Dow falls 400 points as Wall Street gets tariff whiplash - CNN

Around midday, the Dow (DJIEW), S&P 500 (SPX) and Nasdaq (COMP) were all solidly in the red, adding to their losses from earlier in the day and yesterday. The Dow was at one point down some 400 points before bouncing back ever so slightly. The S&P 500 was down 1.4% and the Nasdaq fell 1.5%, also both adding to their earlier losses.

Global stocks were ailing after President Donald Trump Sunday threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Monday's selloff started with the Dow opening sharply lower, but stocks recovered most of their losses yesterday as trading went on. Investors took some comfort after Chinese Vice Premier Liu said he remains scheduled to travel to the US this week.

"Markets appear to be holding on to hope that US-China trade negotiations will not be derailed, amid reports that this week's trade talks in Washington will still take place," said Han Tan, Market Analyst at FXTM.

Many have weighed whether the presidential tweet was just a negotiation tactic. Analysts at Bank of America believe that both parties at the table remain motivated to agree a deal.

Speaking to reporters on Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous agreements over the weekend, undermining progress towards a detailed trade agreement between the world's two largest economies.

Lighthizer, the top US trade negotiator, said the administration would increase penalties on $200 billion of Chinese goods to 25% from 10% on Friday. Trump renewed his threat to raise tariffs on Sunday.

"That assumption is likely to be tested sooner rather than later, and the initial optimism that Trump's truculence was bluster was tempered somewhat by trade representative Robert Lighthizer's claims that China had backpedalled on certain elements on what had already been agreed," said Michael Hewson, chief market analyst at CMC.

European stocks ended Tuesday broadly lower. Asian markets ended their day mixed, with the Shanghai Composite (SHCOMP) closing 0.7% higher, retracing some of its 5.6% drop on Monday, according to Refinitiv.

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https://www.cnn.com/2019/05/07/investing/global-selloff-whats-next/index.html

2019-05-07 15:37:00Z
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Stock losses accelerate as Wall Street gets tariff whiplash - CNN

The Dow (DJIEW), S&P 500 (SPX) and Nasdaq (COMP) were all solidly in the red. The Dow was more than 300 points lower after about an hour of trading. The S&P 500 was down 1.3%% and the Nasdaq fell 1.3%, also both adding to their earlier losses.

On Sunday, President Donald Trump threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Monday's selloff started with the Dow opening sharply lower, but stocks recovered most of their losses yesterday as trading went on. Investors took some comfort after Chinese Vice Premier Liu said he remains scheduled to travel to the US this week.

"Markets appear to be holding on to hope that US-China trade negotiations will not be derailed, amid reports that this week's trade talks in Washington will still take place," said Han Tan, Market Analyst at FXTM.

Many have weighed whether the presidential tweet was just a negotiation tactic. Analysts at Bank of America believe that both parties at the table remain motivated to agree a deal.

Speaking to reporters on Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous agreements over the weekend, undermining progress towards a detailed trade agreement between the world's two largest economies.

Lighthizer, the top US trade negotiator, said the administration would increase penalties on $200 billion of Chinese goods to 25% from 10% on Friday. Trump renewed his threat to raise tariffs on Sunday.

"That assumption is likely to be tested sooner rather than later, and the initial optimism that Trump's truculence was bluster was tempered somewhat by trade representative Robert Lighthizer's claims that China had backpedalled on certain elements on what had already been agreed," said Michael Hewson, chief market analyst at CMC.

European stocks are broadly lower. Asian markets ended their day mixed, with the Shanghai Composite (SHCOMP) closing 0.7% higher, retracing some of its 5.6% drop on Monday, according to Refinitiv.

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https://www.cnn.com/2019/05/07/investing/global-selloff-whats-next/index.html

2019-05-07 14:21:00Z
52780286811892

Dow opens 200 points lower as Wall Street gets tariff whiplash - CNN

The Dow (DJIEW), S&P 500 (SPX) and Nasdaq (COMP) were all solidly in the red. The Dow was more than 300 points lower after about an hour of trading. The S&P 500 was down 1.3%% and the Nasdaq fell 1.3%, also both adding to their earlier losses.

