<p>Three quick thoughts on the conclusion of G20 meeting held in Bueno Aries.    </p><p><strong>1) Repeat of Hamburg statement</strong></p><p>The G20 meeting largely adopted the stance from the previous G20 meeting at Hamburg. It called for “further dialogue and actions” on trade and reiterated the need for trade to be fair. Similar to the prior Hamburg statement, the pledge to keep global trade open was dropped. There was also no criticism on US for recent trade tariffs on steel and aluminium. The weak G20 statement on trade demonstrate the lack of bite against the recent US trade protectionism, and could embolden US to go ahead with more trade tariffs.</p><p><strong>2) Relief for cryptocurrencies</strong></p><p>There was expectations that the G20 meeting could propose a common regulation on cryptocurrencies. This is to address rising concerns of cryptocurrencies’ impact on financinal fraud and market stability. Instead, the G20 nations avoided any form of regulations. It clarified that cryptocurrencies are an asset as it “lack the traits of sovereign currencies”. It also pushed the issue to the next G20 meeting for further discussion regarding cryptocurrencies. As a result, Bitcoin enjoyed a relief rally after dropping below $8000 earlier in the week.</p><p><strong>3) Rising US-China trade tensions</strong></p><p>At the G20 meeting, there was confusion on the economic discussion between US and China, after US Treasury’s undersecretary for international affairs David Malpass initially stated the regular discussion was “discontinued.” It is evident that the trade relationship between US and China is worsening. US President Donald Trump has alluded that China has unfair trade practices and have expressed concerns on the dominant influence of state-owned enterprises in China. There has also been some speculation that up to US$60bn of tariffs may be imposed on China in the coming weeks. Instead of calming trade tensions, the G20 meeting may have further catalyzed the trade war between China and US.</p><p><strong>Edmund Chan, CFA</strong></p>