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US delays ruling on Gulf of Mexico Whale Protections by Two Years
According to a court filing, an agreement reached with environmental groups will allow the Trump administration to delay the final rule by two years. The rule would protect the endangered Rice's Whale in the Gulf of Mexico oil and gas drilling area. The National Marine Fisheries Service of the U.S. Commerce Department and the green group Natural Resources Defense Council have agreed to give the government agency until 15 July 2027 to finalize the geographical area that is considered critical to the survival of the Rice’s whale. The agreement was filed with the U.S. District Court for the District of Columbia, on July 3, and it was seen by Monday. The agreement stated that "NMFS is continuing to work diligently on this complex Final Rule." "NMFS requires more time to evaluate the science and analyze the impact on the Rule," the agreement said. NMFS will coordinate its efforts in this process with the academic and scientific communities. NMFS officials could not be reached for comment. NRDC also did not have any immediate comment. It represents the environmental group Healthy Gulf, in a legal case over the designation of so-called "critical habitat". The oil and gas companies of the region have welcomed the delay. The former administration of Joe Biden in 2023 had proposed restrictions for drillers in the northern Gulf. We strongly support the decision of extending the deadline for the finalization of the Rice's Whale critical habitat. Erik Milito said that extending the deadline was both necessary and responsible, given the amount of work needed to make this rule perfect. (Reporting and editing by Mark Porter, David Gregorio and Nichola Groom)
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Zelenskiy appoints new Prime Minister, and taps official who spearheaded US mineral deal
On Monday, Ukrainian President Volodymyr Zelenskiy asked Yulia Shvyrydenko to head a new cabinet. This set the stage for an upcoming political reshuffle in Ukraine's ongoing war with Russia. Zelenskiy suggested that Ukraine's Prime Minister, Denys Schmyhal, be appointed as Defence Minister, as he described him as having the qualifications to do such a job. The nominations require parliamentary approval. They came at a time when diplomatic efforts to end the four-year war have stagnated and Ukraine is trying to revitalize its cash-strapped economic system and build up an indigenous arms industry. Zelenskiy, writing on X, said: "We... discussed tangible measures to boost Ukraine’s economic potential, increase support programs for Ukrainians and scale up our local weapons production." He said that "in pursuit of this objective, we are initiating transformation of the executive in Ukraine", adding that he proposed Svyrydenko to lead the government, and "significantly renew" its work. Svyrydenko is a 39-year-old economist who has been serving as the first deputy prime minister of Ukraine since 2021. She was a key player in the recent negotiations of a mineral deal with the United States. In his video nightly address, Zelenskiy described Shmyhal as having "vast" experience that is "valuable for the position of Minister of Defence of Ukraine." He said: "This is the exact area where maximum resources are concentrated, as well as maximum tasks and responsibility." Shmyhal is the prime minister of Moldova since March 2020. He has been in office since 1991, when the country gained independence from Moscow. Zelenskiy had suggested that Rustem Umerov, the Ukrainian ambassador to Washington Zelenskiy said could be appointed last week, would replace him. Ukraine depends on its Western allies for financial assistance to finance social and humanitarian spending, as the majority of state revenues are used to fund the army and the domestic weapon production. FINANCING ARMS INDUSTRIES Ukrainian officials also called on Kyiv’s partners to assist in financing the country’s arms industry. This could be done through joint defense projects. Zelenskiy stated that Ukraine will continue to "increase production of its weapons and develop their own defence projects - our own Ukrainian as well as jointly with our partners". Svyrydenko wrote on X that she would deregulation, reduce bureaucracy and protect businesses, as well as reduce non-critical spending, to "concentrate all state resources" towards defence and post-war reconstruction. She said, "The state apparatus does not have the right to waste our country's resources and potential." "Ukraine should be one of the most powerful economies in Europe." (Reporting and writing by Dan Peleschuk, with editing by Kevin Liffey; Gareth Jones; Ron Popeski, Cynthia Osterman, and Cynthia Osterman).
