Dow futures fall nearly 100 points after China blames US for trade war, Alphabet shares drop - CNBC

U.S. stock index futures fell on Monday, the first trading day of June, after China's rhetoric on U.S. trade relationship intensified over the weekend.

At around 8 a.m. ET, Dow Jones Industrial Average futures slipped 58 points, indicating a drop of 60 points at the open. Futures on the S&P 500 and Nasdaq 100 also fell. The Dow came into Monday's session having logged in six straight weeks of losses, the index's longest weekly slide since 2011.

Shares of Boeing, a trade bellwether of global trade, fell 1.2%. Alphabet shares also dropped 3.4% after the Justice Department is reportedly investigating the tech company for antitrust violations.

Chinese Vice Commerce Minister Wang Shouwen said in a white paper Sunday that Washington would not be able to use pressure to force a trade deal on Beijing. He also refused to say whether the leaders of both countries would meet at the G-20 summit to work out an agreement later this month.

Wang added: "The U.S. has backtracked, and when you give them an inch, they want a yard."

The remarks from Wang follow a month of heightened trade tensions between the world's largest economies. The U.S. hiked tariffs on $200 billion worth of Chinese goods in May. China retaliated with higher tariffs on U.S. imports.

Trade worries also rattled Wall Street last week after President Donald Trump threatened to slap a 5% charge on all imports from Mexico. The threat sent stocks tumbling on Friday. 

On the data front, a final reading of manufacturing PMI (Purchasing Managers' Index) data for May will be released at around 9:45 a.m. ET. The Institute for Supply Management (ISM) manufacturing index for May, construction spending figures for April and latest light vehicle sales data will all follow slightly later in the session.

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2019-06-03 11:12:37Z
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Dow futures sharply lower amid intensifying trade war concerns - CNBC

U.S. stock index futures were sharply lower Monday morning, as market participants monitor an intensifying trade dispute between the world's two largest economies.

At around 05:05 a.m. ET, Dow futures slipped 132 points, indicating a negative open of more than 134 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to global trade developments, amid growing fears that Washington's latest tariff threats against Mexico could tip the global economy into a recession.

Tensions between the U.S. and China escalated over the weekend, as the two countries clashed over trade, technology and security issues.

A senior Chinese official and trade negotiator said Sunday that Washington would not be able to use pressure to force a trade deal on Beijing. Vice Commerce Minister Wang Shouwen also refused to say whether the leaders of both countries would meet at the G20 summit to work out an agreement later this month.

On the data front, a final reading of manufacturing PMI (Purchasing Managers' Index) data for May will be released at around 9:45 a.m. ET. The Institute for Supply Management (ISM) manufacturing index for May, construction spending figures for April and latest light vehicle sales data will all follow slightly later in the session.

In corporate news, Box and Coupa Software are both expected to release their latest quarterly results after market close.

On Friday, the Dow tumbled more than 350 points after President Donald Trump said the U.S. would impose a 5% tariff on all Mexican imports from June 10. The Trump administration has threatened to raise those charges up to 25% over the coming months if Mexico does not take significant action in stopping migrants reaching the southern border.

Friday's declines added to a torrid week and month for stocks. The Dow dropped 3% last week and notched its sixth straight weekly loss. That's the longest weekly losing streak for the Dow since 2011. The S&P 500 and Nasdaq posted their fourth straight weekly loss. The major indexes also snapped a four-month winning streak.

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2019-06-03 10:35:29Z
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Apricot seed products recalled due to cyanide poisoning risk - TheChronicleHerald.ca

Two products containing apricot seeds are being recalled due to the risk of cyanide poisoning.

Bitter Raw Apricot Seeds and Apricot Seed Meal, both under the Apricot Power brand, are being pulled from retail shelves due to the natural toxin amygdalin, according to a release from the Canadian Food Inspection Agency. The products are made by Ecoideas Innovations Inc.

