Morgan Stanley US Public Policy strategist Michael Zezas notes that the Phase 1 US/China trade deal likely helped avoid an early-onset recession, but wasn’t a game-changer that will enable global capex to find another gear. There’s also reason to argue that the onset of Phase 2 negotiations may work against the current US/China trade stasis. Phase 2 negotiations are reportedly intended to address difficult issues of industrial policy (such as state-operated-enterprise competitive neutrality). The US and China reportedly remain far apart on these issues. Hence, the onset of negotiations could be a catalyst to tariff re-escalation and/or put at risk any advances made during phase