Wall Street bounces as Trump softens stance on trade war

"We're having a little spat with China, and we'll win it", Trump said before departing Washington to France on August 23. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China.

Senior Trump aide Stephen Miller said in an interview with Fox News: "No American business ought to be wholly dependent on China".

However, latest news from the Wall Street Journal quotes some of the US President Donald Trump's aides, including White House Economic Adviser Lawrence Kudlow, while saying that the President Trump has no plans to invoke emergency powers and force companies to relocate operations from China, two days after his Friday tweet that they were "hereby ordered" to look for alternative locations. While his comments helped to reverse yen gains, their impact will be limited unless the trade frictions between the US and China are resolved, said Tadashi Matsukawa, head of fixed-income investment at PineBridge Investments Japan.

It was unclear if Trump was referring to the previously scheduled talks next month or something else. Asked what his advice was for Brexit, Trump replied: "He [Johnson] needs no advice, he is the right man for the job". The current 30 percent tariffs imposition is scheduled to begin from October 1, which also the 70th founding anniversary of the People's Republic of China. "So we'll be getting back to the table", Trump told reporters at the G7 summit in Biarritz. Macron is working to lower tensions in the Persian Gulf.

"If I want, I could declare a national emergency", Trump said. The Iranian government had said it would not meet with any Americans during the eight-hour visit to France.

Trump said that Chinese officials had made two "very, very good calls" and that "they want to make a deal".

The spread is barely holding in positive territory but may drop into the negative region during the day ahead due to the escalating US-China trade tensions and the resulting risk aversion.

He said of the Iran talks, "It's all very new".

White House officials said Trump planned to press leaders to do more to spur economic growth, as well as to open European, Japanese, and Canadian markets to American manufacturers and producers. "Cross-border flows into US dollar fixed income, driven by a surge in negative yielding debt, may not moderate without broad improvement in data". "He regrets not raising the tariffs higher".

Trump said the club, Trump National Doral, is located minutes from Miami's global airport and has plenty of acreage and properties to accommodate the G-7 leaders and their delegations.

The latest exchanges in the long-running tariff row triggered a broadbased sell-off that hit shares of companies with high exposure to China the hardest, such as chipmakers and other top technology names.

Worries about the global economy slipping into recession and uncertainty over the pace of USA interest rate cuts have made investors nervous about how far the longest cycle of US expansion can continue. The unpredictability affects the real decisions central banks make on fiscal policy and companies make on their strategies and investments, setting off ripples of uncertainty.