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U.S. stocks climb to a fresh record as Trump announces a new trade accord with Mexico, while Toyota makes a big investment in Uber. Here are some of the things people in markets are talking about.
U.S. Stocks Hit Records Again
U.S. stocks rose to fresh all-time highs and Mexico’s peso rallied versus the dollar as the Trump administration closed a bilateral trade deal with America’s southern neighbor. Treasuries fell. The S&P 500 Index closed just short of 2,900 and the Nasdaq Composite Index topped 8,000 for the first time as President Donald Trump unveiled details of the agreement that he says will replace Nafta. Shares of carmakers and parts producers in the equity benchmark surged more than 3.5 percent. The Dow Jones Industrial Average rose above 26,000 for the first since February. The peso rallied, and Canada’s dollar strengthened. Trump said Monday it was ``not the right time to talk’’ with Chinese officials amid a spiraling trade war with the world’s second-largest economy, adding the trade relationship has ``been too one-sided for too many years, for too many decades.’’
Yuan, Mexican Peso Euphoria Overcome Lira’s Languish
Turkey’s extended holiday is over and so is the lira’s relative calm. But the currency’s slide didn’t drag down emerging-market peers as excitement over China’s move to support the yuan and the U.S.-Mexico trade pact offset its drop. Mexico’s peso was the biggest foreign-exchange gainer Monday amid the trade news, leading a broad-based rally in developing-nation currencies. MSCI’s Emerging Market Index of stocks climbed 1.8%, posting its best day since June. China’s yuan was stable in the offshore market following Friday’s surge, after the central bank signaled it’s taking action to support the currency through its daily fixing.
Toyota’s Uber-Big Investment
Toyota is expanding an alliance with Uber Technologies through a new investment and a plan to get self-driving cars on the road, said a person familiar with the matter. The Japanese automaker will invest about $500 million in a deal that will value the ride-hailing company at $72 billion, said the person, who asked not to be identified because the details are private. As part of the pact, Toyota will manufacture Sienna minivans equipped with Uber’s self-driving technology, and another company will operate the fleet, said the person. They have yet to identify the third partner. The Wall Street Journal reported the investment earlier Monday, and details of the driverless-car partnership haven’t been previously reported.
Apple Embraces iPhone X Design
Apple Inc. is not only doubling down on the iPhone X – it’s tripling down. The world’s most valuable company plans to launch three new phones soon that keep the edge-to-edge screen design of last year’s flagship, according to people familiar with the matter. The devices will boast a wider range of prices, features and sizes to increase their appeal. However, none of the three iPhones will be wholly new designs like the iPhone X was last year or the iPhone 6 in 2014, with some inside Apple labeling the launch as an "S year," a designation the company has given to new handsets that retain the previous design but add new internal features. Hon Hai Precision Industry will assemble two high-end OLED iPhones, while a lower-end LCD phone will be split primarily between Hon Hai and Pegatron Corp., said the people, who asked not to be identified discussing unannounced products. Taiwan Semiconductor Manufacturing will remain sole supplier of the main processor for the new iPhones, while primary iPhone camera lens supplier Largan Precision is expected to see sales rise with the launch of new Apple phones.
Noble Group Saved
Noble Group Ltd.’s shareholders have endured years of torment as a default, billions in losses, and allegations of improper accounting pushed the commodity trader to the brink. After a 90-minute meeting Monday, they backed the company’s bid to salvage itself. The $3.5 billion debt-for-equity restructuring, which will hand control to senior creditors, was approved by 99.96 percent of votes cast at a special general meeting in Singapore, according to figures from the company. The vote will enable Noble – which has consistently rejected criticism of its accounts – to press on with the deal’s final stages. The plan to create a “New Noble” had been the subject of a heated dispute between Chairman Paul Brough and shareholder Goldilocks Investment Co. before its terms were amended and the two forged an agreement after facing off in court. The trader still faces opposition from foe Iceberg Research, which wants to halt the deal. Some shareholders still feel cheated.
What we’ve been reading
This is what caught our eye over the last 24 hours.
- The S&P 500 is riding the "perfect wave" to new highs, according to this analyst.
- Malaysia's Mahathir bans foreigners from a $100 billion property project.
- Here’s what analysts are saying about Elon Musk’s U-turn on taking Tesla private.
- Australia's accidental treasurer inherits an economy of discontent.
- Warren Buffett backs India’s Paytm.
- Chinese users vow to delete Didi app after passenger deaths.
- How a family turned a barren hillside into a $4.4 billion real estate empire.
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