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Sudanese RSF forces killed almost 300 in North Kordofan according to activists
Sudanese activists reported on Monday that the paramilitary Rapid Support Forces killed nearly 300 people during attacks that began in North Kordofan State on Saturday. RSF is fighting against the Sudanese Army in this area. It's one of the main frontlines in a civil conflict that has been raging since April 2023. The army has gained control over the east and center of the country while the RSF works to consolidate control in the western regions including North Kordofan. Emergency Lawyers, a human rights organization, said in a Monday statement that the RSF attacked several villages around Bara on Saturday. Bara is under the control of the paramilitary. More than 200 people have been killed in Shag Alnom village by arson and gunshots. They said that looting raids in other villages resulted in the deaths of 38 civilians. Dozens more were reported as missing. The group claimed that the RSF had attacked Hilat Hamid the next day and killed 46 people including children, pregnant women, and other vulnerable individuals. According to the United Nations, more than 3,400 people have been forced to flee. Emergency Lawyers, blaming the RSF leadership, said: "It is clear that these villages targeted were empty of military objectives. This makes clear the criminality of these crimes committed in total disregard for international humanitarian law." Human rights groups and the United States have accused RSF of genocide, war crimes and crimes against humanity. The RSF has carried out violent raids on territory that it controls across the country. The RSF leadership has said that it will bring to justice those who are found guilty of such crimes. Sudan's civil conflict has caused the largest humanitarian crisis in the world, causing more than half of the population to go hungry and spreading diseases like cholera throughout the country. The humanitarian response has been stretched by a global cut in aid. (Reporting and editing by Sharon Singleton, Sandra Maler and Nafisa eltahir)
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Draft shows EU wants to cap farming subsidies in budget overhaul
Brussels will propose capping the EU subsidy a single farm can receive every year in an effort to redistribute massive farming subsidies to smaller businesses. A draft European Commission proposal, seen by, revealed this. The document will be part of the Commission’s proposal for the next budget of the European Union, which is due to appear on Wednesday. The EU's massive Common Agricultural Policy (CAP), which provides farming subsidies, is worth approximately 387 billion euro ($451 billion) today. This represents a third the entire budget of the EU for 2021-2027. According to the draft, the Commission's proposal would try to redistribute subsidies to smaller farms by capping the amount of income-based support that they can receive at 100,000 euros per annum. The amount of money paid per hectare would be gradually reduced for those who receive the most. The draft stated that, for example, if a farmer receives area-based income assistance above 20,000 Euros per year, their payments will be reduced by 25%. Payments above 50,000 Euros per year will be cut in half, and payments over 75,000 euro by 75%. It is not the first attempt by Brussels to cap subsidies and limit payments to large landowners or agroindustrial companies. In the previous CAP approximately 80% of payments were made to only 20% of beneficiaries. Previous proposals were rejected by EU countries concerned about their agricultural industries. The new budget for the period 2028-2034 must be approved by the EU countries as well as the European Parliament. A spokesperson for the Commission did not respond immediately to a comment request on the draft. It could be changed before publication. The draft would establish EU-wide, overarching green targets, which farmers must achieve to qualify for subsidies. However, it would also oblige countries to set local, additional conditions. The draft stated that "the new CAP will be a simplified and more targeted Union Common Policy, with greater flexibility for farmers, and a move from requirements to incentives." The draft didn't confirm the size of a new CAP. The core of the new CAP would remain direct income support to farmers. This would be "ring-fenced", meaning that it could not be used for anything else. The proposal would combine the CAP's two-pillar structure to one fund, a move that is opposed by influential European farmers' group COPA-COGECA. ($1 = 0,8574 euros) Reporting by Kate Abnett Editing Tomaszjanowski
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US Judge delays the transfer of Argentina's 51% YPF stake in order to allow an appeal
