by admin | May 25, 2021 | Corporate, Corporate Buzz
New Delhi : Reacting to US President Donald Trump’s decision to delay the date for American tariff hike on Chinese goods, US ratings agency Moody’s on Monday said although the compromise reached had become increasingly likely, the US-China relationship would continue to be contentious, “swinging between compromise and conflict”.
Reporting substantial progress in the US-China trade talks, Trump on Sunday announced that he would delay the March 1 deadline to increase American tariffs on Chinese goods.
Trump said he would like to have a summit with his Chinese counterpart Xi Jinping at his Florida resort to finalise a trade agreement.
“An extension of the March 1 deadline had become increasingly likely in recent weeks and is part of our baseline assumptions,” Moody’s Investors Service MD (Sovereign Risk Group) Marie Diron said in a note.
“While some compromise may be reached between the US and China on certain trade matters, the process is unlikely to be smooth and the US-China relationship should remain contentious, swinging between compromise and conflict, and involving frictions not only on trade, but also on technology, investment and geopolitics,” she said.
The Trump administration had set March 1 deadline for a trade deal in the US-China talks or else Washington would hike tariffs from 10 per cent to 25 per cent on yearly imports of Chinese goods worth $200 billion.
The announcement comes as Trump prepares to meet North Korean leader Kim Jong-un for the two-day second summit in Hanoi, Vietnam, starting Wednesday.
Earlier on Sunday, Trump tweeted about the role China is playing ahead of talks with the North Korean leader. “President Xi of China has been very helpful in his support of my meeting with Kim Jong-un. The last thing China wants are large-scale nuclear weapons right next door,” he wrote on Twitter.
He also tweeted it had been “a good weekend for US and China” in trade talks.
The President’s announcement followed days of negotiations in which American and Chinese officials met last week near the White House to work line-by-line through a handful of documents covering intellectual property, services and subsidies, according to the New York Times.
An American delegation is expected to travel to Beijing soon to resolve the remaining differences.
The trade war between the world’s two biggest economies was sparked by Trump’s aggressive protectionist stance and has generated uncertainty and volatility in international financial markets for months.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : A strengthening rupee and easing US-China trade tension boosted investor sentiments on Monday leading to a healthy rise in the key equity indices, with the BSE Sensex advancing over 340 points and the Nifty closing higher at 10,880.
Global markets reacted positively after US President Donald Trump on Sunday said that he would be delaying the increase in tariffs scheduled for March 1.
“Assuming both sides make additional progress, we will be planning a summit for President Xi (Jinping) and myself,” Trump said in a tweet.
The Sensex ended 341.90 points or 0.95 per cent higher at 36,213.38 from its previous close of 35,871.48, while the Nifty ended with a gain of 88.45 points or 0.82 per cent at 10,880.10.
Among the sectors, Deepak Jasani of HDFC Securities said, the Banks, IT and sugar stocks were in favour, while Realty index fell despite the GST relief granted over the weekend.
Nifty closed at its highest in 10 sessions as global cues remained favourable and gains in Chinese markets denoted a bull market after rising more than 20 per cent from the lows of January 2019, Jasani added.
“…government’s reforms and strengthening rupee is boosting investor sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
“However, the stability of premium valuation will be tested based on the outcome of Q3FY19 GDP… The consensus is showing moderation in growth to 6.7 per cent,” he said.
The top Sensex performers were Yes Bank and TCS, gaining over 3 per cent, followed by Infosys, IndusInd Bank and HCL Tech, among others.
Among the laggards were Coal India, Asian Paints, State Bank of India (SBI), ONGC and Larsen and Toubro (L&T).
—IANS
by admin | May 25, 2021 | World
Washington : US President Donald Trump has delayed the March 1 deadline to increase American tariffs on Chinese goods and said that he would be planning a summit with his Chinese counterpart Xi Jinping at his Florida resort to finalise a trade agreement.
“I am pleased to report that the US has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” Trump said on Sunday in a series of tweets.
“As a result of these very productive talks, I will be delaying the US increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for US and China.”
The Trump administration had set March 1 as the deadline whereby a trade deal had to be reached in the US-China talks or else Washington would hike tariffs from 10 to 25 per cent on some $200 billion in yearly imports of Chinese goods.
The announcement comes as Trump prepares to meet North Korean leader Kim Jong-un for their second summit in Hanoi, Vietnam, on Wednesday and Thursday.
