The Day at a Glance | August 17 2020

The Top

· Meeting between China and US to revise the commercial agreement indefinitely postponed.

· Central Bank of China injects 340 billion dollars in money markets; keeps the interest rate unchanged.

· Lack of funding of the United States Postal Service creates friction between Democrats and Trump with elections coming up.

· Japan recorded a historical contraction: 27.8% annualized (2Q20)

Economic environment

United States and Chinese trade representatives decided to indefinitely postpone the commercial agreement`s “phase 1” revision after having scheduling conflicts. The conversations are part of the control mechanisms stipulated in the agreement, and according to the Chinese Foreign Minister, Zhao Lijian, the meetings will take place and their details will be made public in due course. The US administration`s rhetoric has been positive regarding the commercial agreement with China, as President Trump and his advisors have reiterated their satisfaction with the advances achieved so far. The commercial agreement remains intact despite hostile diplomatic actions and Trump has started considering to take further actions to limit Chinese companies (ByteDance, Tencent, Huawei); a stance that could escalate as the US election approaches.