US-CHINA: Lutnick Included In Trump's Team For Next Round Of China Trade Talks
Jun-05 15:38
MNI London: Markets are likely to note that President Donald Trump appears to have re-centralised Commerce Secretary Howard Lutnick in his team to negotiate with China.
- In his recent Truth Social message regarding his phone call with Chinese President Xi Jinping, Trump said: "Our respective teams will be meeting shortly at a location to be determined. We will be represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer."
- Lutnick was excluded from the team that met with Chinese Vice Premier He Lifeng's delegation in Geneva on May 11. At the time, some observers took this as a market-positive signal that Bessent's more pragmatic approach would drive the White House position.
- Lutnick's inclusion going forward might suggest that China wants more involvement from the US Commerce Department, which oversees export controls, hinting that a deal could be made to dial down export controls on both sides, in order to facilitate trade talks.
- The Financial Times noted on May 29 that the US Commerce Department's Bureau of Industry and Security issued a directive to US tech companies adding additional restrictions on the sale of US high-tech products to China.
- This directive likely contributed to Beijing's decision to maintain curbs on US access to Chinese rare earths, which Washington alleged was in contravention of the agreement struck in Geneva.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI EXCLUSIVE: MNI speaks to former division of monetary affairs director
May-06 15:38
MNI speaks to former director of the Fed Board's division of monetary affairs William English.-- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
SCANDIS: Broader USD Weakness Lends Support To Scandis; Swedish Apr CPI Due Tmr
May-06 15:36
- Bearish technical conditions have re-asserted themselves in USD/Scandi crosses this afternoon, with USDSEK down 0.9% and USDNOK down 1.0% at typing. Key support in USDSEK is 9.4704 (April 22 low) while 10.1920 (April 3 low) is eyed in USDNOK.
- Broader dollar weakness, linked in part to today's rally in front-end USD rates, appears to lent support to the Scandis today, with few other obvious fundamental catalysts to note. Today’s 4% recovery in Brent crude futures may have provided an additional tailwind to the NOK, but NOKSEK is only up 0.15% today.
- Swedish April flash inflation is due tomorrow morning (0700BST/0800CET). The Riksbank projects CPIF ex-energy at 3.15% Y/Y (vs 2.97% prior), but analyst consensus is skewed towards a firmer reading (5 analysts see 3.2%, 5 see 3.3%).
- Some analysts suggest that “Easter effects” may push core inflation higher in April (similar to what was seen in the Eurozone), with the volatile package holidays component likely to be a notable upside driver. However, this information won’t be available in the flash release.
- Barring a major surprise in either direction, the data shouldn’t impact Thursday’s Riksbank decision (the Executive Board meeting is tomorrow). MNI’s full preview is here.
- Our Norges Bank preview, also released today, is here,
US: CANADA: Trump-Carney White House Meeting Underway Shortly
May-06 15:27
US President Donald Trump is shortly due to meet with Canadian Prime Minister Mark Carney at the White House for a first meeting between the pair since Carney's Liberal Party retained government control at last month's federal elections. LIVESTREAM
- There will be significant focus on comments by the two leaders at a press spray before today's bilateral meeting and working lunch. Carney has positioned himself atop a group of countries firmly pushing back against Trump's hardline trade agenda. His political experience is likely to lead to a more restrained Oval Office meeting, with difficult negotiations pushed into a closed-door setting.
- The New York Times notes that Carney, "faces an unenviable balancing act. Canadians who took a chance on him will expect him to push back on Mr. Trump’s belittling and threatening rhetoric against Canada, as he promised he would."
- "But he will also need to avoid openly antagonizing Mr. Trump in their working luncheon or in front of journalists in the Oval Office photo opportunity that will follow."
