The Trump administration is satisfied with the progress of the implementation of the first phase of the TRADE agreement with the United States, kudlow said, as market focus shifts to the high-level trade talks between China and the United States scheduled for Saturday as August 15 approaches. The United Nations has voted on whether to extend an arms embargo on Iran, as US media reported that the United States has seized four ships carrying Iranian fuel oil for the first time. In the current session, the market’s focus on U.S. retail sales, known as the “terror data,” could trigger sharp short-term moves in gold and the dollar.
New news from China-Us trade!
Now investors are turning their attention to the Aug. 15 meeting between the U.S. and China aimed at assessing the implementation of the first phase of the trade agreement.
The move follows US media reports that the US and China have agreed to hold high-level talks on August 15 to assess Whether Beijing is complying with the first phase of a trade agreement signed with the US earlier this year.
The Wall Street Journal reported August 4 that U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He will attend the talks, which could take place via video conference, according to people familiar with the matter.
White House economic adviser Larry Kudlow said On Thursday that the Trump administration was pleased with China’s progress on its promise to buy American goods in the first phase of the trade agreement, suggesting that the deal would pass a preliminary review on Saturday.
China, Kudlow told reporters at the White House, “is really choosing to import our goods right now — which, by the way, is a huge boon to U.S. agriculture and the agricultural sector.” He said U.S. Trade Representative Robert Lighthizer is also pleased with the progress of THE trade agreement.
Despite a marked deterioration in U.S.-China relations in recent months, with the two sides attacking each other ona broader range of issues, including the original origins of novel Coronavirus and the issue of Hong Kong autonomy, the first-phase trade agreement signed Jan. 15 has weathered the storm.
“We have significant differences with China on other issues, but we are working on the first phase of the trade agreement,” Kudlow said.
The centrepiece of the first phase of the agreement is China’s commitment to buy at least $200bn more of US goods and services in 2020 and 2021, on top of purchases made in 2017.
Under the first phase of the trade agreement, China will fulfill the following commitments:
2020: Procurement of manufacturing, agricultural and energy products increased by $63.9 billion and procurement of services by $12.8 billion compared with 2017;
2021: Purchase $98.2 billion in goods and $25.1 billion in services from these three categories, based on 2017.
Due to the coVID-19 outbreak shortly after the signing of the agreement, the ability of the two sides to implement the agreement was affected. And relations between The United States and China have deteriorated in the meantime, making the talks a grim prospect and closely watched by investors who value their economic impact in particular.
Analysts say China is less than half way towards the 2020 target set out in the first phase of the trade agreement. But this will be glossed over in the run-up to the Us elections in November in an effort to smooth sino-us trade relations. The coronavirus excuse is expected to be the main reason for non-compliance.
Retaliatory measure escalates in all respects! ? The United States suddenly struck at Iran
As the United Nations votes on whether to extend an arms embargo on Iran, US media are reporting that the United States has for the first time seized a tanker carrying Iranian fuel.
The United States has seized 4 oil tankers carrying Iranian fuel oil to Venezuela, the first time the US has seized a tanker carrying Iranian fuel oil, the Wall Street Journal reported Wednesday, citing a US official.
The four tankers, Known as Luna, Pandi, Bering and Bella, were recently seized in international waters and were on their way to Houston, the official said. Senior U.S. government officials were expected to visit the tanker after it docked, the official added.
The report also quoted officials as saying the tanker had been “taken over” without the use of force, but gave no other details.
It is reported that after taking control of the above-mentioned tanker, the US military has headed to the port of Houston in The US state of Texas. According to the previous statement by the US side, the oil and other cargo carried by the four tankers will be confiscated by the US.
The United States has accused Iran of violating US sanctions by shipping large quantities of oil to The Latin American country of Venezuela. The seizure was in line with US sanctions.
The vessel is reportedly owned by Greek shipowners and registered in Liberia, although it is carrying Iranian oil. U.S. prosecutors filed a civil seizure suit in July, allowing U.S. law enforcement agencies to seize Iranian tankers carrying oil to Venezuela, as well as supplies destined for other regions. The lawsuit, aimed at preventing Iran from selling oil, is the latest attempt by the Trump administration to ratchet up economic pressure on Iran and Venezuela.
Russian military experts said the sudden and unannounced capture of four Iranian tankers bound for Venezuela, after the US had previously released them, in what was once presumed to be a reluctance to escalate tensions, was a sign of a broader escalation of us retaliation.
The news came as the United Nations voted on whether to extend an arms embargo on Iran. The United Nations Security Council on Thursday began voting on a U.S. request to extend an arms embargo on Iran and the result will be announced at a meeting on Friday, diplomats said. The proposal has been opposed by China and Russia.
In 2015, Iran and the Iranian nuclear issue six countries (the United States, Britain, France, Russia, China and Germany) the Iran nuclear issue full agreement. According to the agreement, Iran’s commitment to limit its nuclear programme, the international community will lift sanctions against Iraq. In May 2018, the United States announced its withdrawal from the Iran nuclear agreement and the gradual restoration of sanctions against Iran. Iran announced it would reduce its compliance in stages.
The United States is calling on Russia and China not to end their arms embargo on Iran, according to U.S. National Security Adviser Jim O ‘Brien, according to Sputnik News agency on August 14.
“My expectation is that Russia and China will do the right thing, they should do the right thing… If not, we will do what is necessary.”
The United States has said it will try to use a clause in the nuclear deal to reopen all United Nations sanctions against Iran if it fails to extend the arms embargo. The move could further put the fragile Iran nuclear deal at risk.
Gold rally through 1960 what next?
Against the backdrop of a series of geopolitical risks, spot gold has held firm, currently hovering above $1,950. Gold rallied from a near three-week low yesterday and briefly breached the 1960 barrier as the dollar fell and a slow recovery in the US Labour market highlighted the economic toll of the new crown pandemic.
New claims for jobless benefits fell below 1m last week for the first time since the outbreak began in the US. However, 28.3 million people were still receiving various unemployment benefits at the end of July, indicating a weak labor market.
“The dollar has been pretty weak and the (labor market) recovery is just realisation of lower level targets,” said Edward Meir, an analyst at Ed&F Man Capital Markets. Such a rebound is easy to achieve.”
“Claims are still at very high levels and have a long way to go,” he added.
Meanwhile, talks in Washington on additional stimulus measures remained deadlocked, contributing to the dollar’s slide, which saw the index fall to 93 yesterday.
Negotiations on a U.S. fiscal stimulus package remain deadlocked, with Treasury Secretary Steven Mnuchin suggesting in an interview Thursday that the White House would not budge and stick to a $1 trillion Republican plan despite calls from Democratic lawmakers for at least $2 trillion in aid. There are big differences between the two parties over aid to state and local governments and unemployment benefits.
As for the outlook for gold, Edward Moya, senior market analyst at Oanda, said the gold market’s previous rollercoaster ride may not be over yet and volatility will continue in the near term due to the performance of bond yields. “Gold’s volatility will continue, but the market is still looking up to a new record.”
“Last week I thought it would all end in tears, and it has,” said Carsten Fritsch, commodities analyst at Commerzbank AG. It’s over now. Gold will consolidate for a few weeks before heading for record highs.”
Avtar Sandu, senior commodity manager at Phillip Futures, said it is still too optimistic to expect a V-shaped reversal in the U.S. economy after the outbreak. “The long-term fundamentals of gold are still bullish, but in the short term, both technical and fundamental means gold will consolidate.”