May 17, 2019 / 12:48 PM / a year ago

BUZZ-Trump and Xi playing a high risk game, but recovery scenario is still most likely-Jefferies

** Jefferies says its China strategist believes either Trump or Xi will “blink” and a trade deal will eventually be agreed upon

** President Donald Trump on Monday said he would talk to Chinese President Xi Jinping at a G20 summit next month as the Sino-U.S. trade war intensified

** Jefferies says since the two sides seem far apart, economic conditions may have to significantly deteriorate before an agreement is reached

** Says its new, lower commodity price forecasts are conservative, and most likely scenario is a recovery in commodity prices from the recent weakness

** Jefferies names companies which “look best”; among them are Freeport-McMoRan Inc and Warrior Met Coal Inc

** Cuts PTs of Alcoa Corp to $33 from $36, U.S.-listed shares of gold miner Barrick Gold Corp to $13.5 from $14, Freeport-McMoRan to $16 from $18 and Warrior Met Coal to $38 from $43

** U.S. listed shares of Barrick have fallen 10% so far this year, AA down 6%, FCX up 3.4%, HCC up 34.7% (Reporting by Shradha Singh in Bengaluru)

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