“This toxin may cause acute cyanide poisoning,” the release said. “Consumers should not consume the recalled products described below as they have incorrect dosage information and excessive consumption may cause cyanide poisoning.”

The Bitter Raw Apricot Seeds are sold in both 454 g and 226 g packages. Both have the code EXP 0121 on them. The UPC on the larger package is 7 280284 537130. The UPC on the 226 g package is 7 528303 370840.

The Apricot Seed Meal is sold in a 191.4 g package with the code 0218WF March 2020, and a UPC of 7 280284 536904.

CFIA recommends the recalled products be thrown out or returned to the store where they were purchased.

“Bitter apricot kernels naturally contain a compound called amygdalin, which has the potential to release cyanide when the kernels are ingested,” the release said. “Small amounts of cyanide can be detoxified by the human body, but high amounts may be lethal.”

Symptoms of cyanide exposure may include headache, dizziness, mental confusion, weakness, difficulty breathing, abdominal pain, nausea, vomiting, seizures and coma.

The company initiated the recall and CFIA is conducting a food safety investigation, which may lead to the recall of other products.

There have been no reported illnesses associated with the consumption of these products, the release said.

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June 02, 2019 at 09:48PM

Factory activity shrinks across Asia, stokes global recession fears - Investing.com

© Reuters. An engineer makes an arm rail for residential buildings inside a metal processing factory at an industrial zone in downtown Tokyo

By Jonathan Cable and Marius Zaharia

LONDON/HONG KONG (Reuters) - Factory activity contracted across Asia and Europe last month as an escalating trade war between Washington and Beijing raised fears of a global economic downturn and heaped pressure on policymakers to roll out more stimulus.

Such growth indicators are likely to deteriorate further in coming months as higher trade tariffs take their toll on global commerce and further dent business and consumer sentiment, leading to job losses and delays in investment decisions.

Some economists predict a world recession and a renewed race to the bottom on interest rates if trade tensions fail to ease at a Group of 20 summit in Osaka, Japan at the end of June, when presidents Donald Trump and Xi Jinping could meet.

The U.S.-China trade war, slumping automotive demand, Brexit and wider geopolitical uncertainty took their toll on manufacturing activity in the euro zone last month. It contracted for a fourth month in May - and at a faster pace.

"The additional shock from the escalated trade tensions is not going to be good for global trade. In terms of the monetary policy response, almost everywhere the race is going to be to the downside," said Aidan Yao, senior emerging markets economist at AXA Investment Managers.

IHS Markit's May final manufacturing Purchasing Managers' Index for the euro zone was 47.7, below April's level and only just above a six-year low in March.

In Britain, the Brexit stockpiling boom of early 2019 gave way last month to the steepest downturn in British manufacturing in almost three years as new orders dried up, boding ill for economic growth in the second quarter.

After an official gauge on Friday showed contraction in China, Asia's economic heartbeat, the Caixin/IHS Markit Manufacturing PMI showed modest expansion, offering investors some near-term relief.

The outlook, however, remained grim as output growth slipped, factory prices stalled and businesses were the least optimistic on production since the survey series began in April 2012.

Central banks in Australia and India are expected to cut rates this week, with others around the world are seen following suit in coming weeks and months.

While U.S. manufacturing is expected to grow steadily, economists expect the global malaise to eventually feed back into the U.S. economy. Fed funds rate futures are now almost fully pricing in a rate cut by September, with about 50 percent chance of a move by end-July.

J.P. Morgan now expects the Federal Reserve to cut rates twice this year, a major change from its previous forecast that rates would stay on hold until the end of 2020.

Meanwhile, Monday's survey adds to evidence that the euro zone economy is under pressure and will likely be of concern to policymakers at the European Central Bank, who have already raised the prospect of further support.

There is little likelihood of them hiking interest rates before 2021, according to economists in a Reuters poll last week. They said the bank's next policy move would be to tweak its forward guidance toward more accommodation.

RECESSION FEARS

The trade conflict between China and the United States escalated last month when Trump raised tariffs on some Chinese imports to 25% from 10% and threatened levies on all Chinese goods.

