Chile's Summit Cancellation Suggests Trade War Will Linger, Economist Slok Says

The video discusses the significance of an upcoming summit in Santiago, focusing on the trade narrative between China and the US. It highlights the potential signing of a phase one deal and the implications of any delays in trade progress. The discussion extends to how these delays could affect the US economy and Federal Reserve thinking. The video also explores the risks and uncertainties if the trade war persists, questioning whether the trade risks are truly eliminated or could resurface, impacting the economic outlook.

What was the expected outcome of the meeting between Xi Jinping and President Trump at the Santiago summit?

• Signing of a phase one trade deal

• Resolution of all trade disputes

• Introduction of new tariffs

• End of the trade war

Why is the phase one deal considered relatively minor?

• It only involves tariff reductions

• It covers small issues compared to future phases

• It is not legally binding

• It excludes major economic sectors

What is a potential consequence of the summit's postponement?

• Strengthened US-China relations

• Prolonged trade war uncertainty

• Increased trade with Europe

• Immediate resolution of trade issues

How might US corporations view the trade war risks?

• As a minor concern

• As potentially resurfacing

• As beneficial for business

• As completely resolved

What impact could the trade war uncertainty have on the US economy?

• Boost in economic growth

• Stability in financial markets

• Downside risks for the economic outlook

• Increase in foreign investments