UK Brexit party stands down from 43 non-tory seats
US Retail Sales rebound
US Manufacturing Industrial Production declines second month in a row
After the US close, WH Economic adviser Kudlow said of trade negotiations with China that, " We are in communication with them every single day", while adding "we are coming down to the short strokes" and a deal is "close" but "it is not done yet". However, late yesterday evening the FT carried a report saying that getting "Phase One" agreement across the line remains difficult as China has still not offered enough concessions on "stronger language" on intellectual property and forced technology transfer while also refraining from agreeing to written numerical targets for a planned ramp-up in purchases of US agricultural goods. Agreeing with the FT, this makes it more difficult for the US to justify a rollback in tariffs on Chinese goods. Similarly, Bloomberg ran a story saying that the US request for China to provide the WH with a monthly, quarterly and annual targets for purchases of as much as $bl 50 in agricultural goods it has been a sticking point. The report further added that China has also taken actions that could signal imports of US goods are in jeopardy if talks sour as it is now delaying the unloading of US soybeans at its ports which could slow down further purchases. Hope you are a fun of marathon because this trade dispute isn't gonna end soon.
Today the main highlights included the release of US Retail Sales and Industrial production, with the former rebounding higher to 0.3% (prev. -0.2%) and the latter declining for the second month in a row at -0.8% (exp -0.4%, prev -0.3%). On the UK front, Brexit leader Farage confirmed that his party will send down in 43 non-tories seats, of which the Tories came second in 2017 of which 11 are labour. GBP spiked higher retesting the 1.29 handle.
_______________ EU Close
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