Tag Archives: G20

G20 attendees use facial biometrics to expedite check ins

Important Takeaways:

  • During the meeting, which took place on February 21 and 22, attendees were made to pass a biometric validation process by scanning their faces using Serpro’s stand devices, according to a post on the G20 website. Brazil currently holds the G20 presidency, which runs till the end of this year.
  • “This technology streamlines procedures by expediting personal validation, thus ensuring security through efficient monitoring,” says Alexandre Ávila, superintendent of Government Digital Customer Relations.
  • In the course of the recent meeting in Rio de Janeiro, national and international delegates, including journalists from local and foreign media outlets, performed facial scans to access restricted areas of the meeting venue.
  • Apart from the recent ministerial meeting, Serpro has the contract to deploy its facial recognition and other connectivity infrastructure in all of the about 130 scheduled G20 meetings under Brazil’s presidency, the government notes. The agency will also ensure safe management of the data of about 25,000 persons expected to attend these meetings from 30 countries in different venues.

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Find $75 billion to head off next pandemic, top panel tells G20

By Gavin Jones

VENICE (Reuters) – COVID-19 is probably only a forerunner of increasingly dangerous pandemics in the future and governments need to find $75 billion over the next 5 years to prepare for them, a panel of experts told finance ministers of the Group of 20 rich countries on Friday.

In a report to the G20 meeting in Venice the panel said the $15 bln per year of investments it recommended doubled current spending levels but was “negligible” compared with the costs of another major outbreak of a new contagious illness.

“The economic case for these additional investments is overwhelming,” said former U.S. Treasury Secretary Lawrence Summers, who co-chaired the 23-member panel along with World Trade Organization Chief Ngozi Okonjo-Iweala and Singapore’s former finance minister, Tharman Shanmugaratnam.

Summers told Reuters in an interview he was “guardedly optimistic” its recommendations would be implemented and said “we won’t be reluctant to speak out” if they are not.

“Spending tens of billions of dollars could save tens of trillions,” he said.

To plug “major gaps” in pandemic preparedness, the panel identified four main areas for action: infectious disease surveillance, resilience of national health systems, supply and delivery of vaccines and other medicines, and global governance.

The report, titled “Global deal for a pandemic age”, called for the creation of a $10 bln annual Global Health Threats Fund, plus $5 bln to strengthen the World Health Organization and create dedicated pandemic facilities at the World Bank and multilateral development banks.

In addition, low and middle-income income countries would need to add about 1% of gross domestic product to public spending on health over the next five years, it said.

“Achieving safety from pandemics will require a basic shift in thinking about international cooperation,” said Shanmugaratnam. “It is the ultimate case for both national self-interest and international solidarity at the same time.”

The panel was set up in January and includes prominent names such as former European Central Bank chief Jean-Claude Trichet, Ana Botin, executive chairman of the Santander group, and Guntram Wolff, head of the Bruegel think-tank.

The G20, chaired this year by Italy, will consider its recommendations in the lead up to a joint finance and health ministers’ meeting in October.

Okonjo-Iweala told Reuters the finance ministers had been “generally very positive” about the report and she was confident it would be taken forward.

(Editing by Giles Elgood)

G20 to show united front on support for global economic recovery, cash for IMF

By Michael Nienaber and Andrea Shalal

BERLIN/WASHINGTON/ROME (Reuters) – The world’s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund’s resources so it can help poorer countries fight off the effects of the pandemic.

Finance ministers and central bank governors of the world’s top 20 economies, called the G20, held a video-conference on Friday. The global response to the economic havoc wreaked by the coronavirus was at top of the agenda.

In the first comments by a participating policymaker, the European Union’s economics commissioner Paolo Gentiloni said the meeting had been “good,” with consensus on the need for a common effort on global COVID vaccinations.

“Avoid premature withdrawal of supportive fiscal policy” and “progress towards agreement on digital and minimal taxation” he said in a Tweet, signaling other areas of apparent accord.

A news conference by Italy, which holds the annual G20 presidency, is scheduled for 17.15  (1615 GMT).

