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China open to work with US on trade

Trump is on a state visit to the UK and pledging a "very big trade deal" is on offer, but only after Britain left the EU.

Centtrip: Markets await Trump-Xi G20 meeting

China could be willing to work with the US to find solutions to the ongoing trade war, according to the Chinese government’s white paper. However, Beijing blamed President Donald Trump’s administration for the failure of the talks and tit-for-tat tariffs.

The white paper also stated that the trade war was hurting both sides and suggested that the two countries should “push forward consultations based on good faith and credibility in a bid to address issues”. “It is foreseeable that the latest US tariff hikes on China, far from resolving issues, will make things worse for all sides,” it continued.

Meanwhile, Andrea Nahles, leader of the German Social Democratic Party (SPD), resigned, causing a potential coalition problem for Chancellor Angela Merkel. Nahles replaced Martin Schulz in April 2018 and lost ground against the Green party in the recent European election. Merkel’s Christian Democrat Union (CDU) is in coalition with the SPD until federal elections in 2021, but concerns are building that the resignation could cause the Social Democrats to leave, which could trigger a snap election.

Key releases

The week is having a busy start. Today Britain, France, Germany, Italy, Europe and the US will release their respective manufacturing Purchasing Manager’s Index (PMI) data. It could make for interesting reading and set the direction for the rest of the week, especially if it shows the ongoing trade war is having less of an effect in some countries over others.

Also today Trump is arriving for a state visit to the UK, where he will spend three days meeting the Queen, Prime Minister Theresa May and other dignitaries. He has already put Huawei and the UK’s acceptance of their 5G telecommunications technology on the agenda, suggesting that he may look to use Britain among the ongoing dispute with China.

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