Unemployment rises as Canada sheds 24200 jobs in July - The Globe and Mail

Trump still has plenty of ways to escalate his China trade war - BNNBloomberg.ca

The trade war’s August escalation has spooked markets -- and central banks -- around the world. The bad news, though, is that while President Donald Trump has fired two large weapons in the past week by green-lighting his biggest swathe of tariffs yet and formally branding China a currency manipulator, his arsenal is far from exhausted.

The loudest shot Trump could take may be the one that he increasingly appears focused on: weaponizing the dollar, the world’s reserve currency.

In a series of tweets on Thursday he called for the Federal Reserve to cut rates and weaken the dollar to benefit American exporters, effectively shrugging off a long-standing G-20 compact the U.S. signed again just weeks ago for the world’s major economies not to engage in competitive currency devaluations.

Inside the White House, hawks have been pushing for a direct intervention in currency markets by the Treasury by pointing to a slowdown in U.S. manufacturing, which many economists have blamed on tariffs imposed by Trump and uncertainty surrounding his trade war with China.

Just how effective either a Fed cut or an intervention would be is unclear. The relevant Treasury fund has US$92 billion in it. Even if the Fed were to join in, as it has in past interventions, and match that amount -- a US$180 billion injection into a US$5 trillion per day global foreign-exchange market might have a limited effect. It might also unnerve markets and have longer-term economic consequences.

But while the president and markets are focused on a possible currency intervention, that’s far from the last weapon he has available, according to current and former U.S. officials, advisers to the administration and analysts.

'We are walking through history' of unprecedented market conditions: Rosenberg

Markets have gone topsy-turvy, with cash piling into both risk assets like equities and safe havens of the likes of U.S. Treasury bills. For perspective on this and why he thinks we're "walking through history," BNN Bloomberg spoke with David Rosenberg, chief economist and strategist at Gluskin Sheff + Associates.

Drop in the Bucket

“He’s only dipped into the deep well of the measures that could be used against China,” said Gary Hufbauer, a trade expert at the Peterson Institute for International Economics who was among the first analysts to identify the array of tariff measures Trump had available to him during the 2016 presidential campaign.

Trump could turn back to his favorite tool, tariffs, and double-down on his threat to impose import taxes on all remaining imports from China, or some $300 billion in annual trade, by raising the levies he last week vowed to impose Sept. 1 from 10% to 25%. At a time when Trump is focused on currency movements, the irony is that move would weaken the yuan, as it has before, thus undermining his efforts to talk down the dollar. Yet Trump has used currency swings as justification for tariffs before.

That’s far from the end of it.

A Commerce Department proposal that would allow companies to ask for targeted duties against imported Chinese products would benefit from this week’s Treasury designation of China as a currency manipulator and, if implemented, could see a flood of new cases seeking protection and retaliatory tariffs.

Beyond all that, Hufbauer argues the administration could raise further barriers to Chinese investment in the U.S. or target China’s energy supply by revoking waivers that allow Beijing to continue purchasing oil from Iran and Venezuela.

Trump has said an easing of restrictions on sales to China’s Huawei Technologies Co. that was part of a now-ended truce during a meeting with Chinese leader Xi Jinping in Japan at the end of June will still go ahead. But the White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei after Beijing boycotted purchases of U.S. farming goods, according to people familiar with the matter.

Former and current administration officials also caution other export restrictions and policies targeting China that were on hold, or delayed as Trump pursued a deal, could be revived.

Among those is the proposed blacklisting of Chinese companies involved in surveillance operations in China’s western Xinjiang province, where authorities have conducted mass detentions of Muslim Chinese.

Robots, AI

The Commerce Department has also been working on broader export restrictions on products from emerging industries such as robotics and artificial intelligence that would require special licenses to be exported to places like China.

The process to update the list of controlled technologies has been ongoing and likely will take until later this year to be finalized. American tech companies have been lobbying against a broad interpretation of national security or including wide categories such as semiconductor technology, arguing it could stymie U.S. research spending.

There are multiple bipartisan bills in Congress that Trump could back such as one introduced recently that would require the Fed to manage the dollar’s value to benefit American exporters and impose a tax on inbound capital as well as others that would deny Chinese firms access to U.S. equity markets. Also circulating is legislation that would shut off Huawei and fellow Chinese telecoms equipment maker ZTE Corp. entirely from U.S. suppliers.

Michael Pillsbury, an occasional adviser to the Trump administration, insists that while Trump “has more guns” he also has a more pragmatic view of China than his aides and is still eager to cut a deal. “The key is to get the message to Xi, and not with a blunderbuss,” Pillsbury said.

