Trade war: Trump suggests 'very dangerous' Huawei could join US-China deal – business live


President Donald Trump poses with American farmers in the Oval Office after announcing $16 billion in aid, at the White House in Washington, D.C. on May 23, 2019.

President Donald Trump poses with American farmers in the Oval Office after announcing $16 billion in aid, at the White House in Washington, D.C. on May 23, 2019. Photograph: UPI/Barcroft Media

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The trade war between the US and China continues to weigh heavily on investors minds, after a week of market turbulence. Shares fell heavily in Asia, Europe and the US yesterday, as investors fretted that a deal will not be reached soon.

But overnight, Donald Trump has floated the prospect that Huawei – the embattled mobile tech firm – could be part of a trade deal, despite all America’s concerns that the company is a security risk.

Speaking to reporters, Trump declared:


“Huawei is something that is very dangerous.

“You look at what they’ve done from a security standpoint, a military standpoint. Very dangerous.”

But despite these concerns, the dealmaker-in-chief then suggested that Huawei could be a pawn in a wider trade deal between Washington and Beijing to end the dispute.


“It’s possible that Huawei even would be included in some kind of trade deal.

If we made a deal, I can imagine Huawei being included in some form of, some part of a trade deal.”

That might reassure officials in China, or it might simply confuse them. How could America cut a deal with Huawei when it’s just blacklisted it from accessing US technology, a severe blow to its business?

The clue is that America’s economy is also suffering from the trade war. Trump announced $16bn of extra funding for US agriculture last night, to cushion the impact of tariffs on their sales to China. Upsetting farmers is rarely a good idea, especially with an election coming up….

Also coming up today

The last act of Theresa May’s troubled premiership will play out today. The PM is expected to announce she’s standing down next month, after losing the support of many colleagues.

Brexit fears has pushed the pound down to four-month lows week, but sterling is actually flat this morning at €1.132 against the euro, and up a bit against the dollar at $1.268. City traders have worked out it will take more than a change of leader to end the crisis.

The pound could be moved by today’s economic data – both the Office for National Statistics and the CBI are releasing retail sales figures this morning (for different months, just to add to the fun).

Otherwise it’s quiet in the City, with engineering firm Bodycote and parenting chain Mothercare reporting results.

The agenda

  • 9.30am BST: ONS retail sales for April
  • 11am BST: CBI ‘distributive trades’ report for May



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