The meeting comes as the United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies going despite COVID-19 lockdowns.

But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain.

German Finance Minister Olaf Scholz warned earlier on Friday that recovery was taking longer than expected and it was too early to roll back support.

“Contrary to what had been hoped for, we cannot speak of a full recovery yet. For us in the G20 talks, the central task remains to lead our countries through the severe crisis,” Scholz told reporters ahead of the virtual meeting.

“We must not scale back the support programs too early and too quickly. That’s what I’m also going to campaign for among my G20 colleagues today,” he said.

BIDEN DEBUT

Hopes for constructive discussions at the meeting are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, became U.S. president.

While the IMF sees the U.S. economy returning to pre-crisis levels at the end of this year, it may take Europe until the middle of 2022 to reach that point.

The recovery is fragile elsewhere too – factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, and in Japan fourth quarter growth slowed from the previous quarter with new lockdowns clouding the outlook.

“The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy,” a G20 official said.

But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF — the global lender of last resort.

To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF’s own currency called the Special Drawing Rights (SDR), but the idea was blocked by then U.S. President Donald Trump.

Scholz said the change of administration in Washington on Jan. 20 improved the prospects for more IMF resources. He pointed to a letter sent by U.S. Treasury Secretary Janet Yellen to G20 colleagues on Thursday, which he described as a positive sign also for efforts to reform global tax rules.

Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation of IMF resources, of $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now.

The G20 may also agree to extend a suspension of debt servicing for poorest countries by another six months.

($1 = 0.8254 euros)

(Reporting by Michael Nienaber in Berlin, Jan Strupczewski in Brussels and Gavin Jones in Rome; Andrea Shalal and David Lawder in Washington; Editing by Daniel Wallis, Susan Fenton and Crispian Balmer)

Coronavirus poses risks to fragile recovery in global economy: IMF

By Andrea Shalal

WASHINGTON (Reuters) – The coronavirus epidemic has already disrupted economic growth in China and a further spread to other countries could derail a “highly fragile” projected recovery in the global economy in 2020, the International Monetary Fund warned on Wednesday.

In a note prepared for G20 finance ministers and central bankers, the global lender mapped out a plethora of risks facing the global economy, including the fast-spreading coronavirus and a renewed spike in U.S.-China trade tensions, as well as climate-related natural disasters.

Finance ministers and central bankers from the top 20 advanced industrialized economies will gather in Riyadh, Saudi Arabia, later this week amid continued uncertainty about the impact of the coronavirus, known as COVID-19.

The IMF said it was sticking to its January forecast for 3.3% growth in the global economy this year, up from 2.9% in 2019, already a downward revision of 0.1 percentage points from its forecast in October.

But it said the recovery would be shallow and risks remained skewed to the downside. “The recovery could be derailed by a sharp rise in risk premia, triggered for example by a re-escalation of trade tensions, or a further spread of the coronavirus,” the Fund said.

Chinese state television quoted President Xi Jinping as saying China could still meet its economic growth target for 2020 despite the epidemic. But the IMF note cast doubt on that.

“The coronavirus, a human tragedy, is disrupting economic activity in China as production has been halted and mobility around affected regions limited,” the Fund wrote in the note. “Spillovers to other countries are likely — for example through tourism, supply chain linkages, and commodity price effects.

It said the impact of the virus was still unfolding, and while the current scenario assumed a quick containment of the virus and a bounce-back later in the year, the impact of the epidemic could be larger and longer-lasting.

“A wider and more protracted outbreak or lingering uncertainty about contagion could intensify supply chain disruptions and depress confidence more persistently, making the global impact more severe,” the Fund said in the note.

Cyber attacks, an escalation of geopolitical tensions in the Middle East or a breakdown in trade negotiations between China and the United States could also impede the short-term global recovery, it said. And climate-related disasters, rising protectionism and social and political unrest triggered by persistent inequality posed further economic risks.

The Fund urged policymakers to maintain fiscal and monetary policy support. Low inflation required monetary policy to stay accommodative in most economies, it said.

