Publications

The Financial Times reports that President Trump has lowered expectations of a potential new round of trade negotiations with China. Although Treasury Secretary Mnuchin has reached out to his Chinese counterparts to open trade dialogue again, President Trump says that the U.S. feels no pressure to make a deal because U.S. markets are surging and China’s markets are collapsing. FT

The Financial Times reports that new survey data show that three in five U.S. companies operating in China have already been hurt by the trade conflict between the two nations. One in three companies also report that they are considering relocating China-based manufacturing due to the tariffs. FT

According to the Wall Street Journal, the Trump administration is asking China to hold a new round of trade negotiations. However, trade experts caution that a new round of talks is unlikely to halt planned tariffs on a further $200 billion of Chinese imports. WSJ

The Wall Street Journal reports that Chinese leaders have told American business executives that Beijing will not target American firms’ operations in China as retaliation against U.S. tariffs. The shift in tone from just a few months ago, when Chinese officials warned of “corporate casualties” in the escalating trade war, comes as China’s economy appears to have weakened somewhat. WSJ

Richard Waters of the Financial Times writes that tech startups are bearing the brunt of U.S. tariffs on key Chinese technological items. Small companies have been forced to raise prices for their goods as tariffs have piled up and many companies face inflexible supply chains due to smaller pools of available cash and long-term existing commitments. FT

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 6.9 million job openings at the end of July, little changed from June. Hires were flat at 5.7 million while the quits rate inched up to 2.4%.  BLS Report

Bob Tita of the Wall Street Journal reports that workers at two of the largest U.S. steel-producing firms are demanding higher wages as tariffs on imported steel drive profits higher. Union leaders say that steelmakers can afford to offer larger pay raises than they would have otherwise offered, especially because the two firms account for 40% of flat-rolled steel production capacity in the U.S. and can set prices accordingly. WSJ

Nick Timiraos of the Wall Street Journal writes that Boston Fed President Eric Rosengren says that the Fed should continue gradually hiking interest rates. Rosengren says that three or four more rate hikes will move the fed funds rate closer to its neutral rate, at which point the Fed may have to continue raising rates in order to contain inflationary pressures and prevent overheating. WSJ

The Washington Post reports that blue-collar jobs are growing at their fastest rate in over thirty years. Data show that jobs in goods-producing industries like mining, construction, and manufacturing are growing at a 3.3% annual rate, much faster than the growth rate for jobs in the service sector. WaPo