Fundamental analytics

Daily News - US-China Talks on the Edge of Disruption

1. Trump once again harshly criticized China’s bargaining position

2. On the balance sheet of the Bank of Japan is 43.5% of government debt

 

Global stock indices are trading in the red zone amid declining optimism about US-China trade negotiations. Visiting Apple's Texas-based venture, Donald Trump again criticized China’s bargaining position. “I don’t want to conclude it yet, because I don’t think that they have risen to the level I need,” Trump said. In response to Washington’s criticism, Vice Premier Liu He said Beijing remains cautiously optimistic about concluding an interim agreement, but somewhat surprised by the requirements of the United States. According to CNBC, which cites sources well aware of the progress of the negotiations, negotiations are now jeopardized due to disagreements between the parties to cancel the previously imposed duties. The United States insists on the abolition of most of the Chinese duties. In case of bad negotiations the White House may introduce previously announced duties on Chinese smart phones, toys and other products from December 15.

 

According to a tweet from Jeroen Blokland, who is the manager of Robeco Multi-Asset funds, the Bank of Japan now holds 43.5% of government debt securities. This suggests that the regulator now has a limited set of tools for further stimulating the economy in the face of the negative influence of external factors. Recall that the Bank of Japan has been implementing a large-scale program of quantitative easing since April 2013 and is buying up 7 trillion JPY government bonds on a monthly basis.

 

News worth paying attention to today:

UK: Monetary Policy Committee hearings

12:30 GMT. EU: publication of the minutes of the ECB meeting on monetary policy

13:30 GMT. USA: Philadelphia Fed Indexes

13:40 GMT. Canada: statement by the head of the Bank of Canada

15:00 GMT. US: Home Sales Report