What is wrong with the news about the China and US deal?

China US
File Indian Express

UNITED STATES (VOP TODAY NEWS) — News about the trade negotiations of the United States and China are an excellent reason for the movement of markets in one direction or another. Often it looks like a banal manipulation, but recently these processes go beyond the bounds of decency.

On the eve, even when the session in the United States was not over, Adviser to the President of the United States Larry Cadlow said that negotiations would continue today and he is full of optimism. The market did not seem to notice this statement at all, but the most interesting thing happened only later.

About three o’clock in the morning – apparently, to enhance the effect and the news feed – the Financial Times publication actually publishes the same thing that Cadlow said, and the market reaction is impressive. It is worth saying that at this time trading is not carried out anywhere and the main manipulations take place just at this time, since it is not difficult to move the quotes.

But the most interesting thing is not even in this, but in the way it was done.

So what does FT write? The news comes out with the subtitle “The United States and China have resolved most of the trade transaction issues.” The title itself suggests that the parties are close to the conclusion of the transaction.

In any case, it sounds really strong. Not surprisingly, trading robots have futures for US indices up.

But it is necessary to open the material and start reading it, as it becomes clear that this is not about that. It turns out that FT is saying that the parties have not yet reached a consensus on the main issues – duties on Chinese goods and the conditions of the mechanism, that is, conditions that, in fact, will force China to comply with the agreement.

“90% of the transaction is concluded, but the last 10% is the most difficult part, and it will require compromises on both sides,” the newspaper writes, citing a source.

In other words, there is no progress, as ensuring the execution of the transaction is just what matters, and Trump’s threat of preserving tariffs as a coercion mechanism is certainly something that the Chinese will not accept under any pretext, especially since the latest data speaks about the revival of the economy of the Middle Kingdom.

If robots had brains and could read not only headlines, the reaction in the markets would be completely different. However, it seems more that all this is done intentionally, since – again, not the first time this week – the main movements take place at night when no one is trading.

The large market operators, who control it, obviously want to pull up US indices as high as possible. But if then no one wants to buy stocks at such prices, they have to go for such tricks.

So, summarizing the FT article, except for issues that the United States and China could not solve in the last 4 months, everything else is being resolved. The conclusion suggests itself – there is no solution.

This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.

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