WINNIPEG, Aug. 2 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.
– Although White House economic advisor Larry Kudlow said on Friday that United States President Donald Trump is displeased with the lack of progress made in U.S./China trade talks, Kudlow didn’t know if the president would delay or stop a 10 per cent tariff hike on Chinese imports, if the situation changed. Trump’s threat to increase tariffs sent shivers through the markets, with oil taking some of the biggest losses this year. Since the trade war began more than a year ago, it has posed a threat to the global economy, with fears of a recession.
– With the demand for Canadian crude oil on the increase, but the means to move it to the U.S. limited, some of the U.S. oil companies said they can add chemicals, called drag resistance agents, to ease flows. TC Energy Corp. said with method would added 50,000 barrels per day (BPD) through their system. Enbridge said the agents would add 135,000 BPD to their pipelines by early 2020.
– Today marks the official withdrawal of the U.S. from the 1987 Intermediate-range Nuclear Forces (INF) Treaty with the former Soviet Union, now Russia. The six-month notice provided by the U.S. has expired. The U.S. accused Russia of violating the INF treaty by developing new missile systems Secretary of State Mike Pompeo said are covered under the treaty. In turn, Russia requested a moratorium of the deployment of land-based short and intermediate-range nuclear missiles in hopes of avoiding a Cold War-style arms race.