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Asian dealers trade carefully before Trump-Xi, oil extends gains

01 December 2018
Asian dealers trade carefully before Trump-Xi, oil extends gains

The chief executive of worldwide financial services firm Sun Global Investments (SGI) said on Thursday that while a thawing of relations between the US and China may be at hand, US President Donald Trump will enter talks with his Chinese counterpart on the sidelines of the G20 meeting in Argentina "with a slight advantage".

US and Chinese officials have been working for weeks on the contours of a possible deal for the two leaders to be announced following their dinner on Saturday on the sidelines of the Group of 20 summit in Buenos Aires and a road map for talks to follow.

The prospect of tariffs of 25 percent on imported autos and parts has sent shockwaves through the auto industry, with both US and foreign-brand producers lobbying against it and warning that national security tariffs on European Union and Japanese vehicles could dramatically raise the price of many vehicles.

"It's a cat-and-mouse game between two very strong-willed leaders, strong governments", Burns said.

"However, with the news the US GDP figures has increased, President Trump will go into talks with a slight advantage as he looks at getting the best deal for the country".

The U.S. leader has threatened to impose tariffs on all Chinese imports if he and Xi fail to strike a deal in the coming talks. "We are continuing to raise these issues with China".

"We do not like what's happening, either way, we don't like what's happening and hopefully it will get straightened out", he said, hours after U.S. Ambassador to the United Nations Nikki Haley condemned Russia for their "outrageous violation of sovereign Ukrainian territory" that marked "yet another reckless Russian escalation". A 10 percent tariff on $200 billion of those goods is due to rise to 25 percent on January 1. "If companies don't want to pay Tariffs, build in the United States of America".

"The next catalyst will be the G20 meeting between Trump and Xi; we believe risk assets will tactically trade in the green following a tariff cease-fire", Eleanor Creagh, a strategist at Saxo Capital Markets in Sydney, told Bloomberg. Larry Kudlow, the top White House economic adviser, this week also told reporters that Trump needed Xi to offer more at his meeting for a breakthrough.

A Reuters poll on Wednesday showed China's factories likely struggled to grow for a second straight month in November as cooling demand at home and the threat of higher US tariffs stifled new orders.

Trump has been demanding that Beijing resolve a series of long-standing US trade grievances such as accusations China steals USA intellectual property and forces technology transfers by US companies doing business in China.