China Deal Would Mean ‘Very Big Spike’ for Markets, Trump Says By Bloomberg

(Bloomberg) — President Donald Trump said that the U.S. will enjoy a “very big spike” in stock markets if he closes a trade deal with China.

“As soon as these trade deals are done, if they get done, and we are working with China, we’ll see what happens, but I think you’re going to see a very big spike,” Trump told reporters as he departed the White House on Friday to review tornado damage in Alabama.

Trump has pushed his negotiators to rapidly complete a deal with China out of concern that he needs a significant win on the international stage to juice stock markets ahead of his 2020 reelection campaign, according to people familiar with the matter. His remarks on Friday seemed to affirm that motive.

But Larry Kudlow, his chief economic adviser, said on Bloomberg Television at nearly the same time that Trump wants a good deal with China, not a quick deal.

There’s “still much work left to be done” in trade talks with China and there are no

plans for another face-to-face meeting between U.S. and Chinese officials, a senior White House official said Friday.

“We’re talking to them every day, but nobody’s made any trip plans,” said Clete Willems, who serves as deputy director the White House National Economic Council.

“Both sides agree that there has to be significant progress, meaning a feeling that they’re very close before that happens,” Branstad told the newspaper in an interview. “We’re not there yet. But we’re closer than we’ve been for a very long time.”

But National Economic Council Director Larry Kudlow said on CNBC on Friday that Trump and Xi could meet at Mar-a-Lago regarding their trade dispute later this month or early next month.

"Nothing in cement, but there's a lot of talk about a meeting," Kudlow said. “The documents from two weeks ago advanced enormously.“