Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
China warns about “unwavering resolve” to fight U.S. “bullying.” Asian equities are poised to follow U.S. stocks, which sank amid the Huawei fallout as tech shares got battered. And Ford is cutting back across the globe, eliminating 10% of its white-collar workforce. Here are some of the things people in markets are talking about today.
China Hits Back
China will retaliate after Trump blacklisted Huawei, Beijing’s ambassador to the EU said. “This is wrong behavior, so there will be a necessary response,” Zhang Ming told Bloomberg, describing the action as politically motivated. “The U.S. government is trying to bring down Huawei through administrative means.” Meanwhile, Nike, Adidas and other footwear giants urged Trump to reconsider his tariffs on shoes made in China.
Huawei-Fueled Selloff
Asian stocks are set to decline Tuesday after U.S. tech stocks led a broad selloff. The fallout from the White House’s moves against Huawei reverberated, hitting some of the biggest component makers and fueling more trade angst. The dollar fell against most major currencies, with the Aussie pacing gains. Treasuries declined, with 10-year yields up more than two basis points. Oil rose, while gold was flat.
Ford Slashes Jobs
The automaker will eliminate about 7,000 salaried jobs, or 10% of its global white-collar workforce. Carmakers are eliminating jobs as technological shifts, including the rise of self-driving vehicles, sweep the industry. The cuts, which will save about $600 million, will be completed by the end of August, and are far less drastic than the 25,000 that a Morgan Stanley analyst predicted last year.
Australian Startup Snags Deal
Mary Meeker, a Silicon Valley fixture thanks to her internet trends reports, chose an Australian online design platform for the first investment by her new venture capital firm. Meeker's Bond Capital, along with General Catalyst, joined a $70 million funding round for Canva, giving the startup a valuation of $2.5 billion.
Uranium Enrichment Ramp Up
Iran has quadrupled its enriched uranium production, the semi-official Tasnim news agency reported. The country hasn't gone beyond the agreed-upon limit set forth in its 2015 deal meant to prevent it from developing a nuclear bomb, but the move will only add to rising tensions in the Gulf.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Indonesia’s Jokowi is finally declared the winner of last month’s vote.
- An anti-U.S. trade war song is going viral in Beijing.
- Jack Ma is selling cancer coverage for pennies a month in China.
- Google Glass finds a new home at the factory.
- Indonesia’s woeful markets could soon get worse.
- These are the world’s best-paid cities.
To contact the editor responsible for this story: Robert Lafranco at rlafranco@bloomberg.net
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