U.S. stocks surged Monday as fears eased about the possibility of an all-out trade war with China over competing tariff increases.

The closely watched Dow Jones Industrial Average of 30 key stocks jumped by more than 1.5 percentage point in New York in early-day trading and other indexes were also advancing sharply. Earlier, Asian stocks were mixed, while European indexes edged down for the day.

Global markets plummeted last week after U.S. President Donald Trump announced tariffs on $60 billion worth of Chinese imports in an effort to trim $100 billion off the $375 billion trade deficit the U.S. recorded last year with China. Beijing immediately vowed to retaliate with higher import duties on U.S. goods.

But there were signs Monday of easing of tensions between the world’s two biggest economies.

White House trade adviser Peter Navarro told CNBC that U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are talking with Chinese officials about trade issues between the two countries. Mnuchin told Fox News he was “cautiously hopeful” that the U.S. would reach a deal to keep China from imposing tariffs on $50 billion worth of U.S. exports.

The Trump administration is asking China to lower tariffs on U.S. car exports and open its markets to U.S. financial service companies. Bloomberg News reported that Mnuchin called China’s Liu He to congratulate him on his appointment as China’s vice premier for economic policy and that the two officials discussed ways the two countries could mutually agree to close the wide trading gap between the two countries.

Chinese Foreign Ministry spokesperson Hua Chunying said China would be willing to meet with U.S. officials to work out the two countries’ trade issues, while China’s foreign ministry urged the U.S. to “stop economic intimidation” over tariffs.

While avoiding mention of the tariff dispute and last week’s sharp drop in stock prices, Trump boasted about the performance of the U.S. economy.

“The economy is looking really good,” he said in a Twitter comment. “It has been many years that we have seen these kind of numbers. The underlying strength of companies has perhaps never been better.”
…

A senior Chinese official is warning that a trade war would hurt all sides and set off a “greater conflict.”

“A trade war serves the interests of none. It will only lead to serious consequences and negative impact,” Vice Premier Han Zheng said at a development forum in Beijing Sunday. “We believe trade protectionism, against the trend, will lead to nowhere.”

Han did not mention the United States or President Donald Trump by name, whose announcement of stiff tariffs on imported Chinese steel and aluminum was answered with tariffs and duties on a list of U.S. imports.

Han appealed to all global trading partners to “cooperate with each other like passengers in the same boat … make economic globalization more open, inclusive, balanced and beneficial for all.”

Fears of a trade war between the world’s two largest economies have sent world markets tumbling.

The United States has accused China of unfair trade practices, including intellectual property theft and dumping Chinese goods on the global marketplace to make U.S. goods appear more expensive.

China has denied the U.S. charges, and Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin in a telephone call Saturday that China is ready to defend its interests.
…

A senior Chinese official is warning that a trade war would hurt all sides and set off a “greater conflict.”

“A trade war serves the interests of none. It will only lead to serious consequences and negative impact,” Vice Premier Han Zheng said at a development forum in Beijing Sunday. “We believe trade protectionism, against the trend, will lead to nowhere.”

Han did not mention the United States or President Donald Trump by name, whose announcement of stiff tariffs on imported Chinese steel and aluminum was answered with tariffs and duties on a list of U.S. imports.

Han appealed to all global trading partners to “cooperate with each other like passengers in the same boat … make economic globalization more open, inclusive, balanced and beneficial for all.”

Fears of a trade war between the world’s two largest economies have sent world markets tumbling.

The United States has accused China of unfair trade practices, including intellectual property theft and dumping Chinese goods on the global marketplace to make U.S. goods appear more expensive.

China has denied the U.S. charges, and Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin in a telephone call Saturday that China is ready to defend its interests.
…

In Russia’s far north, the city of Vorkuta is slowly being reclaimed by the Arctic tundra. Its population has plummeted as the local coal mines have closed, and the very future of the city is in doubt. As Henry Ridgwell reports for VOA, Vorkuta’s fate reflects a wider population crisis across Russia’s far north as old Soviet industries have crumbled.
…

Tourist numbers in Indonesia swelled last year on the back of overseas advertising and infrastructure development. President Joko Widodo has said he wants to “create 10 tourist destinations like the island of Bali.” But the pleasing economic numbers also come with a social and environmental cost as rampant development threatens ecosystems and traditional livelihoods. Jack Hewson has this report.
…

Tourist numbers in Indonesia swelled last year on the back of overseas advertising and infrastructure development. President Joko Widodo has said he wants to “create 10 tourist destinations like the island of Bali.” But the pleasing economic numbers also come with a social and environmental cost as rampant development threatens ecosystems and traditional livelihoods. Jack Hewson has this report.
…

German business leaders are expressing concerns that President Donald Trump’s 25 percent tariff on imported steel could affect the auto industry in the South.

