White House Adviser Navarro: Hong Kong unrest is context for trade talks

The US Director of Trade and Manufacturing Policy Peter Navarro crossed the wires in early trades, via Reuters, expressing his thoughts on the upcoming US-China trade talks.

He said that the Hong Kong unrest is the context for trade talks.

Further Comments on trade and the Fed:

The president has a warm friendship with President XI Jinping.

"But, look, the only person who stood up to China over the last 30 years has been who? 

"He's been tough as nails, steely resolve on behalf of the American worker, on behalf of the American people, on behalf of the families who lost loved ones to made in China fentanyl. So, these Republicans on Capitol Hill, or Democrats, whoever wants to criticize President Trump ought to look in the mirror and ask themselves where they've been for the last 20 years."

"The Fed is driving us crazy here in that they just don't see the chessboard."

"In terms of this rhetoric about trade war, trade dispute, John, this really isn't about trade per se, it's about what I've called the seven deadly sins: It's the structural issues that we're dealing with China," he added, pointing out the seven issues the administration is pressing China to change under his direction:

1. Cyber hacking.
2. Intellectual property theft.
3. Forced technology transfer.
4. Goods trade imbalance.
5. China state-owned subsidies.
6. Currency manipulation.
7. Sending fentanyl to kill countless Americans.

"This is not a [just] trade deal – this is a big deal."

Markets await the resumption of the trade talks between both countries next week. Although raising the topic of the Hong Kong unrest by the US may not go down well with China.

As for today’s trading, the risk sentiment remains dented by rising US recession fears and US political tensions. USD/JPY struggles above the 107 handle while the Asian equities and Treasury yields trade weaker.