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The Morning Ledger: U.S. Targets Smaller Economies in Trade Fight |
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The U.S. National Pork Producers Council petitioned to have Thailand’s eligibility for a tariff-reduction program reviewed. Above, a farm in Iowa, U.S. PHOTO: DANIEL ACKER/BLOOMBERG NEWS
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Good morning. Trade tensions are becoming a challenge not only for company executives in the world's biggest economies, but also for those in poorer and less developed countries, report the WSJ's Lucy Cramer and Josh Zumbrun.
Who's next?: The Trump administration targeted Turkey for revocation of tariff-free exports to the U.S., part of a growing dispute between the two nations that escalated on Friday. Thailand, Indonesia and India have also been put on notice that they could lose some duty-free privileges. The list is likely to increase in the months ahead as the U.S. expands reviews of trade with less developed economies beyond Asia, which is its focus now.
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Favorable treatment to 121 countries: The tool used to pressure these nations is a program known as the U.S. Generalized System of Preferences, or GSP, initiated in 1976 to aid the economic development of poor countries by granting them duty-free treatment on a selection of goods.
Canada in the crosshairs: Meanwhile, President Trump kept up the pressure on neighboring Canada, threatening tariffs on cars in case U.S. officals cannot strike a strike a deal on overhauling the North American Free Trade Agreement. The move could hit car makers in Detroit, as they are heavily reliant on car parts made in nearby Ontario.
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Stocks: Global stocks declined Monday as Turkey’s economic turmoil and fears of possible contagion continued to strain markets. The Stoxx Europe 600 was down 0.4% after Asian markets declined earlier in the day. Futures markets pointed to a 0.3% lower opening for the S&P 500.
Currencies: The Turkish lira plunged further to start the week after shedding 13.8% against the U.S. dollar Friday. Investor demand for safer assets pushed the dollar to its highest point in over a year.
Treasuries: Yields on 10-year U.S. Treasurys rose slightly to 2.861% from 2.859% Friday afternoon.
Commodities: Brent crude was 0.1% lower at $72.75 a barrel and gold fell 0.5% to $1,212.70 an ounce.
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Axa Equitable Holdings Inc. and Sysco Corp. are among the companies slated to report earnings today.
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China on Tuesday releases its monthly business-activities data. Investors will look for signs to see if the rising trade tensions between China and U.S. hurt business and consumer sentiment. The same day, Germany publishes economic growth figures for the second quarter. Forecasters expect to see annualized growth of around 1.6%, compared with 1.2% in the first quarter.
On Wednesday, the U.S. Commerce Department releases July retail-sales data. Economists will watch for continued strength in consumer spending, an engine of the economy. Also on Wednesday, the Federal Reserve releases data on U.S. industrial production for July. July’s report will shed light on whether growth in the manufacturing sector continues.
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Google's exhibit at the China Digital Entertainment Expo and Conference in Shanghai, August 2018. PHOTO: ALY SONG/REUTERS
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While Google’s search engine remains blocked in China, the Alphabet Inc. company is courting allies in the country by providing tools and support to a growing number of app developers, manufacturers and advertisers in the region.
Activist investor Elliott Management Corp. has taken a big stake in Nielsen Holdings PLC and plans to push the TV-ratings company to sell itself.
After Tesla.com Inc. Chief Elon Musk’s explosive tweet last week about a possible company buyout, some investors wonder why exchange operator Nasdaq Inc. took more than an hour to halt frenzied trading.
Many Uber Technologies Inc. drivers are taking unnecessarily long routes to drive up fares. But unlike with taxis where passengers “get taken for a ride,” it is ride-hailing companies like Uber that are responsible for covering the bigger bill.
Kraft Heinz Co.'s U.S. sales have been a sore spot, and the company’s challenge is to modernize its brands without leaving loyal customers behind.
American oil companies -- primed to reap the benefits of rising prices after years of wringing more from wells for less -- are seeing profits erode in the face of rising costs.
