US President Donald Trump will sign the so-called Phase-1 of a yet to be reached wider trade deal with China at a ceremony at the White House on Wednesday.
The signing ceremony
China’s Vice Premier Liu He leads the Chinese delegation on a trip to Washington tomorrow.
The Trump administration claims the deal is “in the bag”, but the details of the 86-page deal are yet to be made public and parts of it are still under review by both sides. Larry Kudlow, Trump’s economic adviser, claimed on Friday that the deal was one of the greatest and the content would be shared with the public on the day of the signing.
Whether the P-1 agreement announced in December meets the market expectations will determine the direction stock markets take.
After the US and Iran returned from the brink of war, the tensions turned into anti-regime protests in Iranian many cities including the capital Tehran. The public anger is directed at the regime’s suppression as well as its accidental downing of a Ukrainian civil aircraft that killed 176 people of various nationalities.
Trump and the US State Department announced American support to the protesters in English and Persian on Twitter, warning that the Iranian regime that security forces killings of protestors that took 1,500 lives late last year and a total shutdown of the Internet do not take place again. “The US is watching,” Trump tweeted in a Persian tweet addressed to the Iranian government.
Twitter is banned in Iran, and only government officials use it to send messages to the outside world.
EU trade rep in Washington
One day after the Chinese trade agreement is signed, EU new Trade Commissioner Phil Hogan will be making an appearance in Washington on Thursday.
The US progress in trade with the Asian giant China will allow Trump to focus his attention on the EU, which he is threatening with fresh tariffs. Both sides of the Atlantic are in a trade conflict due to EU subsidies to the aircraft manufacturer Airbus, French taxes on US digital companies and Trump’s tariffs on EU goods in response.
During his first visit to Washington, Hogan will try to thaw the ice and discuss how to deal with disputes with his counterpart, the US Trade Representative Robert Lighthizer, and other officials.
The European Central Bank (ECB) will release the minutes from its December meeting on Thursday. At the first meeting of ECB’s new President Christine Lagarde, policy and interest rates were kept on hold.
But Lagarde announced her intentions to launch a strategic review of the monetary policy framework in January.
China’s growth figures to be released on Friday will be closely monitored along with retail sales and industrial production figures. China’s fourth-quarter GDP is estimated to have been around 6 percent.
Monday: Japan holiday — Respect for the Aged Day, UK GD, UK Manufacturing Production, UK Monthly GDP 3M/3M Change
Tuesday: US Core Consumer Price Index (CPI)
Wednesday: UK Consumer Price Index (CPI), UK Autumn Forecast, US Producer Price Index (PPI), US Crude Oil Inventories
Thursday: Eurozone ECB Monetary Policy Meeting Minutes, US Core Retail Sales, US Philadelphia Fed Manufacturing Index, ECB President Lagarde Speech
Friday: China Gross Domestic Product (GDP) (Annual) (4th Quarter), Chinese Industrial Production, UK Retail Sales, Eurozone Consumer Price Index, US Construction Permits, US JOLTs Job Openings