De-escalation across board, improving geopolitics-part of trade talks, Bessent in charge / let's hear details now

Stéphan
May 12
2 min read

Pretty evident since middle of last week, that DEescalation efforts across board were also clearly all 'correlated' one way or another, Zelenski-Putin talks on Thursday, India-Pakistan ceasefire, Starmer first UK PM to join EU meeting since Brexit..The White House has talks trade deal on their web page..since yesterday, no details though >>>>> IF there is a proper trade deal, markets will/would be higher than 1.5% overnight, as this would be huger on macro basis, so let's see now >>> Bessent 9am local time and further Chinese comments likely, they are apparently going to have a joint statement today
LOTS of debate about what was actually agreed upon during the meeting in GVA. A more fundamental question is why Bessent is taking the lead in these discussions. Trade is not typically within the Treasury Secretary's purview — one could argue he's simply accompanying Greer, who represents the USTR. However, the absence of Commerce Secretary Lutnick and Senior Trade and Manufacturing Counsel Navarro is notable.
This strongly suggests that the meeting wasn't focused on trade, but rather on U.S. debt financing, that all said Yellen was always part of any China trad talks..
Chinese Exports Redirected From the US to the Rest of the World. The US is no longer importing cheap goods from China. As a result, the rest of the world will likely see a significant increase in imports of cheap Chinese goods that China can no longer sell in the US
#JGB 30y bond yields highest in 25years at 2.95% >>> might help JPY recover
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