Trump’s Hold Up
Donald Trump identified the main obstacle to a China trade accord: himself. “It’s me right now that’s holding up the deal,” the president said, accusing Beijing of backtracking on a potential agreement. “We had a deal with China and unless they go back to that deal I have no interest.” He still expects to meet with Xi Jinping at this month’s G-20 summit in Japan. China’s leader has a few good options after Trump’s ultimatum.
Hong Kong Walk Out
Hong Kong workers may walk off the job on Wednesday to protest extradition legislation under debate. Some employers are backing the action, and a group opposing the law is calling for a larger, general strike for June 17 if Chief Executive Carrie Lam doesn’t pull the bill. Disruptions could continue until at least June 20, when lawmakers are scheduled to cast a final vote. Here’s where Hong Kong and mainland China have extradition pacts, and here’s a QuickTake guide to the law.
Winning Streak Ends
Asian equities looked set to open mixed Wednesday after U.S. stocks halted a five-day winning streak. Treasuries drifted higher, with 10-year yields down one basis point. The dollar was mixed, losing ground against the pound and euro but rising against the kiwi. Oil was little changed ahead of inventory data and speculation on the outcome of a potential OPEC+ meeting in coming weeks.
India Loses Top Spot
India has held the crown of the world’s fastest-growing major economy until recently, but a new study by former Chief Economic Adviser Arvind Subramanian says the expansion was overestimated between 2011 and 2017. Rather than growing at about 7% a year in that period, growth was about 4.5%, according to the research paper, published by the Center for International Development at Harvard University. A growing number of critics have questioned India’s high growth estimates under PM Narendra Modi’s government.
Global carbon emissions jumped the most in seven years in 2018 as energy demand surged, according to BP’s annual review, indicating the world is falling behind in its efforts to rein in climate change. Primary demand rose at the fastest pace this decade last year even though economic growth weakened. China, India and the U.S. were responsible for two-thirds of the 2.9% gain in consumption.