Trade talks with China sour and US companies with exposure get hit on Wall Street
NEW YORK (AP) — NEW YORK (AP) — U.S. companies that do a lot of business in China are getting hit hard in afternoon trading on Wall Street after President Trump threatened more tariffs against China just as investors were hoping that the long-running trade war between the world’s two biggest economic powers might be winding down.
Technology companies, which would stand to lose heavily if the trade battle with China gets worse, fell the most. Banks were also lower.
Apple, Qualcomm and Broadcom, who rely heavily on Chinese business, took a beating. According to data provider FactSet, 64.7% of Qualcomm’s revenue comes from China. Broadcom’s Chinese revenue is 48% of its total and Apple gets nearly one-fifth of its revenue from the world’s second largest economy. Wynn Resorts, with a host of casinos and hotels in Macau, gets about 75% of its revenue from China, Wynn shares tumbled as well.
Bond prices rose sharply as traders sought safety, sending yields lower.
Buffett doesn’t see clear outcome in trade fight with China
OMAHA, Neb. (AP) — Warren Buffett says it’s hard to know how a trade war between China and the United States would affect the economy if President Donald Trump follows through on his latest tariff threat because so many other countries are affected.
Buffett appeared on CNBC Monday after holding his annual Berkshire Hathaway shareholders meeting over the weekend.
Trump said over the weekend that he may impose 25 percent tariffs on more Chinese imports, and financial markets began to plunge.
Buffett says Trump is making a “nuclear threat” that may bring the Chinese to the table. But it’s impossible to predict the outcome because both countries’ leaders are used to getting their way.
Microsoft offers software tools to secure elections
SEATTLE (AP) — Microsoft is announcing an ambitious effort intended to make U.S. voting more secure and verifiable.
The company will offer free open-source software that several top U.S. elections vendors say they will explore incorporating into their voting equipment.
The software kit is being developed with Oregon-based Galois (GAL-wah), which is separately creating a secure voting system prototype under contract with the Pentagon’s advanced research agency, DARPA.
The Microsoft kit, dubbed “ElectionGuard, was announced Monday at a Seattle developer’s conference.
Microsoft says the kit it will be available beginning this summer with prototypes ready to pilot for next year’s general elections.
LORD AND TAYLOR-POSSIBLE SALE
Lord & Taylor may be put on the block soon
NEW YORK (AP) — Lord & Taylor, one of the country’s oldest department stores, may be put up for sale.
Hudson’s Bay, which owns Lord & Taylor and Saks Fifth Avenue, said Monday that it hired a financial adviser to review Lord & Taylor’s business and that the process may lead to a sale or merger.
Lord & Taylor traces its origins back to more than 190 years ago, when it was founded as a dry goods store in 1826. The store has had several owners. It was acquired by Hudson’s Bay Co. in 2012.
Lord & Taylor has struggled as more people shop online. Hudson’s Bay has closed some of its stores, including Lord & Taylor’s 104-year-old flagship location in New York this year.
Kraft Heinz restates earnings over period of 2+ years
PITTSBURGH (AP) — Kraft Heinz is restating its financial results for the years 2016, 2017, and for the first nine months of 2018.
The company said in February that it was being investigated by the Securities and Exchange Commission over its procurement operations. Kraft Heinz Co. said in a regulatory filing on Monday that several employees within its procurement operations engaged in misconduct. Kraft says the company has since made adjustments to correct prior misstatements, essentially increasing the total cost of products sold during the time when the misconduct was occurring.
It said that the internal investigation of the matter is “substantially complete” and that the misstatements were “not quantitatively material to any quarter.”
US probes inadvertent side air bag deployment on Mazda SUVs
DETROIT (AP) — U.S. safety regulators are investigating reports that side curtain air bags can inflate for no reason on some Mazda CX-9 large SUVs.
Documents posted Monday by the National Highway Traffic Safety Administration say two owners have complained about the problem. Four people were hurt in one of the cases.
In both complaints owners told the agency that the left and right air bags went off for no reason while the SUVs were moving.
The probe covers CX-9s from the 2010 through 2013 model years. Mazda sold just over 112,000 of the SUVs from 2010 through 2013.
The safety agency says investigators will figure out how often the problem happens and determine the safety consequences. The agency could seek a recall.
US to make 30,000 more visas available for seasonal workers
WASHINGTON (AP) — The Trump Administration is making 30,000 more temporary visas available for seasonal work through the end of September. According to a copy of the rule obtained by The Associated Press, only those foreign workers who have held such visas over the last three fiscal years are eligible.
Typically the work involves picking crabs, shucking oysters or hotel work. The visas become available when the rule is published in the Federal Register, which is likely to be Wednesday.
Some lawmakers say the current number of visas capped at 66,000 is badly outdated. With the unemployment rate at the lowest it’s been in 49 years, some employers can’t find workers and need seasonal labor. Acting Homeland Security Secretary Kevin McAleenan says the additional visas are a temporary fix and urged Congress to pursue a longer-term fix.
GOOGLE-ASCENT OF THE ASSISTANT
Google’s artificial intelligence Assistant aims to transcend the smart speaker
SAN FRANCISCO (AP) — Google Assistant has made a name for itself in a voice technology market once dominated by Amazon and Apple. Google is expected to announce updates to its voice Assistant and smart home products Tuesday at its annual developer’s conference in Mountain View, California.
Google Assistant still comes in second behind Amazon in the smart speaker race, but the company launched its product nearly two years after Amazon released Echo and has gained considerable ground on its rival since then.
Google has expanded Assistant to more than 1 billion devices. It released a feature earlier this year that allows Assistant to call and make restaurant reservations for you, a technology that is a first of its kind in the market.
Google I/O kicks off Tuesday morning.
Judge sends suit over pipeline back to North Dakota court
BISMARCK, N.D. (AP) — A federal judge has sent back to the North Dakota state court a lawsuit alleging the environmental group Greenpeace conspired against the Dakota Access oil pipeline.
The two sides had agreed to the move, and U.S. District Judge Daniel Hovland recently signed off on it.
Texas-based pipeline developer Energy Transfer Partners maintains Greenpeace and others should be held responsible for trying to disrupt pipeline construction and damage to the company’s reputation and finances. Greenpeace accuses ETP of using the legal system to bully critics.
Greenpeace had cited federal law dealing with court jurisdiction to try to get the state lawsuit moved to federal court, where the group had already prevailed against racketeering claims alleged by ETP. But ETP disputed Greenpeace’s argument, and the group late last week acknowledged the company was correct.