|
The Morning Ledger: U.S. Tariffs Could Prompt More Domestic Investment By China |
|
|
| |
|
|
Once the new measures take effect, Mr. Trump will have imposed tariffs on nearly half of the Chinese goods imported to the U.S., which last year were valued at $505 billion. PHOTO: EVAN VUCCI/ASSOCIATED PRESS
|
|
|
Good Morning. President Trump on Monday announced new tariffs on about $200 billion in Chinese goods, stepping up his campaign to pressure Beijing to change its commercial practices, the WSJ reports.
China's focus could turn inward: Recently introduced tariffs could accelerate the transformation of the Chinese economy towards higher value-added services, and in the long term benefit the country, CFO Journal's Nina Trentmann reports.
"The impact of the tariffs on the Chinese economy will be offset by higher domestic demand," said Danny Yuan, CEO and president for Greater China at staffing firm ManpowerGroup. "The tariffs will force China to make much needed investments in the manufacturing sector," Mr. Yuan said at the World Economic Forum's Annual Meeting of the New Champions in Tianjin, China.
[Continues below…]
|
|
|
|
Unintended consequences: The trade fight is helping China become more competitive -- an unplanned outcome of the trade friction between Washington and Beijing. Companies in the Pearl River Delta, the center of China’s manufacturing might, are making higher-quality products to compete against American goods.
Apple is spared: Apple Inc. dodged stinging duties on its smartwatches and wireless earbuds after the U.S. excluded those gadgets from tariffs on $200 billion in Chinese goods, although the tech giant could face retaliatory measures on iPhone production there.
|
|
|
General Mills Inc., AutoZone Inc. and Cracker Barrel Old Country Store Inc. are among the companies slated to report earnnings today.
|
|
|
IKEA Bets on Expansion in China |
|
Swedish furniture retailer IKEA will increase its retail footprint in China and launch an e-commerce platform within the next 12 months, said Anna Pawlak Kuliga, President of IKEA Retail China.
"China is one of the most important markets for IKEA," Ms. Pawlak Kuliga said Tuesday alongside the World Economic Forum's Annual Meeting of the New Champions in Tianjin, China.
"We have to be ready for ultra convenience for the Chinese customer," Ms. Pawlak Kuliga told Ms. Trentmann.
China currently generates around 5% of global revenue at IKEA, said Ms. Pawlak Kuliga. That number is set to rise, she said, without providing more specifics.
IKEA will open six new stores during the next 12 months in addition to the 25 that it already has in China and serve up to 1 billion customers through its new e-commerce platform. Ms. Pawlak Kuliga declined to comment on how much IKEA is spending on the expansion of its retail footprint and the online store in China.
|
|
|
|
Tyson Foods’ CEO Tom Hayes is leaving the company for personal reasons, less than two years into his tenure. PHOTO: MIKE BLAKE/REUTERS
|
|
|
Tyson Foods Inc. said Chief Executive Tom Hayes, in the midst of overhauling the top U.S. meat company’s strategy, will leave that role at the end of this month for personal reasons.
Coca-Cola Co. is closely watching the fast-growing marijuana drinks market for a possible entry that would expand the world’s largest soft drink maker’s ambitions further away from sugary sodas, Reuters reports.
Goldman Sachs Group Inc. is leaving behind an era during which executives from commodities brokerage J. Aron & Co. rose to dominate the bank’s leadership ranks.
Facebook Inc. has been under scrutiny for months over its handling of personal data, but it has been haggling with financial firms over its access to sensitive financial data for years.
Alphabet Inc.’s Google is making a major push into the auto industry, partnering with the Renault-Nissan-Mitsubishi Alliance to use the tech company’s Android operating system to power media display that will eventually be sold in millions of cars world-wide.
Brazil’s Natura Cosmeticos SA recently approached Avon Products Inc. about a takeover, people familiar with the matter told the WSJ.
|
|
|
|
|
Switzerland’s financial watchdog ordered Credit Suisse to strengthen its controls and said it would appoint an independent third party to monitor implementation PHOTO: ARND WIEGMANN/REUTERS
|
|
|
-
Credit Suisse Group AG was deficient in its anti-money laundering compliance processes regarding its relationships with the world soccer governing body and the Brazilian and Venezuelan state-oil firms, Swiss financial regulator Finma said.
-
A pioneer in the lucrative business of overseas day trading was banned from the U.S. brokerage industry Monday, the latest target of a government campaign to root out alleged manipulation in American markets stemming from foreign trading floors.
-
A senior Deutsche Bank AG executive has been interviewed by authorities in Singapore as part of their investigation into the multibillion-dollar scandal at Malaysian state fund 1Malaysia Development Bhd., or 1MDB, people familiar with the probe said.
-
Cigna Corp. and Express Scripts Holding Co. on Monday said the Antitrust Division of the U.S. Department of Justice cleared their pending merger.
|
|
|
|
Christine Lagarde, managing director of the International Monetary Fund, speaks during a news conference in London on Monday. PHOTO: JASON ALDEN/BLOOMBERG NEWS
|
|
|
-
The International Monetary Fund said that an abrupt and messy break from the European Union would cause harm to the British economy, adding that the U.K. won’t be prepared for such an outcome when Britain leaves next March.
-
Business activity in New York’s manufacturing industry grew at a slower rate this month compared with August, as shipments and unfilled orders fell while inventories rose.
-
Global mining companies that bet on coal are enjoying the best prices in years—a sign there is money to be made from the industry even as an energy transition to gas and renewables takes place.
|
|
|
|
|