North Korean dictator says will withdraw South Korean facilities from Mount Kumgang Tourist Region

Mount Kumgang Tourist Region is a special administrative region of North Korea.

Popular with South Korean tourists.
Tensions between North and South have re-exscalated recently, this a response from Kim Jong Un. Adds that SK visitors are still welcome.

FT report that China is drawing up plan to replace Carrie Lam as Hong Kong chief

Financial Times with the report

  • Chinese government is drawing up a plan to replace Carrie Lam
  • with an “interim” chief executive
  • Xi Jinping, China’s president, will make the decision
  • if he agrees, Lam would be replaced by March 2020, cover the remainder of her term, which ends in 2022.
FT link (may be gated)

White House says reports of one day trade talks are incorrect

USD/JPY retracing some if its earlier losses

  • White House says SCMP report is inaccurate.
  •  “We are not aware of a change in the Vice Premier’s travel plans at this time.”
  • Senior admin official says Liu still scheduled to depart Friday evening, and dinner is on for the delegation Thursday evening in DC.
The cynics amongst us might think that once this White House denies something then that is confirmation ….
  • US official asked if to expect a breakthrough in the trade talks, says Trump has not made up his mind

HK press says US-China talks are expected to last for only one day! No progress made.

South China Morning Post with the piece saying:

  • US and China make no progress on key trade issues in two days of deputy-level talks, sources say
  • The Chinese delegation refuses to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says
  • High-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday
Risk off on this news.
And yen, gold positive

China reportedly may restrict visas for US visitors with anti-China links

Reuters reports

The report cites people with knowledge of the proposed curbs, saying that China is planning tighter visa restrictions for US nationals with ties to anti-China groups.
The proposed move is said to be in the works “for months” already but you can’t help but think that the timing of this leak is a bit ‘convenient’ after US actions this week.
The dollar has inched lower over the past few minutes with cable recovering from 1.2200 to 1.2235 while EUR/USD is up to session highs of 1.0983 currently.
I don’t see this report as being a significant game changer ahead of trade talks but perhaps it is leading to some jitters among weak hands in what has been a quiet session so far.

Hong Kong leader Lam says cannot say under what circumstances she’d call on China central government

Hong Kong leader Carrie Lam comments from press conference.

  • says there is no bottom line for protesters’ violent acts
  • says amount of visitors during ‘golden week’ fell by 50%
  • appeals to developers and landlords to offer relief to retailers
  • says aims for fair district elections, although current atmosphere is complex
  • says an objective of the anti-mask law is to let youth know not to participate in these political actions
  • she has no plans to use the emergency regulation ordnance for introduction of other laws
  • it is still too early to say if the anti-mask law is ineffective
  • using the emergency powers was a very difficult decision
  • anti-mask law still valid and effective at this time
  • upcoming policy address will not be the “usual comprehensive” address
  • says there is widespread support for the anti-mask law
  • says no foreign government should think these are peaceful protests
  • says believes Q3 economic figures will surely be very bad
  • she did not meet any central govt officials to talk about business while in Beijing for national day holiday
  • says she still feels HK should find solutions on its own, and central govt holds same view
  •  says cannot say under what circumstances Hong Kong would call on central govt

The HKD is on the weak side, but not threatening the band as yet:

Hong Kong leader Carrie Lam comments from press conference. 

US-North Korea nuclear talks break down: Pyongyang envoy

Nuclear talks between North Korea and the U.S. in Stockholm have ended less than 24 hours after they began, Pyongyang’s lead negotiator said Saturday, a claim that was quickly disputed by Washington.

The working-level negotiations “have not fulfilled our expectation and finally broke off,” said Kim Myong Gil as reported by Reuters.

“The U.S. raised expectations by offering suggestions like a flexible approach,” Kim said. “But they have disappointed us greatly and dampened our enthusiasm for negotiation by bringing nothing to the negotiating table.”

The U.S. struck a more positive note, with the State Department saying the North Korean delegation’s comments “do not reflect the content or the spirit of today’s 8 1/2 hour discussion.”

“The U.S. brought creative ideas and had good discussions” with its North Korean counterparts, the state department said in a statement after Kim spoke. The U.S. delegation accepted an invitation by Sweden “to return to Stockholm to meet again in two weeks.”

Delegations from the two countries had convened on the outskirts of the Swedish capital to address North Korea’s denuclearization. The U.S. negotiating team is led by Stephen Biegun, special representative for North Korea. This marked the first direct talks since U.S. President Donald Trump and North Korean leader Kim Jong Un met at the Demilitarized Zone between North and South Korea in late June. Continue reading »

China’s Global Times says China will not interfere in the internal affairs of the US

Via China’s very popular Global Times:

  • US President Trump and Democrats are engaged in a fierce political fight over Trump’s soliciting other nations to investigate Joe Biden.
  • “China will not interfere in the internal affairs of the US, and we trust that the American people will be able to sort out their own problems,” China’s Foreign Minister Wang Yi said.
Via China's very popular Global Times:

North Korean state media on yesterday’s missile test – self-defence

KCNA say the submarine launched ballistic missile (SLBM) launched on 2 October 2019 is:

  • to contain outside forces threat and bolster military self-defence
One thing is for sure – expect more!
kim deal