The pressure Trump has applied already extracted meaningful concessions from China, Pillsbury argues, pointing to Beijing’s implementation of new intellectual-property courts.

Pillsbury argued staging a deal to package up things like greater access to China for U.S. investment firms and purchases of U.S. farm products in exchange for some easing of tariffs at first would make sense for both China and Trump. That could leave difficult topics such as a U.S. push for a reduction in Chinese industrial subsidies and other economic reforms off the table for now.

But some other people close to the administration see that as risky. Such a move could draw Trump into a bad short-term deal with China, they say. A more likely scenario may be Trump pausing his assault on China once tariffs are in place on all Chinese imports and offering businesses at least certainty over the landscape rather than focusing on a deal.

Market Plunge

Then again, those people say, a lot could still depend on markets. A thousand point drop in the Dow Jones Industrial Average may not sway the president, but a 5,000-point move could.

That the U.S.-China relationship is at its lowest point since Trump took office has created a window for his hawkish advisers to push for a more aggressive approach. The only thing in their way is their own lack of coordination, according to Derek Scissors, a China expert at the American Enterprise Institute who has advised the administration.

“The president is upset with China,” he said. “The door is open for critics of China to take a whole number of actions and they’re completely disorganized and have no sense of priorities.”

from Business - Latest - Google News https://ift.tt/2YRiNUB
via IFTTT
August 09, 2019 at 05:00PM

Unintended consequences start to haunt Trump - BNNBloomberg.ca

U.S. President Donald Trump is getting a crash course in the law of unintended consequences.

His campaign against a supposed “invasion” of migrants across the Mexican border and his racially charged tweets against minorities have been put under the spotlight by last weekend’s gun massacres.

And his intensifying trade war with China has prompted Beijing to suspend U.S. agricultural imports, causing pain in farming states that he’ll need to win re-election in 2020.

Then there's Huawei. As Bloomberg exclusively reports, the White House is holding off on a decision to approve licenses for U.S. companies to restart business with the Chinese tech giant after Trump blacklisted it in May over national-security concerns.

That move has alarmed U.S. tech companies including Google parent Alphabet. But there's something far bigger at stake than a loss in sales: Trump is forcing Huawei — the world’s second-biggest smart-phone maker — to build a rival operating system to Android, which now powers about 80 percent of the world’s devices and is key part of Google’s business plan.

Huawei revealed the early outlines of that software today. While it may take years to become a serious alternative, it's coming.

For every action, there’s a reaction. Trump is learning that the hard way.

U.S. Labeling China a Currency Manipulator Is "Mostly Symbolic': Goldman

Aug.07 -- Andrew Tilton, chief Asia Pacific economist at Goldman Sachs, talks about the trade war between the world's two biggest economies, the Trump administration's decision to formally labeled China a currency manipulator, and China's monetary and fiscal policies. He speaks with David Ingles and Rishaad Salamat on "Bloomberg Markets: Asia."

Global Headlines

Just in: The U.K. economy shrank for the first time in more than six years in the second quarter. It was a blow to newly installed Prime Minister Boris Johnson, who is urging the European Union to show “common sense” and rewrite the Brexit divorce deal.

On the brink: Italy’s leaders, including Deputy Premier Matteo Salvini, are calling for a confidence vote in parliament as soon as next week, which could lead to a snap election this fall. Italian bonds suffered their worst sell-off of the year, underscoring investor concern that there isn’t a clear path to stability for the government in Rome.

Taking heat:  Trump’s planned fundraising swing through the Hamptons today is creating headaches for some of his high-dollar donors, who face threats of boycotts and employee complaints for supporting a president Democrats say is racist. Celebrities and social-media users have threatened to cancel their memberships to Equinox Fitness Club and its indoor-cycling subsidiary SoulCycle after owner Stephen Ross agreed to host an event.

Softening stance?: Under intense pressure from gun-control advocates following the latest U.S. shootings, Senate Majority Leader Mitch McConnell said gun legislation will be at the top of the chamber’s agenda when lawmakers return from their August break. Expanded background checks and so-called red-flag laws to keep firearms out of the hands of dangerous individuals would be part of the debate, McConnell said, though he offered no indication he’d throw his support behind any particular proposal.

Divided region:  Prime Minister Narendra Modi hailed a “new era” in the disputed region of Kashmir while his Pakistani counterpart warned of “genocide” once a curfew — put in place to quash protests after India abolished the state's seven decades of autonomy — is lifted. The escalating tensions come at a critical time for another long-running conflict: The U.S. is nearing a deal with the Taliban, and the support of both India and Pakistan are crucial to a lasting peace.

