Opinion | Lessons From an ’80s Trade War
10/8/2018, 1:21:41 PMGood riddance to low-margin businesses. The U.S. invests up the margin chain. ✔ An extra two grand for a Harley Hog because of steel tariffs ✔ Hitachi instructed salesmen to quote 10% below their price ✔ Memory chips are a notoriously low-margin commodity business ✔ Maybe it will cost a little bit more, but we’ll have jobs ✔ I’m with the National Economic Council’s Larry Kudlow
China to raise export tax rebates amid trade war
10/8/2018, 2:00:28 PMChina will increase export tax rebates from Nov. 1 and quicken export tax rebate... ✔ In September, China raised export tax rebates for 397 items, including steel and electronic products, in a bid to help exporters as the tariff war with the United States worsened ✔ Analysts say the project has boosted property demand as residents are encouraged to use cash compensation to buy a new home when their existing home is demolished ✔ Our Standards:The Thomson Reuters Trust Principles
China investor risks grow as Trump expands trade war
10/8/2018, 1:20:46 PMEconomy faces bleak 2019 with Beijing's stimulus moves set to lose force ✔ In recent months, Xi's team responded to Trump's tariffs with a mix of tax cuts, new loans to businesses and infrastructure spending ✔ He was given the 2018 prize for excellence in opinion writing by the Society of Publishers in Asia, for his work for the Nikkei Asian Review
Trade war tensions surface as Pompeo lands in China
10/8/2018, 1:34:24 PM'We believe this has been a direct attack on our mutual trust, and has cast a shadow on China-US relations,' says Beijing's foreign minister ✔ On 22 August, 27 unaccompanied minors were let off from the ship, assisted by Red Cross, UNHCR and Save the Children EPA 44/50 25 August 2018 Rohingya refugees during a protest march after attending a ceremony to remember the first anniversary of a military crackdown that prompted a massive exodus of people from Myanmar to Bangladesh, at the Kutupalong refugee camp in Ukhia AFP/Getty 45/50 24 August 2018 US President Donald Trump sits with children during a tour of Nationwide Children's Hospital in Columbus, Ohio AFP/Getty 46/50 23 August 2018 Australian Prime Minister Malcolm Turnbull speaks to the media during a press conference at Parliament House in Canberra, Australian Capital Territory, Australia EPA 47/50 22 August 2018 High waves hit Jeju Island, South Korea, as powerful Typhoon Soulik gradually approaches the Korean Peninsula EPA 48/50 21 August 2018 A Palestinian man throws his child in the air following morning prayers marking the first day of Eid al-Adha celebrations on the compound known to Muslims as al-Haram al-Sharif in Jerusalem's Old City
China pumps more cash into its economy as trade war heats up
10/8/2018, 1:34:13 PMChina is pouring more cash into its flagging economy as it braces for further pain from the trade war with the United States. ✔ Chinese officials have already turned to tax cuts, infrastructure spending and looser monetary policy as they seek to spur more economic activity ✔ The benchmark Shanghai Composite Index dropped more than 3% on Monday after being closed all last week for a lengthy public holiday
European markets BOMB on US-China trade war aggression and Italy EU budget row
10/8/2018, 1:43:08 PMEUROPEAN markets were trading lower this morning over growing trade war fears between the United States and China, while Italy continued to spook investors after being rebuffed by European Union (EU) chiefs over its controversial deficit budget plan. ✔ European markets were trading lower on US-China trade war fears and Italy fallout (Image: GETTY) Shares in Asia slumped overnight despite Beijing's central bank increasing liquidity to offset the effects of the tariff row with the US ✔ Investors monitor stock prices at a securities company in Jiujiang in China's central Jiangxi provin (Image: REUTERS) The economy is quite weak, and I see a growing number of companies selling their assets
China says it's not afraid of a trade war with the US — its actions show otherwise
10/8/2018, 1:46:48 PMThe latest move by China's central bank to cut the amount of reserves held by banks is an indication that authorities in the world's second-largest economy are getting nervous about a long-drawn trade war with the U.S., experts said. ✔ What signal is China sending with the latest RRR cut ✔ A prolonged trade war as the U.S. economy appears strong may lead to more investors pulling money out of China ✔ He can worry about the debt problems three, four, five years down the line, Nicholson said
Chinese stocks fall almost 5% in market bloodbath as investors digest a week of bad news in a single day
