US President Donald Trump said on Sunday that he was “not ready to make a deal yet” with China on trade. Instead, he repeated he desire to see “Hong Kong worked out in a very humanitarian fashion” first. He added, ” I think it would be very good for the trade deal. Trump also indicated he’s not ready to do business with China’s tech giant Huawei yet. He said “at this moment it looks much more like we’re not going to do business… because it is a national security threat and I really believe that the media has covered it a little bit differently than that.”
Over 1.7million people turned out to a massive protest Hong Kong on Sunday. Ironically, the protest ended up peacefully with minimal police presence. The movement, prompted by objection to an extradition bill to China, lasted for more than 11 weeks. It also turned into a movement against intervention of Chinese Communist Party in this highly autonomous city, condemnation of excessive police violence and demand for true democracy. More protests are planned ahead and the “valiant” group could take over again if the peaceful demands are not met.
WH Navarro: Technically, we didn’t have a yield curve inversion
White House trade adviser Peter Navarro said that “technically, we did not have a yield curve inversion”. He explained that “an inverted yield curve requires a big spread before short and long,.” But, “all we have had is a flat curve.”
He also emphasized “we have the strongest economy in the world and money is coming here for our stock market. It’s also coming here to chase yield in our bond markets,”
Navarro also downplayed the impact of tariffs on Chinese imports. He noted “we’ve had tariffs on for over a year,” and “the Chinese have borne the entire burden of that by slashing their prices and reducing the value of their currency by 12%.”