.

Disney also had a bad day, losing 4.9 per cent after missing earnings forecasts.&nbsp;

But CVS Health shot up 7.5 per cent as the pharmacy chain lifted its profit forecasts. The results also lifted rival Walgreens Boots Alliance, which gained 2.0 per cent. 
&nbsp;

Wall Street stocks finished little changed on Wednesday following a choppy session as a plunge in treasury bond yields early in the day underscored worries about a weakening global economy.

Wall Street stocks finished little changed on Wednesday following a choppy session as a plunge in treasury bond yields early in the day underscored worries about a weakening global economy. After a bruising start, US stocks gradually pushed higher throughout the day while Treasury yields recovered from their lows. Two of the three major indices finished in positive territory. Decisions by Asian central banks to cut interest rates and weak German data "reminded investors that economic growth in several other regions of the world remain at risk as the US and China trade dispute drags on," said CFRA strategist Lindsey Bell in a note. "While uncertainty is driving upside in defensive asset classes, we don't think stocks should be abandoned at this time. A near-term recession is unlikely." The Dow Jones Industrial Average finished at 26,007.07, down 0.1 per cent but more than 560 points above its session low. The broad-based S&P 500 added 0.1 per cent at 2,883.98, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 7,862.83. US stocks have been under pressure in August as optimism over a Federal Reserve interest rate cut has been replaced by unease at US President Donald Trump's latest tariffs on China and China's response, which has included halting US agricultural purchases. Banking shares were big losers as the weakening US interest rate outlook crimps the profit outlook. JPMorgan Chase, Wells Fargo and Bank of America all lost around two per cent or more. Disney also had a bad day, losing 4.9 per cent after missing earnings forecasts. But CVS Health shot up 7.5 per cent as the pharmacy chain lifted its profit forecasts. The results also lifted rival Walgreens Boots Alliance, which gained 2.0 per cent.

US stocks recover from early swoon amid global growth angst

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold.

US President Donald Trump abruptly decided on Thursday to slap 10% tariffs on $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back.

In response, China's yuan weakened beyond the key 7-per-dollar threshold in a move that threatens to lead to massive capital outflows.

"We could see a more prolonged period of risk aversion," analysts at Singapore-based TD Securities wrote in a note.

"We think the latest development reiterates our view that trade will remain a lingering headwind for the economy and business investment in particular."

Asian shares sold off broadly with every single market posting steep losses.

Japan's Nikkei tumbled almost 2% to the lowest since early June, while Australian shares slipped about 1% to spend their fourth straight session in the red. South Korea's Kospi tumbled 1.2% to hit the lowest since December 2016.

That left MSCI's broadest index of Asia-Pacific shares outside Japan down 1.7% to 495.68, a level not seen since late January and marking the longest stretch of losses since October 2018.

In China, shares opened lower, with the blue-chip index skidding 1% while Hong Kong's Hang Seng index declined 2.2%.

E-Mini futures for the S&amp;P500 fell 1% in Asian trading.

Oil prices were also pulled down again on demand worries.

The grim mood followed declines on Wall Street on Friday with MSCI's gauge of world stocks posting its largest weekly loss of the year.

The trade war between the world's two largest economies has already disrupted global supply chains and slowed economic growth.

The abrupt escalation capped a critical week for global markets after the US&nbsp;Federal Reserve delivered a widely anticipated interest rate cut and played down expectations of further easing.

However, investors were not buying Fed Chair Jerome Powell's claim that the 25-basis-point rate reduction was a mere "mid-cycle adjustment to policy".

Futures are now pricing in deeper cuts than before last week's Fed meeting. The terminal US rate is now seen at 1.22%, 93 basis points below the current effective rate.

TD is forecasting five more cuts from the Fed, amounting to 125 basis points of easing, over next year.

Expectations of further monetary policy easing sent the dollar skidding. It slipped to a seven-month trough of 105.78 against the Japanese yen while the dollar index against a basket of six major rivals inched lower to 97.91 after two straight days of losses.

The Australian dollar, a liquid proxy for emerging market assets, slipped to a fresh seven-month trough at $0.6748 after losing 1.6% last week.

The yen and the Swiss franc were boosted by safe-haven demand from the escalating trade tensions. Trump is also eyeing tariffs on the European Union but is yet to make any formal announcements.

The euro held firm after two days of gains against the dollar at $1.1119.

Sterling hovered near 2017 lows at $1.2159, pressured by concerns about Britain exiting the European Union without a deal in place. The pound has been whiplashed since late last month when Boris Johnson, a figurehead for the "leave" campaign in the 2016 Brexit referendum, became the country's prime minister.

Safe-haven assets have been in vogue with yields on benchmark 10-year Treasury notes at 1.7890%, their lowest since Trump's election in November 2016, from 1.8550% on Friday.

German 10-year government bond yields on Friday dropped to an all-time low of -0.502% and the country's entire government bond yield curve turning negative for the first time ever.

Spot gold firmed to $1,451.61, within striking distance of a recent high of $1,452.60.

Oil extended losses with US crude off 26 cents at 55.40 and Brent down 35 cents at $61.54.

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold.

Asian shares slid to 6-1/2-month lows on Monday and the yuan plunged as a rapid escalation in the Sino-US trade war drove nervous investors to safe-havens such as the yen, bonds and gold. US President Donald Trump abruptly decided on Thursday to slap 10% tariffs on $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back. In response, China's yuan weakened beyond the key 7-per-dollar threshold in a move that threatens to lead to massive capital outflows. "We could see a more prolonged period of risk aversion," analysts at Singapore-based TD Securities wrote in a note. "We think the latest development reiterates our view that trade will remain a lingering headwind for the economy and business investment in particular." Asian shares sold off broadly with every single market posting steep losses. Japan's Nikkei tumbled almost 2% to the lowest since early June, while Australian shares slipped about 1% to spend their fourth straight session in the red. South Korea's Kospi tumbled 1.2% to hit the lowest since December 2016. That left MSCI's broadest index of Asia-Pacific shares outside Japan down 1.7% to 495.68, a level not seen since late January and marking the longest stretch of losses since October 2018. In China, shares opened lower, with the blue-chip index skidding 1% while Hong Kong's Hang Seng index declined 2.2%. E-Mini futures for the S&P500 fell 1% in Asian trading. Oil prices were also pulled down again on demand worries. The grim mood followed declines on Wall Street on Friday with MSCI's gauge of world stocks posting its largest weekly loss of the year. The trade war between the world's two largest economies has already disrupted global supply chains and slowed economic growth. The abrupt escalation capped a critical week for global markets after the US Federal Reserve delivered a widely anticipated interest rate cut and played down expectations of further easing. However, investors were not buying Fed Chair Jerome Powell's claim that the 25-basis-point rate reduction was a mere "mid-cycle adjustment to policy". Futures are now pricing in deeper cuts than before last week's Fed meeting. The terminal US rate is now seen at 1.22%, 93 basis points below the current effective rate. TD is forecasting five more cuts from the Fed, amounting to 125 basis points of easing, over next year. Expectations of further monetary policy easing sent the dollar skidding. It slipped to a seven-month trough of 105.78 against the Japanese yen while the dollar index against a basket of six major rivals inched lower to 97.91 after two straight days of losses. The Australian dollar, a liquid proxy for emerging market assets, slipped to a fresh seven-month trough at $0.6748 after losing 1.6% last week. The yen and the Swiss franc were boosted by safe-haven demand from the escalating trade tensions. Trump is also eyeing tariffs on the European Union but is yet to make any formal announcements. The euro held firm after two days of gains against the dollar at $1.1119. Sterling hovered near 2017 lows at $1.2159, pressured by concerns about Britain exiting the European Union without a deal in place. The pound has been whiplashed since late last month when Boris Johnson, a figurehead for the "leave" campaign in the 2016 Brexit referendum, became the country's prime minister. Safe-haven assets have been in vogue with yields on benchmark 10-year Treasury notes at 1.7890%, their lowest since Trump's election in November 2016, from 1.8550% on Friday. German 10-year government bond yields on Friday dropped to an all-time low of -0.502% and the country's entire government bond yield curve turning negative for the first time ever. Spot gold firmed to $1,451.61, within striking distance of a recent high of $1,452.60. Oil extended losses with US crude off 26 cents at 55.40 and Brent down 35 cents at $61.54.