10/8/2018, 1:37:12 PMA weeklong holiday for Chinese markets meant investors had an entire five days of news and data to digest in just one session, including an escalation of the trade war between China and the US. ✔ The reasons behind the crash are numerous but include Chinese investors' catching up to their Asian counterparts after a week of losses in Hong Kong, Japan, and South Korea ✔ China sectors such as energy, IT and industrials will be most impacted based on our analysis, while sectors such as real estate, insurance, diversified financials, telecom and utilities generate virtually no revenue from the US, a team led by Pedro Martins said in a note
China frees up cash to boost economy
10/8/2018, 1:48:15 PMChina's central bank will cut reserve requirements, injecting $109bn into the financial system. ✔ The move will see 750bn yuan ($109bn; £83bn) in cash injected into the financial system ✔ Cutting reserve requirements frees up money for banks to lend to each other and consumers ✔ The ongoing China-US trade war is imposing headwind to China's growth, and monetary easing is being used to counter that, DBS said in a research note
Gold slips as dollar gains after China eases policy
10/8/2018, 1:47:02 PMGold prices fell on Monday amid a steadying dollar after China's central bank announced on Sunday a steep cut in the level of cash that banks must hold as reserves. ✔ Gold prices have fallen more than 12 percent from a peak in April largely due to strength in the dollar, which has benefited from a vibrant U.S. economy, rising U.S. interest rates and fears of a global trade war ✔ Platinum inched 0.4 percent lower to $817.50 an ounce
Emerging market stocks' descent to 17 month lows entices U.S....
10/8/2018, 1:59:58 PMThe steep decline in emerging market stocks since early this year are attracting... ✔ You’re getting the benefits of a company that is being boosted by a secular trend at a much cheaper price, Mack said (Graphic: U.S. vs Emerging Markets stock valuations - reut.rs/2NqqUOr) Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management, said his firm recently upgraded its stance on emerging markets from negative to neutral
‘The cat and mouse game is never ending’ German businesses panic over Brexit
10/8/2018, 2:04:30 PMGERMAN businesses are panicking over Brexit, with the country’s main industry body producing a “checklist” in order to deal with the effects of Britain leaving the EU on German imports and exports. ✔ A checklist has been formulated to help businesses answer their post-Brexit related woes (Image: GETTY) Germany news: The UK is one of the largest economic partners of Berlin (Image: GETTY) Meanwhile, Germany has been locked in a bitter battle with the Washington, threatening to impose sanctions on US manufactured cars in retaliation to President Donald Trump's threats to slap tariffs on German cars
Indonesia to press for policy coordination at IMF-World Bank meetings
10/8/2018, 1:49:44 PMIndonesia plans to use meetings between global finance ministers and central ban... ✔ Bank Indonesia has raised interest rates five times since mid-May, while the government has lifted import taxes and delayed infrastructure projects to curb imports ✔ Authorities have said they are willing to accept slightly lower economic growth to stabilize the market ✔ Our Standards:The Thomson Reuters Trust Principles
World shares slide on China growth fears, dollar gains
10/8/2018, 3:28:47 PMA gauge of global equity markets slumped on Monday amid unease over the impact o... ✔ Yields on the 10-year note were at seven-year highs, after a solid jobs report raised the specter of faster interest rate hikes ✔ There’s a hangover from last week’s rapid move in yields and just because the bond market’s closed, doesn’t mean investors are not worried, said Michael Antonelli, managing director, institutional sales trading at Robert W ✔ Our Standards:The Thomson Reuters Trust Principles
Trade disputes panel on brink of collapse, Cecilia Malmstrom warns
10/8/2018, 1:26:15 PMundefined ✔ The EU’s trade commissioner has called for renewed efforts to reform the World Trade Organization, warning that the top panel that rules on global trade disputes is on the brink of collapse as the US continues to block the appointment of judges ✔ It seems as if Trump wants to break global value chains and concentrate production in the [free trade] area and notably in the US The EU, and others such as Canada and Japan, fear this would be a big setback for the multilateral trading system
Walmart partners with MGM to boost video-on-demand service
10/8/2018, 1:44:31 PMWalmart bought Vudu eight years ago. ✔ There had been media reports the Bentonville, Arkansas-based company was looking to launch a subscription streaming video service to rival that of Netflix and make a foray into producing TV shows to attract customers, but Walmart is not planning such a move, according to company sources
