AP NEWS

Business Highlights

June 7, 2019

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US stock market notches best week since late November

NEW YORK — Wall Street turned the page on a painful May in the stock market by notching its best week since late November. Stocks climbed for a fourth consecutive day Friday, capping a week of gains that reversed most losses from the escalation of the U.S. trade war with China and Mexico in May. The latest rally came after a report showed that the U.S. added fewer jobs than expected last month. The report appeared to increase the odds that the Federal Reserve will cut interest rates in coming months.

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Why Trump’s trade wars are pressuring both economy and Fed

WASHINGTON (AP) — A sharp pullback in U.S. hiring for May delivered a jolt of disappointment. It intensified concerns that the economy has weakened and that many employers have grown nervous, in part because of President Donald Trump’s escalating trade wars. Yet the stock market soared and bond yields fell because the tepid employment report magnified expectations that the Federal Reserve will cut interest rates in the coming months, perhaps beginning in July, to support the economy.

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Trump: ‘Good chance’ now for tariff deal with Mexico

WASHINGTON (AP) — President Donald Trump now says “there is a good chance” the U.S. will strike a deal with Mexico to avert the tariffs he’s threatened to impose Monday as he tries to force the U.S. ally to stem the flow of Central American migrants into the United States. He tweeted the assessment as he returned to Washington from Europe Friday. Without a deal, a 5% tariffs on Mexican goods will kick in Monday.

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US hiring slows amid trade rifts and weaker global economy

WASHINGTON (AP) — The tepid job growth in May, along with rising pressures on the economy, makes it more likely that the Federal Reserve will cut rates in the coming months. Bond yields fell after the jobs data was released, signaling expectations for lower Fed rates. Last month, U.S. employers added just 75,000 jobs, a sign that businesses have become more cautious in the face of weaker global growth and widening trade conflicts.

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Boeing wanted to wait 3 years to fix safety alert on 737 Max

CHICAGO (AP) — Boeing knew of a flaw in a 737 Max safety alert system in 2017 but planned to wait three years to fix it. Two key members of Congress say the company only decided to speed up a fix to the problem after a Max crashed in Indonesia. Another crashed five months later in Ethiopia. In all, 346 people died.

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Mexico’s tequila exporters warily eye US tariffs deadline

EL ARENAL, Mexico (AP) — Mexican exporters of tequila are worried about possible slumping revenues and job losses because of threatened U.S. tariffs on all imports from the country. Multiple tequila industry insiders say privately that some companies have even been rushing to export as much as they could ahead of a Monday deadline, though most of this year’s inventory is likely already in the U.S. so the biggest impact would be on next year’s supply.

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FedEx will stop air shipments of packages for Amazon

NASHVILLE, Tenn. (AP) — FedEx says it will end air shipment of packages in the U.S. for Amazon when the contract expires June 30. The move comes as the online retail giant expands its own delivery capabilities. Amazon says only that it respects FedEx’s decision and thanks the delivery company for serving its customers over the years.

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Facebook stops Huawei from pre-installing apps on phones

LONDON (AP) — Facebook has dealt Huawei a fresh blow. Facebook has stopped letting its apps come pre-installed on smartphones sold by Huawei to comply with U.S. restrictions. The social network says it suspended providing software for Huawei to put on its devices while it reviews recently introduced U.S. sanctions. Facebook says users can still download Facebook on their own.

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Trade war clouds outlook as finance chiefs meet in Japan

FUKUOKA, Japan (AP) — Finance ministers and central bank governors meeting in Japan this weekend will try to make headway on longstanding issues such as how much global giants like Facebook and Amazon should pay in taxes. They’re likely to end up focusing much of their attention on how to keep global growth on track when the world’s two biggest economies are entrenched in an escalating trade war.

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Europe shows challenges for US regulators targeting Big Tech

LONDON (AP) — As U.S. regulators prepare to investigate big tech companies like Google and Amazon, they’ll look to Europe for lessons. European Union regulators have led global efforts to rein in Big Tech with only mixed results. The big technology companies’ power appears undiminished, underscoring the challenge for U.S. regulators.

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The S&P 500 index rose 29.85 points, or 1.1%, to 2,873.34. The Dow Jones Industrial Average gained 263.28 points, or 1%, to 25,983.94. The Nasdaq composite climbed 126.55 points, or 1.7%, to 7,742.10. The Russell 2000 index of smaller companies picked up 10.85 points, or 0.7%, to 1,514.39.

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