Asian stocks skid to 6-1/2-month lows as US-China trade row shakes markets

<a href="https://www.wionews.com/world/no-sense-for-us-to-exercise-maximum-pressure-says-china-as-trade-meeting-ends-239682">US and Chinese trade negotiators</a> agreed to meet again in the United States in September after holding "frank, highly efficient and constructive" talks in Shanghai on Wednesday, state media said.

US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer met with Vice Premier Liu He in the Chinese financial hub for the first face-to-face negotiations since a trade war truce was declared last month.

"The two sides conducted frank, highly efficient and constructive in-depth exchanges on major issues of common interest in the economic and trade field," according to the official Xinhua news agency.

Negotiators also discussed "the issue of China increasing its purchases of US agricultural products according to its domestic needs" and the US creating "favourable conditions for these purchases", Xinhua said.

Shortly after the US negotiators arrived in Shanghai on Tuesday, US President Donald Trump lambasted China on Twitter, accusing Beijing of not buying agricultural products as it was supposed to do.

Trump also warned China against waiting until the November 2020 US presidential election to make a deal because "if &amp; when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all".

US and Chinese trade negotiators agreed to meet again in the United States in September after holding "frank, highly efficient and constructive" talks in Shanghai on Wednesday, state media said.

US and Chinese trade negotiators agreed to meet again in the United States in September after holding "frank, highly efficient and constructive" talks in Shanghai on Wednesday, state media said. US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer met with Vice Premier Liu He in the Chinese financial hub for the first face-to-face negotiations since a trade war truce was declared last month. "The two sides conducted frank, highly efficient and constructive in-depth exchanges on major issues of common interest in the economic and trade field," according to the official Xinhua news agency. Negotiators also discussed "the issue of China increasing its purchases of US agricultural products according to its domestic needs" and the US creating "favourable conditions for these purchases", Xinhua said. Shortly after the US negotiators arrived in Shanghai on Tuesday, US President Donald Trump lambasted China on Twitter, accusing Beijing of not buying agricultural products as it was supposed to do. Trump also warned China against waiting until the November 2020 US presidential election to make a deal because "if & when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all".

US, Chinese trade negotiators to meet again in September: Report

By Bill Durodie

On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time.

Instead, it is likely to descend either into directly confrontational rhetoric or, alternatively, empty promises and vague platitudes that avoid its mission to be the “premier forum for international economic cooperation”. The focus could end up being on more peripheral matters such as climate change, counter-terrorism, health and migration that are perceived of as being less contentious but should not be fundamental concerns of the G20.

The G20 is no stranger to crisis. It emerged from the 1997-98 Asian Financial Crisis that led G7 finance ministers (representing almost half of world GDP) to establish a wider group in order to engage with the major emerging economies. Then, in the wake of the 2007-08 global financial crisis, the group was further elevated to become a forum for heads of state.

In 2019, it is the continuing dispute between the US and China over trade that appears to loom largest. But this ought not be the main focus of the G20 either. As is well understood, trade wars are symptoms of underlying economic problems rather than their cause. The main focus ought to be on addressing those.

Trade and tariffs are not the fundamental drivers of growth and prosperity. Rather, these derive from domestic productivity levels in the making of goods and services that are, in their turn, driven by investment. To trade effectively, the key is to have something worth selling in the first place.

Tariffs, regulation, barriers

Unfortunately, the protectionist measures that had hastened the advent of World War II, and that were dismantled subsequently through the establishment of the GATT/WTO, led instead to a growing proliferation of non-tariff or technical barriers to trade. Rather than invest in new industries, older ones were sustained artificially behind a chaff of regulatory standards, intellectual property laws, state subsidies and public procurement policies.

Accordingly, assertions that we have been living through a time marked by a so-called “rules-based international trading system” fall very wide of the mark. All the evidence points to systematic attempts by the key players – and the United States in particular – to subvert any supposed “liberal world order”, both economically and militarily.

Now it may be, of course, that President Trump – who is certainly not the first US, or other, world leader to engage in such embargoes against China – understands full well that to compete internationally as a successful exporter it is the ability to produce efficiently at home that matters more than trade deals. Some of his pronouncements have reflected as much, looking to put pressure on manufacturers, such as Harley-Davidson and Nike, to bring their production back to its origins.

But, irrespective, the adverse effects of this approach are evident for all to see. Many American firms have warned the US Department of Commerce that such measures hurt both businesses and consumers alike. The latter invariably bear the brunt of any related price increases.

The IMF has cut its world economic growth forecast in accordance. And anyway, many enterprises will simply relocate elsewhere, such as to Vietnam, which is not currently on the receiving end of such additional duties.

A risky game

The deeper consequences, though, will take more time to become manifest. These include growing differences among the Western powers over how to handle the economic rise of the East.

This was seen recently, through the US stance towards its partners not using the Chinese firm Huawei to develop critical 5G infrastructure, despite its being the leading global player in the field. Such actions could come to damage relations with key allies, such as the UK and Germany.

In this regard, the US is playing a very risky game. With its relations veering towards a potential conflict with Iran, as well as its ongoing disputes with Russia and China, the US may yet come to rue antagonising its friends as well.

Or, at the very least, it may regret making them have to choose between their relations with the US and China. Only this week, the UK chancellor, Phillip Hammond launched the new Shanghai-London Stock Connect that looks set to deepen financial relations by facilitating investment between them.

This, and China’s recent decision not to pursue WTO market economy status, may also point to a growing maturity on its part in relation to such matters. Certainly, its most successful strategy in the past was always to keep a low profile on the international stage and avoid confrontation in foreign affairs, while focusing more on its domestic concerns.

Historically, it has often been extraneous circumstances that have accelerated change in world affairs more than any conscious push. The two powers that dominated each of the last two preceding centuries – the US and UK – did so as much through the decline and imperial overreach of their predecessors as through their own efforts. That, and its underlying crisis of innovation and investment, are what the US leadership would do well to reflect upon most in Osaka.

(Bill Durodie is Professor and Chair of International Relations, University of Bath)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/g20-us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-119359">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

By Bill Durodie On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time.

By Bill Durodie On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time. Instead, it is likely to descend either into directly confrontational rhetoric or, alternatively, empty promises and vague platitudes that avoid its mission to be the “premier forum for international economic cooperation”. The focus could end up being on more peripheral matters such as climate change, counter-terrorism, health and migration that are perceived of as being less contentious but should not be fundamental concerns of the G20. The G20 is no stranger to crisis. It emerged from the 1997-98 Asian Financial Crisis that led G7 finance ministers (representing almost half of world GDP) to establish a wider group in order to engage with the major emerging economies. Then, in the wake of the 2007-08 global financial crisis, the group was further elevated to become a forum for heads of state. In 2019, it is the continuing dispute between the US and China over trade that appears to loom largest. But this ought not be the main focus of the G20 either. As is well understood, trade wars are symptoms of underlying economic problems rather than their cause. The main focus ought to be on addressing those. Trade and tariffs are not the fundamental drivers of growth and prosperity. Rather, these derive from domestic productivity levels in the making of goods and services that are, in their turn, driven by investment. To trade effectively, the key is to have something worth selling in the first place. Tariffs, regulation, barriers Unfortunately, the protectionist measures that had hastened the advent of World War II, and that were dismantled subsequently through the establishment of the GATT/WTO, led instead to a growing proliferation of non-tariff or technical barriers to trade. Rather than invest in new industries, older ones were sustained artificially behind a chaff of regulatory standards, intellectual property laws, state subsidies and public procurement policies. Accordingly, assertions that we have been living through a time marked by a so-called “rules-based international trading system” fall very wide of the mark. All the evidence points to systematic attempts by the key players – and the United States in particular – to subvert any supposed “liberal world order”, both economically and militarily. Now it may be, of course, that President Trump – who is certainly not the first US, or other, world leader to engage in such embargoes against China – understands full well that to compete internationally as a successful exporter it is the ability to produce efficiently at home that matters more than trade deals. Some of his pronouncements have reflected as much, looking to put pressure on manufacturers, such as Harley-Davidson and Nike, to bring their production back to its origins. But, irrespective, the adverse effects of this approach are evident for all to see. Many American firms have warned the US Department of Commerce that such measures hurt both businesses and consumers alike. The latter invariably bear the brunt of any related price increases. The IMF has cut its world economic growth forecast in accordance. And anyway, many enterprises will simply relocate elsewhere, such as to Vietnam, which is not currently on the receiving end of such additional duties. A risky game The deeper consequences, though, will take more time to become manifest. These include growing differences among the Western powers over how to handle the economic rise of the East. This was seen recently, through the US stance towards its partners not using the Chinese firm Huawei to develop critical 5G infrastructure, despite its being the leading global player in the field. Such actions could come to damage relations with key allies, such as the UK and Germany. In this regard, the US is playing a very risky game. With its relations veering towards a potential conflict with Iran, as well as its ongoing disputes with Russia and China, the US may yet come to rue antagonising its friends as well. Or, at the very least, it may regret making them have to choose between their relations with the US and China. Only this week, the UK chancellor, Phillip Hammond launched the new Shanghai-London Stock Connect that looks set to deepen financial relations by facilitating investment between them. This, and China’s recent decision not to pursue WTO market economy status, may also point to a growing maturity on its part in relation to such matters. Certainly, its most successful strategy in the past was always to keep a low profile on the international stage and avoid confrontation in foreign affairs, while focusing more on its domestic concerns. Historically, it has often been extraneous circumstances that have accelerated change in world affairs more than any conscious push. The two powers that dominated each of the last two preceding centuries – the US and UK – did so as much through the decline and imperial overreach of their predecessors as through their own efforts. That, and its underlying crisis of innovation and investment, are what the US leadership would do well to reflect upon most in Osaka. (Bill Durodie is Professor and Chair of International Relations, University of Bath) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