IQiyi, China’s ‘Netflix’, Has Upside, Analyst Says
10/8/2018, 1:56:02 PMChinese streaming company iQiyi picked up a new fan on Wall Street, but macroeconomic issues in China are weighing on the stock. ✔ The company’s spending on content will probably stay high, but she thinks it can benefit from a rising mix of original shows, as well as slowing cost growth for licensed programming ✔ Shares of other tech companies including Alibaba , JD.com , and video-sharing platform Bilibili were down more sharply than iQiyi’s stock
China's Latest Banking Move Shows How Nervous It Is About Its Economy
10/8/2018, 1:47:49 PMMarkets across Asia tumbled today. ✔ About $65.5 billion will be directed to banks to repay debts due in coming weeks, while the rest will be pushed into the financial market ✔ It is important for Beijing to manage those risks for longer-term growth, Fenner said, adding that the focus is now on growth
Apple tells Congress that China has not hacked its servers
10/8/2018, 2:25:12 PMThe company’s vice president for information security said no malicious activity has been detected. ✔ On Thursday, Bloomberg News reported that some servers supplied by a company called Super Micro Computer contained chips from China that created a stealth doorway for spying into the affected computers – which could be found at almost 30 companies, including Apple and Amazon
China tells Trump administration to stop its ‘misguided’ actions and allegations
10/8/2018, 1:23:03 PMPompeo says he hopes to make progress on the two countries’ “fundamental disagreement.” ✔ But we do think right that this is a place where ultimately some of these big difficult issues have to be resolved by the nation’s most senior leaders and hope to have those presented in a way that the two leaders can resolve them when they get together
When will the economic boom end? Not anytime soon, according to Larry Kudlow
10/8/2018, 1:44:36 PMPresident Trump's chief economic adviser sounded a note of optimism on Sunday. ✔ And although job creation faltered in September, falling below analysts’ expectations, Kudlow previously said it would likely top 2.4 million by the end of the year ✔ It’s a big help to American workers, you know main street, blue-collar workers, he said
Apple, Amazon Deny Bloomberg Report On Chinese Hardware Attack
10/8/2018, 1:29:55 PMThe companies denied their systems contained malicious computer chips inserted by Chinese intelligence. ✔ Apple has never found malicious chips, 'hardware manipulations' or vulnerabilities purposely planted in any server, the company said ✔ Reuters (Reporting by Jack Stubbs in London, Sweta Singh in Bangalore, Jim Finkle in New York and Adam Jourdan in Beijing; editing by Jason Neely and Susan Fenton)
White House must stop portraying US as victim - Opinion
10/8/2018, 1:43:26 PMundefined ✔ With this in mind, one can easily see that Pence's speech was merely the wolf crying wolf ✔ In a conflict, when one party is in a frenzy, it is crucial that the other party remain cool-headed, so it would be inadvisable to meet aggression with aggression ✔ The author is a professor at Chapman University and a research fellow at the National Academy for Development and Strategy, Renmin University of China
Taiwan cyber war chief warns of tech supply chain shake-up
10/8/2018, 1:26:34 PMundefined ✔ It must have been built into the process Major General Ma Ying-han, Taiwan military cyber warfare chief Taiwan itself is both heavily exposed to Chinese hacking attacks and deeply invested in China-based manufacturing of electronics hardware for the global market
General Motors China sales go into reverse as market stalls
10/8/2018, 3:16:29 PMGeneral Motors Co's quarterly sales in China fell for the first time in ove... ✔ REUTERS/Rebecca Cook/File Photo GM has been shifting its Buick cars to a new type of more efficient three-cylinder engine to meet emissions targets, which Chinese dealers told Reuters had hit sales because consumers were not yet convinced by the smaller engines
Asian stocks deepen losses as China markets slump
10/8/2018, 1:20:29 PMChinese airlines slide as onshore yuan tumbles after cut in bank reserve ratio ✔ Chinese airlines, which bear fuel and aircraft acquisition costs in U.S. dollars, retreated after the yuan weakened, with Air China and China Southern Airlines sliding 3% and 2.4%, respectively ✔ The statement came after Bloomberg reported, citing people familiar with the matter, that TCL is considering a bid for ASM International’s remaining 25% stake in its Hong Kong-listed affiliate ASM Pacific Technology
Oil drops to around $83 on expectations Iran will maintain some...