Who Gets Hurt More in U.S.-China Trade War?

Aug.01 -- Leland Miller, president of China Beige Book International, talks about the trade spat between the U.S. and China. President Donald Trump abruptly escalated his trade war with China, announcing that he would impose a 10% tariff on a further $300 billion in Chinese imports. Miller speaks with Sophie Kamaruddin and Paul Allen on "Bloomberg Daybreak: Australia."

Protracted unrest: Hong Kong’s airport steeled itself for three straight days of sit-in protests at its busy arrivals hall, boosting security days after dozens of flights were cancelled during a city-wide strike. It kicks off another weekend of rallies across the financial center, amid questions about how long the standoff between protesters and the government can continue.

What to Watch

• Investors are pulling back from Argentina before a primary election Sunday that will set the stage for October’s presidential vote and a potential boom or bust for markets.
• Also Sunday: Guatemalans will pick between a former first lady and an ex-director of prisons in a presidential runoff that has been overshadowed by tensions with the U.S. over migration.
• Zambia is resisting calls to declare a food emergency that would allow donors to provide aid after the worst drought in nearly four decades has left millions facing hunger.

And finally ... Beset by one blow after another in Trump’s trade war with China, some American farmers are turning to the latest craze in cash crops: hemp. Weed’s more sober cousin is prized for its concentration of cannabidiol, a non-psychoactive ingredient at the center of a booming wellness trend. John Boyd Jr. is just one soybean grower who’s jumping on the bandwagon, planting about 100 acres of hemp this year in what he called “a big risk.” The gamble might pay off after China told its state-owned companies this week to stop buying U.S. harvests.

from Business - Latest - Google News https://ift.tt/2ZHmdqh
via IFTTT
August 09, 2019 at 05:21PM

Walmart to remain closed for weeks; police chief says 'scene was a horrific one' - KVIA El Paso

El Paso shooting suspect claims distance from hometown helped him choose target - KVIA El Paso

El Paso suspect held in isolation

Related stories:

EL PASO, Texas - The man who authorities say killed 22 people at an El Paso Walmart last weekend claimed he targeted the city because, in part, he wanted distance between target and his hometown on the other side of Texas, three sources with knowledge of the investigation said.

Patrick Crusius, the detained suspect in Saturday's shooting, told investigators this was one reason why he chose El Paso, the sources said. Crusius believed that if he committed the attack near his home in a suburb of Dallas, his family and acquaintances would have known that he did it, the sources said.

El Paso police officials would not comment about the sources' accounts.

Crusius, 21, drove about 11 hours from his home in Allen to the Walmart in El Paso, police said.

He was arrested on the day of the attack, surrendering to a police officer at an intersection just north of the store.

Police have previously made other comments about his motivation: That the shooting appeared to be a hate crime, as investigators believe he wrote a document filled with hatred of immigrants and Latinos -- one that said he wanted to stop a "Hispanic invasion" of Texas.

About 83% of El Paso's residents are Hispanic or Latino, according to the US Census Bureau. In Allen, about 11% of residents are Hispanic or Latino, according to census data.

The document was published on the online messaging board 8chan about 20 minutes before the shooting, authorities said. The author says he opposes "race mixing" and encourages immigrants to return to their home countries.

Federal authorities have said they're treating the shooting as a case of domestic terrorism. Crusius has been charged with capital murder in the shooting and is being held without bond.

Police said Crusius, besides killing 22 people, injured 24 others in the shooting.

The shooting was one of the 10 deadliest in modern US history and one of three mass shootings in the past two weeks — the others being in Dayton, Ohio and Gilroy, California.

Let's block ads! (Why?)

https://www.kvia.com/crime/el-paso-shooting-suspect-claims-distance-from-hometown-helped-him-choose-target/1107607680

2019-08-09 15:48:00Z
52780348517605

El Paso shooting: Suspect claims distance from hometown helped him choose target, sources say - CNN

Patrick Crusius, the detained suspect in Saturday's shooting, told investigators this was one reason why he chose El Paso, the sources said. Crusius believed that if he committed the attack near his home in a suburb of Dallas, his family and acquaintances would have known that he did it, the sources said.

El Paso police officials would not comment about the sources' accounts.

Crusius, 21, drove about 11 hours from his home in Allen, Texas, to the Walmart in El Paso, in far western Texas abutting the Mexican border, police said.

