Morning Market Report
Some major gas-lighting going on now just in front of the G-20. Both China and our press on the offensive as they do not want a deal done. The normal market roundup of the world habbeneings is tabled today as there is much going on. Whatever the design was on our markets with those headlines about China's demands on the trade deal were/are it certainly only affected our futures market for a short period of time. The are back to flat at present-sorry strike two this week
legacy media.
Futures flat After Beijing Reveals Demands To Agree To Trade War "Truce", Including Lift Of Huawei Ban
and from the Wall Street Journal-no axe to grind there now is there…..
The big news overnight came from the South China Morning Post, which echoed what Bloomberg reported earlier this week, namely that the US and China have "tentatively" agreed to another truce in their trade war in order to resume talks aimed at resolving the dispute, with details of the agreement being laid out in press releases in advance of the meeting between Chinese President Xi Jinping and US President Donald Trump at the G-20 leaders summit in Osaka.
According to the report, such an agreement would avert the next round of tariffs on an additional $300 billion of Chinese imports, which if applied would extend punitive tariffs to virtually all the country’s shipments to the United States.
Citing a source, the SCMP reported that Xi’s price for holding the meeting in Osaka was that Trump delay additional tariffs, which of course is a risk: "The reality, though, is President Trump could always have a change of heart,” the source said.
“But the truce cake seems to have been baked."
Among the preconditions noted by the WSJ, Beijing is insisting that the U.S. remove its ban on the sale of U.S. technology to Chinese telecommunications giant Huawei Technologies Co. Beijing also wants the U.S. to lift all punitive tariffs and drop efforts to get China to buy even more U.S. exports than Beijing said it would when the two leaders last met in December. In short, simply to agree to a ceasefire, Beijing demands that Trump concede to many of the currently implemented steps in the ongoing trade war in return for, well, nothing.
How or why POTUS will agree to any of this is unclear and is why futures stumbled immediately after the WSJ report hit.
Of course, there was no mention that once again it is China that has the pre-conditions to a deal, which if not met will result in no "truce."
and the futures rebounded very nicely thank you very much.
Some Headlines
Boeing Shares Tumble After Report New "Glitch" Can Send 737 MAX In "Uncontrollable Nosedive"
As CNN reported, in simulator tests, government pilots discovered that a microprocessor failure could push the nose of the plane toward the ground. While the original crashes remain under investigation,
preliminary reports showed that "a new stabilization system pushed both planes into steep nosedives from which the pilots could not recover." The issue is known in aviation circles as runaway stabilizer trim.
https://www.zerohedge.com/news/2019-06-27/boeing-shares-tumble-after-report-new-glitch-can-send-737-max-uncontrollable
ADNOC closes $4 billion pipeline deal with KKR and BlackRock
Abu Dhabi National Oil Company (ADNOC) said on Thursday it had completed a deal for BlackRock (BLK.N) and KKR (KKR.N) to buy a 40% stake in ADNOC Oil Pipelines for $4 billion.
Under the deal, the pipeline company will lease ADNOC’s interest in 18 pipelines transporting crude oil and condensates across ADNOC’s upstream concessions for 23 years.
KKR and BlackRock’s investment, which was first announced in February, was funded through their infrastructure funds and financed by a syndicate of banks, ADNOC said in a statement.
https://www.reuters.com/article/us-adnoc-blackrock/adnoc-closes-4-billion-pipeline-deal-with-kkr-and-blackrock-idUSKCN1TS15C?
Anything that has Larry Fink associated with it should be immediately suspect
First-quarter GDP left at 3.1% as stronger business investment offsets weaker consumer spending
The numbers: The pace of growth in the U.S. economy in the first three months of 2019 was left at 3.1%, revised government figures show, as stronger business investment offset a weaker increase in consumer spending.
https://www.marketwatch.com/story/first-quarter-gdp-left-at-31-as-stronger-business-investment-offsets-weaker-consumer-spending-2019-06-27
https://www.bloomberg.com/markets/stocks/futures
https://www.kitco.com/charts/livegold.html
https://www.dailyfx.com/crude-oil
https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx
https://www.zerohedge.com/news/2019-06-27/futures-tumble-after-beijing-reveals-demands-agree-trade-war-truce