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The Morning Ledger: CFOs Worry Trade Spats Could Slow Economic Growth |
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G7 leaders Germany's Chancellor Angela Merkel, U.S. President Donald Trump, Canada's Prime Minister Justin Trudeau, France's President Emmanuel Macron and Japan's Prime Minister Shinzo Abe take part in a working session on the first day of the G7 meeting in La Malbaie, Quebec, Canada, June 8, 2018. PHOTO: ADAM SCOTTI/PRIME MINISTER'S OFFICE/REUTERS
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Longer-term forecasts are less optimistic. The IMF warns that the boost from the U.S. tax cuts will fade beginning in 2019. Economists surveyed by The Wall Street Journal worry that a recession could begin in 2020 as the Federal Reserve raises interest rates.
The uncertainty surrounding tariffs and trade both in the U.S. and globally has forced Donald Allan, chief financial officer at tool maker Stanley Black & Decker Inc., to double the amount of time he spends on contingency planning.
“I’m spending at least 40% of my time on that type of stuff, if not more,” Mr. Allan said.
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Unilever PLC, the maker of Dove shampoo and Hellman’s mayonnaise, is expected to call for greater transparency in the often murky world of influencer marketing during the Cannes ad festival that is taking place this week on the French Riviera.
The U.S. Commerce Department will release housing-starts data on Tuesday. Economists surveyed by the WSJ predict home construction rose to a 1.31 million seasonally adjusted annual rate in May, reversing a slowdown notched in April.
The National Association of Realtors on Wednesday will release existing-home sales numbers for May, expected to show a 1.6% uptick. Also Wednesday, Brazil’s central bank is expected to release an interest rate decision at 5 p.m. EDT.
On Friday, Japan will post its consumer-price index reading for May, while in Europe IHS Markit will release its composite purchasing managers index, a measure of activity in the manufacturing and services sectors.
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Global stocks fell at the start of the week, with the Stoxx Europe 600 down 0.4% in early European trade and futures pointing to opening losses of 0.5% for the S&P 500, as escalating trade tensions between the U.S. and China weighed on investors’ risk appetite.
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Oil prices continued to weaken Monday, building on Friday’s slide as worries about increased production were amplified by the potential of Chinese tariffs on energy imports from the U.S. Futures for July delivery were down 1.8% at $63.88 a barell in electronic trading on the New York Mercantile Exchange.
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Investor deamand for safe-haven assets pushed up prices of the 10-year U.S. Treasury, sending yields down to 2.915% from 2.926%. Yields move inversely to prices.
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Comcast aims to purchase 21st Century Fox. PHOTO: ASSOCIATED PRESS
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A wave of expected major-media mergers would transform AT&T Inc. and Comcast Corp. into the two most indebted companies in the world, a standing that carries uncharted risks for investors in the firms’ bonds. Meanwhile, AT&T Inc. said it will be aggressive in acquiring content and building new ways to reach viewers a day after closing its $81 billion deal for Time Warner Inc.
Ford Motor Co., General Motors Co. and Fiat Chrysler Automobiles NV are racing to equip pickup trucks with smaller, fuel-efficient engines, a surprising pivot away from their longstanding practice of putting gas-guzzling engines into large vehicles.
The chief executive of Volkswagen AG’s luxury brand Audi was arrested Monday in connection with an investigation of his role in the German car maker’s diesel emissions-cheating scandal.
Alphabet Inc.’s Google unit is investing $550 million in Chinese e-commerce retailer JD.com Inc., a move that will deepen its ties with China and strengthen its foothold in online shopping.
Apple Inc. has formed a production partnership with Oprah Winfrey to make programs for its planned subscription-video service, part of the company’s aggressive push into the content business as competition for Hollywood talent escalates.
Tesla Inc.’s debt has surged just as fast as its sales, while profits remain elusive, a dynamic that’s taking on more urgency as $1.25 billion in debt falls due next year.
United Parcel Service Inc. is rolling out a three year, $20 billion capital spending program to update its delivery network with automated facilities and technology upgrades to route packages around bottlenecks.
The U.S. semiconductor industry bristled at President Donald Trump’s plan to impose tariffs on about $50 billion of Chinese goods, arguing they will hurt American business and make the country less competitive.
Perry Ellis International Inc. agreed to go private in a deal valued at $437 million, four months after founder George Feldenkreis made a bid for the apparel maker.
Wynn Resorts Ltd.'s probe of sexual misconduct allegations has been riddled with missteps, as employees weren’t initially told how to contact investigators, and potential witnesses say they were asked to be interviewed on-site.
Retailers and manufacturers are taking stock of their transportation costs and exploring alternatives as a capacity crunch in freight is driving up prices and causing shipping delays.
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Parker Gyokeres retrieves a drone after photographing Hart Island in New York on April 29. PHOTO: SETH WENIG/ASSOCIATED PRESS
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The commercial drone industry is being stifled by unnecessarily stringent federal safety rules enforced by regulators who frequently pay only lip service to easing restrictions or streamlining decision-making, according to a report by the National Academies of Sciences, Engineering and Medicine.
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European Union regulators on Friday said they won’t object to cable giant Comcast Corp.’s $29 billion bid for Sky PLC, clearing another hurdle in what is expected to be a bidding war for the British pay-TV giant with Walt Disney Co. and Rupert Murdoch’s 21st Century Fox Inc.
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Federal prosecutors filed criminal charges against Theranos Inc. founder Elizabeth Holmes and the blood-testing company’s former No. 2 executive, Ramesh “Sunny” Balwani, alleging that they defrauded investors out of hundreds of millions of dollars and also defrauded doctors and patients.
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China's Foreign Minister Wang Yi speaks during a media conference at EU headquarters in Brussels, Friday, June 1, 2018. PHOTO: VIRGINIA MAYO/ASSOCIATED PRESS
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Beijing retaliated against planned U.S. tariffs on Chinese goods by targeting high-value American exports—including farm products, cars, and crude oil—bringing the world’s two biggest economies closer to an all-out trade war.
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The sharp rise in crude-oil prices has been particularly harsh for many parts of the world, because consumers outside the U.S. face a double whammy when the dollar gets stronger at the same time that oil prices climb.
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Escalating trade tensions are rattling markets as a new round of tariffs raises investors’ concerns about everything from U.S.-China relations to the fate of the North American Free Trade Agreement.
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U.S. corporate earnings growth looks poised to slow from a blistering pace, posing a potential new challenge to a long bull market that is already contending with slower global-growth momentum and rising interest rates.
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