A U.S. Judge on Monday temporarily halted the enforcement of her order requiring Argentina's 51% stake in the oil and gas company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District judge Loretta Preska, while criticizing Argentina's actions and extending the deadline for the completion of the turn-over by three days until July 17, has pushed back Monday's deadline. She stated that the delay was only to allow Argentina to file a complaint with the 2nd U.S. Circuit Court of Appeals of Manhattan. Argentina filed an Emergency appeal On July 10, the court heard a case. Preska refused to extend the stay. She stated that Argentina "continues its delay and circumvention of its obligations" in relation to the $16.1 billion judgement, citing legislation to prevent the YPF turn over. The Manhattan-based Manhattan judge wrote: "The Republic has abused court accommodations and will not receive additional ones." Requests for comment from an attorney and Argentina's representatives were not immediately responded to. The three-day extension is a temporary relief to the cash-strapped nation, which warned that its economy would be unstable if forced to sell the YPF stake. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Burford's U.S. lawyer and Burford did not respond immediately to requests for comments on the Monday order. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina appeals this judgment. The U.S. Foreign Sovereign immunity Act protects the YPF shares from being sold. In an emergency appeal, Argentina stated that a YPF turn-over would irreparably damage its sovereignty, violate the international law, and expand U.S. court's power in a wrong way. It said that it would also be unfair to give its controlling stake in country's biggest energy company up now because it would probably be irrevocable, even if they won the case. Burford claimed that Argentina's years of evasion, combined with a commercial immunity exception, was the reason for YPF's turnover. (Reporting and editing by William Mallard, Richard Chang, and Jonathan Stempel from New York)
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Russian rouble, stock market gain after Trump's statement on Russia
The Russian rouble recovered its losses against the dollar, and climbed against China's Yuan after U.S. president Donald Trump warned that he would impose a "very serious tariff" on Russia in 50 days if a deal was not reached on settling pacifically. According to LSEG's data based upon over-the counter quotes, as of 1605 GMT the rouble had fallen 0.2% at 78.10 against the dollar, after reaching 78.75 earlier in the day. The rouble has gained 45% against the US dollar since the beginning of the year, according to LSEG data based on over-the-counter quotes. Trump announced on Monday new weapons for Ukraine and threatened to hit Russian export buyers with sanctions. He expressed frustration at Russian President Vladimir Putin over the lack of progress made in ending the conflict in Ukraine. Artyom Nicholasev, an analyst from Invest Era, said that Trump's performance was below expectations. "He gave the Russian leadership 50 days to come up with an offer and extend the negotiations track. Trump is fond of delaying and extending such deadlines. The rouble gained 0.8% against the Chinese Yuan, which is the most commonly traded currency in Russia. It had fallen by more than 1% Friday. According to the Moscow Stock Exchange, after Trump's remarks, Russian stocks rose by 2.7%. (Reporting and editing by Richard Chang; Gleb Bryanski)
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Britain and Czech Republic will work together to develop small nuclear plants
The UK and Czech Republic announced on Monday that they will explore the possibilities for small modular reactors (SMRs). This partnership could lead to Rolls Royce SMR exporting up to six units into the east European country. Last month, Britain pledged 2,5 billion pounds for the construction of SMRs. It hopes that this will help to increase energy security while helping the country achieve its climate targets and create export opportunities. The SMRs are made in factories with small parts that can be transported by barges or trucks. They are assembled faster and cheaper than large nuclear plants. In a statement issued by the UK Department for Energy Security and Net Zero, which also cited his Czech counterpart, UK Prime Minister Kierstarmer stated: "By working together with our Czech colleagues on small modular reactors we are supporting British engineering, strengthening the industrial base and putting the UK into a leading position for exporting the technologies of tomorrow." Rolls Royce won the contract to build Britain's SMRs last month. Great British Energy, Britain's state owned energy company, is expected to sign the contract and select a location for new plants later this year. Last year, Czech electricity producer CEZ announced that it would acquire a stake in Rolls Royce’s SMR business of around 20%. It also planned to install up to three gigawatts in the country. This is equivalent to six units. Each unit can power approximately one million homes. Starmer and Czech Premier Peter Fiala are hosting a roundtable discussion as part of Fiala's London visit, in order to promote closer links for trade and investment between the two nations. (Reporting by Susanna Twidale, Editing by Aidan Lewis).
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Earnings and tariffs are a focus for the market, as well as inflation data.