US-China trade war points to the real crisis that global leaders must confront at G20 Summit

Global trade, geopolitical hotspots around the world and even horse-trading over top EU jobs, G20 leaders have a lot of their plate when they meet from Friday in Osaka.

Here are some of the most pressing issues facing the leaders at the two-day meeting, with the decisive action likely to take place mainly on the sidelines and away from the formal programme.

&nbsp;'Tariffs and trade'

All eyes will be on whether the <a href="https://www.wionews.com/world/us-hopes-to-re-launch-china-trade-talks-will-not-accept-conditions-on-tariffs-230453">US and China,</a> the world's top two economies, can bury the hatchet in their long-running trade war that is causing headwinds for an already fragile global economy.

The two leaders, Donald Trump and Xi Jinping, will hold talks on the sidelines of the Osaka summit, their first face-to-face meeting since December at the last G20 in Argentina.

Experts are sceptical that a definitive deal will be struck in Japan, but many believe they may agree on a tariff truce and set a new deadline for a final agreement.

Trade will also feature heavily as a point of conflict in the wider G20 meeting with battles likely over the wording of the final statement -- if the leaders can agree to one.

A G20 finance ministers meeting earlier this month noted in a communique that trade tensions had "intensified" and that risks were "tilted to the downside", but even this statement took 30 hours of hard-fought wrangling.

Letter from Pyongyang

Relations between the United States and North Korea have been in the freezer since a summit in Hanoi in February failed to achieve progress on Pyongyang's nuclear programme.

But a <a href="https://www.wionews.com/world/trump-to-visit-south-korea-as-pompeo-raises-hope-for-new-north-korea-talks-after-letter-230158">recent exchange of letters between Trump and North Korean leader Kim Jong Un</a> has raised hopes that a third summit could be on the cards, and the US president is travelling to South Korea immediately after the G20.

In this matter too, Xi plays a key role. He will arrive in Osaka fresh from his first visit to Pyongyang and observers expect the Chinese president to pass on a message from Kim to rekindle diplomatic activity.

Some believe the two issues of trade and North Korea could dovetail, with Trump needing Xi's help to solve the nuclear issue that he has trumpeted as a major foreign policy triumph.

Iranian powder keg

With key regional players such as the United States, Saudi Arabia and Russia in attendance, the mounting tensions with Iran are certain to be a hot topic of conversation on the sidelines of the meeting.

The G20 host, Japanese Prime Minister Shinzo Abe, sought to play a mediation role with a historic trip to Tehran, but this was overshadowed by two attacks on tankers in the Gulf of Oman that Washington blames on Iran.

At the last moment, Trump called off a planned military retaliation for the downing of an unmanned US drone, saying that the estimated death toll of 150 was not proportionate.

Trump trumps everything

Despite hosts Japan desperately trying to focus media attention on its priority issues such as ocean plastic and ageing populations, the US leader's meetings on the sidelines are likely to overshadow everything -- especially planned talks with Russia and Turkey.

Trump is expected to meet Vladimir Putin for face-to-face talks for the first time since July 2018 in Helsinki, where he was attacked for being too conciliatory to the Kremlin strongman amid accusations of Russian meddling in the US election.

Turkey's leader Recep Tayyip Erdogan, fresh from a humiliating defeat in a re-run election in Istanbul's mayoral election, is hoping to use good relations with Trump to defuse a row between the NATO allies over Ankara's purchase of Russian missiles.

The US has given Turkey until the end of July to renounce its deal with Moscow for the S-400 missiles or face sanctions, an ultimatum that Ankara has slammed as "inappropriate".

'Brussels horse-trading'

After failing to stitch up a deal for the successor to European Commission President Jean-Claude Juncker at a summit on Friday, EU leaders have kicked the can down the road to a special meeting in Brussels on June 30.

This happens to be the day after the G20, so most observers expect the senior EU players from Germany, France, Italy and the Netherlands to continue the horse-trading in Japan -- although any final deal will have to wait until European soil.

Global trade, geopolitical hotspots around the world and even horse-trading over top EU jobs, G20 leaders have a lot of their plate when they meet from Friday in Osaka.

Global trade, geopolitical hotspots around the world and even horse-trading over top EU jobs, G20 leaders have a lot of their plate when they meet from Friday in Osaka. Here are some of the most pressing issues facing the leaders at the two-day meeting, with the decisive action likely to take place mainly on the sidelines and away from the formal programme. 'Tariffs and trade' All eyes will be on whether the US and China, the world's top two economies, can bury the hatchet in their long-running trade war that is causing headwinds for an already fragile global economy. The two leaders, Donald Trump and Xi Jinping, will hold talks on the sidelines of the Osaka summit, their first face-to-face meeting since December at the last G20 in Argentina. Experts are sceptical that a definitive deal will be struck in Japan, but many believe they may agree on a tariff truce and set a new deadline for a final agreement. Trade will also feature heavily as a point of conflict in the wider G20 meeting with battles likely over the wording of the final statement -- if the leaders can agree to one. A G20 finance ministers meeting earlier this month noted in a communique that trade tensions had "intensified" and that risks were "tilted to the downside", but even this statement took 30 hours of hard-fought wrangling. Letter from Pyongyang Relations between the United States and North Korea have been in the freezer since a summit in Hanoi in February failed to achieve progress on Pyongyang's nuclear programme. But a recent exchange of letters between Trump and North Korean leader Kim Jong Un has raised hopes that a third summit could be on the cards, and the US president is travelling to South Korea immediately after the G20. In this matter too, Xi plays a key role. He will arrive in Osaka fresh from his first visit to Pyongyang and observers expect the Chinese president to pass on a message from Kim to rekindle diplomatic activity. Some believe the two issues of trade and North Korea could dovetail, with Trump needing Xi's help to solve the nuclear issue that he has trumpeted as a major foreign policy triumph. Iranian powder keg With key regional players such as the United States, Saudi Arabia and Russia in attendance, the mounting tensions with Iran are certain to be a hot topic of conversation on the sidelines of the meeting. The G20 host, Japanese Prime Minister Shinzo Abe, sought to play a mediation role with a historic trip to Tehran, but this was overshadowed by two attacks on tankers in the Gulf of Oman that Washington blames on Iran. At the last moment, Trump called off a planned military retaliation for the downing of an unmanned US drone, saying that the estimated death toll of 150 was not proportionate. Trump trumps everything Despite hosts Japan desperately trying to focus media attention on its priority issues such as ocean plastic and ageing populations, the US leader's meetings on the sidelines are likely to overshadow everything -- especially planned talks with Russia and Turkey. Trump is expected to meet Vladimir Putin for face-to-face talks for the first time since July 2018 in Helsinki, where he was attacked for being too conciliatory to the Kremlin strongman amid accusations of Russian meddling in the US election. Turkey's leader Recep Tayyip Erdogan, fresh from a humiliating defeat in a re-run election in Istanbul's mayoral election, is hoping to use good relations with Trump to defuse a row between the NATO allies over Ankara's purchase of Russian missiles. The US has given Turkey until the end of July to renounce its deal with Moscow for the S-400 missiles or face sanctions, an ultimatum that Ankara has slammed as "inappropriate". 'Brussels horse-trading' After failing to stitch up a deal for the successor to European Commission President Jean-Claude Juncker at a summit on Friday, EU leaders have kicked the can down the road to a special meeting in Brussels on June 30. This happens to be the day after the G20, so most observers expect the senior EU players from Germany, France, Italy and the Netherlands to continue the horse-trading in Japan -- although any final deal will have to wait until European soil.