Earlier on Sunday, Trump tweeted about the important role China is playing ahead of the talks with Kim, saying: “President Xi of China has been very helpful in his support of my meeting with Kim Jong-un. The last thing China wants are large scale nuclear weapons right next door.
“Sanctions placed on the border by China and Russia have been very helpful. Great relationship with Chairman Kim.”
In the Oval Office on Friday, Trump expressed similar optimism about trade negotiations with China, predicting there was a “very good chance” that the US and China would reach a trade agreement.
Trump also suggested that if substantial progress was made, he “would be inclined” to allow up to a month longer for negotiations.
The President’s announcement followed days of negotiations in which American and Chinese officials met last week near the White House to work line-by-line through a handful of documents covering intellectual property, services and subsidies, The New York Times reported.
The Chinese were ready to commit to billions of dollars of purchases of American soybeans, beef, natural gas and other products, though they have resisted more structural changes to their economy.
An American delegation is expected to travel to Beijing soon to continue to work out the remaining differences.
The trade war between the world’s two biggest economies was sparked by Trump’s aggressive protectionist stance and has generated uncertainty and volatility in international financial markets for months.
—IANS
by admin | May 25, 2021 | World
New York : US stocks traded mixed, as market sentiments were mixed due to rising hopes on global trade and concerns over bipartisan talks to avert another US government shutdown.
The Dow Jones Industrial Average slid 53.22 points, or 0.21 percent, to 25,053.11 on Monday. The S&P 500 was up 1.92 points, or 0.07 percent, to 2,709.80. The Nasdaq Composite Index rose 9.71 points, or 0.13 percent, to 7,307.90, Xinhua news agency reported.
Shares of US aircraft manufacturer Boeing were on the rise throughout the day, amid growing hopes on the improvement of overall global trade environment.
Eight of the 11 primary S&P sectors extended gains after market close, with the industrials sector up 0.55 percent after the closing bell, leading the winners.
However, shares of Apple fell almost 1 percent around the closing bell, after iPhone shipments slumped 19.9 percent during the fourth quarter in China, according to a study by US market research company International Data Corporation on Monday.
More than a dozen of blue chips in the Dow extended losses on Monday, sinking the composite Dow index down into a red territory.
Among them, shares of Walt Disney and UnitedHealth Group slumped nearly 1.9 percent and over 1.8 percent respectively, leading the laggards.
Investors were closely watching a bipartisan meeting on Monday afternoon among key US lawmakers to search for clues on the direction toward which US economy is moving.
The move is meant to avoid another partial government shutdown by the deadline that US President Donald Trump previously set on Feb 15.
The meeting was scheduled after talks on border security funding failed between Democrats and Republicans on Sunday, due to a divergence on immigration enforcement rules.
—IANS
by admin | May 25, 2021 | World
By Gaurav Sharma,
Beijing : Chinese President Xi Jinping held talks with his visiting US counterpart Donald Trump on Thursday where they discussed the North Korean nuclear crisis.
The two leaders met at the Great Hall of the People here.
While Xi promised cooperation and coordination on the worsening crisis, Trump said that China has the solution to the problem.
“Our meeting this morning in front of your representatives and in front of our representatives was excellent, discussing North Korea and I do believe there is a solution to that as you do,” Trump told Xi.
“We have the capacity to solve world problems for many years to come,” Trump, who is on a three-day China visit, said.
In response, Xi said: “China is ready to work with the United States to enhance cooperation and properly manage the differences in a spirit of mutual benefit.”
He said that the US and China had “more coordination and cooperation in North Korea nuclear issue and other world challenges.
“Right now China and US relations are at a new starting point.”
The tensions between Washington and Pyongyang have escalated after North Korea’s test firing of missiles and conducting its most powerful hydrogen test in September.
North Korea fears that the US wants to the reclusive nation to be annexed in the South Korea.
The US wants China to do more to rein in its ally. But China has said that it is not the trouble-maker and has only limited ability to solve the crisis.
Power equations will be changed this time as Xi has become more powerful, because of exalted status in China, and Trump’s popularity has taken a hit in the US.
The US President will also chair a business forum and there will be a signing of several bilateral agreements in the Great Hall of the People.
Trump arrived here on Wednesday on a three-day visit, the third leg of his five-nation Asia tour after stops in Japan and South Korea.
This is Trump’s first visit to China as US President and the third meeting with Xi this year.
Trump and Xi are also expected to discuss the US trade deficit with China.
—IANS
