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China’s narrative

...  8/21/2019
China’s narrative

  • U.K.-China tensions rise as British consular worker detained.
  • Markets mixed as investors wait for guidance.
  • Trump drops Denmark visit as Greenland not for sale.

U.K-China tensions are mounting. Protesters plan to rally in Hong Kong this evening, calling for the release of British consulate worker Simon Cheng. He failed to return from an Aug. 8 meeting in the border city of Shenzhen, his girlfriend said. China confirmed he was detained under local law. Meanwhile, Beijing is seeking to reshape the global narrative over near-daily protests in the finance hub.

  •  The Chinese Foreign Ministry sent a letter to senior editors at news organizations including the WSJ, Reuters and Bloomberg, outlining its account of the protests in the former British colony. The 43 pages of documents include a timeline of what President Xi Jinping's government describes as "violent activities that are aimed to trample the rule of law" and have caused "mayhem in Hong Kong."
  •  U.S. Senate Majority Leader Mitch McConnell earlier wrote in a WSJ op-ed that Beijing must know "the Senate will reconsider" their special relationship, among other things, if Hong Kong's autonomy is impacted.
  •  The protests are entering a crucial period, ahead of the 70th anniversary of the People's Republic of China on Oct. 1. Here's a look at the long list of grievances of Hong Kong's lost generation.

Billy Tung wearing safety googles and gas masks poses for a photograph in Hong Kong, China, on Sunday, Aug. 18, 2019.
  • To top it off, Alibaba could launch its share sale in the city in October, after delaying it from this month because of the protests, Reuters reported.

Stocks in Asia were mixed on low volumes as investors assessed the latest news on trade talks and awaited more clues on monetary policy.  U.S. and European futures advanced.
  •  Fed minutes are due Wednesday in the U.S. but they're likely to be overshadowed by Jerome Powell's address at Jackson Hole on Friday. Traders are already readying to be disappointed by the Fed chief. 
  •  Oil gained as an industry report indicated that U.S. crude inventories fell for the first time in three weeks, countering growing concern that the global economy is headed for recession.
  •  And a global natural gas glut is threatening to undermine a $4 billion investment by Reliance Industries aimed at boosting profits at the world's largest oil refining complex.



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