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US trade officials have confirmed they will suspend the March 1 tariff increases to Chinese products entering the US until further notice. US Trade representative Lighhizer said the country’s problems with China were to significant and to serious to be resolved by promises of further US product purchases, currently China have agreed to buy 30 Billion worth of agricultural products over the next 12 months. So as it stands China will get themselves another 60 days before tariffs rise to 25% from the current 10%. Trump has said this is an amazing deal. Markets were buoyed by early week positive comments but have since come off highs on risk aversion after the general feeling a deal could be a long way off being properly negotiated. Fed chairman Powell has said they will be patient and won’t rush to make judgement about changes in policy, instead waiting for economic data to flow in as they were in a currently in a good place economically. Consumer confidence bounced back in February after poor figures in January up from 1.21.7 to 1.31.4 which shows an improvement to business and labour conditions. Donald Trump has met Kim Jong Un for the second time in Hanoi for the nuclear summit. Trump seems to think the first meeting was a great success and the second dinner meeting would be even more successful. If he thinks North Korea will suddenly and openly declare denuclearisation in North Korea he is a better President than he looks.  As it turns out the US President has left early from the summit, saying “sometimes it’s better to walk away”. The Pound rallied to its highest level in over 7 months as markets digested prospects that a no deal was pretty much off the table and the UK’s leaving the EU party would be delayed. NZ Business confidence showed that 30.9% of respondents expected the economy to deteriorate over the next 12 months. Momentum over the last 6 months has slowed noticeably. Fonterra this morning have raised the milk solid price to $6.30- $6.60 per kg, the price is expected to go up further to $7.30 for the June 2019- May 2020 season from $6.90.

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