| NEW YORK
NEW YORK May 12 Beef companies, credit card
firms and liquefied natural gas exporters emerged as potential
corporate winners on Friday in the wake of trade agreements
reached between the United States and China.
Initial reaction on the U.S. stock market was relatively
subdued after the announcement late on Thursday, part of
Washington's drive to cut its trade deficit with Beijing.
In one of the actions laid out under the agreement, by July
16, China agreed to issue guidelines that would allow U.S.-owned
card payment services "to begin the licensing process."
Visa shares rose 0.4 percent while MasterCard
edged up 0.1 percent as prospects for global payment network
operators at last entering the Chinese market remained
uncertain. American Express Co shares were down 0.6
Foreign-owned firms will also be able to provide credit
rating services in China, under the agreement, which are the
first results of 100 days of trade talks that began last month.
Shares of credit rating agency Moody's Corp were off
1 percent, while S&P Global Inc dropped 0.6 percent.
The United States also signaled that it was eager to export
more liquefied natural gas, saying China could negotiate any
type of contract with U.S. suppliers.
Shares of liquefied natural gas (LNG) company Cheniere
Energy were up 4.7 percent. Cheniere said on Friday it
has had extensive negotiations with Chinese state-owned
companies about increasing U.S. shipments of LNG to China.
Shares of Sempra Energy, a diversified energy
company that is building an LNG export terminal, ticked up 0.4
"The agreement connects the U.S., the fastest growing LNG
supplier, with China, the largest LNG growth market," said
Massimo Di-Odoardo, Head of Global Gas and LNG research at
consultancy Wood Mackenzie.
The agreement also calls for China to issue bond
underwriting and settlement licenses to two qualified U.S.
financial institutions by July 16.
It is unclear which institutions they are, though JPMorgan
Chase & Co and Morgan Stanley both recently
secured other regulatory approvals in China. JPMorgan in
February said it would be allowed to underwrite corporate bonds
there, while Morgan Stanley was granted permission to boost its
stake in a Chinese securities venture to 49 percent.
Spokespeople for the two lenders did not immediately respond
to requests for comment.
JP Morgan shares were off 0.5 percent while Morgan Stanley
shares were down 1 percent.
NOT GOOD NEWS FOR ALL
In the agreement announced by the U.S. Commerce Department,
both sides also identified other issues that will require more
effort to resolve and achieve progress on within the 100-day
For example, notable for its absence was anything related to
the U.S. steel industry, which has been promoted by President
Shares of U.S. Steel, which have taken a dramatic fall
after soaring the wake of Trump's election, dropped 1.9 percent
on Friday, while shares of Nucor were off 0.3 percent.
The trade deals contained mixed news for U.S. food
producers. China will allow U.S. imports of beef no later than
July 16, while the United States will issue a proposed rule to
allow Chinese cooked poultry to enter U.S. markets.
Shares of Tyson Foods Inc, which sells both beef and
chicken, rose 0.8 percent, while Pilgrims Pride Corp,
the No. 2 U.S. chicken producer, fell 1.3 percent.
For the full U.S. Commerce Department press release about
the initial results of the talks, see: here
(Additional reporting by Olivia Oran, Lauren LaCapra and Scott
DiSavino in New York and Tom Polansek in Chicago; Editing by