Trump says China trade deal coming, Beijing calls for resolution of dispute

Trump said after a G7 summit of world leaders in Biarritz, France, that he believed China was sincere about wanting to reach a deal. (File/AP)
Updated 26 August 2019

Trump says China trade deal coming, Beijing calls for resolution of dispute

  • Trump: China has no choice but to make trade deal
  • China opposed to increase in trade tensions -vice premier

BIARRITZ, France/BEIJING: US President Donald Trump on Monday predicted a trade deal with China after positive gestures by Beijing, calming global markets that have been roiled by new tariffs from the world’s two largest economies.
Trump said after a G7 summit of world leaders in Biarritz, France, that he believed China was sincere about wanting to reach a deal, citing what he described as increasing economic pressure on Beijing and job losses there.
Chinese Vice Premier Liu He, who has been leading the talks with Washington, said on Monday that China was willing to resolve the trade dispute through “calm” negotiations and opposed any increase in trade tensions.
Trump cited Liu’s comments as a positive sign, underscoring his seniority, and repeated his assertion that Chinese officials had contacted US trade counterparts overnight and offered to resume negotiations, a claim China declined to confirm.
“I think they want to make a deal very badly. I think that was elevated last night. The vice chairman of China came out, he said he wants to see a deal made,” Trump said.
“The longer they wait the harder it is to put back, if it can be put back at all,” Trump said at a news conference with French President Emmanuel Macron. “I don’t think they have a choice.”
Macron said an agreement would help dispel uncertainty that has been weighing on global markets. He said Trump had told other G7 leaders that he wanted to strike a deal with China.
Trump said he was more upbeat about the prospects for an agreement than in the recent past.
Days after referring to President Xi Jinping as an enemy, Trump heaped praise on his Chinese counterpart in separate remarks twice on Monday, alternately calling him a “great leader” and a “brilliant man.”
In Beijing, Foreign Ministry spokesman Geng Shuang said he had not heard that a phone call between the two sides had taken place. However, China’s Commerce Ministry typically releases statements on trade calls. It did not respond to a request for comment.
When pressed on whether a call had taken place, Trump emphasized Liu’s comments. US Treasury Secretary Steven Mnuchin said there had been contact between the two sides but declined to say with whom.
Hu Xijin, editor of the state-controlled Global Times newspaper, tweeted: “Based on what I know, Chinese and US top negotiators didn’t hold phone talks in recent days. The two sides have been keeping contact at technical level, it doesn’t have significance that President Trump suggested. China didn’t change its position. China won’t cave to US pressure.”
The increasingly bitter trade war between the world’s two largest economies worsened on Friday with both sides levelling more tariffs on each other’s exports.
Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of US goods.
On Sunday, the White House said Trump regretted not raising the tariffs even more. But Trump also appeared to back off of his threat to order US companies out of China.
Vice Premier Liu, Xi’s top economic adviser said at a conference in southwestern Chongqing: “We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war.
“We believe the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world.”
The trade war has damaged global growth and raised market fears the world economy will tip into recession.
The Chinese Foreign Ministry spokesman said China would retaliate if Trump enforced the latest US tariffs.
Wall Street rebounded on Monday after the comments by Trump and Liu, with all 11 sectors in the benchmark S&P 500 index .SPX moving higher following the index’s worst run of weekly losses on Friday.
“The sentiment today is conciliatory, the president is trying to walk back,” said Art Hogan, chief market strategist at National Securities in New York.
China’s yuan, which had fallen to an 11-year low before Trump’s first comments, recovered somewhat. The US dollar strengthened after falling to a 2-1/2 year low against the Japanese yen.
The two sides were due to meet in September in Washington, but it was unclear whether the new tariff tit-for-tat would alter those plans.
The United States accuses China of economic sins including intellectual property theft, currency manipulation and forced technology transfer by US companies to their Chinese partners as a requirement for doing business in China. China denies the US allegations.
Beijing and Washington were close to a deal last spring but US officials said China backed away from an agreed text over a reluctance to change laws to address US complaints.
The trade war has affected businesses all over the world and disrupted supply chains. Trump has urged US companies to move their operations out of China, but it was not clear how or whether his efforts to order such a move would work.
He said on Monday if a deal emerged, US companies should stay in China or leave if it did not.
Liu said: “We welcome enterprises from all over the world, including the United States, to invest and operate in China.”
Mnuchin said Trump could order companies out of China under the International Emergency Economic Powers Act if he declared a national emergency.
France’s Macron and German Chancellor Angela Merkel, who met with Trump at the G7, both said it was in everyone’s interest for China and the United States to reach a deal. Germany’s economy, which is heavily dependent on exports, is facing a recession, according to some economists.


