Traders are looking optimistically towards Trump & Xi Jinping’s bilateral meeting at the G20. The meeting will take place on Saturday morning local time, traders will react as the markets open on Sunday evening.
The fact that equity markets are trading higher across the board gives a fairly clear indication that investors are optimistic of some progress. Historically the odds are onside for a truce between the two powers, if the last G20 is anything to go by. The best-case scenario would be that the two sides call a truce removing the threat of any imminent tariff hikes, to continue talks. The markets have rallied hard in June, the danger lurks on the side of disappointment. With so much riding on a truce, failure by the world’s two biggest powers to achieve at the very least a pause in the trade dispute could open the door to all out trade war Armageddon. With US Presidential elections next year Trump has good reason to want to see an end to this.
Apple dives 1%
Whilst the broader US market moves higher Apple is slipping lower in early trade on news that Apple’s chief design officer will be leaving and is not being replaced. Jony Ive, who achieved almost god like status as the man responsible for the iPhone, iPad and iMac is leaving after nearly 30 years at the firm. The fact that Apple won’t be replacing Jony Ive and instead will have vice President of Industrial design and Vice President of human interface design reporting into an operations exec with no background in design is more than a little concerning. This goes against Apple’s design led ethos and could spell the end of an era for Apple. Its unlikely investors will let this one just slip by, even if it is the day before the Trump Xi Jinping meeting.