10/8/2018, 1:59:43 PMOil dropped to around $83 a barrel on Monday, pressured by expectations that som... ✔ Having said that, it may well be that we are already in the most supportive phase coming from this change and the effect will soon begin to ease ✔ Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies which have fallen further in October according to export data ✔ Our Standards:The Thomson Reuters Trust Principles
Oil prices drop on signs Iran will maintain some exports
10/8/2018, 1:46:47 PMOil dropped to around $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. reimposes sanctions, easing a strain on supplies. ✔ Having said that, it may well be that we are already in the most supportive phase coming from this change and the effect will soon begin to ease ✔ Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies ✔ CNBC's Tom DiChristopher contributed to this report
China stocks fall despite central bank policy easing
10/8/2018, 1:25:25 PMundefined ✔ Chinese equities slumped on Monday morning after a week-long national holiday, a day after the central bank moved to inject more cash into the banking system in a bid to shore up economic growth ✔ The slide in the country’s stocks and currency followed a move by China’s central bank on Sunday to cut the amount of reserves that it requires domestic banks to hold, to cushion the economy against trade tension with the US
Dow falls 100 points, heads for 3-day losing streak amid fears of rising rates
10/8/2018, 1:46:53 PMStocks fell on Monday as investors continued to fret over a sharp rise in interest rates. ✔ 7, while the Nasdaq had its biggest one-week fall since March ✔ The news comes as the nation continues to battle with the U.S. over a tit-for-tat trade war, and is the fourth time the PBOC has slashed its reserve requirement ratio (RRR) in 2018 ✔ The Shanghai Composite fell 3.7 percent overnight while Korean Kospi index pulled back 0.6 percent
Beijing loosens credit to soften tariff blow and avert stock selloff
10/8/2018, 1:20:43 PMCentral bank's latest reserve ratio cut frees up $100bn for lending to private sector ✔ Sport utility vehicles wait to be exported at a port in China's Jiangsu Province ✔ While U.S.-bound exports rose 13% in the eight months through August, much of the gain owes to a rush to ship goods ahead of American tariffs imposed on Chinese imports from July to September
Pound LIVE: GBP soars to three and a half month high against euro as faith in Europe FALLS
10/8/2018, 1:40:59 PMTHE pound soared to a three-and-a-half month high against the euro this morning after first beginning its descent last week. Sterling held its gains over the weekend and into Monday after markets reacted positively to Brexit optimism following reports that divorce deal is "very close". ✔ Meanwhile, the euro was continuing to feel the pressure from the fallout of Italy’s deficit budget plan after the European Commission brandished the targets as a source of serious concern ✔ Germany's DAX also declined 0.6 percent, while the the UK's FTSE fell 0.3 percent
Euro hits 7-week low on Italy budget row, yuan slips
10/8/2018, 3:16:40 PMThe euro fell to a seven-week low against the dollar on Monday on a spat between... ✔ The single currency fell 0.38 percent against the dollar EUR=EBS to $1.14755 and not far from a more-than one-year low of $1.1355 hit in mid-August ✔ (Graphic: Trade tensions in China's stock, currency markets - tmsnrt.rs/2PlCZGr) Our Standards:The Thomson Reuters Trust Principles
Emerging markets 'as prepared as they can be' for U.S. rate moves:...