Trade and horsetrade: Top five hot-button G20 issues

<a href="https://www.wionews.com/world/trump-to-visit-south-korea-as-pompeo-raises-hope-for-new-north-korea-talks-after-letter-230158">Trump to visit South Korea as Pompeo raises hope for new North Korea talks after letter</a>

US President Donald Trump will visit South Korea this weekend after an exchange of letters with North Korean leader Kim Jong Un boosted hopes for a resumption of talks aimed at ending North Korea's nuclear program.

<a href="https://www.wionews.com/world/un-security-council-urges-dialogue-end-to-us-iran-tensions-230148">UN Security Council urges dialogue, end to US-Iran tensions as Trump announces new sanctions</a>

The UN Security Council on Monday called for dialogue and measures to end tensions in the Gulf, but Iran rejected talks with the United States after President Donald Trump imposed fresh sanctions.

<a href="https://www.wionews.com/india-news/lack-of-predictability-coherence-in-india-us-strategic-relationship-congressman-tells-pompeo-ahead-of-new-delhi-visit-230160">Lack of predictability, coherence in India-US strategic ties: Congressman tells Pompeo ahead of visit</a>

On the eve of his arrival in New Delhi, a top US lawmaker Tuesday told Secretary of State Mike Pompeo that there is lack of predictability and coherence in America's strategic relationship with India.

<a href="https://www.wionews.com/world/us-china-trade-negotiators-hold-talks-ahead-of-xi-trump-meeting-report-230147">US-China trade negotiators hold talks ahead of Xi-Trump meeting: Report</a>

Top Chinese and US trade negotiators have held telephone talks ahead of a crunch meeting between presidents Xi Jinping and Donald Trump at the G20 summit this week, Chinese state media said Tuesday.

<a href="https://www.wionews.com/world/huaweis-us-research-arm-builds-separate-identity-230155">Huawei's US research arm builds separate identity</a>

The US-based research arm of China's Huawei Technologies Co Ltd - Futurewei Technologies Inc - has moved to separate its operations from its corporate parent since the US government in May put Huawei on a trade blacklist, according to two people familiar with the matter.

&nbsp;

Trump to visit South Korea as Pompeo raises hope for new North Korea talks after letter US President Donald Trump will visit South Korea this weekend after an exchange of letters with North Korean leader Kim Jong Un boosted hopes for a resumption of talks aimed at ending North Korea's nuclear program.

Trump to visit South Korea as Pompeo raises hope for new North Korea talks after letter US President Donald Trump will visit South Korea this weekend after an exchange of letters with North Korean leader Kim Jong Un boosted hopes for a resumption of talks aimed at ending North Korea's nuclear program. UN Security Council urges dialogue, end to US-Iran tensions as Trump announces new sanctions The UN Security Council on Monday called for dialogue and measures to end tensions in the Gulf, but Iran rejected talks with the United States after President Donald Trump imposed fresh sanctions. Lack of predictability, coherence in India-US strategic ties: Congressman tells Pompeo ahead of visit On the eve of his arrival in New Delhi, a top US lawmaker Tuesday told Secretary of State Mike Pompeo that there is lack of predictability and coherence in America's strategic relationship with India. US-China trade negotiators hold talks ahead of Xi-Trump meeting: Report Top Chinese and US trade negotiators have held telephone talks ahead of a crunch meeting between presidents Xi Jinping and Donald Trump at the G20 summit this week, Chinese state media said Tuesday. Huawei's US research arm builds separate identity The US-based research arm of China's Huawei Technologies Co Ltd - Futurewei Technologies Inc - has moved to separate its operations from its corporate parent since the US government in May put Huawei on a trade blacklist, according to two people familiar with the matter.

News brief: Big stories of the day

<a href="https://www.wionews.com/world/us-oil-sanctions-wont-go-without-response-iran-213205">Oil jumped more</a> than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

Also supporting oil were expectations that the US Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in US crude inventories.

Brent crude, the global benchmark, was up $1.38 at $63.20 a barrel at 0854 GMT, having risen 3.3% to $63.88 earlier in the session.

The US West Texas Intermediate crude rose $1.45 to $55.21.

"It's a combination of factors," Petromatrix analyst Olivier Jakob said of the price rise. "You have more supportive stocks data, the Fed indicating they will cut rates and the shooting down of the drone."

The drone was downed in international airspace over the Strait of Hormuz by an Iranian surface-to-air missile, a US official said. Iran's Revolutionary Guards said the drone was flying over southern Iran.

Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies. Washington blamed Tehran for the tanker attacks. Iran denied any role.

<a href="https://www.wionews.com/world/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-220779">Concern </a>about slowing economic growth and a US-China trade dispute has pulled oil lower in recent weeks. Brent reached a 2019 high of $75 in April.

Also propelling oil higher on Thursday was a larger-than-expected decline in US crude inventories and the prospect of prolonged supply restraint by producer group OPEC and its allies.

After swelling to near two-year highs, US crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels, the Energy Information Administration said on Wednesday.

The Organization of the Petroleum Exporting Countries and allies including Russia agreed this week to meet on July 1-2, ending a month of wrangling about the timing of the meeting.

The coalition known as OPEC+ will discuss whether to extend throughout 2019 a deal on cutting 1.2 million barrels per day of production. The deal expires at the end of this month.

Momentum for an agreement appeared to be building as the United Arab Emirates' energy minister said extending the deal was "logical and reasonable".

Oil jumped more than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

Oil jumped more than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington. Also supporting oil were expectations that the US Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in US crude inventories. Brent crude, the global benchmark, was up $1.38 at $63.20 a barrel at 0854 GMT, having risen 3.3% to $63.88 earlier in the session. The US West Texas Intermediate crude rose $1.45 to $55.21. "It's a combination of factors," Petromatrix analyst Olivier Jakob said of the price rise. "You have more supportive stocks data, the Fed indicating they will cut rates and the shooting down of the drone." The drone was downed in international airspace over the Strait of Hormuz by an Iranian surface-to-air missile, a US official said. Iran's Revolutionary Guards said the drone was flying over southern Iran. Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies. Washington blamed Tehran for the tanker attacks. Iran denied any role. Concern about slowing economic growth and a US-China trade dispute has pulled oil lower in recent weeks. Brent reached a 2019 high of $75 in April. Also propelling oil higher on Thursday was a larger-than-expected decline in US crude inventories and the prospect of prolonged supply restraint by producer group OPEC and its allies. After swelling to near two-year highs, US crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels, the Energy Information Administration said on Wednesday. The Organization of the Petroleum Exporting Countries and allies including Russia agreed this week to meet on July 1-2, ending a month of wrangling about the timing of the meeting. The coalition known as OPEC+ will discuss whether to extend throughout 2019 a deal on cutting 1.2 million barrels per day of production. The deal expires at the end of this month. Momentum for an agreement appeared to be building as the United Arab Emirates' energy minister said extending the deal was "logical and reasonable".

Oil prices surge as Iran shoots down US drone in Gulf

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say.

American and Chinese scientists have co-authored thousands of papers each year, far outpacing the output from scientific collaborations between any other two nations, according to a 2018 survey by academic database Nature Index.

But it is getting tougher for researchers to work together on projects and share data for peer review, as American institutions tighten rules for accepting foreign funding and intensify vetting of foreign partners, several researchers told AFP.

The pressure is the result of a clampdown by Washington on what it describes as espionage and technology theft through academic contacts, with the White House warning last year that Chinese nationals studying or working in the United States could be manipulated or forced to "serve Beijing's military and strategic ambitions".

In one of the latest countermeasures, the US Department of Energy -- which conducts advanced research on everything from supercomputers to nuclear weapons -- blocked its scientists from participating in a foreign government's talent recruitment programmes, citing national security and competition concerns.

Its order, seen by AFP, did not mention a specific country, but officials pointed to Beijing's lucrative 'Thousand Talents' programme.

The initiative offers non-Chinese, and Chinese working abroad, high pay to deliver top-level technology to China.&nbsp;

The increased mistrust is bound to have an impact on research collaboration, academics and experts say.

