Tags: north korea | china | nuclear weapon | economy

North Korea Seeks China's Help in Talks with US on Nuclear Weapons

North Korea Seeks China's Help in Talks with US on Nuclear Weapons
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Wednesday, 28 March 2018 06:47 AM Current | Bio | Archive

Overnight, the Xinhua News Agency, which is the official press agency of the People's Republic of China has informed that ‘at’ the invitation of China’s President Xi Jinping, North Korea’s supreme leader Kim Jung Un has paid an unofficial visit to China from Sunday to Wednesday in Beijing.

The Xinhua News Agency’s comments:

Mr. Kim said: “It is our consistent stand to be committed to denuclearization on the peninsula and that he is determined to transform the inter-Korean ties into a relationship of reconciliation and cooperation and hold summit between the heads of the two sides (North and South Korea), adding that he is willing to have dialogue with the United States and hold a summit of the two countries.”

China’s President Xi said that China sticks to the goal of denuclearization of the peninsula, safeguarding peace and stability on the peninsula and solving problems through dialogue and consultation and that will continue to play constructive role on the issue and work with all parties toward the thaw of the situation on the peninsula.

In clear English all this means that Mr. Kim is seeking to enlist Beijing’s influence to pressure the U.S. into taking a more flexible stance.

The White House said on Tuesday that it saw Mr. Kim’s visit to China as further evidence that the administration’s “campaign of maximum pressure is creating the appropriate atmosphere for dialogue with North Korea.”

Anyway, markets have not really reacted to the news, which is understandable as markets did not really react to the escalation of tensions, and it’s unlikely that markets will react to the current signs of reduced tensions.

This sort of geopolitics is generally ignored as the extreme tail risks are not something that financial markets care to contemplate.

The market impact from the news overnight is likely to be felt only very indirectly in as much as it affects politics in the United States ahead of the mid-term elections.

Besides that, today is once again a relatively thin day for economic news.

Meanwhile, the the Bureau of Economic Analysis (BEA) will reveal today the 3rd revision of GDP growth in 2017 and Q4 of 2017, which of course will not be the final revision. There will be still many and possibly substantial revisions to come.

Financial markets tend to pay less attention to revised data than to the initial data release.
Nevertheless, today’s revision will come with some interesting details like the personal consumer expenditure (PCE) deflater, which will have a bearing on Fed policy and that detail will attract some attention from the markets.

Besides that, speaking at the HOPE Global Forums 2018 Annual Meeting, Atlanta Fed President Bostic had a short message for the audience that was good part younger entrepreneurs who have been the demographic that has tended to buy into the cryptocurrency bubble like Bitcoin saying: “Avoid! Don’t do it. They are speculative markets. They are not currency. If you have money you really need, do not put it in these markets.”

In January, Chicago Fed President Charles Evans said bitcoin is “not money-like at the moment,’’ adding “you’re swimming with all the sharks in the world because of all the anonymity.’’

The Atlanta Fed’s President Bostic is the latest in a long list of people who know what they are talking about in decrying the cryptocurrency bubble, which has done a fairly decent job of deflating over the first quarter of this year as cryptocurrency assets in total have roughly halved in value over the past 3 months, hereby accomplishing the wealth transfer from the crypto fanatics to the small number of bubble sellers.

However, belief in Bitcoin requires a near blind faith for believing in it as an investing vehicle with great potential, but it is unlikely that comments from sensible economists will stop the enthusiasm of the Bitcoin believers.

Finally, and similar to the Federal Reserve’s beige book, the Bank of England (BoE) Agent’s survey that just came out gave interesting elements for investors to know about how the UK economy was faring in Q1 in the wake of the “Long goodbye” from the European Union (EU) with the transition deal now clearly making progress.

The key findings are:

• Robust growth in goods exports had tightened capacity and, together with improving profit margins, strengthened investment intentions in manufacturing slightly.
• Recruitment difficulties remained a primary concern, though the impact on pay growth had been limited.
• Some evidence of financial distress in retail and leisure, reflecting weak consumer spending growth.

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Overnight, the Xinhua News Agency, which is the official press agency of the People's Republic of China has informed that 'at' the invitation of China's President Xi Jinping, North Korea's supreme leader Kim Jung Un has paid an unofficial visit to China from Sunday to...
north korea, china, nuclear weapon, economy
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2018-47-28
Wednesday, 28 March 2018 06:47 AM
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