On Sunday, President Donald Trump threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Monday's selloff started with the Dow opening sharply lower, but stocks recovered most of their losses yesterday as trading went on. Investors took some comfort after Chinese Vice Premier Liu said he remains scheduled to travel to the US this week.

"Markets appear to be holding on to hope that US-China trade negotiations will not be derailed, amid reports that this week's trade talks in Washington will still take place," said Han Tan, Market Analyst at FXTM.

Many have weighed whether the presidential tweet was just a negotiation tactic. Analysts at Bank of America believe that both parties at the table remain motivated to agree a deal.

Speaking to reporters on Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous agreements over the weekend, undermining progress towards a detailed trade agreement between the world's two largest economies.

Lighthizer, the top US trade negotiator, said the administration would increase penalties on $200 billion of Chinese goods to 25% from 10% on Friday. Trump renewed his threat to raise tariffs on Sunday.

"That assumption is likely to be tested sooner rather than later, and the initial optimism that Trump's truculence was bluster was tempered somewhat by trade representative Robert Lighthizer's claims that China had backpedalled on certain elements on what had already been agreed," said Michael Hewson, chief market analyst at CMC.

European stocks are broadly lower. Asian markets ended their day mixed, with the Shanghai Composite (SHCOMP) closing 0.7% higher, retracing some of its 5.6% drop on Monday, according to Refinitiv.

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https://www.cnn.com/2019/05/07/investing/global-selloff-whats-next/index.html

2019-05-07 13:57:00Z
52780286811892

US-China tech battle is the overlooked issue in their trade war - CNBC

5G logo is seen on an android mobile phone with Huawei logo on the background.

Omar Marques | LightRocket | Getty Images

The U.S. and China want to be world leaders in technologies like 5G and artificial intelligence — and that could be a key hurdle in resolving trade frictions between the two, experts have told CNBC.

President Donald Trump on Sunday tweeted that the U.S. would raise tariffs on $200 billion in Chinese goods to 25% from the current 10% rate by Friday, and was planning to hit another $325 billion in imports with 25% duties "shortly."

Nevertheless, experts are still hopeful a trade agreement between the two sides will be reached. That's on the back of China confirming that Vice Premier Liu He and other officials will still visit Washington for another round of trade talks, despite reports that Beijing was considering backing out of the scheduled trip.

"A deal of some sort is still likely," William Hobbs, chief investment officer at Barclays Investment Solutions, told CNBC's "Squawk Box Europe " Tuesday. It may be the case that Trump — who once called himself a "Tariff Man" — felt emboldened to put pressure on China given recent positive U.S. economic indicators, Hobbs said.

But the big issue looking ahead, one analyst says, is the two countries' race toward new technologies. The battle to dominate 5G, for instance, has seen Huawei face intense political pressure from the U.S. amid fears its equipment could be used by the Chinese government for spying.

"Tariffs, trade, goods, this is only a sideshow," Geoffrey Yu, head of the U.K. investment office at UBS Wealth Management, said. "The big sign of U.S. contention is going to be on technology, on 5G and those issues. This is going to be a multi-decade process."

'Different era'

Tech could be the crucial issue to solve in finding a complete resolution to Washington and Beijing's dispute.

An end to so-called forced technology transfers, for instance, is a key part of Trump's demands — that is, the claim that U.S. companies are made to hand over their technological know-how in return for access to the Chinese market.

But beyond that, the world's two largest economies are in a fierce race to harness the potential of nascent technologies, including 5G, artificial intelligence and robotics, in a bid to be the world leader in those fields.

"I think we're now in a very different era, where both the Chinese and the Americans — and perhaps other parts of the West — are really trying to take advantage of new forms of technology," Edward Tse, CEO of Gao Feng Advisory, said.

"Everyone is trying to leverage on this new form of technology to come up with new ideas, new business models and new innovations. The race is very different now compared to perhaps a decade ago."

One area China might have an edge in, Tse noted, is in machine learning, because of the vast amounts of personal data companies in the country have access to. One reason for that is that the country has a different approach to major Western nations when it comes to things like data privacy.

Meanwhile, Trump has made it clear that he wants the U.S. to be a leader in 5G. The president has gone as far as to say that he wants 5G, "and even 6G, " to arrive in the U.S. "as soon as possible."

