Futures Spike After Trump Blinks, Decides Against Harshest Measures On China Investment

Confirming yesterday's report that Trump was ready to offer China an "olive branch" following the sharp market drop following reports that the US would crack down on Chinese investment, moments ago Trump administration officials said that the White House would push Congress to strengthen the CFIUS inter-agency panel that it will employ as its main tool to curb Chinese investments in sensitive U.S. technologies.

This means that contrary to earlier reports, the White House won't be look to block companies with 25% or more of Chinese ownership from buying certain U.S. tech-related companies. Instead, the government will rely on the newly strengthened Committee on Foreign Investment in the United States to deal with concerns about foreign purchase of sensitive domestic technologies.

As Bloomberg notes, this strategy is a less confrontational approach toward China than many had expected. As the FT and WSJ reported on Sunday night, the administration had considered employing a little-used national emergency law called the International Emergency Economic Powers Act of 1977 to curb prospective investments.

Instead, the White House wants Congress to empower CFIUS, so it can prevent Chinese companies from violating intellectual-property rights of American companies.

Trump’s choice shows that he is favoring a more measured approach that requires coordination with Congress, rather than working through the executive branch. While the House and Senate companion bills on CFIUS modernization need to be worked out, there is interest from Senator John Cornyn, the No. 2 Republican, in creating a list of countries of special concern. The House proposal includes that, proposing China, Russia, Iran, Venezuela and North Korea among a group of countries whose companies would undergo extra scrutiny.

Specifically, Bloomberg reports that the CFIUS legislation passed in the House would expand investigations by CFIUS to include minority investments in “critical technology” or “critical infrastructure” and joint ventures where technology companies contribute intellectual property, according to a copy of the proposal seen by Bloomberg. While CFIUS reviews are technically voluntary, the bill would require foreign investors that are at least 25 percent owned by foreign governments to go through CFIUS when they are acquiring at least a 25 percent stake in a U.S. business.

However, just as it seemed Navarro was getting the upper hand in The White House, the decision to use CFIUS represents a blow to China hawks in the administration who had publicly called for establishing a new regime to review Chinese investment. But administration officials insisted on Wednesday that it would not represent any softening in their approach to China.

“We believe that we will have a very tough approach,” one senior official said.

Detente? Or are we simply back to the Trump Trade Put?

Following the news US equities spiked, erasing all losses, the dollar pared gains and 10Y yields rose 2bps to 2.86% on hopes that Trump may be stepping back from all out trade war with China.

Trump's words have provided a temporary pause in the plunge of the Yuan.

On the week, however, US equities remain in the red.

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Comments

Giant Meteor Wed, 06/27/2018 - 08:00 Permalink

Hargest ? Ahhh I see , that was fixed in record time. Very good. Let the jawboning continue. The markets must not fail to deliver the vigorish, if not the goods ..

Giant Meteor Justin Case Wed, 06/27/2018 - 09:42 Permalink

Dr. Paul is correct.

http://reclaimdemocracy.org/corporate-accountability-history-corporatio…

One of the most severe blows to citizen authority arose out of the 1886 Supreme Court case of Santa Clara County v. Southern Pacific Railroad. Though the court did not make a ruling on the question of “corporate personhood,” thanks to misleading notes of a clerk, the decision subsequently was used as precedent to hold that a corporation was a “natural person.” This story was detailed in “The Theft of Human Rights,” a chapter in Thom Hartmann’s recommended book Unequal Protection.

From that point on, the 14th Amendment, enacted to protect rights of freed slaves, was used routinely to grant corporations constitutional “personhood.” Justices have since struck down hundreds of local, state and federal laws enacted to protect people from corporate harm based on this illegitimate premise. Armed with these “rights,” corporations increased control over resources, jobs, commerce, politicians, even judges and the law.

End Excerpt ..

Concentrated power , (absolute) corrupts absolutely ..

Also worth noting the stock buy back scam, once illegal and thought to be a form of stock manipulation, rules against which were eradicated with SEC rule change under Reagan. Both red and blue teams have long ago sold out to concentrated money interests to the detriment of the common citizen. The fight merely a fight for whom goes the spoils. Ergo, wealth concentration and power held in fewer hands, while the commoner is proscribed by laws of corrupt men, and made beasts of both corporations, and politicians of self interest, whom know which side their bread is buttered.

The money power enables it all. The rest mere kabuki as the plebians maintain their fight over cults of personalities, social engineering and whatever table scraps remain ..

