China-US Trade Talks Reach Consensus; Tencent Reveals R&D Progress; Strong Q3 Profit for Kangde; Key Week for US Stocks.

US-China Economic Talks in Kuala Lumpur

Overview of the Talks

On October 25-26, Chinese Vice Premier He Lifeng and US Treasury Secretary Janet Yellen, along with Trade Representative Katherine Tai, held economic discussions in Kuala Lumpur. The talks focused on key issues such as maritime logistics, shipbuilding measures, tariff extensions, fentanyl tariffs, enforcement cooperation, agricultural trade, and export controls.

Both sides reached a basic consensus on addressing mutual concerns and agreed to further define specific details while adhering to domestic approval processes.

Key Statements

He Lifeng emphasized that the essence of US-China economic relations is mutual benefit, stating that cooperation leads to benefits for both nations, while conflict harms both. He urged for respectful dialogue to resolve differences and maintain stable economic relations.

The US side acknowledged the significance of the US-China economic relationship and expressed willingness to resolve disputes through equal and respectful means.

Critical 48 Hours for US Stock Market

Upcoming Earnings Reports

The next two days are crucial for the US stock market, with major companies like Microsoft, Alphabet, Meta, Amazon, and Apple set to release their earnings reports. Investors are keen to understand their business conditions and outlook on AI developments.

New Tariff Investigations

Ahead of a meeting between Trump and Xi, the Trump administration has initiated a Section 301 investigation into China's compliance with the 2020 trade agreement, raising the possibility of new tariffs.

Impact of Government Shutdown on Economic Data

Inflation Data Concerns

The US government shutdown has entered its fourth week, potentially leading to the absence of inflation data next month, marking the first time in over 70 years. This could create uncertainty for the Federal Reserve in adjusting interest rates.

Federal Reserve Reforms Stress Tests

Transparency in Stress Tests

The Federal Reserve announced comprehensive reforms to its annual stress tests for large banks, aiming to increase transparency by making previously confidential models public. However, some officials expressed concerns that this could weaken the tests' credibility.

Economic Experts Urge Supreme Court Action

Call to Overturn Tariffs

Nearly 50 economists, including former Fed chairs Bernanke and Yellen, have urged the US Supreme Court to overturn Trump's tariffs, arguing they are based on misunderstandings of the global economy.

Trump's Upcoming Asia Trip

Trade and Peace Agreements

A senior US official indicated that during Trump's Asia trip, significant trade agreements, including those related to minerals, will be signed in Malaysia, with discussions on trade issues with Xi.

Cryptocurrency Developments

CFTC Chair Appointment

Trump has nominated Michael Selig to chair the Commodity Futures Trading Commission, focusing on aligning approaches to cryptocurrency regulation.

JPMorgan's Crypto Move

JPMorgan plans to allow institutional clients to use Bitcoin and Ethereum as collateral for loans by the end of the year, indicating a shift towards cryptocurrency integration.

Market Highlights

Stock Performance

The US stock market saw significant gains, with the Dow Jones surpassing 47,000 points for the first time. Major tech stocks like AMD and Nvidia also saw substantial increases.

Tesla Under Scrutiny

Tesla is facing inquiries from US regulators regarding its Full Self-Driving system after reports of unsafe driving behavior.

Conclusion

The upcoming days are pivotal for both US-China relations and the US stock market, with significant developments expected in trade agreements, economic data, and corporate earnings.