WABE Radio reports Mercedes-Benz USA this month opened its new North American headquarters in Sandy Springs, Georgia, for 1,000 employees.

The luxury car manufacturer is owned by Germany-based Daimler, but Mercedes-Benz USA CEO Dietmar Exler used the grand opening to remind the crowd of the brand’s U.S. presence.

German automakers in US 

That includes operations in South Carolina and in Alabama.

“We are now in the midst of construction of our own factory here, which will open doors in the fall in Charleston, South Carolina, and we’ll make all of the Sprinter vans for North America right here,” Exler said at the grand opening of its headquarters in Sandy Springs, Georgia, just north of Atlanta.

“Right next to me you have a member of the most successful SUV family, a GLE Coupe,” Exler said. “As you know, the GLE and the GLS are produced in Alabama. Last year, 280,000 cars were produced here not just for the U.S. market, but for markets all over the world.”

German car factories in the U.S. made more than 800,000 vehicles last year, and about half were sold overseas, according to the German Association of the Automotive Industry.

This month, Volkswagen of America Inc. announced plans to build a new five-passenger SUV at its factory in Chattanooga, Tennessee, where it manufactures other vehicles. Volkswagen AG is based in Wolfsburg, Germany.

“During my time as governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today — a thriving U.S. manufacturing operation that can produce three models, and counting,” said Tennessee Gov. Bill Haslam said in a statement Monday, when plans were announced.

“We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce,” Haslam said.

Volkswagen Chattanooga also manufactures the Passat and the Atlas.

​Trump proclamation, industry concern

Trump signed a proclamation last week to impose a 25 percent tariff on steel from every country except Canada and Mexico. The hope is to boost steel manufacturing in the U.S.

The concern among some industry experts is that tariffs on steel could hurt companies like Mercedes-Benz, Volkswagen and Porsche, all of which have significant operations in the South, said Stefan Mair of the Federation of German Industries in Berlin.

“Do you see the cars outside? There’s a lot of steel in there,” Mair said at the grand opening of the Georgia headquarters complex. “We think there will be some additional percentage points on the prices of cars.”

That price increase could be enough to stop people from buying new cars, said Lisa Cook, who teaches economics and international relations at Michigan State University.

“If consumers are price sensitive, and they are for many types of cars, this could cause people to postpone their decision to purchase a car,” Cook said.

US steel in cars

A little more than a quarter of all U.S. steel is used to make cars in this country, according to the German American Chamber of Commerce for the southern U.S.

“Approximately 25 percent of all steel is used in automotive manufacturing and 10 percent in machinery and equipment; both industries that German companies have heavily invested in the U.S. over the years,” said Stefanie Ziska, president of GACC South.

Making cars more expensive to build and export could hurt U.S. jobs, said Jeffrey Rosensweig, who teaches international business at Georgia’s Emory University.

“That would not only cost us jobs, it would hurt the U.S. and could potentially harm the U.S. trade balance,” Rosensweig said. “Just the opposite of what President Trump thinks he’s trying to achieve.”

He said the steel tariffs could trigger a trade war that would go beyond the auto industry.

“These foreign nations that we’re going to put these import taxes on, these tariffs, are not stupid,” Rosensweig said. “They’re going to retaliate against our exports, and they’re going to hit us where it hurts, which is often our farm exports.”
…

German business leaders are expressing concerns that President Donald Trump’s 25 percent tariff on imported steel could affect the auto industry in the South.

WABE Radio reports Mercedes-Benz USA this month opened its new North American headquarters in Sandy Springs, Georgia, for 1,000 employees.

The luxury car manufacturer is owned by Germany-based Daimler, but Mercedes-Benz USA CEO Dietmar Exler used the grand opening to remind the crowd of the brand’s U.S. presence.

German automakers in US 

That includes operations in South Carolina and in Alabama.

“We are now in the midst of construction of our own factory here, which will open doors in the fall in Charleston, South Carolina, and we’ll make all of the Sprinter vans for North America right here,” Exler said at the grand opening of its headquarters in Sandy Springs, Georgia, just north of Atlanta.

“Right next to me you have a member of the most successful SUV family, a GLE Coupe,” Exler said. “As you know, the GLE and the GLS are produced in Alabama. Last year, 280,000 cars were produced here not just for the U.S. market, but for markets all over the world.”

German car factories in the U.S. made more than 800,000 vehicles last year, and about half were sold overseas, according to the German Association of the Automotive Industry.

This month, Volkswagen of America Inc. announced plans to build a new five-passenger SUV at its factory in Chattanooga, Tennessee, where it manufactures other vehicles. Volkswagen AG is based in Wolfsburg, Germany.

“During my time as governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today — a thriving U.S. manufacturing operation that can produce three models, and counting,” said Tennessee Gov. Bill Haslam said in a statement Monday, when plans were announced.

