Markets swoon...Trump surprises with China tariff threat...Eurozone economy woes
BANGKOK (AP) — World markets swooned Monday after President Donald Trump threatened to increase tariffs on imports from China at a time when investors were expecting trade tensions to subside. Futures point to opening losses on Wall Street. Benchmark U.S. crude oil nosedived more than $1.25 or 2%, falling to just above $60.50 per barrel. The dollar fell against the yen and strengthened against the euro.
BEIJING (AP) — A government spokesman says Chinese envoys are preparing to travel to the United States for trade talks, suggesting negotiations on ending a bruising tariff war will proceed despite President Donald Trump’s threat to raise import taxes. Trump’s announcement Sunday on Twitter caused financial markets to plunge. It prompted suggestions Beijing might pull out of talks planned for this week to avoid looking weak in the face of American pressure.
LONDON (AP) — A closely watched survey is showing that the 19-country eurozone economy lost further momentum in April. Financial information firm IHS Markit said Monday that its composite purchasing managers index — a broad gauge of economic activity — fell modestly to 51.5 in April from 51.6 in May. Although the index remains above the 50 no-change mark, it is pointing to fairly lackluster quarterly growth of 0.2%.
NEW YORK (AP) — Occidental, which is in a bidding war with Chevron to buy oil company Anadarko, revised its offer Sunday and says it found a buyer for Anadarko’s African investments if the deal goes through. Occidental is still offering $76 a share for each share of Anadarko, the same as its bid from April, but more of it is now in cash. Occidental’s new bid is for $59 in cash and 0.2934 shares of Occidental common stock for each Anadarko share. Its previous bid was $38 in cash and 0.6094 shares of Occidental stock.
OSAGE, Iowa (AP) — Democratic presidential candidate Bernie Sanders on Sunday proposed a sweeping agriculture and rural investment plan to break up big agriculture monopolies and shift farm subsidies toward small family farmers. Sanders’ plan expands on themes that have been central to his presidential campaign in Iowa since the start, including his emphasis on rural America and pledge to take on and break up big corporations.