Trade talks between the US and China have been going on with varying degree of success for nearly two years. Seems like the markets are tired of the situation because any news related to the US-China relationship instantly affects quotes around the world. The markets can no longer endure changes, but negotiations still act as an excellent irritant. The Fed officials called the process “unnerving to watch”, pointing out that it had negatively affected investments as it urged companies to hold them over. It is speculated that the US and China have agreed to extend negotiations in their favour. There are too many factors that prove that. Both economies can benefit from keeping pressure on the entire financial world by announcing the news they need in order to influence the markets. With such circumstances, large companies cannot make any decisions, especially those related to investments. The Fed supports the idea. “Those are very difficult issues. If they make progress on that then that would be extremely positive, but they are using brinkmanship style and so it has been unnerving. I think corporations have to be a little nervous about where they have got supply chains located close to borders, investments that they have made over a long period of time and where they have a lot of capital in place now. The value of that is more uncertain as they think about where they should be adding the next million dollars of investment — it’s not as obvious,” said the president of the Federal Reserve Bank of Chicago Charles Evans.