10/8/2018, 1:50:13 PMEmerging markets were "as prepared as they can be" for changes to U.S.... ✔ REUTERS/Edgar Su There are countries that have problems of varying sorts and they have to sort those out ✔ So in some cases they may get caught off guard, Bullard said during a question and answer after delivering a lecture on the U.S. economy ✔ Our Standards:The Thomson Reuters Trust Principles
China's markets tumble after the central bank moves to spur the economy
10/8/2018, 1:47:03 PMChina's mainland markets saw significant declines on Monday following the central bank's move to cut the reserve ratio for lenders over the weekend. ✔ The move, the central bank's fourth in 2018, came amid concerns about the economic impact of Beijing's ongoing trade war with Washington ✔ That is quite a lot of money going around, Lun said ✔ the government's really worried that the economy will slow down and the stock market will tank ✔ CNBC's Evelyn Cheng and Reuters contributed to this report
US bond yields have been creeping higher, but that could soon change
10/8/2018, 2:13:58 PMThe yield on the 10-year U.S. Treasury note is back up above 3.2 percent. ✔ Scott Olson | Getty Images Markets are fixated on the tit-for-tat trade war between China and the United States ✔ Bonds are not that exciting anymore, wealth advisor says 6 Hours Ago | 04:28 U.S. pension funds are better funded now than they have been in a long time, said Panigirtzoglou, who cited numbers from analytics firm Milliman
Secretary of State Mike Pompeo's visit to China kicks off with a frosty exchange
10/8/2018, 1:47:22 PMA meeting of top U.S. and Chinese diplomats got off to a frosty start on Monday, with U.S. Secretary of State Mike Pompeo and Chinese Foreign Minister and State Councillor Wang Yi airing grievances amid worsening bilateral relations. ✔ Pompeo and Wang openly disagreed over which side had called off a two-way security dialogue that had been planned in Beijing this month ✔ Watch: VP Mike Pence comments on China chip hacking Vice President Mike Pence comments on China chip hacking 3:16 PM ET Thu, 4 Oct 2018 | 03:36
China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders
10/8/2018, 1:47:12 PMThe People's Bank of China announced measures on Sunday to cut the amount of cash that banks have to hold as reserves. ✔ On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend ✔ The movement in ANZ's stock came after it announced that its full year 2018 cash profit would be impacted by additional charges for customer compensation, accelerated amortisation of software and other notable items
Here's how this year's biggest US IPOs have performed
10/8/2018, 2:31:59 PMThrough the end of September, there have been 173 IPOs in the US, raising $45.7 billion. The value raised in the first three quarters was 46.5% greater than the same period last year, and more than three times that of 2016, according to PwC track of data. ✔ It has been a busy year for initial public offering in America ✔ Cactus Business Insider Ticker: WHD Sector: Diversified IPO size : $552 million IPO price: $10 Price change: +111% Source: Bloomberg data/Markets Insider 2/ 15
Here's how this year's biggest US IPOs have performed | Markets Insider
10/8/2018, 3:49:19 PMundefined ✔ Reuters / Lucas Jackson It has been a busy year for initial public offering in America ✔ Cactus Business Insider Ticker: WHD Sector: Diversified IPO size : $552 million IPO price: $10 Price change: +111% Source: Bloomberg data/Markets Insider 15
Shares slide on 'powerful cocktail' of China slump, Treasuries and...
