Trump asks Apple to make iPhones in United States, not China

Share

The Dow Jones Industrial Average jumped 590 points, or 2.6 percent, to 23,276. It said the threat of USA tariff hikes was the "dominating factor" for almost half, while others moved due to higher costs or tighter environmental regulation.

Cook's announcement triggered widespread concerns on a slowdown of global economic growth and partially resulted in a more than 2 percent drop of US stock markets, material weakening of the dollar and a dive of yield rate with Treasury bonds on Thursday.

Most overseas markets rose after China's Commerce Ministry said trade talks between the US and China will be held Monday and Tuesday in Beijing. On Friday, the Department of Labor said US employers added 312,000 jobs in December 2018, the fastest rate since last February, while the unemployment rate rose slightly to 3.9%.

In interviews through 2018, Cook maintained that the USA would resolve its trade dispute with China, but offered no warning it was hurting business. The stock market's plunge also threatened to shake up the confidence and the spending plans of businesses and consumers.

Analysts at Macquarie Capital said that the rate cut shows government efforts to support the economy have now moved to the "second level" and should signal to investors that more stimulus is in the pipeline.

Later on Friday morning, Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates, quelling fears of tighter monetary policy in the near future. He added that the Fed is open to making changes in the way it shrinks its giant portfolio of bonds, which affects rates on long-term loans such as mortgages. Eastern time, more than wiping out Thursday's loss.

That data came ahead of Friday's more closely-watched Department of Labour report. Earlier it gained as much as 832.

That lifted the annual increase in wages to 3.2 percent, matching October's rise, from 3.1 percent in November.

Only 10 companies on the S&P 500 fell, and 90 per cent of the stocks on the New York Stock Exchange traded higher.

US stock index futures fell sharply on Thursday after Apple Inc stunned investors with its first sales warning in more than a decade, deepening fears about a slowdown in China's economy and its impact on corporate profits.

Beijing responded by imposing penalties on $110 billion of American goods, slowing down customs clearance for US companies and suspending issuance of licenses in finance and other industries.

Former Patriots Ty Law, Richard Seymour Pro Football Hall Of Fame Finalists
Three-time Super Bowl champion and defensive end Richard Seymour , along with twelve-time Pro Bowler and cornerback Champ Bailey . Among the other modern-era finalists are Isaac Bruce , Alan Faneca , Tony Gonzalez , Edgerrin James and Ed Reed .

United States officials are heading to Beijing next week for the first face-to-face talks since Mr Trump and President Xi Jinping in December agreed to a 90-day truce in the trade war as they sought to strike a deal.

Technology companies, banks, health care and industrial companies all made strong gains.

JPMorgan Chase rallied 2.4 per cent to $99.45 and Citigroup rose 4 per cent to $54.67. Retailers and internet companies rose as well, with Amazon up 5.1 percent at $1,576 and Google's parent company, Alphabet, rising 4.8 percent to $1,074.

Most people in the Western world probably own a smartphone of some kind and, as the devices become commoditised, it's harder for different companies to stand out.

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China", Cook said on Wednesday. In the broader market, the S&P 500 futures fell 1.5 percent. Smaller companies have fallen further than larger ones in the last few months as investors got nervous about how the US economy will perform in 2019 and 2020.

Global stocks are soaring Friday and reversing the big losses they suffered just a day ago.

"We don't expect that this will be the end to the volatility", she said.

The reckoning came in a letter from Apple CEO Tim Cook to the company's shareholders released after the stock market closed Wednesday.

European shares recouped losses from a day earlier, with Germany's DAX gaining 2.5 per cent and France's CAC 40 rising 2 per cent. Britain's FTSE 100 advanced 1.8 per cent.

"China would deepen reform but will not yield on issues it deems to be its core national interests, a commentary in the ruling Communist Party's official newspaper said on January 2".

In Asia, Hong Kong's Hang Seng jumped 2.2 percent.

Share