BlueScope Steel Ltd., an Australian steelmaker, is planning an up to U.S.$700 million investment in the U.S., in the latest example of companies expanding production or restarting idle mills to make up for imports being priced out of the market in the wake of President Trump’s import tariffs.
Swiss money manager GAM Holding AG said Friday it would liquidate 7.3 billion Swiss francs ($7.3 billion) of its funds following the suspension of a top bond fund manager last week.
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CFOs at U.S., Canadian and British companies lack visibility into their data, leaving them unprepared amid growing geopolitical risks, according to a survey by Dun & Bradstreet Corp.
Three fifths of finance executives at 870 companies from various sectors said their data is stored in silos, and only 20% reported that their data is fully integrated and leveraged across the company.
Over 90% of executives said that geopolitical risks and the threat of technological disruption have increased in the past year, the survey released Monday said. Trade tensions between the U.S. and major trading partners, including China, have CFOs at global companies analyze their exposure.
“Finance chiefs are realizing that things like artificial intelligence and machine learning are out there, but they aren’t making use of them yet,” said Eric Dowdell, global head of trade credit business at Dun & Bradstreet.
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Bayer shares tumbled on Monday. PHOTO: INA FASSBENDER/REUTERS
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Shares in German pharmaceuticals and chemicals group Bayer AG fell almost 10% on Monday, after a U.S. court ruled that weedkiller Roundup had caused cancer in a groundskeeper and awarded him $298 million in damages, reports the Financial Times.
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As shared-scooter companies race into new cities around the U.S., they are finding city officials emboldened to enact regulations that limit the companies’ rapid growth.
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An almost $9.5 billion bid by Hong Kong’s CK Infrastructure Holdings Ltd. for one of Australia’s main gas-pipeline operators has won over the company’s board, putting the deal’s fate in the hands of regulators.
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South Korea urged owners of recalled BMWs to take their vehicles for safety checks after reports of dozens of vehicle fires, which BMW AG has largely blamed on a faulty exhaust component.
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Inflation picked up modestly in July. PHOTO: OCTAVIO JONES/ZUMA PRESS
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A humming U.S. economy is pushing inflation up to levels that the central bank considers healthy. But there’s a downside: Americans’ paychecks are barely keeping up.
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Sugar prices are hovering near a three-year low as food companies around the world reduce the commodity in their products and move toward alternative sweeteners amid health concerns including diabetes, obesity and heart disease.
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Europe’s economy has slowed, and seems unlikely to bounce back strongly in what remains of a year that began with high hopes and then hit a series of setbacks.
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British consumer spending dipped last month and few employers plan to offer bigger pay rises, according to economic surveys released on Monday, reports Reuters.
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China’s central bank said it wouldn’t engage in competitive depreciation to alleviate pain from trade fights, but it is ready to take actions to counter yuan bears. Meanwhile, the country's banks issued a total of 1.45 trillion yuan ($211.8 billion) in loans in July, up 75% from the same period last year.
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A wave of mine closures and the rollout of nuclear-power plants world-wide are fueling bullish bets on the long-depressed uranium market.
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Dish Network Corp., an Englewood, Colo. provider of pay tv-services, has appointed Paul W. Orban as principal financial officer, effective August 22, 2018. He succeeds Steven E. Swain, the company's current senior vice president and chief financial officer.
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Mr. Swain is resigning from his posts, effective August 22, Dish said in a statement. Mr. Orban has served as senior vice president and chief accounting officer since December 2015. Compensation details were not disclosed.
Hilton Grand Vacations Inc., an Orlando, Fla. timeshare company, appointed Allen J. Kingslick, its senior vice president and chief accounting officer, as interim CFO. Mr. Kingslick succeeds James E. Mikolaichik, whose contract as executive vice president and chief financial officer was terminated on August 10, 2018 for conduct and behavior not consistent with the company's policies. Hilton Grand Vacations has commenced the search for a new CFO, the company said in a statement.
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