Trade Deals with Saudi Will Go On, Says Trump

Saudi Arabia- one of the whooping importers of defence from US- will not face any obstruction in terms of trade with US as a consequence of Jamal Khashoggi’s disappearance from Saudi Consulate, affirmed President Donald Trump

Since 1950, the country has spent nearly $90 billion on arms from U.S. defense contractors, according to data compiled by the Pentagon. Last year alone, it spent nearly $5.5 billion.

President Donald Trump said he does not want to jeopardize a major arms sale deal to Saudi Arabia that he said was worth $110 billion, though defense experts have disputed that amount and have said it’s hard to calculate precisely how many jobs would be at stake. Speaking on CBS’ “60 Minutes” Sunday, Trump said that he didn’t “want to hurt jobs” at contractors such as Boeing, Lockheed Martin and Raytheon.

“I don’t want to lose an order like that,” he said.

Lockheed Martin, the largest defense firm in the world, has long counted Saudi Arabia as a key customer. Earlier this year, Marillyn Hewson, Lockheed’s chief executive officer, hosted bin Salman and gave him a tour of its satellite and missile defense production facilities in Sunnyvale, Calif.

“Saudi Arabia is one of the most lucrative foreign markets for our defense contractors,” said Todd Harrison, a defense analyst at the Center for Strategic and International Studies. “They tend to buy high-end equipment. They have a lot of money to throw around, and they can make decisions on weapons purchases pretty quickly because they don’t have a lot of bureaucracy.”

Still, he said, the revenue from sales to Saudi Arabia “pales in comparison to the U.S. military. In no way is it going to sink U.S. companies if they can’t export to Saudi Arabia.”

Andrew Hunter, also a defense analysts at CSIS, said that many of the defense firms moved to grow their international business over the past decade in an effort to attempt to offset declines in U.S. spending.

Saudi Arabia is “one of the biggest players in the Middle East and is one of the two biggest growing markets for foreign military sales,” he said.

Last year, Lockheed announced that it had struck a $28 billion deal with Saudi Arabia to sell it an array of defense systems over the coming years. Boeing, meanwhile, signed an agreement with the country to help it build rotary-wing military aircraft in Saudi Arabia, which it said was expected to generate $22 billion in revenue and 6,000 jobs by 2030.

And Raytheon recently opened up a separate company to work directly with the Saudi government.

But often those deals don’t pan out as initially planned. Trump has said repeatedly that the arms deal with Saudi Arabia was worth $110 billion. But many of the deals were “memorandums of intent,” rather than signed contracts as The Washington Post’s Fact Checker has noted.

The deal amounts to “a wish list,” he noted. “The $100 billion figure is not real and unlikely to come to fruition – and even if it did, it represents sales far in the future.”

Imposition of $200B Taxes on Chinese Goods Intensified Conflict Between China and USA

On Monday USA announced additional taxes on Chinese goods which seems to be stimulant enough to worsen the tiff between these two world powers.

These taxes according to experts will directly impact the American consumers with increased prices and expenditure. Trump deems this revision in the tariff amount as favorable for American companies and workers in the long run.

Starting Monday, the United States is to begin charging a 10 percent tax on thousands of Chinese imports – tires, windshield wipers, baseball gloves, bicycles, snakeskin pants, backpacks, trombone cases, refrigerators and wooden furniture, among others. The list runs 194 pages.

Unless the administration reaches a truce with Beijing, Trump’s import tax will jump to 25 percent in 2019.

On the other hand companies have also expressed their suspicion regarding the additional imposition as it might target their operations and revenue.

” Trump’s tariffs, with their uncertain duration, make it difficult for companies to plan for the future. Ted Murphy, a trade lawyer and a partner at Baker McKenzie, said the president is signaling that many companies will need to rethink their operations.

Concurrently the new round of tariffs risks triggering a more alarming response by investors. The additional taxes suggest that the two countries are struggling to make progress in settling their differences. The issues include Chinese companies’ theft of US intellectual property and a widening trade gap as US consumers have become more dependent on comparatively cheap Chinese imports.

A prolonged trade war between the United States, the world’s largest economy, and China, the second-largest, potentially affect economies from Buenos Aires to Istanbul.

Tariffs could translate into less trade, which could hinder growth in smaller nations. The US dollar has already begun to rise in value as trade tensions have mounted. This has insulated the United States from higher prices.

Trump Claims to Have Befriended Foreign Leaders

Despite the tough stance taken by the US over the trade issue with India, the nation still wants a trade deal with the US, said President Donald Trump.

Trump wants to curtail the subsidies that growing economies like India and China have been receiving as he wants the US, which he considers as a developing nation, to grow faster than any other nation.

He often accuses India of imposing 100% tariffs on American products.

“Frankly, I’ll tell you, India called us the other day. They said they would like to start doing a trade deal, first time,” Trump said without mentioning who called up whom.

Trump said that his trade representatives headed by Bob Lighthizer (the US Trade Representative) are very tough, smart and very good.

Trump said that he has become friends with foreign leaders including Prime Minister Narendra Modi and the Japanese Prime Minister Shinzo Abe.

“Practically, every time a foreign leader comes in to see me, whether it’s Abe of Japan, whether it’s Modi of India, I’ve become friends with all of them,” he said.

If countries like India and China can grow at a fast pace, why not the US? Trump said.

