Huawei founder, Ren Zhengfei, spoke to the Associated Press
He also adds that he doesn’t want relief from US sanctions if it would require China to make concessions in a tariffs war, even if that means his daughter – who is under house arrest in Canada – faces a more prolonged legal battle.
With regards to yesterday’s announcement by the US on adding more of Huawei’s subsidiaries to the entity list, he says that:
“Whether the entity list is extended or not, that will not have a substantial impact on Huawei’s business. We can do well without relying on American companies.”
If there’s any takeaway from the message here is that China isn’t going to let up on fighting back against the US even if the sanctions and tariffs continue.
It goes without saying that the next plausible form of retaliation by China would be to limit US business opportunities in the country.
Anyway, the full interview above can be found here.
This largely mirrors sentiment seen in US futures, with E-minis up by around 0.1% to 0.2% currently as we begin the session. That said, Treasury yields are a little softer on the day and that’s weighing a little on yen pairs and the dollar so far.
Look towards the bond market again in the coming hours for more clues on where markets will settle later in the day. However, with little fresh developments on the trade front ahead of Jackson Hole, I reckon we may see some choppy action in the mean time.
Asian equities mildly higher after a better performance by Wall St overnight
Japanese stocks are among the better performers amid more flat risk sentiment on the day. Chinese equities are not really roaring despite talk of more policy support with the Shanghai Composite nearly unchanged on the session currently.
Looking ahead, European stocks should mirror sentiment seen in US futures – flat levels – so expect the focus to stay on the bond market if anything else. Treasury yields are holding mildly lower and that is keeping USD/JPY closer to 106.50 at the moment.