Doubts linger over US-China trade deal – business live

Rolling coverage of the latest economic and financial news, as
experts express concerns over Donald Trump’s Phase One trade deal
with China

8.34am GMT

Cecilia Malmström, the former EU Trade
commissioner, says the global economy will continue to suffer from
the tariffs on US and Chinese goods.

Concerning US China deal. De-escalation is
good but very few tariffs are actually being reduced. Managed trade
not in line with multilateral norms and not really good for the
economy either.

8.30am GMT

Rating agency Moody’s has given
the Phase One trade deal
a modest welcome, but warned that
relations between Washington and Beijing could flare up
again.

Michael Taylor, managing director of Moody’s Investors Service
Credit Strategy, says:

The agreement could help boost bilateral exports by the two
economies and lead to an improvement in business confidence as well
as investment.

“But the details of the agreement suggest that there remains
considerable scope for friction between the two sides.”

“We believe the agreement underpins a positive outlook for
risk assets, especially emerging market stocks. But it is also
important for investors to understand the limitations of the
deal.

So we see the deal as representing a partial calming rather than
an end to trade tensions.”

Source: FS – All-News2-Economy
Doubts linger over US-China trade deal – business live