“I’ve said, ‘You fixed a trade deal. When India has six, seven, eight per cent, when China used to have 11, 12 per cent, they’re still at six or seven, when they’re at seven per cent they’re feeling badly. And I’d say, ‘How come we have to be at one per cent?” Well, it’s the size. I said, ‘Really? Well, China is bigger than we are and India has 1.5 billion people. How come they’re at 10 per cent and 11 per cent?’ Well, they can’t answer it,” Trump said.

king Jong Un’s Letter Sought A second Meeting with Trump

Briefing to the media about the letter received from North Korea, the White House spokeswoman Sarah Sanders said that Donald Trump has received a “very positive and warm” letter from North Korea’s Ruler seeking to schedule a second meeting after their unprecedented meet in Singapore in June this year.

She further claimed that the message showed Pyongyang’s “continued commitment to focus on denuclearization” on the Korean Peninsula.

“The primary purpose of the letter was to schedule another meeting with the president, which we are open to and are already in the process of coordinating,” she said further.

Sanders added that the letter was “further evidence of progress” in Washington’s relationship with Pyongyang.

The letter shows signs of revival of the apparently dead negotiation over “denuclearization” of the Korean peninsula.

“We think it’s important and we’re glad that we’re making progress,” Sanders said, claiming that Trump deserves the “credit” for bringing the two parties to the table.

“At the end of the day, ultimately, it’s always going to be best when you can have the two leaders sit down,” she added.

Trump thanked Kim for the gesture, saying on Twitter: “This is a big and very positive statement from North Korea.”

Sanders was asked whether the next Trump-Kim meeting would take place in Washington, but she demurred, saying, “we’ll let you know when we have further details.”

The letter’s arrival was confirmed as Trump’s top security advisor said the White House was looking to North Korea for next steps.

“We’re still waiting for them. The possibility of another meeting between the two presidents obviously exists,” said National Security Advisor John Bolton.

“But President Trump can’t make the North Koreans walk through the door he’s holding open. They are the ones that have to take the steps to denuclearize. And that’s what we are waiting for” added Bolton.

Allegations on India partner Trump’s organization.

Property developer denied initial allegations levelled by hedge funds.One of Donald Trump’s business partners in India is at loggerheads with its investors, who accuse the company’s managing director of defrauding them of $1.5bn.

Two high-profile hedge funds have accused Lalit Goyal, the managing director of Ireo, one of India’s biggest property developers, of the theft of hundreds of millions of dollars’ worth of land and other assets.

Mr Goyal could not be reached for comment. He has previously denied any wrongdoing. Ireo declined to comment.

Axon Capital and The Children’s Investment Fund, which is run by Sir Christopher Hohn, met with other investors in New York this week to outline their allegations and discuss how to stop what Axon founding partner Dinakar Singh said was a “brazen fraud”.

The investors have filed a criminal complaint against Mr Goyal and some of his associates in New Delhi, and started arbitration proceedings against the company in Mauritius. Police in India did not respond to a request for comment.

Ireo is well known in India not only for its size but also because it was chosen by the Trump Organisation to build a Trump tower in Gurgaon, near New Delhi. At the time the plan was announced, Donald Trump Jr, the son of the US president, called the company “truly a fantastic group”.

In an interview, Mr Singh said Mr Goyal’s alleged actions were “outrageous”. He added that the value of some of the land has more than doubled and could be retrieved for investors.

“Some of the money that has gone may be hard to track down, but as raw land, it’s probably worth two, three times [what was paid for it],” Mr Singh said. “The effort is to get it back, and the message to India and Mauritius is, if you want to have foreign investment in and through your countries, this kind of thing simply cannot happen.”

Axon and TCI had previously accused Mr Goyal of diverting about $150m from the company — an allegation he has denied.

In a letter written in March to investors regarding the initial allegation of fraud and reported by the Washington Post, Mr Goyal said: “As far as the allegation of fraud, diversion and misappropriation of funds is concerned, this is false, baseless and devoid of any merit.”

On Monday Axon and TCI said Mr Goyal was seeking to transfer land and licences worth $1.5bn to companies with which he is connected. The amount has increased because they have uncovered more instances of money being misappropriated, Mr Singh alleged.

No investors have got any money back, despite both Ireo funds being past their expiration date, he said.

About 70 Ireo investors attended the meeting in New York, most from university endowments and pension funds, while another 30 or 40 dialled in, said Mr Singh.

Ramesh Sanka, a former chief executive of Ireo who alerted Axon and TCI to some of the allegations, spoke at the meeting. He left the company in 2016 after becoming concerned about its propriety and has since made allegations against it.

Mr Goyal reportedly addressed Mr Sanka’s initial allegations by stating: “We find the timing of his alleged ‘whistleblowing’ curious and the manner suspicious to say the least. Mr Ramesh Sanka has made unsubstantiated allegations without producing any concrete or direct evidence, he has resorted to conjectures and surmises coupled with ingenious drafting to give an impression of some alleged wrongdoing.”

He added that the legal proceedings were a “needless and unwarranted distraction” that would cause “significant damage and harm to Ireo”.

According to Mr Singh, the company’s response so far has been to accuse TCI and Axon of being corporate raiders who want to take over the company, and to assert that Mr Sanka should not have had the documents that he shared and that no fraud has been committed.