(Reporting by Andrea Shalal; Editing by Tom Brown)

Trump to Putin: Please don’t meddle in U.S. elections

Russia's President Vladimir Putin and U.S. President Donald Trump talk during a bilateral meeting at the G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kevin Lamarque

By Roberta Rampton

OSAKA (Reuters) – President Donald Trump on Friday sardonically asked his Russian counterpart to please not meddle in U.S. elections, appearing to make light of a scandal that led to an investigation of his campaign’s contact with the Kremlin during 2016 elections.

A two-year investigation into a Moscow-run influence campaign during the election has hung over Trump’s presidency, frustrating the Republican president who has said he seeks better relations with Russia.

Trump and Russian President Vladimir Putin were speaking to reporters in Osaka, Japan, ahead of their first formal face-to-face meeting since a controversial high-profile summit in Helsinki last July.

Asked by reporters whether he would raise the issue during their meeting, held on the sidelines of a Group of 20 (G20) summit, Trump said: “Yes, of course I will,” drawing a laugh from Putin.

Trump then turned to Putin to give the directive twice, as he pointed a finger at the Russian leader.

“Don’t meddle in the election, please,” Trump said.

Trump’s critics have accused him of being too friendly with Putin and castigated him for failing to publicly confront the Russian leader in Helsinki after U.S. intelligence agencies concluded that Russian operatives had hacked into Democratic Party computers and used fake social media accounts to attack his opponent, Democratic candidate Hillary Clinton.

A U.S. special counsel, Robert Mueller, spent two years investigating whether there were any ties between Trump’s campaign and Moscow.

Mueller found that Russia did meddle in the election but found no evidence that the Trump campaign illegally conspired with it to influence the vote.

‘POSITIVE THINGS’

Relations between the two countries have been sour for years, worsening after Russia annexed Crimea from Ukraine in 2014 and backed Syrian President Bashar al-Assad in the Syrian war.

In a recent television interview, Putin said that relations between Moscow and Washington were “getting worse and worse.”

Trump has sought to turn the page to work with Putin on issues such as reining in North Korea’s nuclear ambitions. On Friday, he emphasized the positive.

“It’s a great honor to be with President Putin,” he told reporters. “We have many things to discuss, including trade and including some disarmament.”

Trump and Putin had been scheduled to meet at the end of November at the last G20 in Buenos Aires, but Trump canceled the meeting as he flew to Argentina, citing Russia’s seizure of Ukrainian navy ships and sailors. The two spoke informally at the event, and at a lunch in Paris earlier that month.

In May, they had their first extensive phone conversation in months. Trump said they talked about a new accord to limit nuclear arms that could eventually include China.

“We’ve had great meetings. We’ve had a very, very good relationship,” Trump said on Friday. “And we look forward to spending some very good time together. A lot of very positive things going to come out of the relationship.”

In a further attempt to lighten the mood, Trump sought common ground with Putin at the expense of the journalists gathered to catch the leaders at the outset of their meeting.

“Get rid of them. Fake news is a great term, isn’t it? You don’t have this problem in Russia but we do,” Trump said.

To which Putin responded, in English: “We also have. It’s the same.”

(Additional reporting Maria Vasilyeva in MOSCOW; Writing by Chang-Ran Kim; Editing by Clarence Fernandez, Robert Birsel)

Trump prepares for ‘productive’ talks with Xi on trade war

Japan's Prime Minister Shinzo Abe is flanked by U.S. President Donald Trump and China's President Xi Jinping during a meeting at the G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kevin Lamarque

By Roberta Rampton

OSAKA (Reuters) – U.S. President Donald Trump on Friday said he hoped for productive talks with Chinese President Xi Jinping on a trade war that is casting a shadow on global growth, but said he had not made any promises about a reprieve from escalating tariffs.

The trade feud and signs of a global slowdown have loomed over a two-day Group of 20 (G20) summit in the Japanese city of Osaka, where Trump and Xi met in passing and prepared for one-on-one talks on Saturday.

