Trade front

• It looks like the trade-talk clouds that have kept markets on edge this week are here to stay at least a bit longer. The White House says not to expect a deal anytime soon and China says it could retaliate on the planned tariff hike from U.S. President Donald Trump – though it prefers not to.
• “China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation,” Commerce Ministry spokesman Gao Feng told reporters Thursday. Higher tariffs on Chinese exports to the U.S. are due to come into force on Sept. 1, and some retaliatory measures from Beijing are already planned.
• Meanwhile, Trump’s trade adviser Peter Navarro said negotiators from China are set to come to Washington in September to talk about the big changes the U.S. is asking for, but it’s “unlikely anything quick will happen.”

(Source: Bloomberg)