Photos: US and China meet for trade talks
A late update! The US have got their handshake, at least – with US Secretary of Treasury Scott Bessent and Chinese Vice Premier He Lifeng posing for a photo at Lancaster House at today’s talks.
The six top negotiators at today’s talks have posed for a photo too:
Closing post
Time for a recap.
Top US and Chinese officials are meeting at Lancaster House in London today, to try to make progress in their trade negotiations.
US Treasury secretary Scott Bessent, commerce secretary Howard Lutnick and trade representative Jamieson Greer are leading the US group, while China’s delegation is led by vice-premier He Lifeng.
The talks are expected to focus on supplies of rare earth minerals and permanent magnets, following claims that China is restricting access, which could lead to production outages in the US.
Kevin Hassett, director of Donald Trump’s National Economic Council, says the US are hoping for a handshake commitment from China that they will supply more rare earth minerals.
He told CNBC:
“And so really the purpose of the meeting today is to make sure that they’re serious, but to literally get handshakes from Scott, and Howard, and Jamieson, our three lead trade negotiators, and get this thing behind us.”
Talks are expected to drag into tomorrow.
The talks come on an exciting day for takeover drama in the City of London, with several UK companies snapped up, or being eyed up, by overseas buyers.
This are:
Semiconductor designer Alphawave, which is being acquired by Qualcomm for $2.4bn
Precision equipment maker Spectris, which is in talks with private equity group Advent International over a £4.4bn deal
Technology start-up Oxford Ionics is being bought by US quantum computing company IonQ in a $1.1bn deal.
Brokerage Peel Hunt has calculated that there have been 30 bids for UK companies at over £100m market cap so far this year with a total value of £25bn. Spectris and Alphawave are the largest.
Peel Hunt add:
Companies in the UK seem to be far more attractive to acquirors than investors. The root cause is the consistent outflow of capital from domestic markets. If we want the UK equity market to thrive, an urgent rethink is required to ensure that UK capital backs UK companies.
There’s also a corporate shake-up in the US, where Warner Bros Discovery has decided to split its business into two publicly traded companies, one focused on its streaming and studios business and the other on its television network businesses.
Updated
German car companies 'in full panic' over rare-earths bottleneck
The car industry in Germany is in “panic” and fear production could have to halt over shortages in supply of permanent magnets after China decided to restrict their export, a German industry chief has said.
Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs.
Frank Eckard, CEO of Magnosphere told Reuters “They are willing to pay any price.”
Some told Eckard their factories could be idled by mid-July without backup magnet supplies.
Eckard, whose company is based in Troisdorf, Germany, says:
“The whole car industry is in full panic. They are willing to pay any price.”
Car executives have once again been driven into their war rooms, concerned that China’s tight export controls on rare-earth magnets — crucially needed to make cars — could cripple production.
Reuters: talks likely to last two days
Reuters predicts that today’s talks between the US and China will likely be the first of two days of negotiations in London.
Ian Bremmer, president of the Eurasia Group, fears there is little prospect of the bilateral relationship becoming constructive given broader decoupling trends and continued U.S. pressure on other countries to take China out of their supply chains.
He wrote in an analyst note:
“Everyone around Trump is still hawkish and so a breakthrough U.S.-China trade deal is unlikely, especially in the context of other deals that are further along and prioritized.”
The early optimism in European stock markets has rather fizzled out as the day has warn on.
The main indices are now in the red in late trading:
UK’s FTSE 100: Down 14 points, or 0.16%, at 8823 points
France’s CAC: Down 0.26% points at 7784 points
Germany’s DAX: Down 0.6% at 24,163 points
UK quantum computing pioneer IonQ taken over
The flurry of takeover action in the City has gathered pace.
U.S.-based quantum computing firm IonQ has agreed a deal to acquire its British peer Oxford Ionics for $1.08bn.
The deal will give IonQ access to Ionics’s work on the controls of qubits, the fundamental unit of quantum computers that much of modern quantum research is focusing on.
Oxford Ionics was founded by two
The British firm was founded by two Oxford academics, Dr Chris Ballance and Dr Tom Harty.
The company explains:
Chris (CEO) and Tom (CTO) have been working together at the forefront of Quantum Computing for over a decade. They earned their PhDs in Quantum Computing from the University of Oxford focussing on trapped ion quantum computing.