An increasing number of young Chinese scholars are told they cannot participate in a project for security reasons, said an official at Pennsylvania State University, who requested anonymity given the sensitivity of the topic.

"Research collaboration between China and the US will be severely disrupted by the trade war-turned-technology war, which essentially is a talent war," said Cao Cong, professor of innovation studies at Nottingham University's China campus in the city of Ningbo.

Beijing has committed billions of dollars in recent years to narrow China's science and technology gap with the United States, Cao said.

But China is still "heavily dependent" on the US for technology transfers and training, he added, and the "cut off" will have an impact in coming years.

Visa Troubles

The rising number of visa denials have prompted a warning from China's education ministry that students and academics could have their study or research plans foiled by refusals or delays.

One in eight Chinese applicants seeking US visas for academic or research purposes between January and March this year had difficulties securing them, a marked increase from last year, education ministry official Xu Yongji said.

Star quantum physicist Pan Jianwei was unable to attend a meeting of the American Association for the Advancement of Science in February, where he was to collect the prestigious Newcomb Cleveland Prize, due to visa delays.

"I waited for four months before I got a visa in March," Pan told AFP. When it finally arrived, the award ceremony had long passed.

Yi Rao, a prominent Chinese neurobiologist who had worked at Harvard and Northwestern universities in the past, said his application for a US visa to attend a workshop by the National Science Foundation was denied last July without an explanation.

A State Department official said she could not discuss specific visa cases due to US privacy laws.

The State Department has said the increased scrutiny was prompted by rising number of students who were co-opted by foreign intelligence while in the United States.

China is by far the biggest source of international students and scholars on US campuses, with 360,000 attendings last year.

Atmosphere of Suspicion

The cooling of ties is also complicating Beijing's efforts to recruit top Chinese and foreign talent, after US intelligence officials in December said the 'Thousand Talents' programme facilitated the theft of American technology and intellectual property.

Tim Byrnes -- an Australian physicist who won nearly one million yuan ($144,000) from the programme in 2016 for a quantum computing lab at New York University's Shanghai campus -- said he now finds himself in a "precarious position".

"Possibly, some people awarded the Thousand Talents might not be able to apply for grants in the US in future due to fears of leaking intellectual property," Byrnes said.

Since it was launched in 2008, the programme has attracted more than 7,000 Chinese and foreign researchers to China -- mostly from the US -- according to its website.

But Byrnes said he was not asked to share any of his findings with the Chinese government.

"Everything we do is published in academic journals. Everything is disclosed not just to China but to the whole world," he said.

"But the current atmosphere of suspicion is threatening the openness of science."

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say.

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say. American and Chinese scientists have co-authored thousands of papers each year, far outpacing the output from scientific collaborations between any other two nations, according to a 2018 survey by academic database Nature Index. But it is getting tougher for researchers to work together on projects and share data for peer review, as American institutions tighten rules for accepting foreign funding and intensify vetting of foreign partners, several researchers told AFP. The pressure is the result of a clampdown by Washington on what it describes as espionage and technology theft through academic contacts, with the White House warning last year that Chinese nationals studying or working in the United States could be manipulated or forced to "serve Beijing's military and strategic ambitions". In one of the latest countermeasures, the US Department of Energy -- which conducts advanced research on everything from supercomputers to nuclear weapons -- blocked its scientists from participating in a foreign government's talent recruitment programmes, citing national security and competition concerns. Its order, seen by AFP, did not mention a specific country, but officials pointed to Beijing's lucrative 'Thousand Talents' programme. The initiative offers non-Chinese, and Chinese working abroad, high pay to deliver top-level technology to China. The increased mistrust is bound to have an impact on research collaboration, academics and experts say. An increasing number of young Chinese scholars are told they cannot participate in a project for security reasons, said an official at Pennsylvania State University, who requested anonymity given the sensitivity of the topic. "Research collaboration between China and the US will be severely disrupted by the trade war-turned-technology war, which essentially is a talent war," said Cao Cong, professor of innovation studies at Nottingham University's China campus in the city of Ningbo. Beijing has committed billions of dollars in recent years to narrow China's science and technology gap with the United States, Cao said. But China is still "heavily dependent" on the US for technology transfers and training, he added, and the "cut off" will have an impact in coming years. Visa Troubles The rising number of visa denials have prompted a warning from China's education ministry that students and academics could have their study or research plans foiled by refusals or delays. One in eight Chinese applicants seeking US visas for academic or research purposes between January and March this year had difficulties securing them, a marked increase from last year, education ministry official Xu Yongji said. Star quantum physicist Pan Jianwei was unable to attend a meeting of the American Association for the Advancement of Science in February, where he was to collect the prestigious Newcomb Cleveland Prize, due to visa delays. "I waited for four months before I got a visa in March," Pan told AFP. When it finally arrived, the award ceremony had long passed. Yi Rao, a prominent Chinese neurobiologist who had worked at Harvard and Northwestern universities in the past, said his application for a US visa to attend a workshop by the National Science Foundation was denied last July without an explanation. A State Department official said she could not discuss specific visa cases due to US privacy laws. The State Department has said the increased scrutiny was prompted by rising number of students who were co-opted by foreign intelligence while in the United States. China is by far the biggest source of international students and scholars on US campuses, with 360,000 attendings last year. Atmosphere of Suspicion The cooling of ties is also complicating Beijing's efforts to recruit top Chinese and foreign talent, after US intelligence officials in December said the 'Thousand Talents' programme facilitated the theft of American technology and intellectual property. Tim Byrnes -- an Australian physicist who won nearly one million yuan ($144,000) from the programme in 2016 for a quantum computing lab at New York University's Shanghai campus -- said he now finds himself in a "precarious position". "Possibly, some people awarded the Thousand Talents might not be able to apply for grants in the US in future due to fears of leaking intellectual property," Byrnes said. Since it was launched in 2008, the programme has attracted more than 7,000 Chinese and foreign researchers to China -- mostly from the US -- according to its website. But Byrnes said he was not asked to share any of his findings with the Chinese government. "Everything we do is published in academic journals. Everything is disclosed not just to China but to the whole world," he said. "But the current atmosphere of suspicion is threatening the openness of science."

Amid heightened US-China tensions, science suffers collateral damage

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check.

MSCI's broadest index of Asia-Pacific shares outside Japan opened slightly lower and was last little changed, while Japan's Nikkei average stood flat.

Wall Street stocks ended lower on Friday as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to US-China trade worries.

"The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is centre stage," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

A private gauge on eurozone's manufacturing sector as well as US-China trade frictions will also be watched closely, Chandler said.

Financial markets have been sideswiped since a sudden escalation in Sino-US&nbsp;trade tensions in early May, with growing anxiety among investors that a protracted standoff could tip the global economy into recession.

Adding to the tensions between the world's two biggest economies, US Secretary of State Mike Pompeo told Fox News on Sunday that US President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month.

On Sunday, hundreds of thousands of black-clad protesters in Hong Kong demanded that Beijing-backed city leader Carrie Lam step down over her handling of a bill that would have allowed extradition to China, resulted her to issue a rare apology.

Geopolitical tensions in the Middle East added another layer of uncertainty for investors after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week.

Hopes that global central banks will keep the money spigot open have helped to temper some of the fears, and all eyes are on the Fed's two-day meeting starting on Tuesday.

Strong US retail sales data on Friday rolled back expectations of a Fed rate cut at this week's meeting to 21.7%, from 28.3% on Thursday, according to CME Group's FedWatch tool. But bets of an easing at the July meeting remain high at 85%.

The Bank of Japan also meets this week and is widely expected to reinforce its commitment to retain a massive stimulus program for some time to come.

The retail report also sent short-dated US Treasury yields higher, flattening the yield curve.

Benchmark 10-year notes was last at 2.091%, while two-year bond yield edged up, shrinking the spread between two- and 10-year yields to 23.6 basis points compared to more than 30 earlier this month.

A Reuters poll showed a growing number of economists expect the Fed policymakers to cut interest rates this year, although the majority still see it holding steady.

In currency markets, the dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply.

The index last stood at 97.511, while the euro fetched $1.1220, near the lower end of its weekly trading range.

Oil extended gains on Monday after the attacks on two oil tankers last week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand.

Brent futures rose 0.2% to $62.13 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.2% to $52.60.

