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China timeout — Markets should embrace President Trump’s decision to hold off for now on the next round of tariffs on $300 billion in Chinese imports. Trump got no deal with Chinese President Xi Jinping but at least nudged talks back on track taking one big recessionary risk off the table for now. But the temporary détente was probably not enough to change the odds on a rate cut next month, also good for markets.
Still, in order to get any real political benefit – and reverse his slide among red state farmers slammed by retaliatory tariffs – Trump still has to strike a comprehensive deal with China. And nothing that happened in Osaka makes that any easier. Trump also backed off on banning high-tech sales to Huawei, angering China hawks like Sen. Marco Rubio (R-Fla.).
NEC Director Larry Kudlow on the deal on “Fox News Sunday”: “No promises, no deal made, there’s no … [T]his is about the quality of the deal there’s no time table, there’s no rush.”
Biden not quite tanking — Latest POLITICO/Morning Consult poll shows some post-debate slippage for former VP Joe Biden, dropping to 33% from 38%. Sen. Kamala Harris (D-Calif.) surged 6 points to a tie for third at 12% along with Sen. Elizabeth Warren (D-Mass.).
Sen. Bernie Sanders (D-Vt.) remains in