Dan Celia: Pro-Hong Kong Bill Boils Over to China Trade Talks—Markets Feel the Heat
November 21, 2019
PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia said today that a much-needed human rights bill in support of Hong Kong is impacting the important Phase I of the U.S.-China trade deal—and the stress was evident in the markets yesterday.
“As negotiators are trying to complete Phase I of a U.S.-China trade deal, the House passed a pro-Hong Kong rights bill on Wednesday,” Celia said. “This puts President Trump in a bind, as he tries to roll along with trade talks. The House approved the measure that aims to protect human rights in Hong Kong by 417-1. China has been trying to crack down for months on antigovernment protests. Of course, the United States is concerned about human rights violations, as it should be, and the House also passed a second bill to bar the export of certain munitions to Hong Kong. This certainly will slow down U.S.-China trade talks, and this had a dramatic impact on the markets Wednesday. Strategists think there is still a chance that Phase I of the trade deal between the U.S. and China could still happen, but the stock market did sell off on the skepticism the two nations would come together.
“This is a huge problem,” Celia continued, “and some are saying Phase I may not happen this year. Remember that tariffs are halted on December 15 only if part of the Phase I deal is very close to being complete. Tom Block, a Washington strategist at Fundstrat, said he doesn’t think there’s any better than a 50-50 chance. Like Block said, the odds change daily, but there is a bigger risk today than a week ago. It is a concern as we head into year-end, and of course, that this could slow consumer confidence. I think it’s highly unlikely that consumer confidence will be shocked. If anything, consumers aren’t deeply concerned about a deal with China unless it’s a good one for America.”
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on more than 650 radio stations and several television networks nationwide.
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