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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/sep/19/china-trump-tariffs-uk-inflation-house-prices-haldane-draghi-business-live
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| China appeals for free trade amid tariff battle with Trump – business live | China appeals for free trade amid tariff battle with Trump – business live |
| (35 minutes later) | |
| China is often accused of discriminating against foreign companies on its turf, in favour of local (sometime state-controlled) firms instead. | |
| Chinese premier Li Keqiang, though, is promising to give foreign investors equal treatment. | |
| The FT’s Lucy Hornby has the details: | |
| “Chinese and foreign companies can compete on a level playing field in this big market. That gives better vitality to the Chinese economy,” Mr Li said at the World Economic Forum, triggering prolonged applause from an audience that included high-tech manufacturers from overseas and small businesses from provincial cities. | |
| China, he said, would cut taxes and unlock financing for the country’s private businesses. “The pool is full of water, the challenge is to unblock the channels,” he said, adding that Beijing would not devalue the renminbi but keep its currency “at an adaptive and equilibrium level”. | |
| European stock markets have hit a two-week high in early trading. | |
| In London, the FTSE 100 is 17 points higher at 7317 (+0.25%). | |
| Mining stocks are leading the way, as traders express optimism that China and the US might cool their trade dispute. | |
| Connor Campbell of SpreadEx explains: | |
| Though China announcing tariffs on $60 billion in US imports isn’t great news, it is not as bad as it could have been. The response was also tempered by the country’s deputy leader Li Keqiang urging that the ‘basic principles’ of free trade are held up, while promising that China won’t weaponise its currency (something it has already been accused of doing by Trump). | |
| Premier Li’s call for a multilateral solution to the trade dispute is going down well in the markets. | Premier Li’s call for a multilateral solution to the trade dispute is going down well in the markets. |
| In Tokyo, the Nikkei index has hit its highest level in eight months. China’s Shanghai Composite jumped by 1%, amid relief that Beijing’s latest tariffs on the US are lower than feared. | In Tokyo, the Nikkei index has hit its highest level in eight months. China’s Shanghai Composite jumped by 1%, amid relief that Beijing’s latest tariffs on the US are lower than feared. |
| Investors are heartened by Li’s pledge not to launch a currency war, as Naeem Aslam of Think Markets explains: | Investors are heartened by Li’s pledge not to launch a currency war, as Naeem Aslam of Think Markets explains: |
| The Chinese yuan has been under the hammer due to two reasons; sluggish domestic growth and impending trade war. | The Chinese yuan has been under the hammer due to two reasons; sluggish domestic growth and impending trade war. |
| China has been blamed by the U.S. for devaluing its currency to gain a competitive edge. Over in Asia, we have seen that traders have felt more comfortable about China’s recent comments on currency devaluation and this has bolstered the Asian equity market. | China has been blamed by the U.S. for devaluing its currency to gain a competitive edge. Over in Asia, we have seen that traders have felt more comfortable about China’s recent comments on currency devaluation and this has bolstered the Asian equity market. |
| Importantly, premier Li has also pledged that China won’t weaponise its currency in its tussle with Donald Trump. | Importantly, premier Li has also pledged that China won’t weaponise its currency in its tussle with Donald Trump. |
| In his keynote speech in Tianjin, Li promise that Beijing hadn’t been deliberately weakening the yuan - and wouldn’t do so, either. | In his keynote speech in Tianjin, Li promise that Beijing hadn’t been deliberately weakening the yuan - and wouldn’t do so, either. |
| He said: | He said: |
| “Recent fluctuations in the renminbi exchange rate have been seen as an intentional measure, but that isn’t true,. | “Recent fluctuations in the renminbi exchange rate have been seen as an intentional measure, but that isn’t true,. |
| “One-way devaluation will do more harm than good to China’s economy. China will by no means stimulate exports by devaluing the yuan.” | “One-way devaluation will do more harm than good to China’s economy. China will by no means stimulate exports by devaluing the yuan.” |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| The threat of a global trade war looms over the financial world today, after the US and China hit each other with sweeping tariffs. | The threat of a global trade war looms over the financial world today, after the US and China hit each other with sweeping tariffs. |
| Beijing hit back at Washington yesterday, with new levies on $60bn of US goods, just hours after Donald Trump signed off tariffs on $200bn of Chinese products. This latest tit-for-tat action dragged the world economy a little closer to full-blown protectionism. | Beijing hit back at Washington yesterday, with new levies on $60bn of US goods, just hours after Donald Trump signed off tariffs on $200bn of Chinese products. This latest tit-for-tat action dragged the world economy a little closer to full-blown protectionism. |