To lay the groundwork, Chinese Vice Premier Liu He met Trump’s treasury secretary, Steven Mnuchin, and Trade Representative Robert Lighthizer at the hotel where the U.S. delegation was staying, a source familiar with the talks said.

Expectations have dimmed that the world’s two biggest economies can ease tension when Trump and Xi meet.

“At a minimum it will be productive. We’ll see what happens and what comes out of it,” Trump told reporters after a series of meetings with leaders where he made clear that his priority was two-way trade deals to boost the U.S. economy.

Asked, however, if he had promised Xi a six-month reprieve on imposing new tariffs on a $300 billion list of Chinese imports, Trump said: “No.”

Trump has already imposed tariffs on $250 billion of Chinese imports and is threatening to extend those to another $300 billion of goods, effectively everything China exports to the United States. China has retaliated with tariffs on U.S. imports.

Asian shares stumbled and gold slipped on Friday, as doubts grew that the highly anticipated meeting between the two leaders would bring progress.

In Beijing, foreign ministry spokesman Geng Shuang said he hoped the U.S. side could meet China halfway.

“This accords with the interests of both countries and is what the international community is hoping for,” he told a news briefing.

China has consistently pushed back against criticism from Western countries, especially the United States and European Union, about things like intellectual property rights and the difficulty of doing business in China.

“China’s promise to expand its opening up is not just a cheque that can’t be cashed,” Xi told German Chancellor Angela Merkel at a side meeting in Osaka.

THREAT TO GLOBAL GROWTH

Trump’s administration also has trade feuds with India, Japan and Germany, whose leaders he met on Friday.

Trump said he saw U.S. trade prospects improving, days after criticizing the U.S.-Japan security treaty and demanding that India withdraw retaliatory tariffs.

“I think we’re going to have some very big things to announce. Very big trade deal,” Trump said before he began talks with Indian Prime Minister Narendra Modi. He gave no details.

A White House official said the two leaders had called on their teams to work on mutually beneficial trade solutions.

Trump also made a push to discuss U.S. concerns about Chinese telecoms equipment maker Huawei.

The United States has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds, and it has also suggested it could be a factor in a trade deal with Xi.

“We actually sell Huawei many of its parts,” Trump said at his meeting with Modi. “So we’re going to be discussing that and also how India fits in. And we’ll be discussing Huawei.”

Several leaders warned that the growing Sino-U.S. trade friction was threatening global growth.

“The trade relations between China and the United States are difficult, they are contributing to the slowdown of the global economy,” European Commission President Jean-Claude Juncker told a news conference.

Xi also warned about the protectionist steps he said some developed countries were taking.

“All this is destroying the global trade order … This also impacts common interests of our countries, overshadows peace and stability worldwide,” Xi told a gathering of leaders of the BRICS grouping on the sidelines of the G20.

Japanese Prime Minister Shinzo Abe, other leaders and delegates attend a family photo session at G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kim Kyung-Hoon/Pool

Japanese Prime Minister Shinzo Abe, other leaders and delegates attend a family photo session at G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kim Kyung-Hoon/Pool

REFORMING WORLD TRADE RULES

Modi, at the same meeting, called for a focus on reforming the World Trade Organization (WTO) and Russian President Vladimir Putin decried what he called efforts to destroy the Geneva-based body.

“We consider counter-productive any attempts to destroy WTO or to lower its role,” Putin said.

The situation of the global economy was worrying, as trade felt the effect of “protectionism (and) politically motivated restrictions”, he added.

Russian Economy Minister Maxim Oreshkin said there was no agreement on how to reform the WTO system, whose rules Washington believes are outdated, though a Japanese official said G20 members agreed on the importance of reform.

The G20 leaders were also struggling to find common ground on issues such as information security, climate change and migration, said Svetlana Lukash, a Russian official helping to coordinate the meetings.

A White House official took a more positive view, saying there was a “good sense of unity in the room” between most leaders on working together on economic issues.

“China was less positive in its outlook which was in stark contrast to basically everybody else,” said the official, who spoke on condition of anonymity.