During this time they set world records including the highest performance quantum logic gates, longest qubit memory coherence time, fastest and highest performance quantum network. They founded Oxford Ionics in 2019 to continue the journey towards world-changing quantum computers.
US economic adviser Kevin Hassett: Hoping for a handshake on rare earth supplies
US officials are hoping for a handshake commitment from China that they will supply more rare earth minerals, at today’s trade talks in London.
US economic adviser Kevin Hassett has told CNBC that he is confident that today’s meeting will bear fruit.
He explains that Donald Trump raised the issue with Xi Jinping when the two leaders spoke last week, reminding the Chinese president that his officials had agreed to release the magnets and rare earths – in return for lower tariffs – when the two sides reached a pact in Geneva last month.
Hassett, director of the National Economic Council, says China has been releasing those items, but is going slower than some US companies want.
This has been a “very significant sticking point”, he adds, as China controls most of those resources, so if shipments to the US are slow then production could be disrupted.
Hassett says:
“And so really the purpose of the meeting today is to make sure that they’re serious, but to literally get handshakes from Scott [Bessent], and Howard [Lutnick] and Jamieson [Greer], our three lead trade negotiators, and get this thing behind us.”
He also predicts that the meeting at Lancaster House today will be “a short meeting with a big strong handshake….that’s what we’re expecting”.
Stocks have opened a little higher on Wall Street, as investors hope for progress at today’s trade talks in London.
The Dow Jones industrial average has risen by 20 points, or 0.05%, at 42,783 points, while the broader S&P 500 share index is up 0.12%.
Shares in Warner Bros Discovery have surged by over 9%, after it announced plans to split itself into two companies (see earlier post).
Trade talks between US + Chinese delegation 'have started'
Trade talks between delegations from the United States and China have started in London, Reuters reports.
Trade Talks Between US, Chinese Delegation Have Started In London – RTRS Cite US Source
— LiveSquawk (@LiveSquawk) June 9, 2025
- The Meeting Is Expected To Extend Into The UK Evening And Might Spill Into Tuesday.
The trade talks between the US and China were due to start a few minutes ago, at 11.30 GMT, Reuters reports.
They add:
Officials from the two superpowers were due to meet at the ornate Lancaster House to try to get back on track with a preliminary agreement struck last month in Geneva that had briefly lowered the temperature between Washington and Beijing.
Updated
That was quick. Spectris has confirmed it has received a takeover approach from Advent.
In a statement to the City, Spectris reveals that the offer is worth £37.35 in cash, plus a proposed interim dividend of 28p per Spectris share.
Spectris reveals that this follows a number of earlier approaches from Advent to the Board regarding a possible all cash offer. It now believes it “would be minded” to recommend it unanimously to Spectris shareholders, should a firm bid be made.
Shares in Spectris have pushed higher; now up 27% at £25.88.
Private equity firm "explores takeover of London-listed Spectris"
Another bout of takeover speculation just swept through the City!
Shares in Spectris, the UK-based maker of precision and testing equipment and software, have jumped by 15% following a report that private equity firm Advent is considering a takeover.
According to Bloomberg, Advent has approached Spectris about a potential deal, said the people, who asked not to be identified as the information is private.
Spectris develops high-tech instruments, testing equipment and software used in sectors such as life sciences, automotive, electronics and semiconductors. More here.
Warner Bros Discovery to split into two companies
Newsflash: Media company Warner Bros Discovery has announced plans to split itself in two.
Warner Bros Discovery is to divide into two companies – one focused on streaming and its studios business, while the other will house its entertainment, sports and news brands.
The Streaming & Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, and HBO Max, as well as their legendary film and television libraries, the company says.
Global Networks will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, top free-to-air channels across Europe, and digital products such as the profitable Discovery+ streaming service and Bleacher Report.
Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors, says:
“We committed to shareholders to identify the best strategy to realize the full value of our exciting portfolio of assets, and the Board believes this transaction is a great outcome for WBD shareholders.
This announcement reflects the Board’s ongoing efforts to evaluate and pursue opportunities that enhance shareholder value.”
David Zaslav, president and CEO of Warner Bros. Discovery, will become president and CEO of Streaming & Studios. Gunnar Wiedenfels, CFO of Warner Bros. Discovery, will serve as president and CEO of Global Networks.
