In the News: The Galvin Round Up
Trump accuses China of continuing ‘unfair’ practices, Apple share prices fall and Mark Carney backs Theresa May’s Brexit deal, find out more with your international perspective on some recent headlines.
Trump accuses China of continuing ‘unfair’ practices
Trump’s administration has accused China of not changing its “unfair” practices, fanning the flames of the ongoing trade dispute between the two countries.
The US has said China had failed to change its “unreasonable” practices, just before Trump meets Chinese President Xi Jinping at the G20 summit in Argentina.
Robert Lighthizer, US Trade Representative, has said that, “China has not fundamentally altered its unfair, unreasonable, and market-distorting practices”. More specifically, it accused China of continuing to use “foreign investment restrictions to require or pressure the transfer of technology from US companies to Chinese entities”.
At the G20 the two leaders agreed a 90 day truce to allow further negotiations in their trade dispute, although markets are wary whether this will hold.
Apple’s falling share prices stoke fears among tech companies
Apple has seen a continued slump in share prices, causing a knock-on effect of tech stocks.
Apple has fallen into a bear market due to fears over iPhone production, which is where a stock’s value declines at least 20% from a 52-week high, or over a period of two months.
The company’s share price fell 4& at the beginning of the week, after reports that Apple had cut production orders for its three newest iPhones, and it is now trading below $180, and remains up only about 2.3% for 2018.
The fall in its share price by more than 20% since October has hurt other stocks and the wider market.
Mark Carney backs Theresa May’s Brexit deal
After a tough week of cabinet resignations, Mark Carney, governor of the Bank of England, has spoken out in support of May’s Brexit deal, and has said that a no-deal Brexit would be damaging for the economy. He warns this scenario would trigger job losses, lower pay for workers and inflation, while May’s draft agreement would “support economic outcomes” because it will allow the UK more time to prepare for the final Brexit deal.
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