Bloomberg
“China Hits Back on Trump Tariffs as Europe Off Hook for Now.”
The trade conflict between China and the U.S. escalated, with Beijing announcing its first retaliation against metals levies hours after President Donald Trump outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way.
On Friday, China unveiled tariffs on $3 billion of U.S. imports in response to steel and aluminum duties ordered by Trump earlier this month. The White House then declared a temporary exemption for the European Union and other nations on those levies, making the focus on China clear. Though Beijing’s actions so far are seen by analysts as measured, there may be more to come.
Equity indexes from Tokyo to Frankfurt tumbled with European equities falling to the lowest in more than a year. U.S. stock futures dropped, signaling a further retreat for the S&P 500 Index after it fell 2.5 percent, on risks a further escalation in trade tensions will undermine an unusual phase of synchronized global economic growth. Suppliers to Apple Inc. were among the hardest hit in Hong Kong and mainland markets on Friday, as investors focused on potential losers from the trade spat.
In a ramping up of his America First ethos, Trump Thursday said he had ordered tariffs on $50 billion of Chinese imports as recompense for alleged intellectual property abuses. Hours later, China announced planned tariffs on imports of U.S. pork, recycled aluminum, steel pipes, fruit and wine, according to a Commerce Ministry statement on Friday. China will also pursue legal action against the U.S. at the World Trade Organization in response to the U.S.’s planned tariffs on steel and aluminum imports, the statement said, and called for dialog to resolve the dispute. With Beijing’s response to the tariffs aimed at intellectual-property abuses — enacted under Section 301 of the U.S. trade law — as yet unannounced, the relatively limited value of trade curbs may be just the first stage of its response.
Reuters
“Trump threatens to veto budget, raising risk of government shutdown.”
U.S. President Donald Trump made a surprising threat on Friday to veto Congress’ newly passed $1.3 trillion spending bill, a move that raised the specter of a government shutdown ahead of a midnight deadline to renew funding for federal agencies.
In a tweet on Friday morning Trump said he was displeased about immigration issues in the bill, even though the White House had given assurances on Thursday that he would sign it.
Lawmakers in the Senate and House of Representatives, which both are dominated by Trump’s fellow Republicans, had left Washington after passing the measure.
“I am considering a VETO of the Omnibus Spending Bill based on the fact that the 800,000 plus DACA recipients have been totally abandoned by the Democrats (not even mentioned in Bill) and the BORDER WALL, which is desperately needed for our National Defense, is not fully funded,” Trump wrote.
There was no immediate indication Trump would follow through on this threat. He was scheduled on Friday to fly to Florida for a weekend at his private resort.
Unless Trump backs down, Republican congressional leaders would need to scramble to find a way to avoid a government shutdown. One option is to call Trump’s bluff and leave it to him to decide whether he is willing to contend with the political fallout of what would be the second government shutdown this year.
There was no immediate reaction from either Speaker Paul Ryan or Senate Leader Mitch McConnell. In a message sent more than an hour after Trump’s threat, a twitter account run by Ryan’s office said the House would not meet again until late on Monday.
BBC News
“France hostage crisis: Police shoot supermarket gunman.”
Armed police have killed a suspect who shot dead three people dead in a shooting spree in southern France. The gunman hijacked a car and then took hostages at a supermarket in the town of Trèbes.
The man, named by ministers as 26-year-old Redouane Lakdim, pledged allegiance to the Islamic State group. He is believed to have killed and wounded his victims in three separate incidents which began in Carcassonne, 15 minutes’ drive from Trèbes.
He was said to have been heavily armed and demanding the release of Salah Abdeslam, the most important surviving suspect in the 13 November 2015 attacks in Paris, which killed 130 people. Earlier, Prime Minister Édouard Philippe said that all signs pointed towards a «terrorist act».
The attacker began his spree of attacks in Carcassonne, say reports, where he first hijacked a car, killing one passenger and injuring the driver. He then shot and wounded a policeman who was jogging with colleagues. The suspect is then believed to have driven a few kilometres to Trèbes, where he charged in, shouting, «I am a soldier of Daesh [Islamic State]!» and took hostages in the Super-U supermarket in the small town.
Hundreds of police officers were deployed to the area and the vicinity was cordoned off. A 45-year-old gendarme volunteered to swap himself for one of the hostages, say reports. He left his mobile phone line open during the operation so police could monitor the situation, Interior Minister Gérard Collomb told reporters.
When police heard gunshots on the phone line, they charged in to take control of the situation, during which the gunman was killed. The gendarme, a lieutenant-colonel – who has been described by ministers as a hero – was reportedly injured.
Bloomberg
“Dropbox Shares Soar as Much as 48% in Market Debut.”
Dropbox Inc. exceeded its most recent private valuation in its market debut, as shares jumped after pricing above their marketed range in the biggest technology initial public offering of the year.
Dropbox shares soared as much as 48 percent to $31 at 11:37 a.m. in New York, giving the company a market value of $11.9 billion. The file-sharing company sold 36 million shares for $21 apiece on Thursday to raise $756 million. San Francisco-based Dropbox offered the shares for $18 to $20 apiece after strong demand from investors prompted an increase from the initial range of $16 to $18.
The company, founded by Drew Houston and Arash Ferdowsi in 2007, was valued at $10 billion in its last private funding round four years ago.
The stock is trading on the Nasdaq Global Select Market under the symbol DBX.