Trump-Xi call: Top Story
00:01 Ramzan Karmali
Hello and welcome to the morning short market Gündoğum. I live from Ramzan Karmali, Yahoo Finance’s studios in London. Friday, September 19. The show is preparing for a high -betting call with Chinese President XI.
00:20 Ramzan Karmali
Trump’s attack on the media is intensifying, and Intel Stock still sees great oscillations. So take your coffee and have the morning.
00:39 Ramzan Karmali
Our markets are preparing themselves for a critical call between President Trump and XI this morning. Trump claimed that all an agreement on the future of Tiktok in the United States is over and wanted to make more progress in tariffs.
00:54 Ramzan Karmali
This week was a rough week for Nvidia in China. Firstly, he was accused of violating the chip manufacturer anti -monopoly laws, and then told large technology companies not to buy Nvidia. On the Flip side, an antitröst probe fell on Google. However, at least for the first time since the 1990s, China did not buy US soybeans at the beginning of the export season. It is a sign that Beijing is once again using agriculture as a leverage in the trade struggle with Washington.
01:23 Ramzan Karmali
Now, the existing tasks between the two countries are 30% in Chinese imports and 10% in US goods. The current 90 -day pause will end in November. If no agreement is made, there may be a return from the triple step to the triple step. Alicia Garcia Herrero is the Chief Economist of Asia Pacific in Netexas and now joins me from Hong Kong.
01:50 Ramzan Karmali
Let’s start with this expectation for this call between Alicia, President Xi and President Trump. What is the most things we can really expect?
02:05 Alicia Garcia-Harrero
Trump’s visit to Beijing most. UH is still unlikely. I think the biggest will probably be alone on the edges of the Apec meeting. But I think a personal encounter will be announced after this call and this is a big package. Because the rest is only to make everyone know that Trump is a view of the world.
02:37 Alicia Garcia-Harrero
And Tiktok is of course a large part of the story when Oracle is a leading type in this consortium. I think he will still play a role there. I don’t think that UH will accept full control by the United States. But this is something UH Trump’s definitely a bank and good news for this market.
03:00 Ramzan Karmali
And Alicia is very willing to focus on China’s tactics, especially Nvidia, and China is very willing to improve its own chips.
03:13 Alicia Garcia-Harrero
Yes, it’s interesting because you know, leaving Google’s probe, by the way, it’s very relevant because Google is not really available in China. By putting pressure on UM and Nvidia, in fact, it should be read as pressure for Nvidia to sell better GPUs, but you know, better than that, of course, the Trump administration is very reluctant.
03:47 Alicia Garcia-Harrero
I think it’s more than really stopping Nvidia. Also, for example, 10 cents, you know, you know, when they entered the last results that is really perfect, they made it very much more expensive for 10 cents where they had to get away from the NVIDIA H20, because they had to stack too much chip.
04:15 Alicia Garcia-Harrero
Therefore, it is not a good news for China UH technology companies to switch. And therefore, I think it’s really leverage, but somehow a poker game, if you see what I mean, nvidia is more than anything else.
04:31 Ramzan Karmali
But can this backfire in China? Nvidia made this agreement with Intel. Does this mean that maybe less chips are made in Taiwan?
04:41 Alicia Garcia-Harrero
Exactly, exactly. And in fact, of course, of course, we don’t hear a new factory in Beito north of Taipei from Nvidia, but we also heard that even Apple is thinking of building these bilateral phones in Taiwan. I mean, you know, this game continues, okay, you’re pushing me, I’m pushing you. So I think it is really important to see what is happening with China’s threat because it may not actually be successful.
05:13 Ramzan Karmali
So, there comes a very pessimistic. What is the best thing that investors can wait at the last point when all these trade negotiations end?
05:25 Alicia Garcia-Harrero
Again, I think the call is positive immediately after the call, because you know, the worst was already announced in Nvidia. I mean, China won’t say anything worse than what she’s already saying. And we can make a personal visit. So, you know, investors should cheer after this call. I think this is my, at least it will be my package for today.