UK government announces winter fuel payments u-turn
Newsflash: All UK pensioners with an income of £35,000 or less a year will have the winter fuel payment restored in full, Rachel Reeves has announced, after weeks of uncertainty over the decision to make a U-turn on scrapping the benefit.
Ministers are restoring the automatic payments as a universal benefit this winter and then recouping the money when higher-income pensioners fill in their tax returns, as creating a new means test would be a highly complex option.
The decision means that about 7.5 million pensioners in England and Wales who missed out on the payment of up to £300 last year will now get it, after a backlash against one of the most unpopular policies of the Labour government.
Here’s the full story, from our politics editor Pippa Crerar:
The stakes are high for some fresh breakthrough in the London talks betweeen the US and China today, reports Raffi Boyadjian, lead market analyst at Trading Point.
Negotiators from the world’s two largest economies will meet in London today as the US and China seek to bridge the gap in their long-running differences over trade following the shaky truce agreed last month in Geneva. Since those first round of talks, the two sides have accused each other of violating the terms of the temporary deal. But a call between the US and Chinese leaders last week appeared to put the negotiations back on track.
Hence, there is reasonable optimism that the second round of talks this week will lead to a further thaw in trade relations between Washington and Beijing. The US is hoping that the Chinese will loosen their export restrictions on rare earths, which are crucial for the tech industry. China on the other hand wants greater access to advanced American technology such as AI chips, as well as for the White House to grant more visas for Chinese students.
The US team is again being led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greet. But Commerce Secretary Howard Lutnick is also attending this time, suggesting that an easing of chip curbs may be on the cards.
Elsewhere in London today, Sir Keir Starmer has made the eye-catching claim that “AI and tech makes us more human”.
Addressing London Tech Week this morning, the Prime Minister said:
“AI and tech makes us more human, which sounds an odd thing to say, but it’s true.
“We need to say it because […] some people out there are sceptical.
“They do worry about AI taking their job.”
Starmer also acknowledged that the pace of change in artificial intelligence can feel relentless, before pledging that AI can create “a better future”.
He said:
“By the end of this Parliament we should be able to look every parent in the eye in every region in Britain and say ‘look what technology can deliver for you’.
“We can put money in your pocket, we can create wealth in your community, we can create good jobs, vastly improve our public services, and build a better future for your children.
“That, to me, is the opportunity we must seize. That’s what my plan for change will deliver and, today, I think we’re taking another big step towards it.”
Photos: Lex Greensill arrives at the High Court for Credit Suisse - SoftBank battle
Over at London’s High Court, Australian financier Lex Greensill has arrived to testify at a $440m legal battle between Swiss lender Credit Suisse and Japanese conglomerate SoftBank.
Greensill is the founded of supply-chain finance specialist Greensill Group, which lent money to companies by buying their invoices upfront. It collapsed in March 2021, a blow to Credit Suisse, which had lent the company money, and was forced to winded down specialist funds worth $10bn (£7.2bn) that were mostly invested in loans linked to Greensill.
Credit Suisse is suing Softbank over funds which Greensill Group lent to Katerra, a SoftBank-backed U.S. construction group.
Lex Greensill and Eric Varvel, former chairman of Credit Suisse’s investment bank, are among the key witnesses expected to testify at the trial.
Reuters has more details of the case:
The lender alleges that Greensill, at SoftBank’s behest, gave up rights to Katerra’s debts in return for shares which it then passed on to a SoftBank Group entity, leaving Credit Suisse out of pocket in relation to $440 million of notes.
Lawyer Sonia Tolaney, representing the Credit Suisse fund that held the notes, said SoftBank was heavily exposed to both Greensill and Katerra, to a total of around $3.5 billion, and “needed to protect the value of its investments”.
SoftBank, however, says the lawsuit lacks merit and is simply an attempt by Credit Suisse to “pin blame (on SoftBank) for a loss caused by their own negligence and risk-taking”.
This US Geological Survey from January 2025 showing production and reserves of rare earth oxide equivalents illustrates the sheer dominance of China in this sector.
It notes, in footnote 14, that this does not include undocumented supplies.
