Update on the latest business

FINANCIAL MARKETS

Asian markets down as trade war heats up

SINGAPORE (AP) — Asian shares were mostly lower Monday amid worries about trade tensions as the U.S. and China both started putting tariffs in motion. China and Hong Kong markets were closed for a national holiday.

The tariffs slapped on one another by the world’s two biggest economies are set to take effect from July 6. U.S. President Donald Trump has announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey.

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Major U.S. benchmarks finished last week lower. The S&P 500 index dropped 0.1 percent to 2,779.66 and the Dow Jones industrial average lost 0.3 percent to 25,090.48. The Nasdaq composite dipped 0.2 percent to 7,746.38.

Oil futures extended their losses after reports that OPEC countries planned to increase production of oil by as much as 1.5 million barrels a day. Benchmark U.S. crude oil fell more than a dollar to go below $64 a barrel.

The dollar inched down against the yen and strengthened against the euro.

THE DAY AHEAD

Business events and economic reports scheduled for Monday

WASHINGTON (AP) — The National Association of Home Builders releases housing market index for June.

BRITAIN-NATIONAL HEALTH SERVICE

UK PM vows big funding increase for National Health Service

LONDON (AP) — British Prime Minister Theresa May has announced a significant funding increase for the country’s beleaguered National Health Service.

The prime minister said the NHS will receive an additional 384 million pounds ($510 million) per week once Britain leaves the European Union next March. She linked the increased funding to Brexit in a column published in the Mail on Sunday.

May says “As we leave the European Union and stop paying significant annual subscriptions to Brussels, we will have more money to spend on priorities such as the NHS.”

May admitted the “Brexit dividend” would not be enough to generate all the extra health service funds. Extra taxes and borrowing will likely be needed.

The NHS has been struggling to cope with funding shortages in recent years, particularly during the flu-ridden winter months.

JAPAN-TRADE

Japan’s exports, imports both grew in May amid trade tension

TOKYO (AP) — Japanese government data show that the nation’s exports to the U.S. grew 5.8 percent in May from a year ago as shipments of machinery and vehicles rose.

Japan’s imports from the U.S. for the month grew 19.9 percent as imports of aircraft, fuel and medical products gained on year, according to Finance Ministry data released Monday.

Worries about trade tensions are growing over President Donald Trump’s trade policies, including tariffs of 25 percent on imported steel and 10 percent on aluminum imports announced in March, including those slapped on imports from Japan.

Globally, Japan’s imports in May grew 8.1 percent and exports grew 14 percent, according to the data.

TRUMP-CONSUMER AFFAIRS

Trump to nominate OMB official to lead consumer watchdog

WASHINGTON (AP) — President Donald Trump intends to nominate an associate director at the Office of Management and Budget to lead the government’s consumer watchdog agency.

A White House spokeswoman says Kathy Kraninger “will bring a fresh perspective and much-needed management experience” to the Consumer Financial Protection Bureau.

Trump’s budget chief, Mick Mulvaney, has been filling in as the bureau’s acting director along with running the OMB since late November when his predecessor, Richard Cordray, resigned. Mulvaney has steered the bureau in a more industry-friendly direction since he took over.

HONEY SMACKS-RECALL

Kellogg recalls Honey Smacks because of salmonella potential

BATTLE CREEK, Mich. (AP) — The Kellogg Company is voluntarily recalling some of its Honey Smacks cereal after salmonella infected 73 people in 31 states.

The Centers for Disease Control and Prevention says most of the outbreaks were in California, Massachusetts, New York and Pennsylvania.

The recall affects 15.3-ounce packages with the UPS Code 3800039103 and 23-ounce packages with the UPS Code 3800014810. Both have best used by dates from June 14, 2018, through June 14, 2019.

Consumers are advised to throw the cereal away and contact Kellogg for a refund.

Salmonella usually causes fever, diarrhea, nausea, vomiting and abdominal pain.

CASINOS-BACK TO WORK

Laid off when casinos closed, back to work with reopenings

ATLANTIC CITY, N.J. (AP) — Hundreds of Atlantic City casino workers who lost their jobs when their gambling houses shut down are going back to work.

Two of the five casinos that closed since 2014 are reopening this month.

The Trump Taj Mahal is becoming the Hard Rock, and Revel is becoming the Ocean Resort.

Ramona Moran lost her cocktail server job when Revel closed, but she’s been hired for the same job at Hard Rock. She never expected to be working in a casino again.

Together the two new casinos will restore over 6,000 of the 11,000 jobs that were lost.

PERRY ELLIS-BUYOUT

Clothing maker Perry Ellis to go private in $437M buyout

NEW YORK (AP) — Perry Ellis International says its founder George Feldenkreis is buying shares of the clothing company that he and his family don’t already own and taking it private.

As a private company, Feldenkreis says Perry Ellis can invest more money in marketing and technology at a time when more people are shopping online.

Feldenkreis will have a more active role in managing the company after the deal closes, which is expected to happen sometime in the second half of this year.

Feldenkreis, through a newly created company, will pay $27.50 for each share of Perry Ellis, or about $437 million.

Perry Ellis, which also owns the Original Penguin brand, will remain headquartered in Miami.

Feldenkreis founded the company that would become Perry Ellis International more than 50 years ago.

LOS ANGELES TIMES SALE

Local billionaire to take control of the LA Times

LOS ANGELES (AP) — A biotech billionaire who purchased the Los Angeles Times with an eye toward restoring its independence and vigor will officially take control of the news organization Monday.

Dr. Patrick Soon-Shiong (soon-shong) is spending $500 million to buy The Times, San Diego Union-Tibune, Spanish-language newspaper Hoy and some community newspapers from Chicago-based Tronc.

The deal, announced Feb. 7, returns The Times to local ownership after nearly two decades under rocky Chicago control. The newsroom has been led by three editors in 10 months and five publishers in four years.

Soon-Shiong, 65, will become executive chairman of the California News Group.

SELF-DRIVING VEHICLE-CRASH

Autonomous Waymo vehicle involved in 5-car crash in Arizona

MESA, Ariz. (AP) — Police in a Phoenix suburb say a self-driving Waymo vehicle was among five cars involved in a collision, but no serious injuries were reported.

The driver of the Waymo vehicle told Mesa police that the car was not in autonomous mode at the time of Saturday night’s crash.

Witnesses say another car failed to stop for a red light and crashed into the Waymo vehicle as it was turning left.

The car then struck three other vehicles.

Self-driving vehicles have come under fire since an Uber vehicle in autonomous mode with an operator behind the wheel fatally struck a woman in nearby Tempe.

FILM-BOX OFFICE

‘Incredibles 2’ crushes animation record with $180 million

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LOS ANGELES (AP) — Disney and Pixar’s “Incredibles 2” has broken the record for the best animated opening of all time and the biggest for a PG-rated film. Disney estimates Sunday that the film has earned $180 million in its first weekend in theaters.

The previous animation record-holder was another Pixar sequel, “Finding Dory,” which had a $135 million launch in 2016. It was Disney’s live-action “Beauty and the Beast” that held the record for a PG debut.

“Incredibles 2” comes 14 years after “The Incredibles” and picks up right where the first film left off with the superhero family. Brad Bird returned to write and direct the sequel, which has been overwhelmingly well-received by both critics and audiences.

“Incredibles 2” is also the second biggest ever June debut, behind only “Jurassic World.”

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