Cool Reception

The official Chinese response to “phase one” of a trade accord with the U.S. was wary but welcoming, underlining the reality that Beijing has few options but to play along with President Donald Trump if it wants to relieve some of the pressure on its slowing economy.  In fact, the official Chinese statement and the main state media didn’t refer to the outcome of the meetings as a “deal” at all. The nation received scant relief from U.S. tariff pressure, other than the waiving of a small increase in duties that had been scheduled for this week. In return though, China hasn’t had to give much away other than vague commitments on its currency and intellectual property-practices, plus the purchase of agricultural commodities that it needs anyway. “The mini deal is about the best that could have been expected,” according to Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors. But it hasn’t done much to lift the heavy cloud of economic gloom.

Neck Wounds

Continued violence in the streets of Hong Kong saw a police officer slashed in the neck during a confrontation with protesters over the weekend. Demonstrators spread out in 18 districts on Sunday in scattered, pop-up protests to pressure the government to meet their remaining demands, including the right to choose and elect their own leaders. Police said the officer was attacked with a “sharp-edged” object in a subway station, adding that authorities fired tear gas in several places to disperse crowds who were vandalizing shops and public facilities.

Hagibis Havoc

Rescue and cleanup operations are underway after the biggest storm to hit Japan in decades left deaths and destruction in the central and eastern parts of the country. At its peak, Typhoon Hagibis brought winds of up to 252 kilometers (157 miles) per hour. It moved away from Japan by Sunday morning. Hundreds of thousands of people were without power, and heavy rain destroyed river banks throughout Japan, leading to flooded homes and collapsed bridges. This photo gallery documents the destruction. Meanwhile, the economic impact from the storm has yet to be determined as companies were forced to suspend operations at stores and factories.

Advance to Markets

Asian stocks looked set to start the week with gains. Signs of progress in U.S.-China trade negotiations lifted American equities Friday and sent Treasury yields higher, though sentiment may be capped as investors voiced skepticism on the accord. Equity futures pointed higher across Asia, but Japan will be shut for a holiday. The yuan edged down after Friday’s advance. The pound retreated as European Union negotiators put another dent in Brexit optimism. Focus now turns to earnings season that begins with big U.S. banks including JPMorgan, Goldman Sachs and Morgan Stanley. Elsewhere, West Texas Intermediate crude gained 2.2% to $54.70 a barrel, and gold decreased 0.3% to $1,489.01 an ounce.

Not Good Enough

U.K. Prime Minister Boris Johnson told his Cabinet on Sunday that a Brexit deal can be achieved, but EU negotiators didn’t seem to agree: They rather bluntly warned that his plans are not yet good enough to be the basis for an agreement. That warning seemed to echo the mood in Brussels. Chief EU Brexit negotiator Michel Barnier briefed the bloc’s government envoys that talks had not made enough progress, according to two officials familiar with the matter. The British premier conceded that a significant amount of work is still required — but underscored that the U.K. must be prepared to leave the bloc at the end of the month. Still, even if he is able to come to agreement with his European counterparts, Johnson needs to ensure he has enough support to push it through the U.K. Parliament — support which he isn’t currently getting from the opposition Labour Party, the Liberal Democrats, Democratic Unionist Party or the Scottish National Party. Negotiations are due to continue into Monday.

What We’ve Been Reading

This is what’s caught our eye over the past 24 hours.

• Hunter Biden is stepping down from the board of a Chinese-backed private equity company.
• North Korea may be hiding a pig apocalypse from the world.
• Assad sends in troops as the Turkish offensive escalates.
• Is the world economy sliding into its first recession since 2009?
• The list of emerging-market worries is about as long as it’s been this year.
• Volkswagen is weighing up the options for Lamborghini.
• What happens when a vacuum company tries to make an electric car.