US-CHINA: USTR Greer To Call Chinese Counterpart Next Week - Bloomberg
Mar-21 13:50
MNI London: Bloomberg reporting that United States Trade Representative Jamieson Greer is expected to hold a first call with his Chinese counterpart next week.
- Bloomberg adds: "It’s not clear yet who Greer will speak with next week, but... it’s possible he will talk with one of China’s vice premiers — an elevation of the conversation from the trade file."
- The call comes during a consequential week for US-China relations as Senate Steve Daines (R-MT) - a key Trump ally - prepares to become the first high-profile US politician to meet publicly with Chinese government officials since President Donald Trump returned to the White House.
- AP notes: "Daines previously worked as an executive in China and served as a go-between during Trump’s first term in office when tariffs were also a major issue."
- Daines said his trip would focus on curbing the trade of fentanyl and “the need to reduce the trade deficit and ensure fair market access for our Montana farmers, ranchers and producers.”
- Alicia Herrero at Natixis said: “Daines’ trip to China is a way to negotiate behind the scenes. Trump wants a deal to gain time while he reindustrializes the US. China wants a deal because the impact on exports will be a big shock to the Chinese economy…” per Bloomberg.
- Chinese Foreign Ministry spokesperson Mao Ning said today that Beijing welcomes Daines' visit and, "is extending a warm welcome to individuals from all sectors of the United States, including members of Congress".
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US: Latest SFR Options
Feb-19 13:49
US Option saw a very light overnight session, latest trades in the past few minutes include:
- SFRU5 95.50/95.00/94.50p fly, bought for 1.25 in 2.5k.
- SFRZ5 95.50/95.37ps, bought for 1.75 in 5k.
- 0QM5 95.87p, sold at 15 in 5k.
US: MNI POLITICAL RISK - Senate Takes The Lead On Trump's Agenda
Feb-19 13:35
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- Senate Majority Leader John Thune (R-SD) opened floor action on a budget resolution to underpin a USD$300 billion reconciliation bill, escalating a showdown with the House over President Donald Trump's agenda. The move signals the Senate is sceptical Speaker Mike Johnson (R-LA) can corral his conference behind a single 'megabill' that includes deep spending cuts and a debt ceiling hike.
- President Trump added another layer of complexity to the House reconciliation plan, telling Fox News’ Sean Hannity that Medicaid will be ringfenced from cuts, leaving few options for achieving spending cuts required to fund Trump's tax agenda.
- President Trump issued a fresh tariff threat yesterday, telling reporters that he is likely to impose a 25% tariff on automobile, semiconductor, and pharmaceutical imports as soon as April 2, when an interagency trade review is completed.
- Trump signed an executive order that would give him more authority over agencies that operate with some independence from the White House.
- The Trump administration upended years of US policy towards Russia, pledging to restore lines of communication with Moscow and appearing to endorse several key Kremlin talking points over the war in Ukraine.
- Trump’s hardline position on Ukraine, although telegraphed on the presidential election campaign trail, may be a difficult sell to Senate Republicans – many of whom have spent years advocating for Ukraine funds and bolstering NATO.
- Poll of the Day: 70% of voters believe tariffs will raise prices.
Full article: US DAILY BRIEF
BONDS: Italian Futures are keeping EGBs under pressure
Feb-19 13:34
- The Italian BTP is helping EGBs take another leg lower, there's also likely been some interest in fading the BTP/Bund spread ahead of the 100bps level Yesterday and into Today.
- Looking at the outright future, some will look for next support below the figure at 118.65 (24th Jan low).
- In Yield terms, that 24th January high of 3.682%, equates to 118.72 Today.
