Trade war talk dominates G-7

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VIEW IN BROWSER | SUBSCRIBE MON, AUG 26, 2019 CNBC POLITICS EDITOR'S NOTE   Hello readers,   The U.S. trade war with China was on everyone's mind at the G-7 summit – particularly President Trump's.   On Monday, Trump offered a somewhat positive take on negotiations between China and the U.S., marking  a dramatic reversal from Friday, when he labeled Chinese President Xi Jinping an "enemy" and raised tariff rates on Chinese goods in retaliation for new duties. CNBC's Amanda Macias was on the ground Monday in Biarritz, France, when Trump said that U.S. trade officials received phone calls from the Chinese saying they were ready to return to negotiations, and that China "very badly" wants to make a deal. "They have been hurt very badly, but they understand this is the right thing to do, and I have great respect for it. This is a very positive development for the world," Trump said.   Not so fast, though. An editor for a Chinese government paper, widely seen as a mouthpiece for Beijing, disputed Trump's characterization of the discussions. "Based on what I know, Chinese and US top negotiators didn't hold phone talks in recent days," tweeted Global Times editor Hu Xijin.   Still, markets seemed to favor Trump's take. The Dow rose triple digits Monday after a big selloff on Friday.   Thanks for reading.    Have friends or colleagues who might like this newsletter? They can sign up here. For more on the intersection of business and politics, sign up for the weekly Capital Exchange newsletter here. Mike Calia @Michael_Calia KEY STORIES  Trump says China sincerely wants a trade deal: 'I'm not sure they have a choice' Trump, speaking alongside French President Emmanuel Macron at the G-7 summit, says Beijing wants to make a deal "very badly." 'China didn't change its position' on trade war, says Beijing mouthpiece The editor-in-chief of the Global Times, an official newspaper of the Communist Party of China, contradicted President Trump's characterization of Beijing-Washington negotiations. Mnuchin: If China agreed to a fair relationship, we'd sign that deal 'in a second' The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France. How global military spending hit a record high Worldwide military expenditures increased once again in 2018, hitting a record $1.8 trillion — highest level since the Cold War. Defense budget increases from the United States and China and fear of Russian aggression in Eastern Europe played a major role. Trump's tariffs on monkeys could 'severely damage' US medical research As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National Institutes of Health.       Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2019 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS