By coinnews 
00:00 Speaker A
US officials will meet this weekend with their Chinese counterparts in the first known talks between the two nations since widespread tariffs were announced. The meeting comes just after President Trump unveiled the trade deal framework with the UK. Trump teasing a quote many trade deals are in the hopper on Truth Social this Friday morning. But our next guest flagging three reasons not to get too excited about the prospect for more deals. Let’s bring in Charles Myers. He’s Signum Global Advisors chairman and CEO. Charles, it’s great to have you here. Just talk to me about the biggest thing to watch when it comes to these China deals, especially off the back of that UK framework. Does that make you a little bit more cautious about the likelihood of us getting some hyper optimistic deal with China that can make investors pretty optimistic on Monday?
01:31 Charles Myers
Well, I think first, um, you know, the White House has created, I think an expectation that there may be some major breakthrough with China this weekend in the talks in Geneva. And I think, you know, this is that we may get a few positive headlines on we’re making some progress. But any deal with China is going to take months if not even a year to get done. Um, I think the good news though, and what’s being discounted in the markets in in in in a positive way is that there has been progress on trade. I think the UK trade deal is certainly a sign of that. And I think that most of the news on trade incrementally from here is net positive. Uh, again, it’s going to take longer to get to some of these deals, but I think that the markets have been right to be a bit more optimistic on the direction of travel, uh, of the negotiations broadly and progress being made with several countries.
02:53 Speaker A
I’m interested in that, Charles, because we were just speaking with another guest who said maybe the market is already pricing in trade deals before we even get them. To what extent are you concerned that investors are trading on something that hasn’t even happened yet? And to your point could take a lot of time.
03:18 Charles Myers
Yeah, look, I think that, uh, you know, for the market sold off so aggressively on liberation day and with the announcement, the the the, you know, president and the White House then had to do probably one of the biggest climb downs or U-turns within 13 hours of the tariffs going into effect, primarily because of the bond market. You know, the put, the Trump put is in the bond market. It’s the 10-year and the 10-year yield. It’s not in the equity market. But everyone went so bearish. Uh, and I think that, um, I think what was underestimated was in fact how serious, uh, this White House is and Scott Besant also is at really making some progress on trade from here. So while it will take longer perhaps, I still think the direction of travel is positive. And secondly, we can now pivot to the next big story in the markets, which is tax cuts and deregulation. Uh, so again, I think people were just too bearish. I also think people were far too bearish on the the risk of recession.
04:48 Speaker A
There’s also the spin that we’re going to hear from all countries that are negotiating deals. Who who needs a deal more between the US and China right now from from your analysis?
05:05 Charles Myers
Uh, well, I think the United States really needs it. The US is on the back foot, uh, on this, uh, given the amount that we import from China with tariffs at 145% or 85, wherever, you know, wherever we land, even in the short term is incredibly painful for the United States, both for inflation, for supply chain disruption, uh, and for recession risk. So I would say that it’s very much in the interest of this White House to get at least, uh, to get to de-escalation with China, uh, if not working towards the framework of a deal.