If that were to happen, and China were to retaliate, "we could end up in a (global) recession in three quarters", said Chetan Ahya, global head of economics at Morgan Stanley (NYSE:).

Washington's new tariff threats against Mexico last week also contributed to global recession fears, with stock markets tumbling around the world. The 10-year U.S. Treasuries yield fell to 2.121%, a nadir last seen in September 2017.

Tensions flared again between the United States and China at the weekend over trade, technology and security.

China's Defence Minister Wei Fenghe warned the United States not to meddle in security disputes over Taiwan and the South China Sea, while acting U.S. Defence Secretary Patrick Shanahan said Washington would no longer "tiptoe" around Chinese behavior in Asia.

"We take this seriously. It means that the trade war has not only become a technology war but also a broad-based business war. There will be more retaliation actions from China, especially for the technology sector," said Iris Pang, Greater China economist at ING.

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June 03, 2019 at 11:51AM

Oil prices plunge further on trade war fears - CNBC

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Oil prices plunged by more than 1.5% to below $61 a barrel on Monday, extending last week's heavy losses as deepening U.S. trade wars fanned fears of a global economic slowdown.

Saudi Arabia, the de-facto leader of OPEC, sought to stem the price slide with assurances that the group of oil producers together with Russia would continue managing global crude supplies to avoid a surplus.

Front-month Brent crude futures were at $60.96 at 0844 GMT, down $1.03 or 1.7% below Friday's close. Prices had dropped by more than 3% on Friday, with May recording the biggest monthly loss in six months.

U.S. West Texas Intermediate (WTI) crude futures were at $52.98 per barrel, down 52 cents, or 1%.

Global markets have reeled in recent weeks over concerns that the global economy could stall amid rising trade tensions between the United States and China, the world's two largest economies and biggest energy consumers.

Fears over trade were further stoked when U.S. President Donald Trump announced punitive tariffs against Mexico, a key oil supplier to the United States.

"Traders are increasingly pricing in a prolonged trade war hitting the global economy," said Jasper Lawler, head of research at futures brokerage London Capital Group.

In a typical market move during times of uncertainty, gold rose to its highest level in over two months on Monday as investors pulled out of risky assets like oil and parked money in perceived safe havens like the precious metal.

SUPPLY ASSURANCES

Brent crude oil prices have dropped almost 20% from their 2018 peak as global supplies tightened due to output curbs by the Organization of the Petroleum Exporting Countries and Russia, as well as a drop in Iranian exports due to U.S. sanctions and Venezuelan production.

Saudi Arabia, the world's top exporter, pumped 9.65 million barrels of oil per day (bpd), cutting deeper than its production target under a global pact to reduce oil supply, a Saudi oil industry source said on Monday.

The Saudi output target under the OPEC-led pact is 10.3 million bpd.

"Supply side fundamentals don't matter at the moment as market participants are entirely focused on demand concerns," said Commerzbank's Carsten Fritsch in the Reuters Global Oil Forum.

U.S. drillers this week increased the number of oil rigs operating for the first time in four weeks. Weekly production last stood at a record 12.3 million bpd.

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June 03, 2019 at 04:43PM

Government announces $47.5 million project to improve Port of Halifax, revamp Windsor Street Exchange - HalifaxToday.ca

On Sunday, Federal Transportation minister Marc Garneau made an announcement in Halifax that will see two infrastructure upgrades in the region.

"Our government has been working to identify and fund infrastructure projects that address bottlenecks, vulnerabilities, and congestion along our trade corridors," Garneau said.

Garneau was accompanied by members of all levels of government for the announcement, including MP Andy Fillmore, MLA Labi Kousoulis, and HRM Mayor Mike Savage. Halifax CAO Jacques Dube was also in attendance, as well as Halifax Port Authority CEO Karen Oldfield.

The first part of the announcement will see a new rail track between the downtown container terminal, and the Fairview Cove container terminal near the Windsor Street exchange.

