AM Roundup 18/08/20

 European Opening Calls:#FTSE 6115 -0.20%#DAX 12908 -0.10%#CAC 4966 -0.13%#AEX 562 -0.08%#MIB 19928 -0.11%#IBEX 7068 -0.31%#OMX 1770 -0.19%#STOXX 3300 -0.18%#IGOpeningCall— IGSquawk (@IGSquawk) August 18, 2020 

Japan’s manufacturers were their least pessimistic in four months in August, the Reuters Tankan survey of business sentiment showed on Tuesday, but signalled a slow recovery from the coronavirus pandemic.  

The Commerce Department announced further restrictions on Huawei Technologies Co. aimed at cutting the Chinese company’s access to commercially available chips, the latest move in an increasingly tense relationship between the world’s two biggest economies.

The changes, which the department announced in a written statement on Monday, build on restrictions announced in May, adding 38 Huawei affiliates in 21 countries to an economic blacklist as the U.S. seeks to limit adoption of the company’s 5G technology.

The restrictions are likely to further hit both Huawei’s 5G base stations and smartphone businesses because it relies heavily on foreign chips to make those, further denting China’s ambition to play a key role in global rollout of 5G technology. Huawei’s stockpiles of certain self-designed chips essential to telecom equipment will run out by early 2021.

Nokia Oyj and Ericsson AB stand to benefit from Huawei’s further faltering in its 5G prowess, while domestic smartphone rivals including Xiaomi, Oppo and Vivo are likely to get a bigger pie of the Chinese market.

Ross said the action was aimed at closing loopholes the company explored after previous U.S. actions. Secretary of State Michael Pompeo praised the move as a “direct blow” against the Chinese Communist Party.

Trump said in an intervew with Fox News that he is having “a very hard time” with China, and the country is trying to make up for it with purchases of items like beef, soybeans and corn. White House trade adviser Peter Navarro later told CNBC that the phase-one trade deal is still on track. Meanwhile U.S. oil exports to China may more than double in September.

U.S. President Donald Trump on Monday vowed to create 10 million jobs in 10 months, in part by setting up tax credits for U.S. companies that relocate manufacturing facilities to the United States from China.

Trump, seeking to build support ahead of the Nov. 3 election, told supporters during a visit to Mankato, Minnesota, his administration would also strip federal contracts from companies that outsourced work to China.

China's Ministry of Commerce announced on Tuesday morning it would begin investigating allegations the Australian wine industry was receiving subsidies and selling into the mainland market below cost.

China's move to levy hefty import duties on Australian wine was "politically motivated" according to a leading winemaker, as Trade Minister Simon Birmingham said there was no grounds for Beijing's dumping investigation.

Seventeen Victorians have died of coronavirus, with 222 new cases recorded overnight.

It is the state’s lowest daily total since 217 new cases were recorded on July 18, two weeks before stage four restrictions were introduced to metropolitan Melbourne.

Beijing’s top officials and its drugmakers have offered Brazil, Indonesia, Pakistan, Russia and the Philippines priority in receiving doses and other deals.