Homepage / Technology / Here’s what could come out of the UK trade secretary’s meeting with Wilbur Ross
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Here’s what could come out of the UK trade secretary’s meeting with Wilbur Ross

Commerce Secretary Wilbur Ross is to welcome British Trade Secretary Liam Fox on Monday to begin discussions for a new trade deal between the two countries.

The pair will be joined by U.S. Trade Representative Robert Lighthizer for the two-day talks that aim to lay out a continuity agreement allowing businesses from the two countries to continue trading after Brexit.

Many aspects of the U.K.’s relationship with the U.S. are currently governed by wider regulatory and technical agreements held with the European Union, but these will become uncertain once Britain leaves the bloc. Though the U.K cannot formally negotiate independent trade deals until it leaves the EU, it is allowed to prepare for them by holding discussions with current European trade partners, “so as to deliver maximum continuity and certainty for businesses,” a U.K. government white paper stipulates.

The U.S. is the U.K.’s second-largest trading partner outside of the EU, importing approximately 20 percent of all Britain’s goods and services. The countries also currently share a number of agreements on economics, security and trade, which could be at risk as of March 2019, when the U.K. is expected to formally exit the EU.

Maintaining this special relationship with the U.K. is increasingly important given the new administration’s protectionist ‘America First’ stance and preference for bilateral trade deals rather that multilateral deals, which are seen to disadvantage the U.S. Likewise, the U.K. will be eager to secure new trading relationships outside of those brokered by the EU. However, the U.S. has been critical of other countries’ trade surpluses with the U.S. and the U.K., whose trade surplus is an estimated £40 billion, will be starting its dialogue from a tricky position.

Without a deal, the two countries will have to revert to World Trade Organization rules, with tariffs applied universally to countries without deals, ranging from 32 percent on wine to 9.8 percent on cars.

Ross said last month that the U.S. is eager to start trade talks with the U.K. as soon as possible and is confident of a “happy finish.”

“From the U.S. side, we’ve made it clear that we are prepared to begin as soon as the U.K. is ready,” Ross said at a Select USA Investment Summit in Washington in June.

Fox said at the time that the U.K. was eager to “scope out” its future relationship with the U.S. Trade working groups on both sides of the Atlantic have since been working behind the scenes to lay the groundwork.

More recently, Fox has voiced his rejection of protectionist policies, which he said had emerged from those who had benefited most from globalization.

“It is so concerning to hear the voices of protectionism growing louder. Those who have benefited most from an open, liberal trading environment have a duty to ensure that others are able to take advantage of the same benefits in the future,” Fox said Thursday.

Under EU rules, few details of the deal can be thrashed out this week but U.S. trade officials have suggested that Ross, Lighthizer and Fox will focus on establishing “commercial continuity” as well as exploring possible ways to “strengthen trade and commercial ties,” according to Reuters.

“The early discussions will focus on laying the groundwork for commercial continuity for U.S. and U.K. businesses as the U.K. leaves the EU and exploring possible ways to strengthen trade and commercial ties, consistent with the EU’s common commercial policy,” a U.S. trade official said.

“These discussions will also provide a mechanism for preparing the ground for a potential future trade agreement once the U.K. leaves the EU.”

Some commentators are less optimistic. Paul Hollingsworth, U.K. economist at Capital Economics, told CNBC via email Thursday that he is expecting little more than “hot air and some broad ideas.”

Pharmaceuticals, finance, technology and infrastructure are some of the most valuable areas of business between the U.K. and the U.S. This means they are likely to rank highly in trade ministers’ negotiations.

“These are the high value-added sectors where there are synergies to be had by agreeing [on] a common set of standards and legal structures,” Simon French, chief economist at Panmure Research, told CNBC via email Thursday.

However, similar aims were proposed under the Transatlantic Trade and Investment Partnership deal and were quickly “bogged down,” French cautioned, referring to the delayed proposals for an EU-U.S. deal.

Both parties have a lot to gain — and lose — if their existing agreements fall apart after Brexit. But analysts have suggested that the U.S. may be reluctant to sign up to an agreement until Britain’s post-Brexit standing becomes clearer.

In the second stage of negotiations late week, Britain’s Brexit minister David Davis faced criticism for his lack of clarity on key issues, such as citizens’ rights.

Also, with Congress facing divisions over key issues such as health-care reforms, Hollingsworth suggests the chances of getting approval for a deal are “extremely low at present.”

Under a new U.K.-U.S. deal, businesses could benefit from reduced tariffs, common standards and increased investment. Critics have cautioned though that the U.K. will begin negotiations on the back foot given its reliance on EU trade negotiators over recent decades, leaving U.K. businesses vulnerable to takeovers by U.S. firms.

“The US has many of the world’s toughest trade negotiators, whereas the UK has ceded policy and knowhow to the European commission for decades,” Adam Marshall, director general of the British Chambers of Commerce, wrote in the Observer on Sunday. “If talks began on a U.S.-U.K. deal over the coming months, I know which of the two I’d put my money on.

“There is a huge risk that UK-based firms will continue to face higher upfront costs and regulatory requirements after any agreement, leaving them at an instant disadvantage to U.S. competitors that would suddenly have wider scope to compete in and buy up chunks of the U.K. market.”

Success for the U.K. in securing a trade deal with the U.S. will have important implications for other countries considering establishing a bilateral trade agreement with post-Brexit Britain.

“The symbolism of a UK-US ‘agreement in principle,’ which may be the short-term outcome, will be helpful for other countries considering terms with the U.K.,” Panmure Gordon’s French suggested.

However, as countries outside the U.S. continue to show favor for global, free-trade agreements, the recently agreed outline free trade deal between the EU and Japan is likely to provide a “more valuable precedent” for those looking to establish over-arching multilateral partnerships, French added.

The U.K. will face a steep challenge if it is to match the levels of trade enjoyed inside the EU.

As of 2016, 44 percent of U.K. exports in goods and services went to other countries in the EU, according to the U.K.’s independent factchecking charity Full Fact. EU countries were responsible for 53 percent of all of Britain’s imported goods.

British Justice Minister David Lidington said earlier this month that the he proposed U.S.-U.K. deal would do little to bridge this gap.

“It wouldn’t be enough on its own, no,” Lidington told the BBC’s “Andrew Marr Show.”

He added that it would be “a very good thing to have,” alongside new deals with emerging economies in Asia and Latin America.

Follow CNBC International on Twitter and Facebook.

Source: Tech CNBC
Here’s what could come out of the UK trade secretary’s meeting with Wilbur Ross

Comments are closed.