VIEW: Goldman Sachs have noted that......>

CHINA YUAN: VIEW: Goldman Sachs have noted that "market concern over tension

between the US and China ebbed slightly after trade representatives from both

countries reaffirmed their commitments to meet obligations under the "phase one"

trade deal. However, as our Asia Economics team points out, the latest comments

are unlikely to settle the bilateral disputes more generally, particularly in

light of the upcoming US presidential election and the difficulty China may face

in meeting the $200bn purchase agreement. President Trump indicated on Wednesday

that he would report on China's progress buying US imports "in about a week or

two". Rising US-China tensions can affect the Yuan through reduced cross-border

M&A, reduced cross-border portfolio flows, or lower exporter FX conversion.

Investors should consider adding to hedges for these risks through USD longs vs

CNH and/or other regional currencies."