“We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce,” Haslam said.

Volkswagen Chattanooga also manufactures the Passat and the Atlas.

​Trump proclamation, industry concern

Trump signed a proclamation last week to impose a 25 percent tariff on steel from every country except Canada and Mexico. The hope is to boost steel manufacturing in the U.S.

The concern among some industry experts is that tariffs on steel could hurt companies like Mercedes-Benz, Volkswagen and Porsche, all of which have significant operations in the South, said Stefan Mair of the Federation of German Industries in Berlin.

“Do you see the cars outside? There’s a lot of steel in there,” Mair said at the grand opening of the Georgia headquarters complex. “We think there will be some additional percentage points on the prices of cars.”

That price increase could be enough to stop people from buying new cars, said Lisa Cook, who teaches economics and international relations at Michigan State University.

“If consumers are price sensitive, and they are for many types of cars, this could cause people to postpone their decision to purchase a car,” Cook said.

US steel in cars

A little more than a quarter of all U.S. steel is used to make cars in this country, according to the German American Chamber of Commerce for the southern U.S.

“Approximately 25 percent of all steel is used in automotive manufacturing and 10 percent in machinery and equipment; both industries that German companies have heavily invested in the U.S. over the years,” said Stefanie Ziska, president of GACC South.

Making cars more expensive to build and export could hurt U.S. jobs, said Jeffrey Rosensweig, who teaches international business at Georgia’s Emory University.

“That would not only cost us jobs, it would hurt the U.S. and could potentially harm the U.S. trade balance,” Rosensweig said. “Just the opposite of what President Trump thinks he’s trying to achieve.”

He said the steel tariffs could trigger a trade war that would go beyond the auto industry.

“These foreign nations that we’re going to put these import taxes on, these tariffs, are not stupid,” Rosensweig said. “They’re going to retaliate against our exports, and they’re going to hit us where it hurts, which is often our farm exports.”
…

The United States has flouted trade rules with an inquiry into intellectual property and China will defend its interests, Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin in a telephone call on Saturday, Chinese state media reported.

The call between Mnuchin and Liu, a confidante of President Xi Jinping, was the highest-level contact between the two governments since U.S. President Donald Trump announced plans for tariffs on up to $60 billion of Chinese goods on Thursday.

The deepening rift has sent a chill through financial markets and the corporate world as investors predicted dire consequences for the global economy should trade barriers start going up.

Several U.S. chief executives attending a high-profile forum in Beijing on Saturday, including BlackRock Inc’s Larry Fink and Apple Inc’s Tim Cook, urged restraint.

In his call with Mnuchin, Liu, a Harvard-trained economist, said China still hoped both sides would remain “rational” and work together to keep trade relations stable, the official Xinhua news agency reported.

U.S. officials say an eight-month probe under the 1974 U.S. Trade Act has found that China engages in unfair trade practices by forcing American investors to turn over key technologies to Chinese firms.

However, Liu said the investigation report “violates international trade rules and is beneficial to neither Chinese interests, U.S. interests nor global interests”, Xinhua cited him as saying.

In a statement on its website, the office of the U.S. Trade Representative Robert Lighthizer said it had filed a request – at the direction of Trump – for consultations with China at the World Trade Organization to address “discriminatory technology licensing agreements.”

China’s commerce ministry expressed regret at the filing on Saturday, and said China had taken strong measures to protect the legal rights and interests of both domestic and foreign owners of intellectual property.

Counter moves

During a visit to Washington in early March, Liu had requested Washington set up a new economic dialogue mechanism, identify a point person on China issues, and deliver a list of demands.

The Trump administration responded by telling China to immediately shave $100 billion off its record $375 billion trade surplus with the United States. Beijing told Washington that U.S. export restrictions on some high-tech products are to blame.

“China has already prepared, and has the strength, to defend its national interests,” Liu said on Saturday.

According to an editorial by China’s state-run Global Times, it was Mnuchin who called Liu.

Firing off a warning shot, China on Friday declared plans to levy additional duties on up to $3 billion of U.S. imports in response to U.S. tariffs on steel and aluminium, imposed after a separate U.S. probe.

Zhang Zhaoxiang, senior vice president of China Minmetals Corp, said that while the state-owned mining group’s steel exports to the U.S. are tiny, the impact could come indirectly.

“China’s direct exports to the U.S. are not big. But there will be some impact due to our exports via the United States or indirect exports,” Zhang told reporters on the sidelines of the China Development Forum in Beijing on Saturday.

Global Times said Beijing was only just beginning to look at means to retaliate.

“We believe it is only part of China’s countermeasures, and soybeans and other U.S. farm products will be targeted,” the widely-read tabloid said in a Saturday editorial.