10/8/2018, 1:49:22 PMEuropean markets fell on Monday as investor confidence took a knock from last we... ✔ They’ve injected more liquidity into the market to contain the slowdown, which has already translated into weaker equity prices ✔ For Reuters Live Markets blog on European and UK stock markets open a news window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the search bar Our Standards:The Thomson Reuters Trust Principles
Why China may soon regret its tariffs on US natural gas
10/8/2018, 1:58:46 PMChina's tariffs on U.S. liquefied natural gas are likely to raise costs for Chinese companies and boost revenues for sellers, including American LNG suppliers. ✔ U.S. companies like Cheniere Energy pump a lot of LNG into the spot market, providing a chunk of flexible supplies for buyers who want to swap cargoes to take advantage of price differences and shorter delivery times ✔ If you're a trader that's a great place to be, she said
Environment Warning, China Markets, Apple Denial: CEO Daily for October 8, 2018
10/8/2018, 1:48:00 PMMust-read business news, delivered every morning. ✔ Wall Street Journal China Markets China’s central bank yesterday cut banks’ reserve requirements in order to stimulate growth, in the context of the trade war with the U.S. The result in today’s trading was an almost-3% drop in Chinese markets, with Chinese banks losing more
Business Live: FTSE slides over Italy fears
10/8/2018, 1:47:42 PMStock markets in London and in Europe fall about 1% as the impasse over Italy's budget continues. ✔ The Portal products automatically zoom in on users and follow them as they move, to offer a superior experience to existing smartphone and tablet apps ✔ Phil Broadhead has gone down a different path though, he reckons the bank should call itself 'M' ✔ Page 1 of 3 rewind previous Navigate to the next page next Navigate to the last page forward
The U.S.-China Trade Battle Spawns a New Era of Tariff Dodges
10/8/2018, 2:46:51 PMThere are 18,927 individual codes to identify goods the U.S. imports, and switching them around is an increasingly popular way some Chinese exporters are ducking proliferating American tariffs, say trade professionals. The plywood industry is a case in point. ✔ Misclassification of trade goods has a long pedigree ✔ His stance isn’t necessarily shared by his competitors, he added ✔ With this whole global trade war bubbling, I just don’t think people understand how common it is to jerk with the system, Mr. Visse said
China bans US warship from docking in Hong Kong amid heightening tensions
10/8/2018, 1:34:48 PMDiplomatic feud escalates following tariffs and sanctions imposed by Washington on Beijing ✔ The vessel arrived with 177 migrants on board, but the Italian Interior Ministry denied them to disembark, calling EU member states to find a solution on how to distribute them ✔ At a meeting with former US Secretary of State Henry Kissinger at the United Nations, Chinese State Councillor Wang Yi said: China and the United States can have competition, but should not use a Cold War mentality to view each other, and nor should they slip into the trap of a zero-sum game
Analysis | The Finance 202: Republicans believe U.S. economic system is fair to most Americans
10/8/2018, 1:23:49 PMDemocrats don't. ✔ The visit was the latest indication of deteriorating ties between the U.S. and China, as the two sides tussle over everything from trade to Taiwan and the South China Sea ✔ A post shared by The New Yorker (@newyorkermag) on Oct 6, 2018 at 1:13pm PDT BULL SESSION SNL mocks Republicans celebrating Kavanaugh confirmation ‘I’ve never heard of a kid shredding a grand’: Toddler shreds parents savings
Financial crisis 10 years on: Have we seen any true reform?
10/8/2018, 1:35:28 PMIn the autumn of 2008, the world's financial system was in the grip of a downward spiral. In the years since then, a rising sense of injustice has altered our politics, but networks of global finance are still far from safe. Ben Chu looks back at how the crash unfolded and considers whether we have learned our lesson ✔ The catastrophically handled eurozone crisis is the proximate cause – but the emergency was brought on by the bursting of the global bubble in 2008 ✔ JPMorgan’s stridently anti-reform chief executive, Jamie Dimon, was paid $29.5m in 2017 ✔ But the hard reality is that, where it really matters, things haven’t changed nearly enough
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