MSCI's global index of equity prices edged lower on Monday, while U.S. Treasury rates edged higher. The latest U.S. Tariff threats kept investors on their toes as they awaited inflation readings due later this week and the beginning of the earnings season. After Donald Trump threatened to impose a 30 percent tariff on imports of goods from the European Union, Mexico and Canada starting August 1, the euro briefly fell to its lowest level in almost three weeks. The dollar index remained stable. The threat of tariffs caused European shares to fall on Monday. The EU announced that it would suspend countermeasures against U.S. Tariffs until early August, and continue to push for a negotiated solution. However, Germany's Finance Minister called for a firm response if levies were implemented. This week the U.S. earnings period begins, and the banks are leading the way. According to LSEG, S&P profits are expected up 5.8% compared to the previous quarter. Now, it's all about the earnings season. They don't know what to expect. They want to remain optimistic. Robert Pavlik is a senior portfolio manager with Dakota Wealth, Fairfield, Connecticut. He said that earnings seasons are usually better than expected. However, he also noted that trading values were "a little expensive compared to the 5-year average". The money manager said that people are waiting to see what happens next, given the recent announcements of tariffs. At 10:54 am on Wall Street, the Dow Jones Industrial Average dropped 53.36 points or 0.12% to 44,318.15, while the S&P500 fell 6.66 points or 0.11% to 6,253.09. The Nasdaq Composite increased 18.05 points or 0.09% to 20,603.58. The MSCI index of global stocks fell 0.12% or 1.07 points to 921.49, while the pan-European STOXX 600 fell 0.26%. POWELL PRESSURE Trump has increased political pressure to ease interest rates more aggressively, despite the fact that U.S. Federal Chairman Jerome Powell had signalled patience on this issue. Kevin Hassett, the White House's economic adviser, warned Trump over the weekend that renovation costs at the Fed headquarters in Washington could be a reason to fire Powell. Trump said that Powell's resignation would be great. The yield on the benchmark 10-year U.S. notes increased by 1 basis point, to 4.433% from 4.423% at the end of Friday. Meanwhile, the 30-year bond's yield rose by 2.2 basis points, to 4.9791%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 1.8 basis points, to 3.896% from 3.914% at late Friday. Investors are waiting for the U.S. consumer prices data for June due Tuesday. They will also be watching for any upward pressure coming from tariffs. The data on producer prices and import prices, which are due this week, will provide a glimpse of the impact that tariffs may have on supply chain costs. Retail sales figures will also give a good indication of consumer health. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, increased 0.09% at 97.98. The dollar rose 0.07% against the Japanese yen to 147.5. The Mexican peso fell 0.65% against the dollar to 18.767. Mexican President Claudia Sheinbaum is confident that a deal can be reached by the deadline of August. Bitcoin reached the $120,000 mark for the first and last time. It was up by 1.48% to $120,891.36. Oil prices dropped on Monday, after reaching their highest level in the last three weeks. Investors were watching for further U.S. sanction against Russia and tariffs that could affect global supply. U.S. crude dropped 0.64% to $68.01 a barrel. Brent was down to $70.07 a barrel, 0.41% lower on the day. The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have climbed to their highest level since September 2011, Spot gold dropped 0.41% to $3341.63 per ounce. U.S. Gold Futures increased 0.04% at $3,357.20 per ounce. (Reporting and editing by Christopher Cushing; Sharon Singleton, Ali Williams, and Ali Williams.
Analysts' reactions to the US-China Trade Agreement
U.S. officials and Chinese officials announced that they had reached an agreement on a framework for re-establishing their trade truce and removing China's restrictions on exports of rare earths. However, there was little indication that the long-standing trade disputes would be resolved.
Li Chenggang, Vice Minister of Commerce in China, said that the two teams agreed to implement their Geneva consensus. They would then take the framework agreed upon back to their respective leaders.
An official at the White House said that the agreement allows the U.S. a tariff of 55% on imported Chinese products. The tariff includes a baseline "reciprocal tariff" of 10%, a fentanyl-trafficking tariff of 20% and a 25 percent tariff that reflects existing tariffs. China would impose a tariff of 10% on U.S. imported goods.
MARKET REACTION:
S&P 500 was up 0.1% as investors waited for more details and to see if the decision would be implemented.
QUOTES:
GENE GOLDMAN IS THE CHIEF INVESTMENT OFFICER FOR CETERA INVESTMENT MANAGEMENT IN EL SEGUNDO CA.
The equity markets breathed out a sigh after hearing about a possible US-China deal. This news should be taken with caution. While President Trump announced that the imports of Chinese goods would increase from 30% to 50% and Chinese rare-earths exports could resume, little is known about what China will get in return. "I doubt that this is a one way deal, and therefore the market caution observed overnight."
SAM STOVALL IS THE CHIEF INVESTMENT STRATEGIST AT CFRA RESEARCH IN ALLENTOWN PENNSYLVANIA.