Big banks see more than half of staff in office in Q3

Updated 26 February 2021

Big banks see more than half of staff in office in Q3

COPENHAGEN: Global financial institutions plan to have more than half of staff back in offices during the third quarter, up from 10 percent-15 percent now, but none are envisaging a full return anytime soon, the head of Danish services group ISS said on Thursday.

ISS provides services ranging from call centers to office cleaning, catering and security to more than 200,000 companies in 60 countries, including UBS and Deutsche Telekom.

“Many of our customers in banking, consulting and service industries are now very eager to get employees back to the office,” Chief Executive Jacob Aarup-Andersen said in an interview.

“They tell us about lack of innovation, less engagement among employees working from home and the corporate culture suffering,” he said.

But while global banking customers in general expect to have more than 50 percent of employees back on site during the third quarter, none of ISS’ customers are yet speaking about returning 100 percent of the workforce to offices, Aarup-Andersen said.

HSBC said this week it planned to nearly halve its office space globally in a sign the pandemic could mean permanent changes to working patterns, as companies prepare to reduce office space and allow employees more flexibility in working from home.

Aarup-Andersen said earlier he expected office space globally to shrink by 10 percent-15 percent over the next three years.

ISS on Thursday said sales fell 10 percent last year to 69.8 billion Danish crowns ($11.5 billion), hit by weakness in catering, retail and hotel services.

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Aston Martin says it is back on the road to profitability

Updated 26 February 2021

Aston Martin says it is back on the road to profitability

  • British carmaker expects ‘to see the first steps toward improved profitability’

LONDON: Aston Martin expects to almost double sales and move back toward profitability this year after sinking deeper into the red in 2020, when the luxury carmaker was hit by the pandemic, changed its boss and was forced to raise cash.

The British company’s shares jumped 9 percent in early Thursday trading after it kept a forecast for around 6,000 sales to dealers this year as new management turns around its performance.

The carmaker of choice for fictional secret agent James Bond has had a tough time since floating in 2018, as it failed to meet expectations and burned through cash, prompting it to seek fresh investment from billionaire Executive Chairman Lawrence Stroll.

The firm made a 466-million pound ($660 million) loss last year, compared with a 120 million pound loss in 2019, as sales to dealers fell by 42 percent to 3,394 vehicles, hit by the closure of showrooms and factories due to COVID-19.

FASTFACT

Aston said demand for its first sport utility vehicle, the DBX, which rolled off the production line at its Welsh plant in 2020, was strong in a lucrative segment of the market it entered to widen its appeal.

For 2021, it expects “to see the first steps toward improved profitability” but is still likely to post a pre-tax loss, the carmaker said.

“I am extremely pleased with the progress to date despite operating in these most challenging of times,” Stroll said.

Aston said demand for its first sport utility vehicle, the DBX, which rolled off the production line at its Welsh plant in 2020, was strong in a lucrative segment of the market it entered to widen its appeal.

The model accounted for 1,516 of deliveries to dealers last year and the company expects further growth in its first full-year of sales, including in the key market of China, where rivals such as Bentley are also seeing high demand.

“We had not even a half-year DBX production in wholesome so probably we are going to see over-proportional growth in China,” Chief Executive Tobias Moers, who took over in August, told Reuters.


Diamond tycoon Modi loses bid to avoid extradition to India

Updated 26 February 2021

Diamond tycoon Modi loses bid to avoid extradition to India

  • District Judge Samuel Goozee ruled in London that the fugitive jeweler has a case to answer before the Indian courts

LONDON: Diamond tycoon Nirav Modi lost his bid Thursday to avoid extradition from Britain to India to face allegations he was involved in a $1.8 billion bank fraud.

District Judge Samuel Goozee ruled in London that the fugitive jeweler has a case to answer before the Indian courts. Modi, whose jewels once adorned stars from Bollywood to Hollywood, has been held without bail in London since he was arrested in the capital in 2019.

Goozee ruled that there was enough evidence to prosecute him in his homeland, and dismissed Modi’s argument that he would not be treated fairly in India.

Indian authorities have sought Modi’s arrest since February 2018, when they alleged companies he controlled defrauded the state-owned Punjab National Bank by using fake financial documents to get loans to buy and import jewels.

Modi is also accused of witness intimidation and destroying evidence. Police in India later raided the homes and offices of Modi and business partner Mehul Choksi, seizing nearly $800 million in jewels and gold.

Modi, 49, has refused to submit to extradition to India and denies the fraud allegations. He sought political asylum in the UK

The extradition matter now goes to the UK Home Office, which will make the final decision. Modi has 14 days from that decision to appeal.

Modi, who wore a dark suit for Thursday’s hearing, showed little emotion as he appeared by video link from Wandsworth Prison in southwest London.

Amit Malviya, a spokesman for India’s governing Bharatiya Janata Party, said Thursday’s ruling was “a shot in the arm for the agencies pursuing the fugitive,” adding that the Indian government is committed to “bring all economic offenders to book.”

