🪂The Talk of 2 Giants- China & US⏰

🪂The Talk of 2 Giants⏰

It was like a rainbow after a stormy rain. President Biden and President Xi had a robust virtual meeting during a 3-hour talk, showing signs of thawing in a relationship despite occasional strong words.

President Biden is joined by Secretary of State Antony Blinken and Treasury Secretary Janet Yellen, reflecting the degree of the economic significance of the meeting. Not forgetting Jake Sullivan, who is the top China expert in the administration.

🎙Relaxing and Calmness⌛️

The two leaders’ conversation was cordial as they talked about their long-standing friendship. President Xi showed agreement with President Biden on climate change and encouraged more extensive discussion and cooperation.

The press statement by both sides shows some level of restraint, although the US did point out concerns on human rights and the nature of trade and economic practices that seemed unfair. The Taiwan issue was on the card, too as President Xi said that should Taiwan’s independence be a reality, it would break the tolerance line and lead to China having to take draconian action.

🎉A rare sign of a harmonious moment🪜

On the backdrop of this meeting is a sensitive spot. It is ushering some normalcy in both countries’ bilateral ties that were stressful and challenging under President Trump’s era. However, it is also a period when China is becoming more assertive globally as its political, military and economic prowess continues to grow, unnerve the critics of China in the US, making it harder for President Biden to go soft on China.

In the spirit of striking a balance between competition and cooperation, it is heartwarming that both leaders acknowledged the need to have frequent communication to avoid conflicts as both countries become more involved in activities around Taiwan and South China sea.

Markets welcome the news as both leaders’ concerted effort to ease tension despite clear hurdles that are to be overcome that could very well shape the modern political economy of the 21st century.

📮What’s on the menu today?

At 9.30 pm, we will have the Core Retail Sales, which we expect to rise by 1%, higher than 0.8% in the prior period.

Retail sales will be released simultaneously, and we expect it to grow 1.2%, a rise from 0.7% in the prior period.

The retail sales figures are of great importance as they support a large part of the US economy and come when personal cash handouts and enhanced unemployment benefits are gone.
FOMC members such as Barkin and Bostic will also speak at 1 am.

It is 17 Nov, Wednesday, at 7.40 am in Singapore and 7.40 pm in New York. It has been a turbulent week as politics and economic data become more critical in an era where tapering is beginning. Pika World wishes everyone a Moonatic week ahead!