| But...there is also optimism, as China’s retaliation is less severe than it had laid out last month. | But...there is also optimism, as China’s retaliation is less severe than it had laid out last month. |
| And over in Beijing today, China’s deputy leader has called for more support for free trade. | And over in Beijing today, China’s deputy leader has called for more support for free trade. |
| Premier Li Keqiang told a World Economic Forum conference, in the eastern city of Tianjin, that such disputes must be resolved through consultation. | Premier Li Keqiang told a World Economic Forum conference, in the eastern city of Tianjin, that such disputes must be resolved through consultation. |
| It is essential that we uphold the basic principles of multilateralism and free trade.... | It is essential that we uphold the basic principles of multilateralism and free trade.... |
| No unilateralism will offer a viable solution.” | No unilateralism will offer a viable solution.” |
| Li also warned that the world economy now stands at “a crossroads facing a choice between globalization or deglobalization.” China, he pledged, will do its bit by opening up “at a faster pace”. | Li also warned that the world economy now stands at “a crossroads facing a choice between globalization or deglobalization.” China, he pledged, will do its bit by opening up “at a faster pace”. |
| Chinese Premier Li on global trade https://t.co/vlkiKTwqRe | Chinese Premier Li on global trade https://t.co/vlkiKTwqRe |
| That will have gone down well with WEF at its “Summer Davos” in Tianjin. | That will have gone down well with WEF at its “Summer Davos” in Tianjin. |
| More cynical voices might point out that China does operate plenty of roadblocks to free trade today - second behind Russia, according to one EU report this year. | More cynical voices might point out that China does operate plenty of roadblocks to free trade today - second behind Russia, according to one EU report this year. |
| But still, Li’s words may reassure investors that the two economic powers will reach an agreement on trade policies, rather than descend deeper into a swamp of tariffs, trade barriers and bad-mouthing. | But still, Li’s words may reassure investors that the two economic powers will reach an agreement on trade policies, rather than descend deeper into a swamp of tariffs, trade barriers and bad-mouthing. |
| Asia stocks extending low quality rally. 'Markets behaving as if trade war overhang has been removed after details were released on $200bn of tariffs. Positioning stretched,' JPM says. Nikkei at 8mth high. US 10y yields steady >3% threshold. Dollar a tad lower. Bitcoin at $6.3k. pic.twitter.com/ikjbsPD0K7 | Asia stocks extending low quality rally. 'Markets behaving as if trade war overhang has been removed after details were released on $200bn of tariffs. Positioning stretched,' JPM says. Nikkei at 8mth high. US 10y yields steady >3% threshold. Dollar a tad lower. Bitcoin at $6.3k. pic.twitter.com/ikjbsPD0K7 |
| Also coming up today | Also coming up today |
| UK inflation data is out this morning. Economists predict that price rose by 2.4% year-on-year in August, down from July’s 2.5%. That would give workers a small but much-needed real wage boost. | UK inflation data is out this morning. Economists predict that price rose by 2.4% year-on-year in August, down from July’s 2.5%. That would give workers a small but much-needed real wage boost. |
| Supermarket chain Tesco is launching its new discount store format, Jack’s, to compete with the success of Lidl and Aldi. It could be a game-changer, if Tesco can get it right... | Supermarket chain Tesco is launching its new discount store format, Jack’s, to compete with the success of Lidl and Aldi. It could be a game-changer, if Tesco can get it right... |
| Will there be any Tesco branding at all? Or will it be solely these faux-farms, odd sub-brands that Tesco has been developing? We shall see pic.twitter.com/8yMl3be0ZO | Will there be any Tesco branding at all? Or will it be solely these faux-farms, odd sub-brands that Tesco has been developing? We shall see pic.twitter.com/8yMl3be0ZO |
| The biggest question re Jacks (apart from whether it will have an apostrophe, as it should) is: if it's a great, decent-quality rival to Aldi/Lidl, why would you want to go back to shopping at Tesco? Won't it highlight that Tesco ain't that cheap anymore? | The biggest question re Jacks (apart from whether it will have an apostrophe, as it should) is: if it's a great, decent-quality rival to Aldi/Lidl, why would you want to go back to shopping at Tesco? Won't it highlight that Tesco ain't that cheap anymore? |
| Plus, traders will be watching for speeches from two central bankers; European Central Bank chief Mario Draghi, and the Bank of England’s chief economist, Andy Haldane. | Plus, traders will be watching for speeches from two central bankers; European Central Bank chief Mario Draghi, and the Bank of England’s chief economist, Andy Haldane. |
| The agenda | The agenda |
| 9am BST: Bank of England Andy Haldane: Lecture at the Bank of Estonia 100th Anniversary conference, Estonia | 9am BST: Bank of England Andy Haldane: Lecture at the Bank of Estonia 100th Anniversary conference, Estonia |
| 9.30am BST: UK inflation for August | 9.30am BST: UK inflation for August |
| 9.30am BST: UK house price data for July | 9.30am BST: UK house price data for July |
| 3pm BST: ECB president Mario Draghi speech on “Making Europe’s Economic Union work”, in Berlin | 3pm BST: ECB president Mario Draghi speech on “Making Europe’s Economic Union work”, in Berlin |