In reply to by Justin Case

PrayingMantis wadalt Wed, 06/27/2018 - 10:33 Permalink

 

Mr. Tangerine Man*

 

Hey! Mr. Tangerine man, play a song for Xi

He’s not sleepy, he’s not flip-py like you want him to

Hey! Mr. Tangerine man, folding like a twit

In the DC jungle morning, whining, tweeting too.

 

Though US know your crumbling empire’s returning into sand

Vanished from your hand

Left you blindly there to stand but Xi still not sleeping

Your weariness amazes too, your flip-flops on your feet

You have no one to beat

And the ancient DC street's too dead for dreaming.

 

Hey! Mr. Tangerine man, play a song for Xi

He’s not sleepy, he’s just Chinky and he knows it too

Hey! Mr. Tangerine man, flip-flopped to a T

In the jangled DC morning, you’d be tweeting too.

 

Took the voters on a trip upon your magic swirling ship

Their senses have been stripped

Their hands can't feel to grip

Their toes too numb to step

Weights on their boot heels, left them wondering

They were ready to go anywhere, but you’re ready for the fade

Into your own parade

Cast your dancing spell their way, as you promised to go “winning” it.

 

Hey! Mr. Tangerine man, play a song for Xi

He’s not sleepy, he’s not spacey like you want him to

Hey! Mr. Tangerine man, flip-flopped expectedly

In the jingled DC morning, sheeple’s wondering too.

 

Though you might be tweeting, spitting, whining madly towards everyone

Enemies all-in-one

It's only entertaining everyone

And but for latinos there’d be no fences facing

And if they hear vague traces of skipping “building Walls” on time

To your Tangerine’s own time

You’re a ragged clown’s behind

Your Trump-base wouldn't pay it any mind

It's just your shadow they’re seeing and they’re worshipping.

 

Hey! Mr. Tangerine man, play a song for Xi

He’s not cheeky, he’s just Chinky and he knows it too

Hey! Mr. Tangerine man, orange pekoe like a tea

In the DC jungle morning, itching, tweeting too

 

Your Trump-base disappearing through the smoke rings of your mind

The foggy ruins for a dime

Voters icy like frozen leaves

Haunted like frightened trees

Blown through a windy beach

Like the twisted reach of a crazy Soros

Yes, to dance beneath the “winning” sky

With empty hands bowed to Xi

Silhouetted by China Sea

Circled by your circus bands

Into memory and hate

Driven deep beneath the crying slaves

Let them forget about today with no tomorrows.

 

Hey! Mr. Tangerine man, play a song for Xi

He’s quite smiley, when you’re floppy, and he knows it too

Hey! Mr. Tangerine man, send a tweet to Xi

In your DC dizzy morning, save your businesses too.

 

(*) sung to the tune of Mr. Tambourine Man 

(PrayingMantis version)

In reply to by wadalt

Giant Meteor james diamond squid Wed, 06/27/2018 - 10:17 Permalink

I have stated from the beginning, that any nation, THIS nation, whom under known, plain. obvious facts, that would consider either another Clinton, or Bush, to be elected as chief executive of the land, should get exactly what it deserves. The nation got Trump, a billionaire real estate developer , and failed casino mogul. A man whose real talent, stock and trade is showman, carnival barking, reality tv, and being made whole by other peoples money.

Malinvestment, and stock market manipulation being all the rage, also equally fitting. And while I appreciate the game before us being exposed as never before, and as it never would have been under a "Bush" or "Clinton" I am not so deluded to believe that this development acts as a natural antidote to all that has, and will continue to plague the nation, spectacularly adrift in a sea of it's own shit.

Perhaps the powers that be, the money power, realizing the depth, gravity of discontent, and rot, felt it neccessary to peel back the onion layers, exposing the wreck and ruin that had become so obvious that one would have had to have been asleep the last 40-50 years minimum, not to see it.

This I believe, is a "controlled demolition" and the larger game afoot as yet to reveal itself. There will be no happy ending. No kumbaya moment, and there will be a price to be paid for all this lyin, cheatin, corruption and bullshit. It's just at the moment, no one yet knows what that price is to be, but in my opinion, it will be far reaching, and leave no one untouched when it finally arrives. Good luck ..

In reply to by james diamond squid

DingleBarryObummer topspinslicer Wed, 06/27/2018 - 08:16 Permalink

There's still hope.  I'm waiting for the big day, July 6th.  That's when the actual trade war starts with China.  If he caves again on that, I'm going to basically retire from commenting.  I'll lurk and occasionally post a dick/fart joke but I'm basically done because he would officially be a clown, and if I want to see clowns I'll go to the circus.

But, if he sticks to his guns, he could go down as the greatest American in history.  The choice is his.

