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Business Highlights

By The Associated PressJune 4, 2019

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Poor Americans likely to be hit hardest by new US tariffs

PHOENIX (AP) — The biggest victims of President Donald Trump’s tariffs won’t necessarily be Mexicans or Chinese. Some experts say the people most likely to pay the steepest price are poor Americans. They already live close to the financial edge and could have to pay more for everyday purchase. Jay Shambaugh of the Brookings Institution says tariffs are a tax on consumption for many low-income households. The president has threatened to impose a 5% tax on Mexican imports.

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Dow jumps over 500 points amid hopes of Fed rate cut

NEW YORK (AP) — The Dow Jones Industrial Average jumped more than 500 points Tuesday as investors welcomed signals that the Federal Reserve may cut interest rates to help buttress U.S. economic growth in the face of escalating trade wars. Technology companies led broad gains for U.S. stocks as the benchmark S&P 500 index notched its best day since early January. The Federal Reserve chairman signaled the central bank could cut rates if multiple U.S. trade conflicts threaten the nation’s economic expansion.

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Powell hints Fed will cut rates if needed over trade wars

WASHINGTON (AP) — Chairman Jerome Powell says the Federal Reserve is prepared to respond if it decides the Trump administration’s trade conflicts are threatening the U.S. economy. Investors read his remarks as a signal that the Fed will likely cut interest rates later this year.

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Is ‘Big Tech’ too big? A look at growing antitrust scrutiny

SAN FRANCISCO (AP) — Is Big Tech headed for a big breakup? The U.S. Justice Department and the Federal Trade Commission are moving to investigate Google, Facebook, Amazon and Apple over their aggressive business practices, and the House Judiciary Committee has announced an antitrust probe of the industry’s giants. Experts say breakups are unlikely in the short term, but that’s what some politicians and others are calling for. They say the companies are too powerful and need to be taken down a notch.

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China issues travel alerts, slams US ‘interference’

BEIJING (AP) — China has issued a pair of travel warnings for the U.S. and slammed what it called “interference” in its internal affairs. Foreign Ministry spokesman Geng Shuang said any attempts to interfere or undermine China’s stability would be “doomed to fail.” The comments followed a U.S. statement criticizing a Chinese report that defended Beijing’s stance in stalled trade negotiations.

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World Bank downgrades its forecast for global economy

WASHINGTON (AP) — The World Bank is downgrading its forecast for the global economy in light of trade conflicts, financial strains and unexpectedly sharp slowdowns in wealthier countries. The bank, an anti-poverty agency, expects the world economy to grow 2.6% this year. That would be the slowest calendar-year growth since 2016, and it is down from the 2.9% expansion the agency expected when it made its previous forecast in January.

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At stores and online, health care moves closer to customers

A major U.S. drugstore chain is pressing further into health care. CVS Health announced plans Tuesday to expand a new store format that will provide dietitians, help people monitor chronic diseases and add community rooms that can be used for yoga classes. It’s another example of health care moving closer to patients. Other drugstores are expanding the care and support they offer. And telemedicine is bringing doctors and therapists to the family room couch.

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Renault’s FCA merger move leaves partner Nissan in the cold

TOKYO (AP) — Nissan has found itself out in the cold. The Japanese automaker wasn’t consulted about a proposed merger between its French alliance partner Renault and Fiat Chrysler and has little say over the issue. Partnering with a colossal Renault-Fiat Chrysler could help Nissan slash costs on shared components and research. But analysts say it could be an unwieldy alliance where Nissan would have even less influence than it’s had with Renault.

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Trump says GOP would be ‘foolish’ to block Mexico tariffs

WASHINGTON (AP) — President Donald Trump declared on Tuesday that fellow Republicans would be “foolish” to block the tariffs he’s threatening on Mexican imports, but GOP senators are fearing a new trade war and considering action. They’re grilling his administration lawyers behind closed doors. Republicans are deeply concerned that Trump’s proposed 5% tariffs on all imports from Mexico would spike U.S. consumers’ costs, harm the economy and imperil a major pending US-Mexico-Canada trade deal.

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Hotel investor: Trump evaded taxes in Panama

NEW YORK (AP) — The majority owner of a former Trump-branded hotel in Panama has accused the U.S. president’s company of evading taxes in the country. A filing in New York federal court on Monday alleges that President Donald Trump’s hotel management company evaded income and social security taxes when it managed the former Trump Ocean Club International Hotel & Tower. The Trump Organization says it did not evade taxes.

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The S&P 500 index gained 58.82 points, or 2.1%, to 2,803.27. The Dow vaulted 512.40 points, or 2.1%, to 25,332.18. The Nasdaq composite climbed 194.10 points, or 2.7%, to 7,527.12. The Russell 2000 index of small companies picked up 38.58 points, or 2.6%, to 1,508.56.

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