Stocks slip as US-China trade talks end; Macy's nosedives

Stocks slip as US-China trade talks end; Macy's nosedives

Troy Powers
January 11, 2019

China has repeatedly played down complaints about intellectual property abuses, and has rejected accusations that foreign companies face forced technology transfer.

One apparent breakthrough this week was an announcement by China that it would approve the imports of five new varieties of genetically modified crops, a decision for which United States farmers and businesses had waited years.

The statement noted that China had pledged to buy a "substantial amount" of United States agricultural, manufacturing, energy and other products, but made clear that any deal would be "subject to ongoing verification and effective enforcement".

Trump said the USA tariffs had hurt China. China aimed to buy at least 5 million tons of American soybeans as part of the truce.

Imports at major USA container ports are levelling off due to high warehouse inventories after retailers' months-long rush to bring in Chinese merchandise before higher tariffs hit, according to a US retail trade report. Ross told CNBC the talks were being held with appropriate-level staff and would help determine how the administration moves forward.

Meanwhile, a statement from the office of the USTR yesterday said officials discussed ways to achieve fairness, reciprocity, and balance in trade relations between the two countries, along with the need for any agreement to provide for complete implementation subject to ongoing verification and effective enforcement.

"I confirm we're continuing tomorrow, yes", Winberg said, declining to answer further questions.

El Paso, Texas-based Helen of Troy Ltd, a maker of consumer products from OXO kitchen utensils to Braun shavers, cut its sales and gross margin outlooks on Tuesday laid some of the blame on United States tariffs on Chinese goods, which make up 70 percent of the company's cost of products sold. Officials said details will be released soon. If no deal were reached and U.S. tariffs were raised as threatened on March 2, Chinese growth would be hard hit.

Apple shares drop after news of waning iPhone sales
In a note to investors, Apple CEO, Tim Cook , revealed that the company was revising its estimates for end-of-year income. On its website in China, Apple now advertises the iPhone XR for 4,399 yuan with the trade-in of an iPhone 7 Plus.

The talks were the first face-to-face meetings since Presidents Donald Trump and Xi Jinping agreed to suspend tariff increases during negotiations.

The talks, which were originally scheduled to wrap up on Tuesday stretched to the evening and into Wednesday.

A range of Fed policymakers said last month they could be patient about future interest rate increases and a few did not support the central bank's rate increase that month, minutes from their December 18-19 policy meeting showed.

The American delegation is led by a deputy USA trade representative, Jeffrey Gerrish, and includes agriculture, energy, commerce, treasury and State Department officials. The issues at play have soured the wider U.S.

"Talks with China are going very well!"

For its part, Beijing is unhappy with US export and investment curbs, such as controls on "dual use" technology with possible military applications. A jump in American petroleum inventories served as a reminder that booming US shale-oil production may still flood the global market with more petroleum than it needs. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

Since the start of the trade war in July, both sides have levied billions in tariffs that have shaken business sentiment, in a conflict many see an extension of a technology battle between the world's two largest economies.

There's hope. and then there is reality which saw a whopping 10.6 million barrel surge in distillates and over 8 million barrels of gasoline added this week, numbers which were generally ignored by the market, which instead has been focusing on the recent plunge in the dollar, the result of a far more dovish Fed, which has helped support oil prices as the dollar decline made commodities priced in the USA currency more affordable.