China state media: He-Reeves meeting took place yesterday
China’s vice premier He Lifeng met with UK chancellor Rachel Reeves in London on Sunday, Chinese state media has just reported.
According to a readout published by state broadcaster, CCTV, the two exchanged “in-depth views” on the bilateral economic relations and “issues of common concern to both sides”.
The readout was in Chinese, and below is a machine translation from my colleague Helen Davidson in Taipei.
“He Lifeng said that China and the UK should work together to implement the important consensus reached by President Xi Jinping and Prime Minister Starmer, promote the implementation of the results of the China-UK Economic and Financial Dialogue, further deepen exchanges and cooperation in various fields of economy and finance, promote mutual benefit and win-win results, and maintain the continued healthy and stable development of China-UK economic relations.
Reeves said that the UK attaches great importance to cooperation with China and is willing to strengthen communication with China to implement the results of the UK-China Economic and Financial Dialogue and inject new impetus into UK-China economic cooperation.”
The meeting came a day before He is set to meet US counterparts for UK-hosted talks today, to try and return to peaceful negotiations over the tariff war.
Investors have not been spooked by today’s customs data, showing that China’s exports to the United States sank fell nearly 10% in May, year-on-year.
Chris Beauchamp, chief market analyst at IG, explains:
Trade tensions between the US and China were reflected in the weekend’s China data, but with fresh trade talks taking place in London today the reaction from investors has been a collective shrug.
Even data that does show tariffs have had an impact is being discounted, given the abrupt volte-face performed by the US administration since 2 April. Despite all expectations to the contrary, stock markets seem content to keep pushing higher.
China has a rare earth and critical minerals card it can play whenever it wishes.
If it doesn’t own the raw material, it processes it - a strategy that has seen it, for example, dominate the world’s supply of lithium hydroxide, used in batteries for electric vehicles.
Turning on and off supplies can impact manufacturing across the globe, particularly in the auto sector.
It is estimated that it controls up to 70% of global rare earths, 85% of refining capacity and 90% of rare earth metal alloys and magnet production.
The European car manufacturing trade association, Comité de Liaison des fabricants d’Equipements et de Pièces Automobiles (Clepa), said the lack of supply of rare earths was already “shutting down production” in Europe.
“With a deeply intertwined global supply chain, China’s export restrictions are already shutting down production in Europe’s supplier sector,” said Benjamin Krieger, secretary general of CLEPA.
“We urgently call on both the EU and Chinese authorities to engage in a constructive dialogue to ensure the licensing process is transparent, proportionate, and aligned with international norms.”
The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources but it doesn’t address the stranglehold of China directly.
Last week European commission vice president Maros Šefčovič raised the export restrictions on seven rare earths at an OECD meeting with Chinese commerce minister Wang Wentao.
On Saturday, China’s Ministry of Commerce said it was willing to establish a “green channel” for eligible rare earth export license applications to expedite the approval process to EU firms. That could be a reprive to the car sector, with Beijing hoping the EU would take “reciprocal steps”….
Lutnick's presence shows focus on rare earths
The presence of US commerce secretary Howard Lutnick at today’s talks in London is seen as directly related to China’s export ban on rare earth minerals and permanent magnets, critical in aerospace, military and semi-conductor companies worldwide, my colleague Lisa O’Carroll reports.
After the call between Donald Trump and Xi Jinping last week, their first since Trump’s inauguration in January, the US said Xi had agreed to resume shipments of rare earths to the US, breaking the logjam needed for talks to resume.
The US had accused China of breaching the fragile truce agreed at their previous talks in Geneva with the export ban.
The inclusion at the London talks of Lutnick, whose agency oversees export controls for the US and is taking charge of Trump’s sectoral tariff strategy, is an indication of how central the issue has become for both sides.
Lutnick did not attend the Geneva talks, at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other since Trump’s inauguration.
The two sides, who are meeting at an as yet undisclosed venue in London, are expected to continue talks into Tuesday.
Trump said on social media the talks focused primarily on trade led to “a very positive conclusion,” setting the stage for Monday’s meeting.
Trade data today has shown that exports of goods to the US fell by over 34% in May year on year, the steepest decline since 2020.
According to China’s General Administration of Customs, the total trade volume between China and the US reached nearly $688.3bn last year, a year-on-year increase of 3.7%.