Spot gold eased 0.1% to $1,340.25 an ounce after hitting a 14-month peak on Friday.

Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9150.15.

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check.

Asian shares got off to a shaky start on Monday as investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check. MSCI's broadest index of Asia-Pacific shares outside Japan opened slightly lower and was last little changed, while Japan's Nikkei average stood flat. Wall Street stocks ended lower on Friday as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to US-China trade worries. "The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is centre stage," said Marc Chandler, chief market strategist at Bannockburn Global Forex. A private gauge on eurozone's manufacturing sector as well as US-China trade frictions will also be watched closely, Chandler said. Financial markets have been sideswiped since a sudden escalation in Sino-US trade tensions in early May, with growing anxiety among investors that a protracted standoff could tip the global economy into recession. Adding to the tensions between the world's two biggest economies, US Secretary of State Mike Pompeo told Fox News on Sunday that US President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month. On Sunday, hundreds of thousands of black-clad protesters in Hong Kong demanded that Beijing-backed city leader Carrie Lam step down over her handling of a bill that would have allowed extradition to China, resulted her to issue a rare apology. Geopolitical tensions in the Middle East added another layer of uncertainty for investors after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week. Hopes that global central banks will keep the money spigot open have helped to temper some of the fears, and all eyes are on the Fed's two-day meeting starting on Tuesday. Strong US retail sales data on Friday rolled back expectations of a Fed rate cut at this week's meeting to 21.7%, from 28.3% on Thursday, according to CME Group's FedWatch tool. But bets of an easing at the July meeting remain high at 85%. The Bank of Japan also meets this week and is widely expected to reinforce its commitment to retain a massive stimulus program for some time to come. The retail report also sent short-dated US Treasury yields higher, flattening the yield curve. Benchmark 10-year notes was last at 2.091%, while two-year bond yield edged up, shrinking the spread between two- and 10-year yields to 23.6 basis points compared to more than 30 earlier this month. A Reuters poll showed a growing number of economists expect the Fed policymakers to cut interest rates this year, although the majority still see it holding steady. In currency markets, the dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply. The index last stood at 97.511, while the euro fetched $1.1220, near the lower end of its weekly trading range. Oil extended gains on Monday after the attacks on two oil tankers last week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand. Brent futures rose 0.2% to $62.13 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.2% to $52.60. Spot gold eased 0.1% to $1,340.25 an ounce after hitting a 14-month peak on Friday. Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9150.15.

Asian shares wobble on trade, political tensions; focus turns to Fed meet

Indian equities this week will be guided by factors like geopolitical developments, <a href="https://www.wionews.com/world/imf-warns-us-china-trade-war-will-jeopardize-2019-global-growth-221117">US-China trade</a> negotiations and Fed interest rate decision amid lack of major domestic triggers, say analysts.

Investors will also keep a track on the domestic trade situation following reports that India has decided to impose retaliatory tariffs on 29 US products with effect from June 16.

The government had on June 21, 2018, decided to impose these duties in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. India had extended the deadline for imposition of duties multiple times in the hope that some solution would emerge.

"Markets are currently dancing to the global tunes and we do not see this changing any time soon, in absence of any major local trigger," said Jayant Manglik, President - Retail Distribution, Religare Broking.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Ripple effect from a weak global market while premium valuation and the slow economy is hurting the market.

&nbsp;A continuous exchange of words between US and Tehran regarding the oil tanker attack, progress of US-China trade war, Fed policy outcome on 19th June and progress of monsoon will be closely watched by the investors."

Global markets were spooked last week after two oil tankers were attacked in the Gulf of Oman, leading to ratcheting up of tensions in the Middle East.

Crude oil prices, movement of rupee against the dollar and foreign fund investment trend would be crucial for the markets, experts added.

"Negative news flow from the finance sector on loan repayment is dampening the investors' sentiment which can be a trigger for a bigger correction before the budget session," said Romesh Tiwari, Head of Research, capitalism.

<a href="https://www.wionews.com/business-economy/bse-sensex-slips-over-50-points-nifty-by-14-points-on-weak-global-cues-201226">The BSE Sensex</a> stayed on the back foot for the third straight session Friday as investors dialled down equity exposure amid high valuations and a fresh spell of uncertainty in the global markets.

The markets suffered a sudden sell-off towards the fag-end following reports of India decided to impose retaliatory tariffs on 29 US products. 
During the last week, the Sensex fell 163.83 points or 0.41 per cent, to close at 39,452.07.&nbsp;

Indian equities this week will be guided by factors like geopolitical developments, US-China trade negotiations and Fed interest rate decision amid lack of major domestic triggers, say analysts.

Indian equities this week will be guided by factors like geopolitical developments, US-China trade negotiations and Fed interest rate decision amid lack of major domestic triggers, say analysts. Investors will also keep a track on the domestic trade situation following reports that India has decided to impose retaliatory tariffs on 29 US products with effect from June 16. The government had on June 21, 2018, decided to impose these duties in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. India had extended the deadline for imposition of duties multiple times in the hope that some solution would emerge. "Markets are currently dancing to the global tunes and we do not see this changing any time soon, in absence of any major local trigger," said Jayant Manglik, President - Retail Distribution, Religare Broking. Vinod Nair, Head of Research, Geojit Financial Services, said: "Ripple effect from a weak global market while premium valuation and the slow economy is hurting the market. A continuous exchange of words between US and Tehran regarding the oil tanker attack, progress of US-China trade war, Fed policy outcome on 19th June and progress of monsoon will be closely watched by the investors." Global markets were spooked last week after two oil tankers were attacked in the Gulf of Oman, leading to ratcheting up of tensions in the Middle East. Crude oil prices, movement of rupee against the dollar and foreign fund investment trend would be crucial for the markets, experts added. "Negative news flow from the finance sector on loan repayment is dampening the investors' sentiment which can be a trigger for a bigger correction before the budget session," said Romesh Tiwari, Head of Research, capitalism. The BSE Sensex stayed on the back foot for the third straight session Friday as investors dialled down equity exposure amid high valuations and a fresh spell of uncertainty in the global markets. The markets suffered a sudden sell-off towards the fag-end following reports of India decided to impose retaliatory tariffs on 29 US products. During the last week, the Sensex fell 163.83 points or 0.41 per cent, to close at 39,452.07.

Fed rate decision, trade scenario to set market trend: Analysts

Rising for a third straight session, the BSE benchmark Sensex Tuesday added another 166 points on the back of strong buying in banking, metal and energy stocks amid positive global cues.

After rallying nearly 300 points during the day, the BSE gauge settled 165.94 points or 0.42 per cent, higher at 39,950.46. The index hit an intra-day high of 40,066.31 and a low of 40,066.31.

Similarly, the broader NSE Nifty rose 42.90 points, or 0.36 per cent, to settle at 11,965.60. During the day, the index touched a high of 12,000.35 and a low of 11,904.35.

Top gainers in the Sensex pack were Tata Motors, ONGC, Yes Bank, IndusInd Bank and Vedanta rising up to 2.71 per cent.

On the other hand, Sun Pharma, M&amp;M, L&amp;T, Coal India and HUL fell up to 3 per cent.

Sectorally, metal, oil and gas and banking indices rose as much as 1.33 per cent.

Markets traded on a positive note following favourable global cues in Asian markets as sentiments turned upbeat after the US announced a deal with Mexico and investors turned hopeful of further progress on US-China trade talks, said Narendra Solanki, Head-Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers.

In Asia, the Shanghai Composite Index rallied 2.58 per cent, Hang Seng ended 0.76 per cent higher, Nikkei rose 0.33 per cent and Kospi gained 0.59 per cent.

Bourses in Europe were also trading higher in their early deals. 
On the currency front, the Indian rupee appreciated 21 paise to 69.44 against the US dollar.

Brent crude futures, the global oil benchmark, fell marginally to USD 62.24 per barrel.

Rising for a third straight session, the BSE benchmark Sensex Tuesday added another 166 points on the back of strong buying in banking, metal and energy stocks amid positive global cues.