Trump, who often castigates trading partners on Twitter and at raucous political rallies, put a positive spin on trade developments.

“I appreciate the fact that you’re sending many automobile companies into Michigan and Ohio and Pennsylvania and North Carolina,” Trump told Japanese Prime Minister Shinzo Abe, who had presented him with a map showing the locations of Japanese auto investments in the United States.

Abe urged G20 leaders to send a strong message in support of free and fair trade, warning that trade and geopolitical tensions were rising and downside risks to the global economy prevailed. He also said he wanted to see momentum toward WTO reform.

Japanese and U.S. officials will meet next month to accelerate progress toward a trade deal, Economy Minister Toshimitsu Motegi told reporters after meeting Lighthizer, but added that they did not discuss a target date.

(Additional reporting by Leika Kihara, Kiyoshi Takenaka and Katya Golubkova; Additional reporting by Ben Blanchard in BEIJING; Writing by Linda Sieg in Tokyo; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

Fresh protests hit Hong Kong as activists seek voice at G20

Demonstrators protest outside police headquarters, demanding Hong Kong's leaders to step down and withdraw the extradition bill, in Hong Kong, China June 26, 2019. REUTERS/Tyrone Si

By Jessie Pang and Vivam Tong

HONG KONG (Reuters) – Protesters in Hong Kong blocked roads and forced workers to leave the justice secretary’s offices on Thursday in the latest unrest to rock the city over an extradition bill that has now been suspended.

Millions have thronged the streets in the past three weeks to demand that the bill, which would allow criminal suspects to be sent to mainland China for trial in courts controlled by the Chinese Communist Party, be scrapped altogether.

“You know what everybody has deep in their hearts – is that this is about our future and it’s very very personal,” said 53-year-old Brian Kern, who was attending the protests.

In sweltering heat of 32 degrees C (89.6F), some protesters chanted, “Withdraw evil law, release martyrs…Teresa Cheng, come out,” referring to the justice secretary. Others shouted, “Condemn excessive force by police and release protesters.”

Police formed a cordon to block the demonstrators and one officer held a banner warning them away. Minor scuffles broke out between pro-democracy group Demosisto and officers.

“Fight for Justice”, “Free Hong Kong,” and “Democracy Now” were some of the demands emblazoned on protest banners.

Police chief Stephen Lo warned of consequences for outbreaks of violence and condemned what he said was an environment of hostility making his officers’ task difficult.

BATON CHARGE

In the early hours, riot police wielding batons and shields chased dozens of protesters as they broke up a siege of police headquarters. By nightfall on Thursday, only around 200 protesters remained. Black-clad and masked, they sat peacefully outside government headquarters.

The demonstrators have seized on this week’s G20 summit of world leaders in Japan to appeal for Hong Kong’s plight to be put on the agenda, a move certain to rile Beijing, which has vowed not to tolerate such discussion.

“We know that the G20 is coming. We want to grasp this opportunity to voice for ourselves,” said Jack Cool Tsang, 30, a theater technician who took a day off work to protest.

Images of police firing rubber bullets and tear gas beneath gleaming skyscrapers this month near the heart of the financial center grabbed global headlines and drew condemnation from international rights groups and protest organizers.

Hong Kong chief executive Carrie Lam, who has kept a low profile since her latest public apology over a week ago, bowed to public pressure and suspended the bill a day after the violent protests but stopped short of canceling the measure outright and rejected repeated calls to step down.

Opponents of the extradition bill fear being placed at the mercy of a justice system rights group say is plagued by torture, forced confessions and arbitrary detentions.

The demonstrations, which pose the greatest popular challenge to Chinese President Xi Jinping since he took power in 2012, have repeatedly forced the temporary closure of government offices, blocked major roads and caused massive disruptions.

Since Hong Kong returned to Chinese rule in 1997, it has been governed under a “one country, two systems” formula that allows freedoms not enjoyed in mainland China, including the liberty to protest and an independent judiciary.

