|

Trump defense chief open to talks with Russian counterpart - Reuters

According to reporting by Reuters, US Defense Secretary James Mattis is open to holding talks with Russian Defense Minister Sergei Shoigu, a move that hasn't been made since 2015.

Key quotes

"The possibility of talks surfaced after Monday's controversial summit in Helsinki between U.S. President Donald Trump and Russian President Vladimir Putin, in which they sought an end to years of strained relations. Trump was heavily criticized at home for not holding Putin accountable in Helsinki for meddling in the 2016 U.S. election, an allegation that Moscow denies.

Discussions between Mattis and Russian Defense Minister Sergei Shoigu would be another step toward creating more regular top-level political talks between the two nuclear powers, whose relations have deteriorated in recent years to the worst point since the Cold War. Two U.S. officials, speaking to Reuters on condition of anonymity, said Mattis was open to the possibility of talks. They did not suggest he was actively seeking discussions with Shoigu, either in person or by telephone.

The Russian military is reaping political dividends from what the Kremlin saw as its big successes in Crimea, annexed from Ukraine in 2014, and Syria, where Russian forces helped turn the tide of a civil war in Moscow ally President Bashar al-Assad's favor in 2015.

Shoigu is a critic of the United States and was quoted last week telling an Italian newspaper that Russia would always work to counter what he described as America's "neocolonialism strategy." Shoigu said the strategy was aimed at destabilizing countries like Iraq and Libya for U.S. financial gain. Former U.S. officials said former President Barack Obama's last two defense secretaries - Chuck Hagel and Ash Carter - came to the conclusion after attempts to hold meaningful dialogue with Shoigu that the discussions were not worth their time.

Derek Chollet, a former senior Pentagon official who was present during talks with Shoigu under the Obama administration, doubted that Mattis would find any discussions very productive. "Perhaps Mattis feels as though he has to test the proposition for himself, but I don't hold out much hope that he's going to get anywhere. If anything, he could expose himself as out of step with his boss," Chollet said, referring to Trump."

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.