New measures to stimulate consumption; Phone calls; More "People's Leader", Yang Hengjun

There is still some confusion about whether or not the US and China had a meaningful phone call or calls beyond the technical, working level over the weekend to discuss trade issues, as President Trump claimed. No one seems to have a confirmation. Maybe one or more happened, but if it did not then the signal Trump gave to Beijing again is that he is very concerned about the stock market reaction to the trade war.

Trump’s constant berating of the US Fed chair to cut interest rates likely reaffirms the view that the US economy is weaker than he says it is and that the President is getting worried about his re-election prospects. Such views would harden Beijing’s resolve in thinking it can wait out Trump. I am not saying they are correct, just that it is another reason to believe the prospects for any near-term resolution that rely on material Chinese concessions are faint.

Speaking of weakening economies, the State Council has announced a new set of measures to stimulate consumption, inc…