The slowdown may have contributed to Beijing’s willingness to meet in London for more trade talks, experts said.
🇨🇳🇺🇸China’s Export Growth Misses Forecasts Despite Tariff Truce With U.S.
— CN Wire (@Sino_Market) June 9, 2025
China’s export growth in May fell short of expectations, despite a temporary trade truce with the U.S. that prompted firms to frontload shipments during a 90-day suspension of steep tariffs. Customs data… pic.twitter.com/zYKMKbaDn6
European stock markets have opened cautiously, as investors hope for signs of progress in the US-China trade talks later today.
The UK’s FTSE 100 share index has dipped by 2 points, or 0.03%, to 8835 points, pulled down by WPP (now -2.2%).
France’s CAC is 0.05% lower.
WPP boss Mark Read steps down
Shares in advertising group WPP have dropped after it announed its CEO, Mark Read, is stepping down later this year.
WPP told the City this morning that Read will retire on 31 December 2025, ending a 30+ year career at the company.
Read has been under pressure, with WPP’s shares falling to a five-year low earlier year, as the advertising industry has been hit by cautious clients cutting back spending, and the rise of artificial intelligence technologies.
It emerged last week that Meta, the owner of Facebook and Instagram, will help advertisers to fully create and target campaigns using artificial intelligence tools by the end of next year.
Philip Jansen, who was appointed chair of WPP last year, says:
“On behalf of the Board, I would like to thank Mark for his contributions not only as CEO but throughout his more than 30 years of leadership and service to the Company.
During that time Mark has played a central role in transforming the Company into a world leader in modern marketing services, with deep AI, data and technology capabilities, global presence and unrivalled creative talent, setting WPP up well for longer-term success.
Shares in WPP have dropped 1.6% in early trading, to the bottom of the FTSE 100 leaderboard.
UK banks to experiment with Nvidia AI in ‘supercharged sandbox’ scheme
The UK’s financial regulator is to allow banks and other City firms to experiment with the US chipmaker Nvidia’s leading AI products to “speed up innovation” and fulfil government orders to boost UK growth.
The Financial Conduct Authority (FCA) has just announced it is launching a “supercharged sandbox” that would give successful applicants the chance to experiment safely with cutting-edge AI under the watchdog’s supervision, allowing them to use Nvidia’s accelerated computing products.
The regulator is not dictating what those experiments might be, but some firms have previously suggested that AI could be used to identify and intercept authorised push payment fraud, in which victims are tricked into sending money to criminals’ bank accounts, or help identify stock market manipulation.
The FCA’s chief data, intelligence and information officer, Jessica Rusu, said:
“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so. We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
The AI sandbox programme is open to applications, with plans to begin operating in October, nearly a year after the chancellor, Rachel Reeves, ordered the FCA to encourage more risk-taking across the City to help spur growth and competitiveness.
China’s foreign ministry reported over the weekend that vice-premier He Lifeng will be in the UK until Friday.
They said:
At the invitation of the UK government, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council He Lifeng will visit the UK from June 8 to 13.
While in the UK, he will hold the first meeting of the China-U.S. economic and trade consultation mechanism with the U.S. side.
Chancellor Rachel Reeves is expected to hold a bilateral meeting with He this week.
Updated
Qualcomm to buy UK's Alphawave for $2.4bn
There’s a flurry of takeover excitement in the City this morning, where US chipmaker Qualcomm has secured a deal to buy UK semiconductor designer Alphawave in a $2.4bn deal.
The two companies have agreed takeover terms, with Qualcomm paying 183p in cash for each Alphawave share; they closed at 149p on Friday night.
That’s almost double Alphawave’s share price at the end of March, the day before Qualcomm revealed it was considering an offer.
The Alphawave board has unanimously recommended the deal, under which shareholders can choose to exchange their stock for Qualcomm, rather than taking cash.
Alphawave designs chips that allow high-speed data transfer, which are used in data centers which train and run artificial intelligence technology.
Today’s deal means the London stock market will lose another company to an overseas buyer, depleting its stock of tech firms.
Cristiano Amon, president and chief executive officer of Qualcomm, says Alphawave’s high-speed wired connectivity and compute technologies will complement Qualcomm’s power-efficient CPU and neural processing unit cores, adding:
Qualcomm’s advanced custom processors are a natural fit for data centre workloads. The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data centre infrastructure.“
Updated
China’s stock market has risen slightly today, amid hopes that today’s trade talks in London might yield progress.
