USD: few chances of a China-USA trade agreement despite Trump-Xi meeting scheduled at the end of the month (Blackstone)

Steve Schwarzman, Chairman and CEO and co-founder of Blackstone, says there is little reason to hope that a trade agreement will be in place before the end of the month.

Yesterday, President Donald Trump said that he and Chinese President Xi Jinping would have an "extended meeting" at the G-20 summit in Osaka, Japan, on 28 and 29 June.

The one-on-one meeting was good news for the financial markets, as stocks soared as anxious investors found comfort in an evolution to resolve the ongoing trade war between the two economic superpowers.
The Chairman of Blackstone, however, doesn't seem very optimistic about the reaching of an agreement at this G-20 meeting: "I think it is extremely unlikely because almost nothing has happened since May when the discussions ended."

Schwarzman, who manages over $500 bil. in assets, said that Trump and Xi had to first decide "how far they are willing to go in theory" and then let sales managers work out some more detailed specifics.

According to him, "the possibility of a signature is not on the table".

Since the beginning of 2018, the United States and China have imposed tariffs on billions of dollars' worth of goods on both sides, which has shaken financial markets and damaged business and consumer confidence.

Last month, Mr. Trump increased tariffs on $200 bil. of Chinese imports and threatened to impose tariffs on an additional $300 bil. after the negotiations failed that month.

Mr. Trump also said last week that he would immediately impose additional tariffs of $300 bil. if Xi did not attend the G-20 summit.