And then there's the so-called "splinternet " — the idea that the internet could be fragmented between different countries. China already has its Great Firewall, which blocks access to some foreign websites. But former Google CEO Eric Schmidt has warned there could be a "bifurcation" in the internet, with a China-led platform splitting apart from a U.S.-led one.

While the U.S. and China will still likely produce similar AI products, "in other forms of internet it may not be the same," Tse said. "Perhaps there will be different forms of technology coming up in other forms of the internet."

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2019-05-07 12:26:38Z
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Prince William, Kate Middleton share sweet message for Meghan Markle, Prince Harry's royal baby - Fox News

What royal feud? Prince William and Kate Middleton sent a sweet message to Prince Harry and Meghan Markle after the birth of their son on Monday.

Reposting the birth announcement from the @SussexRoyal Instagram account, Prince William and Duchess Kate wrote from their @KensingtonRoyal account, "The Duke and Duchess of Cambridge are delighted with the news of the birth of The Duke and Duchess of Sussex's son today, and look forward to meeting the latest addition to the family."

The kind words came after months of reported royal in-fighting among the couples.

PRINCE HARRY BEAMS WITH PRIDE AFTER WELCOMING SON WITH MEGHAN MARKLE

Insiders claimed that Prince William, 36, expressed concerns about how fast Prince Harry, 34, and now-Duchess Meghan, 37, moved in their relationship when they first began dating.

Prince Harry reportedly took the brotherly advice personally, leading to tension between the couples.

MEGHAN MARKLE'S FATHER SPEAKS OUT ON BIRTH OF BABY SUSSEX

"William wanted to make sure that Harry was making the right decision,” royal expert Katie Nicholl previously told Fox News. “And I think what was intended as well-meaning, brotherly concern and a bit of advice went down quite badly with Harry, who felt that William wasn’t being as supportive as he might’ve been. So there has certainly been tensions between the brothers.”

WHEN WILL MEGHAN MARKLE AND PRINCE HARRY RELEASE A PHOTO OF THE ROYAL BABY?

Royal expert Nick Bullen told Fox News Monday that he believes the birth of Baby Sussex will help mend any royal rift that remains.

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“William and Harry, we know the press reports and it is true, they’re not getting along at the moment,” explained Bullen. “But I believe that will resort itself. The move from Kensington Palace to Windsor puts a little distance between the two households. And that will begin to repair the story. And from what I’m being told, Kate Middleton and Meghan actually get on OK. It isn’t about a battle between duchesses. It is much more about the boys. I think hopefully these two mothers will be able to bond more over their children. And I think babies are often a great way to bring families close together.”

Fox News' Stephanie Nolasco contributed to this report.

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2019-05-07 12:52:39Z
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UN office hails Myanmar journalists' release, with a caveat - Fox News

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Reuters journalist Kyaw Soe Oo celebrates with wife Chit Su Win and their daughter after being released from prison after a presidential pardon, Tuesday, May 7, 2019, in Yangon, Myanmar. The two journalists Wa Lone, 32, and Kyaw Soe Oo, 28, were imprisoned for breaking Myanmar's Official Secrets Act over reporting on security forces' abuses of Rohingya Muslims were pardoned Tuesday, the prison chief and witnesses said. (Ann Wang/Pool Photo via AP)

GENEVA – The U.N. human rights office is praising the release of Reuters journalists Wa Lone and Kyaw Soe Oo from prison in Myanmar, but says a "very dire situation" remains for freedom of expression in the Asian country.

Rights office spokeswoman Ravina Shamdasani hailed "good news" but insisted that the two Pulitzer Prize-winning journalists "should never have been convicted in the first place."

The journalists were pardoned and released on Tuesday. They had been convicted of violating Myanmar's Official Secrets Act over reporting on security forces' abuses of Rohingya Muslims.

Shamdasani cited a rights office report in September, after the convictions, that laid out "very constructive recommendations" to Myanmar's government to improve freedom of expression.

She said there has been "no positive progress" in relation to those recommendations.

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2019-05-07 12:01:20Z
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Royal baby: Prince Harry beams as he announces birth of son - CBS This Morning

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2019-05-07 11:49:25Z
52780286176909