Morning Brief: Trump trade war will drift into 2019, despite temporary truce
Monday, December 3, 2018
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What to watch today
In memory of late President George H.W. Bush, all of the major markets will be closed on Wednesday, December 5. While Federal Reserve Chair Jerome Powell was originally scheduled to testify before the Joint Economic Committee on Wednesday, it is uncertain whether or not the hearing will be rescheduled due to the National Day of Mourning.
Saturday’s working dinner between President Donald Trump and Chinese President Xi Jinping at the G20 summit in Buenos Aires was a “highly successful meeting,” according to a statement released by the White House. Trump agreed to leave the U.S. tariffs on $200 billion worth of Chinese goods at 10%, effective January 1, 2019. The two leaders have agreed to begin negotiations on reforms and set a 90-day deadline.
Global stock markets surged Monday on the temporary truce. U.S. stock futures are also jumped before the opening bell.
Top news
The Trump trade war will drift into 2019: After President Donald Trump’s meeting with President Xi Jinping of China in Buenos Aries on December 1, both sides announced a 90-day pause in the trade dispute. But a new deadline is coming early next year, and the end result could be the same series of escalating tariffs that CEOs and economists worry could force prices up, cut into profits and weaken the economy late in a business-cycle expansion. [Yahoo Finance]
Also
George H.W. Bush’s tortured relationship with economics: The late President George Herbert Walker Bush was an expert in and sometimes seemed more comfortable with foreign affairs rather than domestic policies — particularly the markets and economics. In fact, it was the weak economy which likely cost him the 1992 presidential election where he lost to Bill Clinton. [Yahoo Finance]
Qatar to leave OPEC: Qatar said on Monday it was quitting OPEC by January to focus on its gas ambitions, taking a swipe at the group’s de facto leader Saudi Arabia and marring efforts to show unity before this week’s meeting of exporters to tackle an oil price slide. [Reuters]
Netflix is now the UK tax regulator’s new target: The U.S. digital streaming company Netflix (NFLX) is the latest tech giant to be scrutinized by the U.K. tax regulator HM Revenue and Customs (HMRC). The Times reported on documents Netflix had filed to U.S. regulators, in which they disclosed that their U.K. accounts were “under examination” by HMRC. [Yahoo Finance UK]
Nexstar clinches $4.1B deal to buy Tribune Media: Nexstar Media Group Inc. has reached an agreement to acquire Tribune Media Co. (TRCO) for about $4.1 billion, a deal which would make it the largest local U.S. TV station operator, people familiar with the matter said on Sunday. Nexstar’s acquisition would come just three months after Tribune’s $3.9 billion deal to sell itself to Sinclair Broadcast Group Inc. collapsed over regulatory hurdles. [Reuters]
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