But many accuse China of increased meddling over the years, by obstructing democratic reform, interfering with elections, suppressing young activists, as well as being behind the disappearance of five Hong Kong-based booksellers who specialized in works critical of Chinese leaders.

LAM VOICES SUPPORT FOR POLICE

ay, a Hong Kong government statement said Lam had met senior police officers to express thanks for their dedication during the protests and gave them her full support to maintain law and order in the city.

“She said she understands that members of the force and their family members have been put under pressure and that a small number of people even provoked the police intentionally, which is not acceptable,” the statement said.

Lam also met representatives in the education and religious sectors, senior civil servants as well as foreign consuls to exchange views on the “current social situation,” it said.

(Reporting By Vimvam Tong, Jessie Pang, Delfina Wentzel, Donny Kwok and Noah Sin; Writing by Anne Marie Roantree and Farah Master; Editing by Clarence Fernandez and Mark Hienrich)

U.S. aims to restart China trade talks, will not accept conditions on tariff use

By Jeff Mason

WASHINGTON (Reuters) – The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday, but Washington will not accept any conditions around the U.S. use of tariffs in the dispute, a senior administration official said on Tuesday.

Trump has threatened to impose tariffs on another $325 billion of goods, covering nearly all the remaining Chinese imports into the United States – including consumer products such as cellphones, computers and clothing – if the meeting with Xi produces no progress in resolving a host of U.S. complaints around the way China does business.

The two sides could agree not to impose new tariffs as a goodwill gesture to get negotiations going, the official said, but he said it was unclear if that would happen.

The United States was not willing to come to the Xi meeting with concessions, said the official, who spoke on the condition of anonymity. Washington wants Beijing to come back the table with the promises it withdrew before talks broke down, he said.

China has shown no softening in its position and said on Monday that both sides should make compromises in the trade talks and that a trade deal has to be beneficial for both countries.

The back-and-forth set up what could prove to be a tricky meeting between Trump and Xi at the Group of 20 summit meeting in Osaka. The session will be the first time they have met since trade talks between the world’s two largest economies broke down in May, when the United States accused China of reneging on reform pledges it made.

Chinese Vice Premier Liu He, who has led trade talks for Beijing, held a phone conversation with his counterparts, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin, on Monday, according to China’s Ministry of Commerce. The three men are helping to pave the way for talks between the leaders later this week.

Expectations for that meeting so far appear to be low. The best-case scenario would be a resumption of official talks, which could ease fears in financial markets that the already long trade dispute might continue indefinitely. The fears have pummeled global markets and hurt the world economy.

Trump advisers have said no trade deal is expected at the meeting but they hope to create a path forward for talks. Once negotiations resume, they could take months or even years to complete, the senior Trump administration official said, with some parts agreed early and others needing more time.

A resumption of negotiations could put that threat of further tariffs on hold, at least for now.

But if Trump sees no progress and decides to raise tariffs, the relationship between the world’s two largest economies would deteriorate further.

“I think if they go with the tariffs, the trade talks are dead. Period,” said one person familiar with the talks.

The United States has made clear it wants China to go back to the position it held in a draft trade agreement that was nearly completed before Beijing balked at some of its terms, particularly requirements to change its laws on key issues.

Beijing wants the United States to lift tariffs, while Washington wants China to change a series of practices including on intellectual property and requirements that U.S. companies share their technology with Chinese companies in order to do business there.

As part of the trade war, Washington has already imposed 25% tariffs on $250 billion of Chinese goods, ranging from semi-conductors to furniture, that are imported to the United States.

PRESSURE BUILDING

The president has spoken optimistically about the chances of a deal.

The administration official said rounds of meetings between top trade officials from both countries likely would begin again after the G20 summit. He noted that although the vice premier still led China’s trade delegation, new names had been added to the list who could be hard-liners.

The official said Trump and Xi were unlikely to get into the fine details of the draft trade pact, although the case of Chinese tech giant Huawei Technologies Co may come up during talks.

Pressure on Huawei, which the U.S. government has labeled a security threat, has increased in recent days.