"We have seen a relatively tepid reaction to news of the 'deal' made with China. To me, that indicates indifference. The market is saying, ok, you've agreed to keep talking and have set up a structure for future discussions, but there hasn't been anything really significant resolved. Tell me something I should know. We all know it won't be good if there isn't a comprehensive solution. We would have to buy our dolls elsewhere, and that will cost more.
The market has struggled to hold on to its gains despite better than expected inflation figures today. I can only assume that the people wanted to hear more about the China negotiations. Investors may have sold because they thought we were overbought.
OLIVER PURSCHE SENIOR VICE-PRESIDENT, ADVISOR WEALTHSPIRE ADVISE, WESTPORT CONNECTICUT
The market hasn't reacted to the deal yet because we haven’t seen details. The devil lies in the details, as with most things. Another big news item is that the U.S. has a framework in place for future discussions with China, which contradicts a previous statement that it was a done deal.
The report on inflation this morning, although softer than expected was due to lower energy prices, and also an indication of further slowdowns in the U.S. economy.
ADAM BUTTON, CHIROP CURRENCY ANATOMIST, FOREXLIVE TORONTO
Trump certainly has tried to spin the news positively. "Obviously, this is good news. China and the U.S. reached an agreement. It's unclear what the U.S. is doing and what China wants to achieve. Trump made a hint at this when he said he wanted to expand China's trade. The U.S.-China negotiations have in some ways raised more questions than they have answered. Will this tariff rate stick? What are the U.S. & China working on?
The ultimate conclusion about China is that it's not getting worse. So, that's good. "We probably built in some expectation of maybe material progress."
JOHN PRAVEEN MANAGING DIRECTOR PALEO LEON PRINCETON NJ
"The worst case scenario is likely behind us. Both sides are trying to save face. The U.S. thought the issue of rare earths was important. They reached an agreement. It is a question of whether or not it will be implemented. "The fact that they have an agreement at all is likely to be a relief for market.
Both sides got something. It's important that the situation is de-escalating. It's likely a relief to the markets."
We'll need to wait to see if the tariffs are further reduced. After the dust settles, it'll probably be a bit lower because this tariff level will likely cause inflationary pain to the consumer."
When Trump and Xi get together, they will probably reduce it further. "You need to keep something aside for the meeting."
PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK:
"That is good news, of course. It's still a while away, and both Trump and Xi have to ratify it, but it's a given that this will happen. This is good news, and it eases concerns... But the real deal is that there's an agreement which would allow China to resume exports of rare-earth products, something I believe was crucial to this."
ROBERT PAVLIK SENIOR PORTFOLIO MANAGEMENT, DAKOTAWEALTH, FAIRFIELD CONNECTICUT
It's a positive headline at least. It's positive that both countries are working together to exchange technology for rare-earth materials. We'll wait to see if Xi approves it, and what Trump says."
WASIF LATIF, PRESIDENT, AND CHIEF INVESTOR, SARMAYA PARTNERS PRINCETON NEW JERSEY
"It is becoming clearer that the initial high tariffs and large scales of tariffs were a negotiation tactic. When you saw the cards that each side brought to the table, China with rare earths and the US with other trade-related chips including the impact on students here at universities, you could see how they both wanted to reach an agreement. This is good news for investors.
"However the market already anticipated this because the rally we saw at the low tariffs was already baking in a better result than what was initially being put out. The futures started to fall when the agreement was announced in the early hours of this morning. It felt more like a situation of selling the news than a market impact, because many of the expected benefits were already backed in.
The CPI is currently the news that moves markets. It will be interesting to observe the long-term trade impact of tariffs. Tariffs have been a hot topic for many years. Some people say they are inflationary, while others claim it is deflationary. "But I think that the truth is somewhere between.
CHRIS WESTON HEAD OF RESEARCH PEPPERSTONE MELBOURNE
The devil is in the detail, but the lack reaction indicates that this outcome was fully expected.
The Geneva agreement is a good thing, but the fact that there was no reaction on S&P500 Futures and only small movements in CNH and AUD suggests the outcome was expected. Details matter, particularly the amount of rare earths going to the US and the freedom of US chips to go East. But for now, as long as headlines about the talks between both parties are positive, risk assets will be supported.
LIN GENGWEI is the co-founder and CEO of RAIN TREE PARTNERS in Singapore.