"The port will add rail tracks within its existing footprint and acquire four new rail mounted cranes to load and unload containers faster and more efficiently at both terminals," says Garneau.

Because of this, trucks that would typically pick up their goods downtown will now load and unload in Fairview Cove.

MLA Labi Kousoulis says he expects this to reduce container-related trucks travelling downtown by about 75 per cent.

"This is going to be a monumental change in our city, it's a very exciting project," Kousoulis said at the announcement.

The second part of the project will be a re-configuration of the Windsor Street Exchange itself.

"This work includes realigning the Bedford Highway, upgrading the Lady Hammond Road, and installing new traffic signals to improve traffic flow," Garneau explained.

Mayor Savage says the announcement was a much needed solution to growing traffic issues downtown.

"While we value the trucking jobs and the goods that get transported daily throughout our region, their rumblings through downtown streets have not always made for happy co-existence with residents, tourists, and cyclists," Savage says.

Both upgrades are part of the new National Trade Corridors Fund, which aims to up Canada's trade competitiveness on an international scale.

"We are a country of traders, and that is why our ports are so important," Garneau said. "We could have the best products in the world, but if we can't get them to our customers quickly and reliably, we will lose business to other suppliers."

Although the planning aspect of the work has already begun, Garneau says shovels won't hit the dirt until 2020, and the length of the project is still undetermined.

"It could be three, four years. The precise schedule will come a little later on," Garneau told press after the announcement.

The total cost of the project is approximately $100 million, with the federal government committing to at least 50 per cent.

"We're working to advance the prosperity of this region by supporting continued investment in our port," says Mayor Savage.

Also speaking at the event, Port of Halifax CEO Karen Oldfield says the announcement is a game-changer.

"This is a big part of the transformative change that we've all been working toward," she says. "We can improve the quality of life for those living and working in Halifax."

As Canada finalizes new trade agreements around the globe, Garneau says it's crucial that we optimize our shipping routes.

"Canada is back, Canada is strong, and it's open for business," he says.
 

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June 03, 2019 at 01:43AM

Dow futures sharply lower amid intensifying trade war concerns - CNBC

U.S. stock index futures were sharply lower Monday morning, as market participants monitor an intensifying trade dispute between the world's two largest economies.

At around 05:05 a.m. ET, Dow futures slipped 132 points, indicating a negative open of more than 134 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to global trade developments, amid growing fears that Washington's latest tariff threats against Mexico could tip the global economy into a recession.

Tensions between the U.S. and China escalated over the weekend, as the two countries clashed over trade, technology and security issues.

A senior Chinese official and trade negotiator said Sunday that Washington would not be able to use pressure to force a trade deal on Beijing. Vice Commerce Minister Wang Shouwen also refused to say whether the leaders of both countries would meet at the G20 summit to work out an agreement later this month.

On the data front, a final reading of manufacturing PMI (Purchasing Managers' Index) data for May will be released at around 9:45 a.m. ET. The Institute for Supply Management (ISM) manufacturing index for May, construction spending figures for April and latest light vehicle sales data will all follow slightly later in the session.

In corporate news, Box and Coupa Software are both expected to release their latest quarterly results after market close.

On Friday, the Dow tumbled more than 350 points after President Donald Trump said the U.S. would impose a 5% tariff on all Mexican imports from June 10. The Trump administration has threatened to raise those charges up to 25% over the coming months if Mexico does not take significant action in stopping migrants reaching the southern border.

Friday's declines added to a torrid week and month for stocks. The Dow dropped 3% last week and notched its sixth straight weekly loss. That's the longest weekly losing streak for the Dow since 2011. The S&P 500 and Nasdaq posted their fourth straight weekly loss. The major indexes also snapped a four-month winning streak.

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https://www.cnbc.com/2019/06/03/stock-markets-wall-street-monitors-intensifying-trade-war-concerns.html

2019-06-03 09:07:02Z
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