stockmarket

China appeals for free trade amid tariff battle with Trump – business live


Chinese premier Li

Chinese premier Li speaking at the ‘Summer Davos’ today Photograph: WEF

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The threat of a global trade war looms over the financial world today, after the US and China hit each other with sweeping tariffs.

Beijing hit back at Washington yesterday, with new levies on $60bn of US goods, just hours after Donald Trump signed off tariffs on $200bn of Chinese products. This latest tit-for-tat action dragged the world economy a little closer to full-blown protectionism.

But…there is also optimism, as China’s retaliation is less severe than it had laid out last month.

And over in Beijing today, China’s deputy leader has called for more support for free trade.

Premier Li Keqiang told a World Economic Forum conference, in the eastern city of Tianjin, that such disputes must be resolved through consultation.


It is essential that we uphold the basic principles of multilateralism and free trade….

No unilateralism will offer a viable solution.”

Li also warned that the world economy now stands at “a crossroads facing a choice between globalization or deglobalization.” China, he pledged, will do its bit by opening up “at a faster pace”.

World Economic Forum
(@wef)

Chinese Premier Li on global trade https://t.co/vlkiKTwqRe


September 19, 2018

That will have gone down well with WEF at its “Summer Davos” in Tianjin.

More cynical voices might point out that China does operate plenty of roadblocks to free trade today – second behind Russia, according to one EU report this year.

But still, Li’s words may reassure investors that the two economic powers will reach an agreement on trade policies, rather than descend deeper into a swamp of tariffs, trade barriers and bad-mouthing.

Holger Zschaepitz
(@Schuldensuehner)

Asia stocks extending low quality rally. ‘Markets behaving as if trade war overhang has been removed after details were released on $200bn of tariffs. Positioning stretched,’ JPM says. Nikkei at 8mth high. US 10y yields steady >3% threshold. Dollar a tad lower. Bitcoin at $6.3k. pic.twitter.com/ikjbsPD0K7


September 19, 2018

Also coming up today

UK inflation data is out this morning. Economists predict that price rose by 2.4% year-on-year in August, down from July’s 2.5%. That would give workers a small but much-needed real wage boost.

Supermarket chain Tesco is launching its new discount store format, Jack’s, to compete with the success of Lidl and Aldi. It could be a game-changer, if Tesco can get it right…

Harry Wallop
(@hwallop)

Will there be any Tesco branding at all? Or will it be solely these faux-farms, odd sub-brands that Tesco has been developing? We shall see pic.twitter.com/8yMl3be0ZO


September 18, 2018

Harry Wallop
(@hwallop)

The biggest question re Jacks (apart from whether it will have an apostrophe, as it should) is: if it’s a great, decent-quality rival to Aldi/Lidl, why would you want to go back to shopping at Tesco? Won’t it highlight that Tesco ain’t that cheap anymore?


September 18, 2018

Plus, traders will be watching for speeches from two central bankers; European Central Bank chief Mario Draghi, and the Bank of England’s chief economist, Andy Haldane.

The agenda

  • 9am BST: Bank of England Andy Haldane: Lecture at the Bank of Estonia 100th Anniversary conference, Estonia
  • 9.30am BST: UK inflation for August
  • 9.30am BST: UK house price data for July
  • 3pm BST: ECB president Mario Draghi speech on “Making Europe’s Economic Union work”, in Berlin





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.