Thread: Donald Trump vs Xi Jinping ceasefire (for the moment)

Donald Trump, Xi Jinping agree to ceasefire in tariff war after G20 dinner date, as US goes it alone on climate change

The White House says US President Donald Trump and Chinese President Xi Jinping have reached a 90-day ceasefire agreement on new economic tariffs to allow for continuing trade negotiations.

Key points:

• Mr Trump has agreed not to go ahead with new US tariffs on Chinese imports planned for January 1
• European Union officials say the US was the main holdout on nearly every issue, including climate change
• Angela Merkel says "everyone agrees that the WTO should be reformed"

The two met for dinner in Buenos Aires, Argentina at the end of the G20 meeting.

White House press secretary Sarah Sanders said Mr Trump had agreed not to raise US tariffs on Chinese imports as scheduled on January 1.

"China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries," Ms Sanders said.

She added that the two countries would "immediately begin negotiations on structural changes" around intellectual property protections, cybertheft and other US priorities.
Chinese state television reported "no additional tariffs will be imposed after January 1, and negotiations between the two sides will continue".

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All I care about are the Markets and this 'do-nothing' stance should be a slight positive

Originally Posted by David48atTD

a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States

That as per usual vague comment from the ameristani official spokeswoman, will send stocks soaring. IMHO.

Allegedly "concrete" proposals have been demanded with 90 days. So we will have another quarter of leaks, pushes and slides ahead of us. Such exciting times we live in.

Will it be high strength Portland Cement concrete, or more sawdust and sand Chinese concrete?

Originally Posted by David48atTD

"immediately begin negotiations on

Well that's positive, isn't it? Oh but what about the "agreed" very substantial amounts, one presumes they have been itemised/durations of contracts etc. prior to the "No more tariffs" statement accepted by Uncle Xi. As reported by CCT.

Originally Posted by David48atTD

Chinese state television reported "no additional tariffs will be imposed after January 1, and negotiations between the two sides will continue".

For the next year or two?

No Chinese orders agreed (1:0), goldilocks agrees no more tariffs (2:0), China agrees negotiations will continue (3:0).......... Looks like a win/win/win for China currently.

Originally Posted by David48atTD

All I care about are the Markets and this 'do-nothing' stance should be a slight positive

My first thoughts, when I saw the headline elsewhere, were that he and Munchkin are trying to appease Wall Street.

Finally, the White House also said that president Xi is open to approving the Qualcomm-NXP deal if it was presented again. And just like the the mega-M&A arb is back on the screen.

Good luck with that...

Exclusive: Foxconn to begin assembling top-end Apple iPhones in India in 2019 - source


MUMBAI/DELHI (Reuters) -

Apple Inc will begin assembling its top-end iPhones in India through the local unit of Foxconn as early as 2019, the first time the Taiwanese contract manufacturer will have made the product in the country, according to a source familiar with the matter.

Importantly, Foxconn will be assembling the most expensive models, such as devices in the flagship iPhone X family, the source said, potentially taking Apple’s business in India to a new level.

The work will take place at Foxconn’s plant in Sriperumbudur town in the southern state of Tamil Nadu, said the source, who is not authorized to speak to the media and so declined to be named.

Foxconn, which already makes phones for Xiaomi Corp in India, will invest 25 billion Indian rupees ($356 million) to expand the plant, including investment in iPhone production, Tamil Nadu’s Industries Minister M C Sampath told Reuters.

The investment may create as many as 25,000 jobs, he added.

Another source also said Foxconn planned to assemble iPhones in India, in a move that could help both it and Apple to limit the impact of a trade war between the United States and China.

The Hindu newspaper first reported on Dec. 24 that the Foxconn plant would begin manufacturing various models of the iPhone. Reuters is first to report the size of the investment and the kind of phones to be assembled.

Apple spokeswoman Trudy Muller declined to comment. Foxconn said it did not comment on matters related to current or potential customers, or any of their products.

LOWER-END PHONES

Until now, Cupertino, California-based Apple has only assembled the lower-cost SE and 6S models in India through Wistron Corp’s local unit in the Bengaluru technology hub.

Its sales in India have also been focused on lower-end phones - more than half of its sales volume is driven by models older than the iPhone 8, launched last year, according to technology research firm Counterpoint.

Apple launched the pricey iPhone X last year but has cut production of that phone, according to industry analysts, since it began selling the newer versions, iPhone XS and XR, globally this year.

Still, it could potentially get Foxconn to make the older iPhone X version in India where it sells cheaper models in a bid to get a bigger share of the world’s fastest growing major mobile phone market.

Full details of Apple’s deal with Foxconn are not yet clear and could change.

It is not known if any of the iPhone assembly is being moved from existing Foxconn factories in China and elsewhere. It is also unclear whether the production will be confined to assembly or include any component production in India.

LOOKING BEYOND CHINA

For Apple, widening assembly beyond China is critical to mitigate the risks of the Sino-U.S. trade war.

Foxconn, the world’s biggest electronics contract manufacturer, is considering setting up a factory in Vietnam, Vietnamese state media reported this month. If that goes ahead, it will be one of the biggest recent steps by a major company to secure an additional production base outside of China.

Foxconn has previously admitted the China-U.S. trade spat was its biggest challenge and that its senior executives were making plans to counter the impact.

“Widening iPhone manufacturing in India through Foxconn will allow Apple to hedge the risk of any new U.S. trade policies,” said Navkendar Singh, an associate research director at International Data Corporation.

Indian taxes on import of devices and components have also heightened Apple’s headache in a market where it has only a 1 percent share by smartphone shipments.

Making more phones locally will help Apple save costly duties and boost Prime Minister Narendra Modi’s flagship drive to make India a manufacturing hub, Singh said.

Apple shocked investors last month with a lower-than-expected sales forecast for the Christmas quarter that jolted parts suppliers across the world.

Foxconn has previously expressed concern over demand for Apple’s flagship devices."

https://www.reuters.com/article/us-apple-india-exclusive/exclusive-foxconn-to-begin-assembling-top-end-apple-iphones-in-india-in-2019-source-idUSKCN1OQ0M6

The Chines company Foxconn is opening a new assembly plant in India.

India's balance of trade with ameristan will improve. Subject to sales/accounting rules.

Chinese balance of trade will remain the same. Subject to Indian taxes/accounting rules.

Ameristan balance of trade will remain as is.

No new jobs for ameristani citizens and no investment in ameristan?

All the above are subject to multiple "whens, ifs and buts"

Published as a MAGA win/win by Reuters?

Emerging market 1 - 0 unexceptional market.