The CSI 300 index is up 0.25%, while the Shenzhen Composite has gained 0.8%.
There are larger gains in South Korea, where the KOSPI index has jumped 1.7%. Hong Kong’s Hang Seng has gained 1.1%.
The outcome of these discussions will be “crucial” for market sentiment, reports Kathleen Brooks, research director at XTB.
Rare earth shipments from China to the US have slowed since President Trump’s ‘Liberation Day’ tariffs in April. The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers.
A trade agreement between China and the US could calm fears about the economic fallout from US tariff plans, although it is still worth noting that an agreement between the US and the EU is conspicuous by its absence.
Updated
Oof! China’s factories are slashing prices at the fastest rate in almost two years, as trade war tensions hit demand.
China’s producer price index fell 3.3% in May from a year earlier, worse than a 2.7% decline in April and the deepest contraction in 22 months, National Bureau of Statistics data showed on Monday.
The PPI index measures prices ‘at the factory gate’, so is a good gauge of demand for goods.
*CHINA MAY PPI INFLATION FALLS -3.3% Y/Y; EST. -3.1%; PREV. -2.7%
— Investing.com (@Investingcom) June 9, 2025
🇨🇳🇨🇳 pic.twitter.com/HIsB1RPebX
China's inflation rate sticks at -0.1%
China has slipped further into deflation territory, underlining the importance of agreeing a trade deal with the US.
China’s consumer prices fell for a fourth consecutive month in May, new data from the National Bureau of Statistics shows.
The CPI index fell by 0.1% in May compared with a year ago, indicating a small drop in prices over the last 12 months. That suggests Beijing’s stimulus measures are not boosting domestic consumption and demand.
The annual CPI index has now been in negative territory since February, when it fell 0.7% year-on-year, follows by 0.1% drops in March and April.
*CHINA MAY CPI INFLATION FALLS -0.1% Y/Y; EST. -0.2%; PREV. -0.1%
— Investing.com (@Investingcom) June 9, 2025
🇨🇳🇨🇳 pic.twitter.com/0aqAzkYAGM
Introduction: US-China trade talks in London today
Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.
London is playing host to the latest stage in the US and China’s efforts to agree a trade deal.
Top US and Chinese officials are due to meet in the UK capital today, in an attempt to build on the preliminary agreement reached last month in Geneva, with rare-earth minerals and advanced technology likely to be high on the agenda.
Both sides are sending senior representatives – the US delegation is being led by Treasury secretary Scott Bessent, commerce Secretary Howard Lutnick and US trade representative Jamieson Greer. Vice premier He Lifeng leads China’s team.
Investors, and leaders, around the globe will hope that the two superpowers can cool their dispute; they’re currently partway through a 90-day truce which reduced the new tariffs between the pair to 10%.
Yesterday, a UK government spokesman said:
“The next round of trade talks between the U.S. and China will be held in the UK on Monday.
“We are a nation that champions free trade and have always been clear that a trade war is in nobody’s interests, so we welcome these talks.”
The meeting follows a phone call between Donald Trump and Xi Jinping last week, in which Xi reportedly told Trump to “withdraw the negative measures” which the US has taken against China”.
Reminder: a week ago, China accused the US of “seriously violating” their Geneva pact, after Washington complained that Beijing had not delivered on promises to roll back restrictions on the export of key critical minerals to the US.
The sight of the two sides meeting again may cheer markets, which “are sniffing out the scent of détente”, according to Stephen Innes, managing partner at SPI Asset Management.
Innes writes:
This isn’t your typical trade theatre. Forget the pomp of Mar-a-Lago photo ops—this is trench diplomacy in Savile Row suits, with both sides recognizing that the clock is ticking. Trump needs market serenity to maintain the illusion of economic strength heading into the Summer.
At the same time, Xi navigates a domestic economy riddled with landmines in the property sector and a consumer base still struggling to recover from the pandemic. That creates a mutual incentive to tone down the tariff tantrums and cue up the handshake optics—even if no signatures are signed.
The agenda
Today: US-China trade talks in London
Updated
