London share prices PLUMMET amid US-China trade war fears — FTSE latest

DEVELOPING: US-China trade uncertainty fuels market plunge

Wall Street fell off a cliff yesterday, losing 3% or more of its value after president Donald Trump confirmed nothing much had changed following his meeting with Chinese president Xi Jinping on December 1.

President Donald Trump met Tuesday with executives from Germany's big automakers amid U.S.

Trump, meanwhile, in a post on Twitter, said he believes Xi had been honest during their meeting last Saturday to hammer out progress over trade.

"President Xi and I want this deal to happen, and it probably will".

But Trump again sought to paint the talks in a more positive light, highlighting a report from Bloomberg that "Chinese officials have begun preparing to restart imports of U.S. Soybeans & Liquified Natural Gas" that were put on hold as a result of the president's initial tariffs.

The wide rout was partly fueled by the arrest of a key executive of telecom giant Huawei Technologies, whose apprehension in Canada could threaten the recent truce in the trade war between the US and China.

The two countries have hit each other with tit-for-tariffs on goods worth hundreds of billions of dollars in sectors from automobiles to agriculture and energy, stymieing trade and redrawing global supply chains.

Chief economic adviser Larry Kudlow (pictured) acknowledged challenges in remarks Tuesday morning.

Beijing has yet to confirm Mr Trump's claim that China promised to cut vehicle tariffs and immediately buy more American farm goods. "So this time around as I said, I'm hopeful, we're covering more ground than ever..." In September, Trump threatened to go all-in with tariffs on the remaining Chinese products "on short notice if I want" - a step that could have meant higher prices on popular imports such as Apple smartphones and Nike shoes.

'All of these help to safeguard China's legitimate interests, and are also in the interests of the United States, and even more are in line with the expectations of the global community, ' he added in a statement carried on the foreign ministry's website. This fundamental misunderstanding of economics, combined with his reckless announcement of the detente that wasn't, scared investors and continues to undermine his administration's efforts at reaching a real trade deal with China. But on Tuesday, after a series of confusing and conflicting words from Trump and some senior officials, stocks tumbled, with the Dow Jones shedding about 800 points, or 3.1%.

Su believed that the important consensus reached by Xi and Trump would offer direction for future China-U.S. relations.

More news: British couple to be reunited with engagement ring lost in Times Square
More news: Microsoft dethrones Apple as the most valuable U.S. company
More news: Former FBI director James Comey is subpoenaed to testify about 2016 election

Kudlow said he did not think that auto tariffs were imminent, though he added that they were in Trump's "quiver of arrows".

But China is showing little indication it would accept a major overhaul of its state-driven system, a move that economists say would be necessary to even out the trade imbalance that Trump scorns.

Shares of USA and overseas auto companies rose on the announce-ment, though it's unclear how much companies like GM or Ford will actually benefit.

China implemented a 25% retaliatory tariff on USA pork products on April 1, which remains.

But China later broke its silence on the truce with a spokesman saying that the negotiations have a timeline and China plans to quickly work on the "agreed upon consensus".

But Kudlow said the ultimate amount will depend on market prices and the health of China's economy.

But the White House has now backpedaled, acknowledging there was no deal in place to roll back automotive tariffs.

It was the first official confirmation from China that there is a 90-day window for the talks. Japan and the European Union, Britain, the Philippines and possibly Taiwan, he said, would naturally take precedence over China. Or it might illustrate China's weak commitment to the deal.

Kevin Scott, who farms near Valley Springs, South Dakota, and serves on the American Soybean Association, said the news provides hope for farmers who are storing their crops while awaiting better prices.

Some retailers were also encouraged by the agreement, according to the National Retail Federation.

Related News:



Most liked

Government to publish 'final and full' Brexit legal advice
A so-called " meaningful vote " on May's deal will take place in the Commons following parliamentary discussions on December 11. But the advice bolstered anti-Brexit campaigners, who hope the decision to leave can be reversed.

Carole Middleton shares her tips on how to raise polite children
The gist of it: the royal couples, Meghan and Harry and Prince William and Kate Middleton , bottom line, are not getting along. The royal women have been the subject of a series of media reports claiming there is a rift between the two duchesses.

Honduran Murderer in Migrant Caravan Caught Illegally Crossing into U.S.
Magallanes said many migrants squeezed into a gymnasium at the outdoor sports complex amid a steady downpour Thursday night. A six-hour period during which USA officials were forced to close the border crossing cost his city $129 million pesos.

MBS welcomed at G-20; Trump under fire
Saudi Arabia has denied that the prince played a role, but USA intelligence agencies concluded he ordered the killing. The world leaders were all called on to the stage and assumed their position for the traditional family photograph.

Michael Cohen Admits Trump Tower-Moscow Talks Continued Well Into 2016 Campaign
Trump, saying: "This is one more example of one of the president's closest allies lying about their ties to Russia and Russians". He admitted making false statements in 2017 to a Senate intelligence committee about a plan to build a Trump Tower in Moscow.

Cavs send Korver to Jazz for G Burks, 2 picks
Allen indicated he can learn a thing or two from the 37-year-old Korver, one of the best perimeter shooters in the modern game. Korver played for the Jazz from the 2007-08 season through the 2009-10 season, so this will be a homecoming of sorts for him.

Luke Shaw says Manchester United need thick skin with Jose Mourinho
They can't score at home against the likes of Wolves and Palace and it's at home where scoring goals has been a big problem'. You or the fans probably think Jose told [the players] to start slow and nice and easy, or to wait to react.

Upcoming Google Pixel 3 Lite may feature 5.56in display
Depending on the price, would you buy the Pixel 3 Lite? But it certainly looks like the company has another variant on the way. We recently reported that there might be another Pixel 3 device that Google skipped during their launch event.

Mueller says ex-Trump campaign chairman Manafort lied to Federal Bureau of Investigation
Prosecutors don't lightly accuse people of breaching a cooperation agreement, said Mimi Rocah, a former federal prosecutor. Of course this is all just speculation, and perhaps Manafort has other reasons for allegedly lying to investigators.

Sen. Cindy Hyde-Smith attended segregational school, praised Confederates in legislation
We need her in Washington! . "If we win tomorrow, we'll be at 53-47 which is substantially more than we had", Trump said. Hyde-Smith has apologized to "anyone that was offended" by the hanging comment, saying she meant no ill will.

Climate change linked to natural disasters
The measure, signed by almost 200 countries, sets rules for fighting climate change. On Monday, Trump told reporters that he had read "some" of the report.

Footage of explosive gender reveal party that sparked Arizona wildfire released
He mixed colored powder into a Tannerite exploding target which would show blue or pink smoke when shot with a rifle. Dennis Dickey , a border patrol agent from Tucson, pleaded guilty in September to a misdemeanor violation of U.S.

NASA's InSight probe lands on Mars
In ballet-like fashion, InSight will do a gravity turn to make sure the lander is in the right position before touching down. Then, it will touch down at 2:54 pm ET. "But for our perspective here on earth, we're not going to know it".

Ukraine says 2 navy vessels hit by Russian fire
The incident began earlier on Sunday when the Ukrainian navy claimed a Russian coast guard vessel rammed a Ukrainian navy tugboat. The global community has largely not recognized Russia's annexation of the Black Sea peninsula of Crimea from Ukraine .

Maurizio Sarri confident star man Eden Hazard will stay at Chelsea
In his first season at the club he helped bring the title to Stamford Bridge and was named FWA Footballer of the Year. Asked if he was optimistic Hazard would commit to Chelsea, Sarri added: "I hope so".





Most Commented