US-China trade deal could be geared to help Trump’s ratings
|Details of a potential US-China trade deal points towards a potential front-loading of benefits to help boost Trump’s ratings. Meanwhile, Brexit hopes fade as the pound heads lower despite shift in tactics from May.
- FTSE 100 trails European and US counterparts
- May-Corbyn scepticism sees GBP head lower
- US-China trade talks to be front loaded to help boost Trump ratings
The FTSE 100 is trailing its European and US counterparts today, with the headline UK index expected to close out in the red for the first time this week. The Brexit process is clearly not the only thing falling apart in Westminster, with parliament suspended after water started pouring into the chamber. However, the focus for markets is on talks between Theresa May and Jeremy Corbyn, and with the pound dropping sharply, it is clear that hopes of a softer Brexit are fading fast.
US-China trade talks resumed in Washington today, as market excitement builds as we start to see light at the end of the tunnel. However, details emerging from those close to the deal have revealed a crucial time-limited aspect that could be imposed to coincide with Trump’s presidential term. With the deal expected to frontload all the Chinese purchases of US goods into the period up until 2025, Trump has shown himself to be looking after his legacy over the long-term economic picture of the US. Nevertheless, for US firms this means that there should be a substantial bounty for US firms who will likely benefit from a sharp spike in Chinese demand over the coming years.
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