The Day at a Glance | August 25 2020

The Top

· China and the US confirmed that there has been progress and have reiterated their commitment after reviewing the `phase 1` trade agreement.

· The Republican Party officially chose Donald Trump as its Presidential candidate.

· Economic indicators: Confidence in the German economy continues to improve (Ifo Business Climate Index 92.6, Aug.) and consumer sentiment in the US is also expected to continue its improvement (93 e.).

Economic environment

Chinese and US trade representatives had conversations this morning to review the `phase 1´ of their trade agreement and reaffirmed their commitment and intentions to cooperate and reach their goals. According to the Chinese Ministry of Commerce, both countries agreed to create conditions that would help continue the agreement`s success. The review mainly focused on intellectual property issues, the elimination of obstacles for US companies to participate in the financial services market and agriculture, according to a report by the US Trade Representative’s Office. The need to increase the purchase of goods was also discussed as China still needs to buy 130 billion dollars in US goods to meet what was stipulated in the agreement; China had only purchased 70 billion in the first 6 months of the year. The trade agreement is one of few elements of cooperation between both countries and seems to be highly valued by the US administration as US elections approach.

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