Rising for a third straight session, the BSE benchmark Sensex Tuesday added another 166 points on the back of strong buying in banking, metal and energy stocks amid positive global cues. After rallying nearly 300 points during the day, the BSE gauge settled 165.94 points or 0.42 per cent, higher at 39,950.46. The index hit an intra-day high of 40,066.31 and a low of 40,066.31. Similarly, the broader NSE Nifty rose 42.90 points, or 0.36 per cent, to settle at 11,965.60. During the day, the index touched a high of 12,000.35 and a low of 11,904.35. Top gainers in the Sensex pack were Tata Motors, ONGC, Yes Bank, IndusInd Bank and Vedanta rising up to 2.71 per cent. On the other hand, Sun Pharma, M&M, L&T, Coal India and HUL fell up to 3 per cent. Sectorally, metal, oil and gas and banking indices rose as much as 1.33 per cent. Markets traded on a positive note following favourable global cues in Asian markets as sentiments turned upbeat after the US announced a deal with Mexico and investors turned hopeful of further progress on US-China trade talks, said Narendra Solanki, Head-Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers. In Asia, the Shanghai Composite Index rallied 2.58 per cent, Hang Seng ended 0.76 per cent higher, Nikkei rose 0.33 per cent and Kospi gained 0.59 per cent. Bourses in Europe were also trading higher in their early deals. On the currency front, the Indian rupee appreciated 21 paise to 69.44 against the US dollar. Brent crude futures, the global oil benchmark, fell marginally to USD 62.24 per barrel.

Sensex furthers gains for 3rd session on robust global cues

Against the backdrop of worsening trade conflicts, US job creation slowed sharply in May, adding to evidence the economy is weakening and raising expectations the Federal Reserve could cut interest rates soon.

Hiring dried up in major industries and wage growth stagnated, and because job growth was worse than previously reported in March and April, hiring was essentially flat last month, the Labor Department reported Friday.

With the China trade conflict increasing and a new battle with Mexico set to begin Monday, with dire implications for a host of industries, the unexpectedly steep job slowdown in May heightened fears the world's largest economy is beginning to sputter.

US employers added only 75,000 net new positions last month, less than half the 180,000 economists had been expecting, with sudden drops in hiring in healthcare, education and construction.&nbsp;

The federal government payroll also shrank unexpectedly by 15,000 workers.&nbsp;

The unemployment rate held steady at 3.6 per cent, matching April's level, the lowest since 1969.

As he ploughs ahead with his aggressive and unorthodox trade agenda, President Donald Trump has been comforted that vigorous job gains and historically low unemployment provide a buffer against retaliation in tariff battles with major trading partners that have hit the US manufacturing sector in particular.

The US economy in July will break the record for its longest-ever expansion but economists expect it to slow a notch in 2019 and the odds of a recession have also increased.

The average job gains for the past three months was 151,000 compared to the 12-month average of 196,000, signalling a slowdown in hiring, also attributed to the difficulty of finding workers.

Kevin Hassett, the White House's departing chief economist, conceded Friday that the numbers were weaker than expected, but he pointed to special factors.

"There really were pretty serious weather effects. There's all this flooding in the Midwest... a lot of the ports had to stop taking traffic," he told CNBC.

Hassett estimated weather could have cut the monthly hiring figure by 40,000 positions but the result was still underwhelming.

"It's a little bit disappointing but it does not really cause to change our outlook for the year," he said.

The sudden weakness has raised expectations the Federal Reserve will cut the benchmark interest rates this year -- possibly twice and as soon as this month -- to support growth after four increases in 2018.

Sand in the gears

Fed policymakers have sent signals in recent days they are open to easing, and are on the lookout for signs of weakness.&nbsp;

"These data make it easier for the Fed to ease either this month or next, if the trade tensions intensify and the stock market drops sharply," economist Ian Shepherdson of Pantheon Macroeconomics said in a research note.

Economist Joel Naroff was more succinct: "The lean, mean job machine has sand in its gears."

A weakening economy also could unnerve Republicans ahead of hotly contested elections in 2020.

Job creation tumbled in the goods-producing and service sectors, while industries such as construction, transportation and temporary help, which had previously been reliable sources of new jobs, hit a rough patch.

Meanwhile, average hourly wages rose 0.2 per cent compared to April to $27.83, disappointing economists who had hoped for slightly stronger gains.

Over the last 12 months, wage gains were 3.1 per cent and have been at or above three per cent for 10 straight months, outpacing increases in consumer inflation but confirming the lack of any upward trend.

With employers continuing to complain of a dearth of available and qualified workers, the size of the labour force was unchanged.

The disappointing number encouraged Wall Street, however, where the three major stock indexes jumped more than one per cent as investors bet on an increased chance of a Fed interest rate cut.

"If the Fed wants evidence the trade dispute has rattled business confidence enough to cause economic problems, a net unchanged employment report with fading wage pressures should do the trick," Chris Low of FTN Financial said in an analysis.

Against the backdrop of worsening trade conflicts, US job creation slowed sharply in May, adding to evidence the economy is weakening and raising expectations the Federal Reserve could cut interest rates soon.

Against the backdrop of worsening trade conflicts, US job creation slowed sharply in May, adding to evidence the economy is weakening and raising expectations the Federal Reserve could cut interest rates soon. Hiring dried up in major industries and wage growth stagnated, and because job growth was worse than previously reported in March and April, hiring was essentially flat last month, the Labor Department reported Friday. With the China trade conflict increasing and a new battle with Mexico set to begin Monday, with dire implications for a host of industries, the unexpectedly steep job slowdown in May heightened fears the world's largest economy is beginning to sputter. US employers added only 75,000 net new positions last month, less than half the 180,000 economists had been expecting, with sudden drops in hiring in healthcare, education and construction. The federal government payroll also shrank unexpectedly by 15,000 workers. The unemployment rate held steady at 3.6 per cent, matching April's level, the lowest since 1969. As he ploughs ahead with his aggressive and unorthodox trade agenda, President Donald Trump has been comforted that vigorous job gains and historically low unemployment provide a buffer against retaliation in tariff battles with major trading partners that have hit the US manufacturing sector in particular. The US economy in July will break the record for its longest-ever expansion but economists expect it to slow a notch in 2019 and the odds of a recession have also increased. The average job gains for the past three months was 151,000 compared to the 12-month average of 196,000, signalling a slowdown in hiring, also attributed to the difficulty of finding workers. Kevin Hassett, the White House's departing chief economist, conceded Friday that the numbers were weaker than expected, but he pointed to special factors. "There really were pretty serious weather effects. There's all this flooding in the Midwest... a lot of the ports had to stop taking traffic," he told CNBC. Hassett estimated weather could have cut the monthly hiring figure by 40,000 positions but the result was still underwhelming. "It's a little bit disappointing but it does not really cause to change our outlook for the year," he said. The sudden weakness has raised expectations the Federal Reserve will cut the benchmark interest rates this year -- possibly twice and as soon as this month -- to support growth after four increases in 2018. Sand in the gears Fed policymakers have sent signals in recent days they are open to easing, and are on the lookout for signs of weakness. "These data make it easier for the Fed to ease either this month or next, if the trade tensions intensify and the stock market drops sharply," economist Ian Shepherdson of Pantheon Macroeconomics said in a research note. Economist Joel Naroff was more succinct: "The lean, mean job machine has sand in its gears." A weakening economy also could unnerve Republicans ahead of hotly contested elections in 2020. Job creation tumbled in the goods-producing and service sectors, while industries such as construction, transportation and temporary help, which had previously been reliable sources of new jobs, hit a rough patch. Meanwhile, average hourly wages rose 0.2 per cent compared to April to $27.83, disappointing economists who had hoped for slightly stronger gains. Over the last 12 months, wage gains were 3.1 per cent and have been at or above three per cent for 10 straight months, outpacing increases in consumer inflation but confirming the lack of any upward trend. With employers continuing to complain of a dearth of available and qualified workers, the size of the labour force was unchanged. The disappointing number encouraged Wall Street, however, where the three major stock indexes jumped more than one per cent as investors bet on an increased chance of a Fed interest rate cut. "If the Fed wants evidence the trade dispute has rattled business confidence enough to cause economic problems, a net unchanged employment report with fading wage pressures should do the trick," Chris Low of FTN Financial said in an analysis.

US hiring slows sharply in May as trade tensions worsen

China's central bank chief said Friday the country has <a href="https://www.wionews.com/world/explainer-us-china-trade-war-the-levers-they-can-pull-224809">plenty of policy tools left to handle the trade war</a> with the United States.

There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV.

"We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous," Yi said on Bloomberg TV.

<a href="https://www.wionews.com/world/china-warns-its-companies-on-us-travel-rebuffs-trade-criticism-224200">Ties between China and the US</a> have deteriorated sharply after trade negotiations stalled last month without a deal to lift bruising tariffs on goods worth $360 billion in two-way trade.