In reply to by topspinslicer

Chupacabra-322 DingleBarryObummer Wed, 06/27/2018 - 08:53 Permalink

Never one to be an “Intellect.”

However, for those of us who have been way ahead of the curve know an irrefutable FACT.  It’s absolute, complete, open, in your Faces Tyrannical Lawlessness.

The False Flag of 911 & subsequent Invasion of Iraq the were two catalyst that led us down that path of Tyrannical Lawlessness.

some would argue the creation of the Criminal “Federal Reserve” in 1913 was the Catalyst.

This is an old list I compiled on post once I held onto.  Needs some revision.

 

1. Torture .
2. WMD lie to the American People.
3. Lying the American People into War.
4. Illegal Wars of Aggression.
5. Arming, funding & training of terror organizations by the State Dept. / CIA & members of CONgress.
6. BENGAZI
7. McCain meets with ISIS (Pics available).
8. Clapper lies to CONgress.
9. Brennan lies to CONgress & taps Congressional phones / computers.
10. Lynch meets Clinton on tarmac.
11. Fast & Furious deals with the Sinaloa Cartel.
12. Holder in Contempt of CONgress.
13. CIA drug / gun running / money laundering through the tax payer bailed out TBTFB.
14. Illegal NSA Spying on the American People.
15. DNC Federal Election Crime / Debbie Wasserman Shultz.
16. Hillary Clinton email Treason.
17. Clinton Foundation pay to play RICO.
18. Anthony Weiner 650,000 #PizzaGate Pedo Crimes.
19. Secret Iran deal.
20. Lynch takes the Fifth when asked about Iran deal
21. FBI murders LaVoy Finicum

At the current moment we're completely Lawless.

 

We have been for quite some time. In the past, their Criminality was "Hidden in plain view."

 

Now it's out in the open, in your face Criminality & Lawlessness. Complete debachary.

Thing is, the bar & precedent has been set so high among these Criminals I doubt we will ever see another person arrested in our lifetime.

22. The Global Espionage & Political Persecution of a Presidential Candidate, President Elect & sitting President by the Criminal GCHQ & Criminal Intelligence Community in the Criminal Fraud UNITED STATES, CORP. INC. that continues to this day.

 

Welcome to Serfdom.  

Enjoy your stay.

 

In reply to by DingleBarryObummer

tmosley gatorengineer Wed, 06/27/2018 - 09:37 Permalink

I see, so progress doesn't count.

You are so ridiculous you should be the king of the clown gallery, but there are so many contenders here.

>First step in treating Trump derrangement syndrome is admitting you have a problem, I did

No, you saw Trump bomb an empty airfield and some empty buildings as fake responses to fake attacks. This hurt your fee fees so now you do nothing but cry all day and all night about how you hate Trump. You are BLINDED by your cognitive dissonance.

In reply to by gatorengineer

Knave Dave topspinslicer Wed, 06/27/2018 - 10:03 Permalink

Like a classic bully, he barks and bites, but runs and cries the second he actually gets popped in the nose. How could he possibly have been so dumb as to think his trade war wouldn't be a hugely rough ride for the US -- that all the big players in the world would just run for cover rather than fight back. The second the battle actually got hot for the US, he ducked and covered. And this little dip was NOTHING compared to how bad the market will really get if he pushes his trade war further. This was just a quick shot over the bow. 

That's what you expect from someone who is all bluster. He's invested a huge amount of bragging in how the stock market is doing; so, now he has a vested interest in making sure it doesn't tank on his watch, as it certainly will in an all-out trade war; and Trump is stupid if he thinks big nations are just going to cower and quickly cave in. If the battle is going to be on, it will be a war of attrition.

In reply to by topspinslicer

Giant Meteor tmosley Wed, 06/27/2018 - 08:40 Permalink

Well, I'm fairly certain it has absolutely nothing to do with ghosts ..

By the way, I believe your issue in the comment pertains to "made up thing." I stipulate that the thoughts behind the work are/were Trumps own. I assume they are/were as he approved, and participated in the writing.

Bullshit would have been a better choice of words ...

In reply to by tmosley

tmosley Giant Meteor Wed, 06/27/2018 - 09:43 Permalink

You are walking back your statement now. This is good.

AotD is OBVIOUSLY Trump's method, as anyone who has read it and has watched Trump perform can tell you. And yes, it is highly effective at getting a better deal for your side and at getting a LASTING deal.

Just because you are strong doesn't mean you have to beat your negotiating partner into the ground and force them to accept a deal that is bad for them. That is the OLD model of US "diplomacy".

In reply to by Giant Meteor