Morning Brief: US plans to limit Chinese tech investments
Monday, June 25, 2018
What to watch today
Investors and traders will continue to keep an eye on the escalating tensions tide to global trade. On the U.S. economic calendar, we’ll get the May report on new home sales. Economists estimate the pace climbed 0.76% to an annualized rate of 667,000 units. After that report, we’ll get the Dallas Fed manufacturing activity index, which covers a region where the benefits of higher oil prices have been hindered by bottlenecks in the oil pipelines.
Top news
US plans limits on Chinese investment in US tech firms: The U.S. Treasury Department is drafting curbs that would block firms with at least 25% Chinese ownership from buying U.S. companies with “industrially significant technology,” a government official briefed on the matter said on Sunday. The move marks another escalation of President Donald Trump’s trade conflict with China, which threatens to roil financial markets and dent global growth. [Reuters]
China regulators free up $100B for bank lending: Chinese regulators have freed up an extra $100 billion for bank lending in a move financial analysts said could help to reassure investors amid trade tensions with Washington. [AP]
China and Europe warn trade war could trigger global recession: China and the European Union vowed to oppose trade protectionism and unilateralism, saying those actions could push the world into recession in an apparent rebuke to the U.S. Vice Premier Liu He — President Xi Jinping’s top economic adviser — said China and the EU had agreed to defend the multilateral trading system, following economic talks Monday in Beijing. The comments come as both sides prepared to face off against U.S. President Donald Trump’s tariff threats. [Bloomberg]
GE nears deal to sell industrial-engines unit: General Electric Co. (GE) is nearing a deal to sell a unit that makes large industrial engines to private-equity firm Advent International for $3 billion or more, people familiar with the matter said, a move that would bring in needed cash for the struggling conglomerate. [The Wall Street Journal]
Firms with troubled brokers are often behind sales of private stakes: Securities firms with an unusually high number of troubled brokers are selling tens of billions of dollars a year of private stakes in companies, often targeting seniors, an analysis by The Wall Street Journal found. The emerging trend could mean that unsuspecting investors will be exposed to losses or fraud in a market that has grown sharply in recent years. [WSJ]
Uber girds for a battle in London courts: The global ride-sharing juggernaut Uber Inc. wants the citizens of one of its largest markets to know that its service is safe for riders and lucrative for drivers. But this week, its fate will be the hands of much smaller audience: a judge at Westminster Magistrates’ Court in central London. [Bloomberg]
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