US considers to cut some China tariffs

The US is condidering to cut Chinese tariffs in order to boost the negotiations further.

The US President Donald Trump and China’s Xi Jinping are expected to enter the deal discussion after the cancelled Apec meeting in Chile.

The news helped stock markets to enter new hights in New York. For example Nasdaq- index and Dow Jones closed record high on Tuesday trading.

Business Finance

Trump considers to ban Chinese listings on the US?

The US President Donald Trump is considering to ban the new listings on US exchanges and also to hinder the US pension funds to make investments in Chinese equities. The news send the US stock markets down while it is a sign of new tensions between the US and China trade talks, which should begin again in October.

The news about the topic and content were mixed in different media sources. For example according to Financial Times the sanctions would mean listings and financial investments between the countries. On the other hand, according to Reuters it was about how the Chinese companies could be delisted from the US markets.

The real content of the idea will maybe revealed later on, but the fact is that both ways would mean a dramatic change in the financial markets and its global functions. And some one could also consider if it would be possible anyhow. The financial markets regulations is not one-way street, but rather a highway or even a crossroad of high speed trains.

Big Chinese companies like Alibaba Group Holdings and JD.com both declined over 5 % after the news in New York. According to Reuters, there are 156 Chinese companies listed in Nasdaq and NYSE.

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Stocks closed up – Uber fell 7,6 %

The stocks turned up from the early downs in Wall Street on Friday. Dow Jones ended up 0,44% to 25942 points, S&P 500 index up 0,38 % to 2881 points and Nasdaq slightly up 0,08 % to 7916 points.

The ride hailing company Uber (Uber) fell first over 9 % in its debut trading, but recovered somewhat and closed down 7,6 % to 41,53 dollars. The IPO price was 45 dollars. The market cap closed to 71,6 billion dollars, while in the IPO the market value was 82 billion dollars.

The rival ride hailing company Lyft also closed down.

The news from the trade talks with US and China showed some positive signs while the talks were “constructive” according to President Donald Trump.

Bloomberg reported that the US has given China one month time to seal the trade deal or face tariffs on all its exports to US.

The British finance minister Philip Hammond told media on Friday that US and China should avoid entering the trade war because of the vast impact on global growth and on British economy as well. According to Reuters, Mr Hammond estimates the UK will reach the 1,2 % economic growth this year.

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Apple manufactures most of its iPhones in China

The US mobile tech company Apple ( APPL) manufacturers most of its iPhones in China. According to Nikkei Asia, the China tops now Apple’s production site compared for example to the US.

Apple has increased its suppliers in the Greater China during the last few years and much of the materials, manufacturing and assembly processes are now in China.

In January the company said that it will start to assemble the premium phones also in India. The reason for this was also the rising concerns of trade wars between the US and China.

But also to establish the production overall in Asia to be more competitive against Samsung and Huawei.

Apple said in its 2018 annual report that the US and China are the only countries to account over 10 % of the company net sales. The sales in China were 51,9 billion dollars last year and operating income was 19,7 billion dollars.

During the second quarter, which ended March 30th, the company net sales in America were 25,6 billion dollars and 10,2 billion dollars in China. In Europe the sales were 13 billion dollars.

According to Bloomberg News, the new trade tariffs between the US and China, may eventually increase the Apple’s retail prices.

Apple’s share price was trading down 2,23 % to 195,49 dollars in Wall Street today.

Business Tech

Stocks down in New York and in Europe

The Stock Markets were down in today´s trading in Europe and in New York. In Asia the stocks ended up in Japan and in Hong Kong.

The market were pushed down by the news of the new possible tariffs in the US EU trade talks. Also the news that IMF, the International Monetary Fund, has lowerd the global and EU economic growth forecast for this year fueled the stocks down. The global economic forecast is now 3,1 % for this year (3,3 %).

According to the US Goverment they are proposing new tariffs worth 11 billion dollars in to the production from the EU. This would include for example civilian aircraft and agricultural products. The reason for this new stage in the negotiations is  the WTO , which has shown that the EU subsidies to Airbus (AIR) have had negative impact on the US trade.

Dow Jones was down 0,72 % to 26151 points, S&P 500 -index was down 0,61 %to 2878 points and Nasdaq-index was down 0,56 % to 7909 points.

In Europe the FTSE 100 ended down 0,35 % to 26151 points, the German DAX-index ended down 0,94 % to 11850 points and the Frensh CAC 40 -index ended down 0,65 % to 5436 points.

In Asia the Nikkei-index ended up 0,19 % to 21 802 points and the Hang Seng -index in Hong Kong ended up 0,27 % to 30 157 points.

The UK sterling was trading down 0,06 % to 1,205 dollars and the euro was unchanged at 1,1263 dollars. Dollar was down 0,29% to 111,16 yens today.

Business Finance