Sources: US Sec. of State Pompeo to meet with Chinese delegation this week in Hawaii – Reuters

Early Tuesday morning in Asia, Reuters came out with the news, relying on sources, to suggest that the US Secretary of State Mike Pompeo s planning to meet a Chinese delegation at a U.S. military base in Hawaii this week to discuss bilateral ties that have soured deeply since the start of the year.

Key quotes

The meeting is expected to take place at Hawaii’s Hickam Air Force base, said a diplomatic source, who did not want to be identified. Another source said Pompeo was expected to leave Washington on Tuesday for Hawaii, where the meeting would take place on Wednesday.

It would be Pompeo’s first known contact with Yang since they spoke by telephone on April 15 to discuss the coronavirus.

The sources said the likely agenda included coronavirus (COVID-19) response, arms control, trade, Hong Kong, North Korea and tit-for-tat moves against journalists.

The State Department and White House did not respond to requests for comment about the trip, first reported by Politico on Friday.

Chinese foreign ministry spokesman Zhao Lijian declined to confirm the reports at a regular briefing on Monday, but said: ‘China and the U.S. have maintained communication through diplomatic channels. If there is any further information, it will be released in a timely manner.’

FX implications

The news, if backed officially, could help the recent recovery in the risk-sentiment stretch a bit longer to overcome the fears of the COVID-19 outbreak 2.0. Having said that, the markets showed a little response to the news after the release amid the early Asian session’s lack of momentum.