Markets fall…Bracing for China retaliation…Trump contradiction
BANGKOK (AP) – Shares retreated in Europe and Asia on Monday after talks between the U.S. and China wrapped up without an agreement, as economist said the escalating dispute over trade and technology would likely hurt growth. Futures point to a lower opening on Wall Street. U.S. benchmark crude oil rose to just below $62.50 per barrel. The dollar slipped against the yen and the euro.
BEIJING (AP) – Companies were bracing Monday for how Beijing might retaliate against President Donald Trump’s escalation of a fight over technology and trade that threatens to disrupt a Chinese economic recovery. Regulators have threatened “necessary countermeasures” for Trump’s tariff hikes Friday on $200 billion of Chinese imports. But three days later, in a break with previous tit-for-tat penalties that were imposed immediately, Beijing had yet to announce what it might do.
WASHINGTON (AP) – The White House’s top economic adviser has acknowledged that U.S. consumers and businesses pay the tariffs that the Trump administration has imposed on billions of dollars of Chinese goods, even as President Trump himself insisted in a tweet, incorrectly, that China pays. Larry Kudlow, the head of the president’s National Economic Council was responding to a question from Chris Wallace, host of “Fox News Sunday.”
TOKYO (AP) – U.S. Agriculture Secretary Sonny Perdue has picked up his barbeque tongs to convey his message to Japan: Buy more American beef. Perdue said Monday that as a top consumer of U.S. beef, Japan should treat the U.S. fairly. He said he hoped President Donald Trump and Japanese Prime Minister Shinzo Abe will strike a trade deal during his boss’s visit to Japan later this month, but acknowledged more time might be needed.
ISLAMABAD (AP) – The International Monetary Fund said Sunday it reached a preliminary agreement with Pakistan for a $6 billion bailout over the next three years to finance sweeping economic reforms. Pakistan and the international lender reached a “staff level agreement” subject to approval by the IMF management and the executive board, IMF envoy Ernesto Ramirez Rigo said in a statement.