There are no shortage of interesting market, trade, and economic developments in store for us this week. The Wall Street Journal reports that China and Mexico are signaling an increased willingness to negotiate with the U.S. on the trade front: “Beijing released on Sunday a government policy paper on trade issues, accusing Washington of scuttling the negotiations, which broke down in all but name in May.
It said the Trump administration’s ‘America First’ program and use of tariffs are harming the global economy and that China wouldn’t shy away from a trade war if need be. But throughout the document and at a briefing, the government suggested a willingness to return to negotiations. ‘We’re willing to adopt a cooperative approach to find a solution,’ Vice Commerce Secretary Wang Shouwen said in Beijing on Sunday. Mexico, meanwhile, rushed a delegation to the U.S. to discuss immigration issues, following the Trump administration’s threat last week to impose tariffs on all Mexican goods entering the U.S. if the Mexican government fails to take aggressive measures to stem the flow of immigrants through Mexico.” President Trump travels to Europe this week which will include visits with Queen Elisabeth II, UK Prime Minister Theresa May, and Irish Prime Minister Leo Varadkar, before the president heads to France for a D-Day commemoration, the Financial Times report. Another key development in Europe this week will be the meeting of the European Central Bank, which is expected to keep rates on hold but provide additional details on its latest round of cheap loans to banks, aka Targeted Longer-Term Refinancing Operations. In the United States the major economic report out this week will be the Employment Situation Report for May. The consensus forecast is that nonfarm payrolls rose by around 180,000 last month. Other U.S. economic reports to keep an eye on this week will cover manufacturing PMI, construction spending, light vehicle sales, factory orders, labor productivity, and trade. Have a great week!
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