The latest is from CNBC that reports:
Source in the room tells me this is a rough transcript of the comments Treasury Secretary Bessent made yesterday at a closed door event that are moving markets today: “The next steps with China are, no one thinks the current status quo is sustainable at 145 and 125 [percent]. So I would posit that over the very near future, there will be a de-escalation. And I think that that should give the world, the markets, a sigh of relief… We have an embargo now, on both sides, right?”Separately, the White House's Leavitt is now saying that 'the ball is moving in the right direction' with China.
Bessent also highlighted something we wrote about seven days ago, noting the plunge in ocean freight.
“If you look, I think that saw a number that container bookings between China in the U.S., and this is from two weeks ago, is down 64%. So the goal isn’t to decouple. The goal isn’t to decouple. And I do say China is going to be a slog in terms of the negotiations, because that engagement started – I would - not yet. But I think again, I think neither side thinks the status quo, is sustainable, but I've said it quite a bit.”And he said: “What's different about China that we've never seen before. If you go back to the '80s, our economic rivals were our military allies. So if you look at the Reagan-Carr negotiation… it was basically Japan and the Europeans, and it was just an economic negotiation. Now with China, there's this balance between economic and military that we've never seen before. And I think that at the end of the day, could be very optimistic, because there is a big deal to be done. I think that no one in this room believes that China does not need to rebalance. I think that maybe some people in this room, but certainly no one in the administration, believes that they have had free and fair trade.” This article was written by Adam Button at www.forexlive.com. Read More Details
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