China said Thursday that it would soon release detailed information about a planned blacklist of "unreliable" foreign companies and individuals, that analysts expect will target firms cutting off supplies to <a href="https://www.wionews.com/world/amid-us-china-row-huawei-signs-deal-with-russian-telecom-company-mts-to-develop-5g-network-224867">Chinese tech giant Huawei</a>.

Last month the US Commerce Department placed Huawei and dozens of its affiliates on an "entity list" on grounds of national security, curbing its access to crucial US-made components and software -- through a 90-day reprieve was later issued.

Yi has participated in several rounds of the trade negotiations with Washington and is scheduled to meet with US Treasury Secretary Steven Mnuchin this weekend during the G20 gathering of financial policymakers in Japan.

He said the meeting with Mnuchin would be "productive talk, as always," but trade war discussions would be "uncertain and difficult", according to Bloomberg News.

Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions

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China's yuan, or renminbi, the currency has also rapidly depreciated against the dollar as trade tensions have ramped up in recent weeks, nearing the critical seven to the dollar exchange rate.

The central bank has long prevented the yuan from falling below seven, but Yi hinted the bank may no longer defend the currency at that level.

"I don't think along this mathematical scale any number is more important (than) the other number," he said.

"The trade war would have a temporary depreciation pressure on the renminbi, but you see, after the noise, (the) renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies," he told Bloomberg TV.

"I'm very confident (the) renminbi will continue to be stable at a more or less equilibrium level," Yi said.

China's central bank chief said Friday the country has plenty of policy tools left to handle the trade war with the United States. There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV.

China's central bank chief said Friday the country has plenty of policy tools left to handle the trade war with the United States. There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV. "We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous," Yi said on Bloomberg TV. Ties between China and the US have deteriorated sharply after trade negotiations stalled last month without a deal to lift bruising tariffs on goods worth $360 billion in two-way trade. China said Thursday that it would soon release detailed information about a planned blacklist of "unreliable" foreign companies and individuals, that analysts expect will target firms cutting off supplies to Chinese tech giant Huawei. Last month the US Commerce Department placed Huawei and dozens of its affiliates on an "entity list" on grounds of national security, curbing its access to crucial US-made components and software -- through a 90-day reprieve was later issued. Yi has participated in several rounds of the trade negotiations with Washington and is scheduled to meet with US Treasury Secretary Steven Mnuchin this weekend during the G20 gathering of financial policymakers in Japan. He said the meeting with Mnuchin would be "productive talk, as always," but trade war discussions would be "uncertain and difficult", according to Bloomberg News. Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions × China's yuan, or renminbi, the currency has also rapidly depreciated against the dollar as trade tensions have ramped up in recent weeks, nearing the critical seven to the dollar exchange rate. The central bank has long prevented the yuan from falling below seven, but Yi hinted the bank may no longer defend the currency at that level. "I don't think along this mathematical scale any number is more important (than) the other number," he said. "The trade war would have a temporary depreciation pressure on the renminbi, but you see, after the noise, (the) renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies," he told Bloomberg TV. "I'm very confident (the) renminbi will continue to be stable at a more or less equilibrium level," Yi said.

China has tools to handle trade war with US: Central bank chief Yi Gang

China's President&nbsp;Xi&nbsp;Jinping and<a href="https://www.wionews.com/world/trump-plans-5-tariff-on-mexican-imports-over-illegal-immigration-222998"> US President Donald&nbsp;Trump</a>&nbsp;are likely to find it "difficult" to&nbsp;make&nbsp;major&nbsp;progress&nbsp;towards ending their countries'&nbsp;trade&nbsp;war when they meet at a G20 summit in Japan in June, a&nbsp;former&nbsp;Chinese&nbsp;central&nbsp;bank&nbsp;chief&nbsp;said on Friday.

Trade&nbsp;tensions between Washington and Beijing escalated sharply earlier this month after the&nbsp;Trump&nbsp;administration accused&nbsp;China&nbsp;of having "reneged" on its previous promises to make structural changes to its economic practices.

Washington later slapped additional tariffs of up to 25% on $200 billion of Chinese goods, prompting Beijing to hit back with additional levies on around $60 billion of US imports due to take effect on Saturday.

Dai&nbsp;Xianglong, who headed the People's&nbsp;Bank&nbsp;of&nbsp;China&nbsp;(PBOC) from 1995-2002 and remains an influential figure in&nbsp;China, told a seminar in Beijing that&nbsp;China-US trade&nbsp;friction was a long-term issue.

China&nbsp;has approached the&nbsp;trade&nbsp;talks with the principles of equality and cooperation, whereas the US&nbsp;approach has been "bullying and America First", Dai said.

"It's&nbsp;hard&nbsp;to reconcile these," he added.

"I expect that next month's meeting of the leaders in Japan it will be difficult to achieve major&nbsp;progress."

Dai said he did not rule out stronger retaliation by&nbsp;China.

Trump&nbsp;has said he is planning on meeting&nbsp;Xi&nbsp;during the G20 summit, set for June 28-29 in Osaka, though&nbsp;China&nbsp;has not formally confirmed this.

Since the latest round of US&nbsp;tariffs, which caught Beijing by surprise, Chinese state media has gone on the offensive.

The People's Daily, the ruling Communist Party's flagship newspaper, warned this week that&nbsp;China&nbsp;was ready to use its dominance of rare earth, crucial minerals used in electronics, to strike back in the&nbsp;trade&nbsp;war.

The increasingly intense public relations battle with the United States with the deluge of sharply worded commentaries and warnings out of&nbsp;China&nbsp;in the last two weeks risks complicating the run-up to any&nbsp;Xi-Trump&nbsp;meeting in Japan.

At the Beijing seminar on Friday,&nbsp;former&nbsp;Chinese vice commerce minister Wei Jianguo said initiating a&nbsp;trade&nbsp;war with&nbsp;China&nbsp;might be the biggest strategic mistake made by the United States since World War II or even it's founding.

There is a need to prepare for the likelihood for the&nbsp;trade&nbsp;war to ratchet up tensions to geopolitical areas including the South&nbsp;China&nbsp;Sea, said Wei, adding that the&nbsp;trade&nbsp;conflict might last for 30 years or even half a century.

China's President Xi Jinping and US President Donald Trump are likely to find it "difficult" to make major progress towards ending their countries' trade war when they meet at a G20 summit in Japan in June, a former Chinese central bank chief said on Friday.

China's President Xi Jinping and US President Donald Trump are likely to find it "difficult" to make major progress towards ending their countries' trade war when they meet at a G20 summit in Japan in June, a former Chinese central bank chief said on Friday. Trade tensions between Washington and Beijing escalated sharply earlier this month after the Trump administration accused China of having "reneged" on its previous promises to make structural changes to its economic practices. Washington later slapped additional tariffs of up to 25% on $200 billion of Chinese goods, prompting Beijing to hit back with additional levies on around $60 billion of US imports due to take effect on Saturday. Dai Xianglong, who headed the People's Bank of China (PBOC) from 1995-2002 and remains an influential figure in China, told a seminar in Beijing that China-US trade friction was a long-term issue. China has approached the trade talks with the principles of equality and cooperation, whereas the US approach has been "bullying and America First", Dai said. "It's hard to reconcile these," he added. "I expect that next month's meeting of the leaders in Japan it will be difficult to achieve major progress." Dai said he did not rule out stronger retaliation by China. Trump has said he is planning on meeting Xi during the G20 summit, set for June 28-29 in Osaka, though China has not formally confirmed this. Since the latest round of US tariffs, which caught Beijing by surprise, Chinese state media has gone on the offensive. The People's Daily, the ruling Communist Party's flagship newspaper, warned this week that China was ready to use its dominance of rare earth, crucial minerals used in electronics, to strike back in the trade war. The increasingly intense public relations battle with the United States with the deluge of sharply worded commentaries and warnings out of China in the last two weeks risks complicating the run-up to any Xi-Trump meeting in Japan. At the Beijing seminar on Friday, former Chinese vice commerce minister Wei Jianguo said initiating a trade war with China might be the biggest strategic mistake made by the United States since World War II or even it's founding. There is a need to prepare for the likelihood for the trade war to ratchet up tensions to geopolitical areas including the South China Sea, said Wei, adding that the trade conflict might last for 30 years or even half a century.

Hard for Xi, Trump to make progress on trade: Former China central bank chief

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