Connect with us

Politics

Trade Wars are Definitely not Easy to Win; Wall Street Rout Continues

Apple, Inc shares nose-dived 10% to its lowest value in six years, taking Wall Street down with it yesterday in a distressing continuation to the new trading year.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Cupertino, CA, United States (4E) – Apple, Inc shares nose-dived 10% to its lowest value in six years, taking Wall Street down with it yesterday in a distressing continuation to the new trading year.

Apple CEO Tim Cook’s announcement Apple won’t make its revenue forecast for the 2019 first quarter due to weak sales and China’s faster than expected economic slowdown sent the Dow Jones Industrial Average plunging 2.8% or by 660 points.

The NASDAQ composite followed suit by yielding 3% and closing back in bear market territory. The S&P 500 sank more than 2.4% after falling 6.2% in 2018. The first two volatile trading days of the year are the S&P 500’s worst two-day start to a trading year since 2000, according to analysts.

The stunning bad news from Apple was compounded by the biggest one-month decline in U.S. factory activity since the Great Recession of 2008. The closely-watched ISM manufacturing index fell to a two-year low, confirming slowing growth and damage from Trump’s trade war against China. ISM said manufacturing activity suffered a “sharp decline” in December but still showed some growth.

“Awful, and worse to come,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Trade wars are not easy to win.”

Analysts are now taking a dim view of rising corporate earnings in light of the more challenging global environment marked by slowing global economic growth. Apple’s admission of failure in China confirms fears the slowdown in the world’s second largest economy is already hurting profits for multinational companies.

Kevin Hassett, chairman of the White House’s Council of Economic Advisers, said “a heck of a lot” of U.S. companies with sales in China will follow Apple’s footsteps by downgrading their outlooks.

“It’s not going to be just Apple,” declared Hassett.

Cook offered some of the most painful evidence yet of the negative consequences of Trump’s trade war. Cook said “rising trade tensions” with the United States are hurting China’s economy. He said this trade uncertainty “appeared to reach consumers,” with customer traffic in China declining.

Before Cook’s disheartening bombshell, Wall Street was expecting Apple’s fiscal Q1 profit to rise 20% to $4.65 a share.

On Wednesday, Cook cut the revenue guidance for the iPhone, iPad, Macbook and digital services for Q1 2019 ending December to $84 billion, down from $91 billion. This means Apple’s top line will likely fall nearly 5% year-on-year. The magnitude of this drop in the top line will be Apple’s first since a 9% decline in Q4 2016 ending September.

Article – All Rights Reserved.
Provided by FeedSyndicate

Invests are pleased to have a team of talented correspondents, who are able to bring you quality content on a daily basis. The editorial team cover every industry and have leading market experts from the stock market, ex military journalists, cryptocurrency to health and lifestyle. If it’s important to you it’s important to us and we’ve got the best in the business bringing it to you.

Politics

U.S. Auto Industry Bosses Want Trump to End Trade War; Re-open Government

Leaders of the U.S. motor vehicle industry are urging the Trump administration and Congress to resolve Trump’s trade war against the world and end the government shutdown.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Washington, DC, United States (4E) – Leaders of the U.S. motor vehicle industry are urging the Trump administration and Congress to resolve Trump’s trade war against the world and end the government shutdown.

They also declare the political uncertainty being engendered by Trump is hobbling the industry.

Fiat Chrysler Automobiles NV Chief Executive Mike Manley said U.S. metals tariffs imposed by trading partners in response to Trump’s will boost Fiat’s costs by $300 million to $350 million this year. The price hike comes to some $135 to $160 per vehicle.

Manley also said the U.S. government shutdown is preventing certification of one of the company’s new heavy duty pickup truck models. “The earlier it can be resolved, clearly the better,” he said.

Toyota Motor Corporation executive vice president for North American sales, Bob Carter, said the company has had to increase prices three times because of higher tariff costs. This, despite 96 percent of steel used in Toyota U.S. vehicles comes from U.S. steel plants. Carter said retaliatory tariffs boosted their vehicles prices by about $600 on average.

General Motors Company and Ford Motor Company are groaning from the U.S. steel and aluminum tariffs imposed by Trump.

GM Chief Executive Mary Barra promised investors the company will boost 2019 profit despite tariff-related costs and investments in electric vehicles. She restated an earlier decision to close five North American factories and cut nearly 15,000 jobs.

Ford Executive Chairman Bill Ford Jr. said “Certainty is something we really desire because of our product lead times. We don’t have that right now.”

Ford said he has no idea when the various trade and political issues will be resolved.

And then there’s NAFTA or its updated version Trump is trying to foist as a totally new agreement. Industry leader want the U.S. Congress decide quickly on the updated agreement’s fate.

“We just need it resolved,” said Brian Smith, CEO of Hyundai Motor Company in North America. Smith said his company needs clarity so it can adjust its supply chain as necessary. “It’s been going on way too long.”