The son of a diamond merchant, Modi built an international jewelry empire that stretched from India to New York and Hong Kong. Bollywood star Priyanka Chopra became the face of his eponymous brand and Hollywood actress Naomi Watts appeared with Modi at the opening of his first US boutique in 2015.

Forbes magazine estimated Modi’s wealth at $1.8 billion in 2017, but he was removed from the publication’s billionaires’ list after the fraud allegations.


Oil hovers near 13-month highs as storm dents US output

Updated 26 February 2021

Oil hovers near 13-month highs as storm dents US output

  • Severe winter storm in Texas caused US crude production to drop by more than 10 percent

LONDON: Oil prices extended gains for a fourth session on Thursday to reach the highest levels in more than 13 months, underpinned by an assurance that US interest rates will stay low, and a sharp drop in US crude output last week due to the storm in Texas.

Brent crude futures for April gained 33 cents, 0.49 percent, to $67.37 a barrel by 0925 GMT, while US West Texas Intermediate crude for April was at $63.45 a barrel, up 23 cents, 0.36 percent.

Both contracts hit their highest since Jan. 8, 2020, earlier in the session with Brent at $67.70 and WTI at $63.79. The April Brent contract expires on Friday.

An assurance from the US Federal Reserve that interest rates would stay low for a while weakened the US dollar, while boosting investors’ risk appetite and global equity markets.

A severe winter storm in Texas has caused US crude production to drop by more than 10 percent, or 1 million barrels per day (bpd) last week, the Energy Information Administration said on Wednesday.

“Combined with a dovish Jerome Powell and an already tight physical market, oil prices exploded higher,” Jeffrey Halley, senior market analyst for Asia Pacific at OANDA said.

Combined with a dovish Jerome Powell and an already tight physical market, oil prices exploded higher.

Jeffrey Halle, senior market analyst at OANDA

Fuel supplies in the world’s largest oil consumer could also tighten as its refinery crude inputs had dropped to the lowest since September 2008, EIA’s data showed.

ING analysts said US crude stocks could rise in weeks ahead as production has recovered fairly quickly while refinery capacity is expected to take longer to return to normal.

Barclays, which raised its oil price forecasts on Thursday, said it is seeing staying power in the recent oil price rally on a weaker-than-expected supply response by US tight oil operators to higher prices.

“However, we remain cautious over the near term on easing OPEC+ support, risks from more transmissible COVID-19 variants and elevated positioning,” Barclays said.

The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, is due to meet on March 4.

The group will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.

Extra voluntary cuts by Saudi Arabia in February and March have tightened global supplies and supported prices.


Experts discuss WhatsApp’s new privacy update

Updated 26 February 2021

Experts discuss WhatsApp’s new privacy update

  • “People have made this into a bigger issue than it really is”: cybersecurity expert

JEDDAH: As WhatsApp launches a new in-app banner in response to the backlash over its privacy issue, Saudi experts and users weigh in on the company’s strategy.

“Harvesting user data is part of Facebook’s strategy,” Abdullah Al-Gumaijan, cybersecurity expert, told Arab News.

“It seems this will never change, even if it costs them millions of users, like what happened to WhatsApp last month when they updated their policy,” he said. “Today, WhatsApp will force their users to accept a similar policy. However, this time around they made it very clear they will not share users’ actual conversations.”

As long as WhatsApp remains a free app, he added, Facebook will make sure to get what it can from its users’ data.

Fahd Naseem, a WhatsApp user, said: “People have made this into a bigger issue than it really is. Facebook and other social media platforms are already using the data; there’s nothing wrong in WhatsApp using it too.”

He told Arab News that this data helps the apps deliver better and more personalized ads to their users.

Fatimah Al-Maddah, owner of Labothecaire, said that the privacy issue does not concern her and her team. “We use services like Dropbox for sensitive matters, and if we need to discuss something, we normally call. So, we don’t risk our information to begin with.”

WhatsApp will allow users to review its privacy policy, and users will have to agree to the new terms or risk losing access to the app. The firm said that it was facing issues because of “misinformation” regarding the changes, which led users to believe that their information was accessible by WhatsApp’s parent firm, Facebook.

However, WhatsApp said that it would never allow that to happen and that its end-to-end encryption ensures that people on both ends of the conversation are the only ones who can read those texts; not even the company has the access to them.

In a blog post, the company clarified that it would be working hard to clear up confusion and that it would be sharing the updated plan for how it will ask users to review the terms of service and privacy policy.

“In the coming weeks, we’ll display a banner in WhatsApp providing more information that people can read at their own pace,” the blog post read.

The company also faced backlash because of the poorly worded terms in the previous update, which caused confusion and concern and resulted in users abandoning the app entirely and moving onto other platforms.