–Trump Resumes Tweets From Air Force One, But No China
By Denny Gulino
THE WHITE HOUSE (MaceNews) – As markets listened to President Trump’s serial news conferences from Biarritz Monday morning, first with India Prime Minister Narendra Modi, then with French President Emmanuel Macron and finally by himself, the skepticism about those impending talks with China was not quite dispelled, and yet the positive tone of trading was not quenched either.
By the time Air Force One began the eight-hour flight home in the early afternoon, the stock markets were holding on to gains of around 1% and the Treasury 10-year price was rallying slightly, with the yield off to 1.535%. The VIX was still just above 20. Traders clicking on @realdonaldtrump knew that once aboard his plane, the president could totally recalibrate the market tone with a few key strokes.
As the afternoon wore on, tweets did appear. One included a link to the news conference with Macron and another with video scenes of Biarritz and motorcades and a big “Thank You” to France, and finally a retweet of a compliment from a supporter – but nothing on China. While stocks stayed in the same range, the 10-year yield went to 1.538% and the VIX softened to 19.32.
Trump’s next opportunity to talk to reporters will be at his scheduled return to the White House at 8:30 p.m. ET. Having made his tweets and the White House the fulcrum of the markets, Trump holds the key to more market positivity along with China’s Vice Premier and top trade negotiator Liu He. It was the Chinese leader’s reported comment that set the stage for Trump’s claim that some China official had called to ask for talks to resume.
Liu’s words continued to reverberate through trading rooms despite the absence of any follow-up reaction or confirmation from Beijing that talks indeed were back on. He told a group in China he is willing “to resolve the problems through negotiation and cooperation in a calm manner.”
Questions remain. Will the next round of U.S. tariffs indeed be allowed to take effect in five days in the face of China’s previous threats not to talk unless the tariffs are withdrawn? Will China be willing to resume talks later in September without some U.S. commitment to suspend tariffs already in place and that are now set to become more severe?
It was while standing next to India Modi that Trump said the call from China came from “the highest level. At the highest level. Ok?” Also there, Treasury Secretary Steven Mnuchin who told reporters he didn’t want to get into any details. In later comments Trump repeated that he didn’t see that China President Xi Jinping had a choice other than to reach a deal.
In front of the White House, meanwhile, heavy machinery was moved in under escort Monday morning, ready to begin construction of a new much higher barrier protecting the grounds. Already a wooden wall painted white has gone up, blocking the view of the White House treasured by tourists as background for their Instagram accounts.
Reporters chronicling all the words spoken at G7 will be returning within hours, hoping to see through if not a wall, then through the fog that seems to accompany everything having to do with China.