Both sides are willing and under pressure to reach an accord. The Sino-U.S. Rivalry will continue to persist despite the temporary success of these talks.
The U.S. may ease restrictions on chip exports from China in response to both pressures from Beijing and the domestic semiconductor industry.
MARK DONG, CO-FOUNDER OF MINORITY ASSET MANAGEMENT, HONG KONG:
This is good news for the market. There's now a bottom-line that neither side will cross.
Both sides will work to reduce the trade deficit.
ZENG WENKAI, CHIEF INVESTMENT OFFICER, SHENGQI ASSET MANAGEMENT, HONG KONG:
The market probably anticipated this -- Trump always chickens out (TACO).
"Look at the way countries negotiate with the U.S. today; it is no longer how Vietnam did things in the early days. Japan and South Korea have taken a more aggressive stance. "Kneeling is not the answer. It only leads to more bullying."
CHARU CHANANA CHIEF INVESTMENT STRATEGIST SAXO SINGAPORE
The markets will welcome the change in tone, from confrontation to cooperation. We're still not out of danger, even though there are no more meetings planned. Next, Trump and Xi must endorse and enforce the framework.
It's important to not confuse this tactical deescalation with a complete reversal in strategic decoupling. The competition in technology, supply chain, and national security is still very strong. There will always be new issues, and it is the implementation of this "old deal" that will determine how far we go.
TAN XIAOYUN IS THE FOUNDING PARTNER FOR ZONSO, GUANGDONG.
"Talks will proceed under the framework agreed upon, and I think the U.S. is more willing to compromise than China in order to reach an agreement."
"Under current circumstances, U.S. faces more pressing issues, while the Chinese have more breathing room. China used to be defensive but now is offensive by leveraging rare earths and market access. This marks a shift in power and strength."
MICHAEL McCARTHY, CHIEF OFFICER MOOMOO AUSTRALIA SYDNEY
"I will be watching how bonds trade on this day in light of it." Currency markets seem to be taking this in stride and equity markets have returned to their all-time highs.
Since weeks, the market has been anticipating this deal. It will be positive for the market, as the dollar will weaken and equities will rise, but this is not a major change.
CAROL KONG CURRENCY STRATEGIST, COMMONWEALTH BBANK OF AUSTRALIAN, SYDNEY
"I believe in this environment...any hints of progress on a possible trade agreement will be beneficial for markets.
"It's going to be hard for both sides and take a very long time before they can reach a comprehensive agreement." This type of comprehensive agreement usually takes years to reach, so I am skeptical that the framework agreed upon at the London meeting will be comprehensive. "Tensions may have de-escalated temporarily, but will escalate in the coming months."
RAY ATTRILL HEAD OF FOREX STRATEGY, NATIONAL AUSTRALIA BANK SYDNEY
It's too early to declare that a new US-China trading agreement is imminent. We've heard a lot of positive things about agreements, but we've not seen any real progress.
"Our view remains that, whatever is agreed upon in the next few weeks and months - the baseline view - is that the global tariff situation will be far worse than it was before Trump became president. We'll still have a tariff climate we believe is detrimental to global growth."
TONY SYCAMORE MARKET ANALYST IG SYDNEY
If we maintain the terms of the Geneva Agreement we will see US tariffs for Chinese goods remaining at 30% for some time, and Chinese tariffs for US goods remaining at 10%. This is a reduction from 145% and 125%, respectively. This would be amazing.
"I think that was the consensus of the market... now people are trying to decide whether they want to buy or sell the US Dollar and I believe that reflects a little bit of this indecision.
The U.S. equity market is holding up at the moment because of this. I still think they are overcooked and need to pullback. "It's been an incredible run, and we're pushing up against the records from February. For me, it makes sense that they take a break."
DAVID CHAO, GLOBAL MARKET STRATEGIST, ASIA PACIFIC, INVESCO, HONG KONG:
"Recent headlines have shown that both the US and China are ready to reach a deal. This is good news for both markets and policymakers. We believe that cooler heads will prevail and the path has been set for a closer dialogue between top leaders in both countries.
The news that the US and China may have reached a deal over rare earths, semiconductors, or jet engine parts is a good indicator that we are past peak tariff uncertainty. (Compiled by Global Finance & Markets Breaking News)
(source: Reuters)