About a dozen rural U.S. telecom carriers that depend on Huawei for network gear are in discussions with its biggest rivals, Ericsson and Nokia, to replace their Chinese equipment, sources familiar with the matter said.

And the U.S.-based research arm of Huawei, Futurewei Technologies Inc, has moved to separate its operations from its corporate parent since the U.S government in May put Huawei on a trade blacklist, according to two people familiar with the matter.

Trump has indicated a willingness to include the Huawei issue in a trade deal, despite the national security implications cited by his advisers about the company. Meanwhile, U.S. parcel delivery firm FedEx Corp on Monday sued the U.S. government, saying it should not be held liable if it inadvertently shipped products that violated a Trump administration ban on exports to some Chinese companies.

The move came after FedEx reignited Chinese ire over its business practices when a package containing a Huawei phone sent to the United States was returned last week to its sender in Britain, in what FedEx said was an “operational error.”

(Reporting by Jeff Mason; additional reporting by Alexandra Alper, Jane Lanhee Lee, Tarmo Vikri, Andrew Galbraith and Angela Moon; editing by Simon Webb and Cynthia Osterman)

Putin: ready for Trump talks but U.S. elections could complicate ties

Russian President Vladimir Putin speaks during an annual nationwide televised phone-in show in Moscow, Russia June 20, 2019. Sputnik/Alexey Nikolsky/Kremlin via REUTERS

By Andrew Osborn and Maria Kiselyova

MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday he was ready to hold talks with Donald Trump if that was what his U.S. counterpart wanted, but added that Trump’s re-election campaign could complicate U.S.-Russia relations.

Trump has said he expects to meet Putin at a G20 summit in Osaka, Japan, next week, though Moscow has so far said it has yet to receive a formal invitation for such talks.

U.S.-Russia ties remain strained by everything from Syria to Ukraine and Venezuela, as well as by allegations of Russian interference in U.S. politics, which Moscow denies.

Putin said this month that relations between Moscow and Washington were getting worse and worse.

“Dialogue is always good, there’s always demand for it,” said Putin during his annual question-and-answer session when quizzed about talks with Trump.

“Sure, if the American side shows interest … we are ready for dialogue.”

The Russian leader said the two countries had a lot to talk about, including strategic nuclear stability. A landmark arms control treaty is coming up for renewal, while both sides have said they are quitting the 1987 Intermediate-range Nuclear Forces (INF) Treaty, stoking fears of a wider arms race.

Putin said Trump’s drive to win another presidential term might complicate the situation, however.

“We all understand and see what is going on in domestic politics in the United States,” said Putin. “Even if the president wants to take steps toward us, wants to talk about anything, there are a huge number of limitations.

“Even more so now as the current head of state will make all his statements with his election campaign in mind. He has already started the campaign, so everything will not be simple in our relations,” Putin said.

The Russian leader said talks, if they took place, could help re-establish what he called normal relations between Russia and the United States, including on the economy. He also said he wanted the two countries to talks about cyber security.

(Additional reporting by Elena Fabrichnaya, Tom Balmforth, Vladimir Soldatkin and Gabrielle Tetrault-Farber and Moscow Bureau; Writing by Andrew Osborn; Editing by Jon Boyle)

Trump-Xi trade armistice clears way for more market gains

FILE PHOTO: U.S. President Donald Trump and China's President Xi Jinping shake hands after making joint statements at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj/File Photo

By Jonathan Spicer and Lewis Krauskopf

NEW YORK (Reuters) – One of the darkest clouds hanging over Wall Street somewhat dissipated on the weekend when China and the United States agreed to shelve any new tariffs and reset discussions, at least temporarily halting an increase in their tensions over trade.

Investors said the agreement, lasting 90 days, between Chinese President Xi Jinping and U.S. President Donald Trump at the G20 summit, spelled a reprieve for stocks and could pave the way for a positive bookend to a volatile trading year.

U.S. stock index futures jumped as trading for the week began late on Sunday, with benchmark S&P 500 e-mini futures up 1.55 percent. Treasury futures were soft, suggesting an appetite for risk-taking could extend last week’s gains in the stock market.

