Update (Nov. 21, 6:54 am est.): China is resisting US requests to guarantee ag purchases, "balks" at stronger language on IP and tech transfers without a guarantee on tariff rollback, while the US doesn't want to agree to move until they get Chinese commitment, according to WSJ's Lingling Wei.
Our understanding of where the main impasse is:— Lingling Wei 魏玲灵 (@Lingling_Wei) November 21, 2019
*China resisting US request to guarantee ag purchase;
*China balks at stronger language on IP and tech without guarantee on tariff rollback, while U.S. doesn't want to agree to tariff move until they get Chinese commitment.
Wei quoted Paul Triolo, head Geo-tech Eurasia Group, who said, "The talks now are at a fragile state...Both sides are locked in a game of chicken, and the clock is ticking towards Dec. 15th.”
“The talks now are at a fragile state,” says @pstAsiatech. “Both sides are locked in a game of chicken, and the clock is ticking towards Dec. 15th.”— Lingling Wei 魏玲灵 (@Lingling_Wei) November 21, 2019
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Equity futures pumped then dumped Thursday morning after China invited the top US trade negotiation team for a new round of talks in Beijing amid the latest warnings that the ''Phase One trade deal' signing could be delayed until next year, reported the Wall Street Journal citing unnamed sources.
- 21-Nov-2019 05:09:48 AM - CHINA INVITES U.S. TRADE NEGOTIATORS FOR NEW ROUND OF FACE-TO-FACE TALKS -WALL STREET JOURNAL, CITING UNNAMED SOURCES
- 21-Nov-2019 05:11:13 AM - NEW U.S.-CHINA TRADE NEGOTIATIONS COULD TAKE PLACE IN BEIJING BEFORE U.S. THANKSGIVING HOLIDAY NEXT WEEK -WALL STREET JOURNAL
Unnamed sources said Chinese Vice Premier Liu He invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for a meeting next week (there has been no confirmation on date).
The sources said Lighthizer and Mnuchin wouldn't make the trip "unless China makes it clear that it would make commitments on intellectual-property protection, forced technology transfers, and agricultural purchases."
E-Mini S&P 500, E-Mini Nasdaq 100, and E-Mini Russell 2000 pumped on the first headlines, but after further examination -- are flat as it seems the WSJ pump isn't working...
Around 5:55 am est., equity futures remain unimpressed on the trade news. Time for more headlines? Bring out the Kudlow?
Maybe equity futures are flat to now red because "China invited the US team LAST WEEK. Old headline warning," tweeted Russian_Market.
One remark— Russian Market (@russian_market) November 21, 2019
China invited US team LAST WEEK.
Old headline warning.