French President Emmanuel Macron tried to arrange a meeting between the US President Donald Trump and Iranian President Hassan Rouhani.
Rouhani rejects talks
Macron’s efforts at the G-7 summit that ended on Monday appears to have given a little bit of hope that the two leaders could sit down and talk. Macron said he helped created conditions for a meeting. But on Tuesday Iran’s Rouhani made clear that no talks with the US could take place until Washington lifted its hard-hitting sanctions on Tehran.
Trump praises Xi, hopes for a deal
Speaking in France’s Biarritz, Trump sounded hopeful on finding a common ground with China amid his intensification of the trade war. “I think we’re going to have a deal, because now we’re dealing on proper terms. They understand and we understand. Very big things are happening with China,” Trump said. He also praised President Xi Jinping of China and other officials who wanted a “calm resolution.”
US-EU deal ‘difficult’ but possible
Trump spoke positively also of a possible trade agreement between the US and the EU. He said the two sides would be able to reach a “fair” deal trade without the US having to impose his threatened tariffs on car imports from the EU.
“We’re very close to maybe making a deal with the EU because they don’t want tariffs,” he said.
Germany’s Economy Minister Peter Altmaier said on Tuesday that trade negotiations between the US and EU will be difficult but global economic risks would push the parties to reach a deal.
German economy contracts
Germany’s quarterly GDP figures that came at -0.1% in line with the forecast -0.1% and versus the previous 0.4%, showing yet again a contraction in Europe’s largest economy. The figures are likely to reinforce the idea that Germany could already be undergoing a technical recession. The same figure in a year-on-year basis stood at 0.0% versus the expected 0.4% and previous 0.7%.
Japan monitors currency moves
Japan’s Finance Minister Taro Aso said on Tuesday that he was monitoring the moves in the currency market “with a sense of urgency,” without going into specifics of the changes in Yen.
While declining to comment on specific foreign exchange levels, Aso emphasized the crucial role of Yen stability for the Japanese currency that Tokyo tried to keep low as a leverage in its foreign trade that is vital for its export-reliant economy.
China fixes yuan to slow down the fall
The People’s Bank of China set the yuan at 7.0810 per dollar — weaker than the Monday fix but still stronger than the 7.1055 level investors were anticipating. The move was perceived to be an attempt to slow yuan’s fall versus the dollar as officials from the US and China started to tone down the heightened trade tensions.
Britain, ‘at the mercy of the US’
The UK pound continues to make modest gains after PM Boris Johnson’s more successful-than-anticipated trip to Europe last week, over the weekend and Monday. The relief thanks to more moderate comments by him and Germany’s Merkel goes on for the pound, but the long-term trajectory remains downward given the heightened risks of a no-deal Brexit.
Opposition Labour Party leader Jeremy Corbyn will be gathering pro-remain politicians to draw a roadmap on how to prevent that outcome which he said would leave Britain at the mercy of the US.