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Politics

U.S. Army Will Test Missiles for Mobile A2/AD Zones in Asia

The U.S. Army is pushing ahead with a plan to establish mobile anti-access/anti denial (A2/AD) zones along the coastlines of allied nations in Asia and will test the first such zone in Okinawa this month.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Washington, DC, United States (4E) – The U.S. Army is pushing ahead with a plan to establish mobile anti-access/anti denial (A2/AD) zones along the coastlines of allied nations in Asia and will test the first such zone in Okinawa this month.

The tests will confirm the capability of its battlefield surface-to-surface missiles (SSMs) to sink warships of the People’s Liberation Army Navy (PLAN) when it conducts its first-ever missile tests of these weapons in Asia on Okinawa.

The United States Forces Japan (USFJ), which is responsible for all United States Armed Forces units in Japan, has informed the Japan Self-Defense Force (JSDF) of plans to conduct missile tests in the waters around Okinawa later this year as a deterrent against the PLAN, according to Japanese media.

Japan’s Ministry of Defense said this will be the first missile test in or around Okinawa, which is a Japanese Prefecture.

The Army will test two of its battle-proven tactical missiles on Okinawa: the MGM-140 Army Tactical Missile System (ATacMS) and the M142 High Mobility Artillery Rocket System (HIMARS). Originally designed as land-attack missiles, both ATacMS and HIMARS are being developed into anti-ship missiles (ASMs) capable of attacking and sinking PLAN warships.

The new role for these mobile missiles is in keeping with the Army’s new concept of establishing anti-access/anti denial (A2/AD) zones along the coasts of allied nations such as Japan and the Philippines using ATacMS and HIMARS. Both these weapons are long-range missiles with a maximum range of 300 km.

Previous tests beginning 2016 sought to confirm if both SSMs could become effective ASMs. To this end, ATacMS has been upgraded to attack moving targets on land and at sea.

Using ATacMS as an ASM will eliminate the massive cost and long wait times often associated with developing a new weapons system. The newest version of ATacMS — MGM-168 ATacMS-Block IVA — can hurl its 230 kg unitary warhead towards a target 300 km away while flying at Mach 3 (3,700 km/h). This version will be converted into an ASM capable of attacking warships.

Analysts said the Army will have to integrate an existing seeker capable of detecting and tracking moving targets onto the front of the ATacMS. The seeker is effective against warships and mobile land targets such as tanks.

With this capability, what before was an Army surface-to-surface missile system will soon prevent enemy warships such as those from the PLAN from venturing inside the ATacMS kill zone.

The HIMARS mobile launcher will be shipped to Okinawa by cargo aircraft and operated by soldiers from the U.S. Army 1st Infantry Division headquartered at Fort Riley, Kansas.

HIMARS can carry either one ATacMS missile or six HIMARS rockets. It gained notoriety by being one of the weapons that slaughtered more than 300 Russian mercenaries on Feb. 7, 2018 near the town of Khasham (or Al Tabiyeh) in the Deir ez-Zor governorate in Syria.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Politics

China’s Annual Trade Surplus with U.S. in 2018 is Largest on Record

Another month and again, another record for China. China’s annual trade surplus with the United States reached the highest level on record in December, marching upwards to $57.06 billion, the largest since December 2015.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Beijing, China (4E) – Another month and again, another record for China. China’s annual trade surplus with the United States reached the highest level on record in December, marching upwards to $57.06 billion, the largest since December 2015.

And here’s another record: for all of 2018, the surplus rose by 17.2% to $323.32 billion, which is the highest level yet. Surprisingly, total bilateral trade rose by 5.7% compared to the levels seen in 2017 despite Trump’s trade war with China that began in July, said China’s General Administration of Customs.

Analysts expected the December surplus to increase to only $51.5 billion after rising to $44.71 billion in November. As in November, front loading of China’s exports to the U.S. explained the hefty number.

On the other hand, China’s monthly trade surplus with the U.S. fell to $29.87 billion compared to $35.54 billion in November. Imports from the United States grew by 0.7% year-on-year, far outpaced by a 11.3% increase in the value of exports to the U.S.

Good news for the U.S.: the value of China’s imports and exports fell by the largest value since 2016 in the 12 months to December.

Analysts said the declines reflect the reversal of a front-loading in orders before higher import tariffs were introduced in China and the U.S. earlier in the year.

Including trade with all countries, China’s trade surplus with the world fell to the lowest level since 2013. The value of Chinese imports and exports was the lowest for the year in December, adding to evidence all is not well in China today.

The value of exports plunged 7.6% year-on-year in U.S. dollar terms, coming in well below the median economist forecast for an increase of 5%. Exports fell by 4.4% in U.S. dollar terms from December 2017, missing forecasts for an increase of 3%.

China’s year-on-year drop in imports and exports was the largest since the second half of 2016. The drop mostly reflects the reversal of front-loading of trade orders before increased trade tariffs were implemented by both the U.S. and China earlier in 2018.

Compared to 2017, China’s trade surplus with the world (including the U.S.) fell to $351.8 billion, the smallest since 2013. The value of imports rose by 15.8% in U.S. dollar-denominated terms, faster than the 9.9% rise in exports.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Trending