The trade tension between Washington and Beijing, along with an uncertain outlook for U.S. rate hikes, have for months dogged prospects for equities. The U.S. pledge not to boost tariffs on $200 billion of Chinese goods could mark the most important deal in years between the world’s top two economies.

“It sets a pretty positive tone (and) stocks should have a decent rally into December,” said Nathan Thooft, Boston-based global head of asset allocation for Manulife Asset Management.

Thooft said he believed the Trump administration was using a threat to raise tariffs to 25 percent on Jan. 1, from 10 percent now as a negotiating tactic. “So when you start to see evidence that there is the ability to come to some type of agreement, that has to be viewed as a positive,” he said.

The stock market logged an official correction after a selloff in October and continued volatility in November that, just over a week ago, had left the benchmark S&P 500  stock index down 10 percent from its all-time high.

Markets rebounded last week on comments perceived as dovish from Federal Reserve Chair Jerome Powell, though the S&P was up only 2.4 percent in 2018.

The latest trade standoff began in September when the United States imposed the 10-percent tariffs, prompting China to respond with its own. Ahead of the leaders’ dinner in Argentina, investors had been bracing for a range of outcomes including a worse-case end to talks and more tit-for-tat measures that would have continued to crimp economic and corporate profit growth.

Instead, the Americans and Chinese officially lauded the result.

Beijing agreed to buy what the White House called a “very substantial” amount of agriculture, energy, industrial and other products. While the clock ticks on the 90-day tariff reprieve, the two sides will try to work out thorny issues including technology transfer, intellectual property and cyber theft.

“It’s not solved by any stretch of the imagination,” said Thooft. But risk assets and cyclical U.S. sectors like materials and industrials should benefit, he said on Sunday.

An initial jump late on Sunday of nearly 2 percent in Nasdaq 100 e-mini futures suggested that technology companies, many of which were hardest hit in the selloff, could rebound.

Gary Shapiro, CEO of the Consumer Technology Association, said he was encouraged by the trade talks and warned that raising tariffs to 25 percent as the White House had threatened “would likely hurt consumers, put several American companies out of business and displace thousands of American workers.”

POWELL TESTIMONY

Energy prices could also rebound on Monday since cooling trade tensions could boost the world economy and spur demand.

Oil prices had dropped from a four-year high of about $76 per barrel in early October to just above $50 on Friday. But U.S. crude oil was up 2.7 percent to $52.37 a barrel as of 6:07 p.m. EST (2307 GMT) on Sunday.

Aside from trade policy, Wall Street’s attention has also been trained on Fed policy.

Powell was scheduled to testify on Wednesday to a congressional Joint Economic Committee. But the hearing is expected to be postponed to Thursday because major exchanges will be closed on Wednesday in honor of former U.S. President George H.W. Bush, who died on Friday at the age of 94.

Last week, Powell backed the Fed’s gradual tightening but said its policy rate was “just below” a range of estimates of the so-called neutral level that neither stimulates nor cools growth. In response, stocks shot up and largely recovered November’s earlier losses.

In the wake of Powell’s speech, Nicholas Colas, co-founder of DataTrek Research, said: “what happens in Buenos Aires will determine if stocks post a positive 2018.”

The specter of a global trade war has hovered over the market since March when Trump announced tariffs on imported steel and aluminum. He also recently said the United States was studying auto tariffs, which could ripple through Europe and Japan, while a pact with Canada and Mexico left some investors heartened about potential progress with China.

Nancy Lazar, economist at research firm Cornerstone Macro, said in a note that the 90-day tariff delay and China’s “incremental concessions” are good news.

“But given the stern U.S. stance, we’re certainly not raising our outlook,” she said of a 2.8-percent growth estimate for the fourth quarter, still comfortably above potential.

With U.S. corporate leaders increasingly voicing concerns over rising costs associated with tariffs, Wall Street appeared set on Monday to welcome any development that eases those pressures.

(Reporting by Jonathan Spicer and Lewis Krauskopf; Editing by Grant McCool and Sandra Maler)