He was arrested on the day of the attack, surrendering to a police officer at an intersection just north of the store.

Police have previously made other comments about his motivation: That the shooting appeared to be a hate crime, as investigators believe he wrote a document filled with hatred of immigrants and Latinos -- one that said he wanted to stop a "Hispanic invasion" of Texas.

About 83% of El Paso's residents are Hispanic or Latino, according to the US Census Bureau. In Allen, about 11% of residents are Hispanic or Latino, according to census data.

The document was published on the online messaging board 8chan about 20 minutes before the shooting, authorities said. The author says he opposes "race mixing" and encourages immigrants to return to their home countries.

Federal authorities have said they're treating the shooting as a case of domestic terrorism. Crusius has been charged with capital murder in the shooting and is being held without bond.

Police said Crusius, besides killing 22 people, injured 24 others in the shooting.

The shooting was one of the 10 deadliest in modern US history and one of at least three mass shootings in a week.

Let's block ads! (Why?)

https://www.cnn.com/2019/08/09/us/el-paso-shooting-friday/index.html

2019-08-09 13:53:00Z
52780348517605

Stock market news: August 9, 2019 - Yahoo Finance

Stocks were lower Friday, as U.S.-China trade tensions continued to keep investors on edge around the world.

Here were the main moves in the market, as of market open:

• S&P 500 (^GSPC): -0.28%, or -8.22 points

• Dow (^DJI): -0.25%, or -60.32 points

• Nasdaq (^IXIC): -0.45%, or -37.29 points

• 10-year Treasury yield (^TNX): +1.8 bps to 1.702%

• Crude oil (CL=F): +3.14% to $54.19 per barrel

It has been a tumultuous week for the markets, as the trade war, and now currency war, rages on between the U.S. and China. The People’s Bank of China (PBOC) set the yuan’s daily fixing at 7.0136 per U.S. dollar on Friday. This move was the second time this week that the official reference rate was weaker than 7, and the rate was the weakest since April 3, 2008. Nevertheless, Friday’s yuan rate was still stronger than what analysts were expecting.

The yuan has been on market watchers’ radars after the yuan weakened past the key psychological level of 7-per-dollar on Monday. That send markets into a frenzy, and stocks posted their worst day of 2019. It has been a choppy trading week since, as more uncertainty gets pumped into the market.

Meanwhile, crude oil is also in focus after the International Energy Agency (IEA) reported on Friday that demand growth is at its lowest level in over a decade. The agency noted that global oil demand growth in the first half of this year was the slowest since the financial crisis. With China being the only major source of growth, the IEA lowered its global demand forecast to 1.1 million barrels per day for 2019 and 1.3 million barrels per day for 2020.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S. REUTERS/Brendan McDermid

Huawei is grabbing the attention of investors after announcing that it has launched its own operating system called HongmengOS, or HarmonyOS in English. CEO of Huawei’s consumer division, Richard Yu, made the announcement at the Huawei Developer Conference. This new operating system allows Huawei to be less reliant on Google’s (GOOGL) Android. Google’s parent company, Alphabet, stock was lower in early trade.

Investors are also keeping an eye on ride-sharing companies Uber (UBER) and Lyft (LYFT). Uber’s weaker-than-expected second quarter earnings sent the stock tumbling nearly 10% in early trade. Adjusted sales were worse than what analysts were expecting, and Uber reported a shocking $5.24 billion net loss in the second quarter. That was Uber’s largest quarterly net loss ever. Uber’s report comes on the heels of Lyft’s much better-than-expected results. Gross bookings in the second quarter also fell short of expectations at $15.76 billion. Analysts expected $15.83 billion in gross bookings. Uber posted an adjusted EBITDA loss of $656 million, which was a 25% decline from last quarter.

“Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” CEO Dara Khosrowshahi said in a statement. “In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”

Uber expects between $65 billion to $67 billion in gross bookings this year and expects adjusted EBITDA losses between $3.2 billion to $3 billion. The company did not give an adjusted net revenue forecast. Khosrowshahi also noted that Uber would be upping its marketing spend despite having cut 400 market employees recently. The question among investors remains whether or not Uber can continue its growth while attempting to simultaneously achieve profitability.

—

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

More from Heidi:

• Kraft Heinz earnings plunge, CEO says results not acceptable

• America’s favorite Mexican fast-food restaurants: survey

• Subway to test Beyond Meat in its sandwiches

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

Let's block ads! (Why?)

https://finance.yahoo.com/news/stock-market-news-august-9-2019-120212276.html

2019-08-09 13:32:00Z
52780347148725