FINANCIAL MARKETS

Asia stocks firm as markets mull Trump’s tax plan

HONG KONG (AP) — Asian shares were mostly higher Thursday as investors assessed the scant details of President Donald Trump’s U.S. tax overhaul. Japan’s central bank kept its monetary policy unchanged and forecasted steady growth for Asia’s No. 2 economy.

Japan’s benchmark Nikkei 225 index lost 0.2 percent while South Korea’s Kospi gained 0.1 percent. Hong Kong’s Hang Seng climbed 0.4 percent and the Shanghai Composite index climbed 0.2 percent.

The Standard & Poor’s 500 index slipped by 1.16 points, or less than 0.1 percent, to 2,387.45.The Dow Jones industrial average lost 21.03 points, or 0.1 percent, to 20,975.09, and the Nasdaq composite slipped 0.27 points, or less than 0.1 percent, to 6,025.23. The Russell 2000 index of small-caps rising 8.35, or 0.6 percent, to 1,419.43.

ECONOMY-THE DAY AHEAD

Major business and economic reports scheduled for today

WASHINGTON (AP) — There’s plenty of economic and financial news for investors to pour over today.

The government will report on the number of people who applied for unemployment benefits last week and will release March’s durable goods data as well.

Also, Freddie Mac will report this week’s average mortgage rates and the National Association of Realtors will issue its pending home sales index for March.

There are major corporate earnings reports due out today.

Ford, American Airlines, Southwest Airlines, UPS, Union Pacific and Comcast will report quarterly financial results before the market opens.

Amazon.com, Microsoft, Alphabet and Starbucks will report earnings after the market closes.

TRUMP TAX PLAN

Trump tax plan could be good news for many, bad for deficit

WASHINGTON (AP) — The White House unveiled the broad outlines of Trump’s tax plan while leaving out many of the details. Officials said they hoped to slash corporate taxes to 15 percent from 35 percent, but specifics are still to be negotiated.

Stocks have been lifted by investor anticipation of big tax cuts as well as Trump’s vow to cut red tape for businesses. But based on the few specifics spelled out so far, most experts suggested the plan would add little to growth while swelling the budget deficit and potentially handing large windfalls to wealthier taxpayers.

TRUMP-NAFTA

Trump says he won’t pull US out of NAFTA

WASHINGTON (AP) — President Donald Trump has told the leaders of Mexico and Canada that he will not pull out of the North American Free Trade Agreement.

The White House made the surprise announcement in a read-out of calls Wednesday between the world leaders.

The White House says the president “agreed not to terminate NAFTA at this time.”

Instead, Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau “agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation” of the trade deal to “the benefit of all three countries.”

Trump has blamed NAFTA for American job losses.

He says he believes “that the end result will make all three countries stronger and better.”

ALUMINUM IMPORTS

Trump to order probe into aluminum imports

WASHINGTON (AP) — President Donald Trump will direct his administration to initiate an investigation Thursday into whether aluminum imports are jeopardizing U.S. national security.

Commerce Secretary Wilbur Ross says the president will sign a memo ordering him to determine the impact of rising aluminum imports.

High-purity aluminum is used in a number of defense applications, including military planes and the armor-plating of military vehicles.

Ross says there is only one American smelter that produces high-purity, aerospace-quality aluminum.

He says, “It’s very, very dangerous, obviously from a national defense point of view, to only have one supplier of an absolutely critical material.”

This is the president’s second such move. He initiated an investigation into steel imports last week.

The investigation could lead to tariffs on aluminum imports.

UNITED-PASSENGER REMOVED

United raising limit on payments to bumped flyers to $10,000

DALLAS (AP) — United Airlines says it will raise the limit — to $10,000 — on payments to customers who give up seats on oversold flights. It’s also increasing training for employees as it deals with fallout from the video of a passenger being violently dragged from his seat.

United is also vowing to reduce, but not eliminate, overbooking — the selling of more tickets than there are seats on the plane.

The airline made the promises Thursday as it released a report detailing mistakes that led to the April 9 incident on a United Express plane in Chicago.

United isn’t saying whether ticket sales have dropped since the removal of a 69-year-old passenger by three airport security officers, but the airline’s CEO admits it could be damaging.

SKOREA-EARNS-SAMSUNG ELECTRONICS

Samsung foresees bigger profit in 2017 as memory chips soar

SEOUL, South Korea (AP) — Samsung Electronics reported its best quarterly profit in more than three years Thursday and forecast improvement for the full year as its semiconductor division posted its highest income ever.

The South Korean company’s stellar financial results beat expectations and reflect its ability to overcome the fiasco over its Galaxy Note 7s, which it pulled from the market when its batteries were found to be prone to overheating. That cost Samsung at least $5 billion.

The secrets to its crisis-defying performance: microchips.

Samsung Electronics is the world’s largest memory chipmaker and second-largest semiconductor company after Intel. Its semiconductor department generated 6.3 trillion won ($5.6 billion) in operating income during the first three months of this year, more than double a year earlier.

BRITAIN-EARNS-ASTRAZENECA

AstraZeneca Q1 upbeat on cancer drugs despite Q1 sales drop

LONDON (AP) — Anglo-Swedish drugmaker AstraZeneca says first-quarter revenue fell amid declining sales of cholesterol treatment Crestor, which lost patent protection last year.

Total revenue declined 12 percent to $5.4 billion as Crestor sales dropped 45 percent. Net income fell to $537 million, from $646 million.

CEO Pascal Soriot said Thursday that the impact of recent patent expirations should ease this year as he highlighted optimism about new cancer treatments in “what we expect to be a pivotal year for AstraZeneca.”

Sales of cancer drugs rose 20 percent to $885 million, driven by the introduction of the lung cancer treatment Tagrisso. Sales of Tagrisso were $171 million. Soriot also highlighted “positive data” for Lynparza, a treatment for ovarian and breast cancer that is now available in 31 countries.

FINLAND-EARNS-NOKIA

Nokia Q1 loss slightly down, sales stagnant

HELSINKI (AP) — Suffering from what the CEO described as “a typically seasonally weak quarter,” Finland-based networks provider Nokia is reporting a first-quarter net loss of 473 million euros — a slight improvement from a loss of 623 million euros a year ago.

Rajeev Suri said that although the results in the period demonstrated an improving business momentum, “some challenges remain.”

The company’s net sales fell slightly in the quarter to 5.4 billion euros from 5.5 billion euros in the first quarter in 2016.

Nokia said that the decrease in net loss was mainly because of a lower operating loss.

Suri said that he is “optimistic about the year ahead, even if cautiously so,” adding that he believes Nokia has a strong competitive position in the market.

AUSTRALIA-ENERGY SECURITY

Australia warns gas companies they risk export restrictions

CANBERRA, Australia (AP) — Australia’s prime minister has warned energy companies they will be restricted from exporting gas if Australians are not provided with adequate supplies at internationally competitive prices.

Prime Minister Malcolm Turnbull said Thursday it was unacceptable that Australia was about to overtake Qatar as the world’s biggest exporter of liquid natural gas yet domestic gas users face shortages and sky-rocketing prices.

He says Australia is entitled under its international trade agreements to protect local industry from gas shortages by preventing companies such as ExxonMobil, Shell, Santos and Origin from fulfilling export contracts from July 1.

Australian Energy Market Operator, which manages the national grid, recently warned of potential shortages of gas-fired electricity across southeast Australia by late next year.

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