The highly anticipated meeting between President Trump and President Xi at the G-20 summit this weekend could lead to improved negotiations.
The drag on the economy from prolonged Trump induced tariffs and from reduced sentiment is expected to continue until a final deal is agreed.
If the talks fail and the trade war escalates, the world could be at risk of slipping in to a recession. It is expected there will be a positive announcement even without a full and final negotiated deal.
A negative outcome of the G-20 meeting between U.S. President Donald Trump and China President Xi Jinping is highly likely to adversely impact the course of markets and the global economy for the second half of the year.
The G-20 summit, hosted by Japan, will hopefully conclude with a ‘feel good’ moment for world markets, but the difficult issues in U.S. – Chinese trade talks are unlikely to be resolved at this G-20 meeting and tariffs are unlikely to end just yet. The issues are too complex and run too deep for a quick fix.
I think It is likely a framework for further negotiations will be announced over the weekend.