U.S. firms may get nod to restart Huawei sales in 2-4 weeks - RTRS

Some positive news that came from over the weekend from Reuters reporting that the U.S. may approve licenses for companies to re-start new sales to Huawei in as little as two weeks should help to restore some faith into the trade talks this week. 

This follows the news from late last month when Trump, Seeking to revive trade talks with China, announced that American companies would be allowed to sell products to Huawei, the world’s largest telecommunications equipment maker.

According to a senior U.S. official,  Reuters has picked up on President Donald Trump’s recent efforts to ease restrictions on the Chinese company could move forward quickly.

Huawei, the world’s largest telecommunications equipment maker, was added to a Commerce Department list in May that prohibits U.S. companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied.

But late last month, after meeting with Chinese president Xi Jinping, President Donald Trump announced American firms could sell products to Huawei. And in recent days, Commerce Secretary Wilbur Ross said licenses would be issued where there is no threat to national security.

Trump’s reversal, and rapid implementation by the Commerce Department, suggests chip industry lobbying, coupled with Chinese political pressure, may well reignite U.S. technology sales to Huawei.

This should be a positive outcome for risk assets at the start of this week, potentially weighing on the Yen and lifting stocks and the Aussie. 

Today, we will get a round of key Chinese data. However, China’s Q2 GDP and June activity data have the least potential to surprise, according to analysts at Westpac, having printed within 0.1ppt of the median Bloomberg forecast every quarter since June 2015. "Consensus is 6.2%yr, which also matches Chinese press reports Friday. This is a further gradual softening after 6.4%yr in both Q4 18 and Q1 19."