White House official comments on a trade deal
- It will take up to 5 weeks to get deal written
- We have come to a deal on IP, financial services and 'big' agriculture purchases
- China agreed to $40-$50B in agricultural goods purchases
- Also agreed on currency and foreign exchange issues
- Deal has yet to be put in writing
- We have made progress on tech transfer, we will do more on that in Phase Two
- Mnuchin: We also have almost a complete agreement on financial services
- Mnuchin: We have an agreement on transparency in FX
- There may be a Phase Three if we can't get everything done in Phase Two
- Trump: The currency deal will be of tremendous benefit
- Mnuchin: President has approved not implementing Tues tariffs
- Trump: We are very close to ending trade war
- We are working on enforcement right now, there is a provision for that
- Lighthizer: We are down to final details on enforcement
- Lighthizer: We are not dealing with Huawei in this deal
- Trump: Might do a formal signing with Xi at APEC summit in Dec
- Trump: Does not think deal will fall apart in next few weeks, but there is a possibility it will
- Lighthizer: Trump has not made a decision on Dec tariffs yet
- Only tariffs scheduled for Tues have been suspended
- Trump: We will look at the blacklist and the companies that should be on it
- We will talk about Huawei later
This was truly the bare minimum. The market would have loved to have seen a delay in the December 15 tariffs but those are still in place. You can see how stocks reacted in the final hour of trading (intraday chart):
From Lui He:
- We have made substantial progress in many fields, we will continue to make efforts
- What changed is cooperation