Wei Jianguo, vice chairman of Beijing-based think tank China Centre for International Economic Exchanges, told China Daily that Beijing could impose tariffs on more U.S. products, and is considering a second and even third list of targets.

Possible items include aircraft and chips, Wei, a former vice commerce minister, told the newspaper, adding that tourism could be a possible target.

Soybeans, autos, planes

The commerce ministry’s response had so far been “relatively weak,” respected former Chinese finance minister Lou Jiwei said at the forum.

“If I were in the government, I would probably hit soybeans first, then hit autos and airplanes,” said Lou, currently chairman of the National Council for Social Security Fund.

U.S. farm groups have long feared that China, which imports more than third of all U.S. soybeans, could slow purchases of agricultural products, heaping more pain on the struggling U.S. farm sector.

U.S. agricultural exports to China stood at $19.6 billion last year, with soybean shipments accounting for $12.4 billion.

Chinese penalties on U.S. soybeans will especially hurt Iowa, a state that backed Trump in the 2016 presidential elections.

Boeing jets have also been often cited as a potential target by China.

China and the U.S. had benefitted by globalization, Blackrock’s Larry Fink said at the forum.

“I believe that a dialogue and maybe some adjustments in trade and trade policy can be in order. It does not need to be done publicly; it can be done privately,” he said.

Apple’s Tim Cook called for “calm heads” amid the dispute.

The sparring has cast a spotlight on hardware makers such as Apple, which assemble the majority of their products in China for export to other countries.

Electrical goods and tech are the largest U.S. import item from China.

Some economists say higher U.S. tariffs will lead to higher costs and ultimately hurt U.S. consumers, while restrictions on Chinese investments could take away jobs in America.

“I don’t think local governments in the United States and President Trump hope to see U.S. workers losing their jobs,” Sun Yongcai, general manager at Chinese railway firm CRRS Corp, which has two U.S. production plants, said at the forum.

 
…

H. Wayne Huizenga, a college dropout who built a business empire that included Blockbuster Entertainment, AutoNation and three professional sports franchises, has died. He was 80.

Huizenga died Thursday night at his home, said Valerie Hinkell, a longtime assistant. The cause was cancer, said Bob Henninger, executive vice president of Huizenga Holdings.

Starting with a single garbage truck in 1968, Huizenga built Waste Management Inc. into a Fortune 500 company. He purchased independent sanitation engineering companies, and by the time he took the company public in 1972, he had completed the acquisition of 133 small-time haulers. By 1983, Waste Management was the largest waste disposal company in the United States.

The business model worked again with Blockbuster Video, which he started in 1985 and built into the leading movie rental chain nine years later. In 1996, he formed AutoNation and built it into a Fortune 500 company.

Sports team owner

Huizenga was founding owner of baseball’s Florida Marlins and the NHL’s Florida Panthers — expansion teams that played their first games in 1993. He bought the NFL’s Miami Dolphins and their stadium for $168 million in 1994 from the children of founder Joe Robbie but had sold all three teams by 2009.

“Wayne Huizenga was a seminal figure in the cultural history of South Florida,” current Dolphins owner Stephen Ross said in a statement. “He completely changed the landscape of the region’s sports scene. … Sports fans throughout the region owe him a debt of thanks.”

The Marlins won the 1997 World Series, and the Panthers reached the Stanley Cup Finals in 1996, but Huizenga’s beloved Dolphins never reached a Super Bowl while he owned the team.

“If I have one disappointment, the disappointment would be that we did not bring a championship home,” Huizenga said shortly after he sold the Dolphins to Ross. “It’s something we failed to do.”

Fan favorite — for a time

Huizenga earned an almost cultlike following among business investors who watched him build Blockbuster Entertainment into the leading video rental chain by snapping up competitors. He cracked Forbes’ list of the 100 richest Americans, becoming chairman of Republic Services, one of the nation’s top waste management companies, and AutoNation, the nation’s largest automotive retailer. In 2013, Forbes estimated his wealth at $2.5 billion.

For a time, Huizenga was also a favorite with South Florida sports fans, drawing cheers and autograph seekers in public. The crowd roared when he danced the hokey pokey on the field during an early Marlins game. He went on a spending spree to build a veteran team that won the World Series in the franchise’s fifth year.

But his popularity plummeted when he ordered the roster dismantled after that season. He was frustrated by poor attendance and his failure to swing a deal for a new ballpark built with taxpayer money.

Many South Florida fans never forgave him for breaking up the championship team. Huizenga drew boos when introduced at Dolphins quarterback Dan Marino’s retirement celebration in 2000 and kept a lower public profile after that.

In 2009, Huizenga said he regretted ordering the Marlins’ payroll purge.

“We lost $34 million the year we won the World Series, and I just said, ‘You know what, I’m not going to do that,’” Huizenga said. “If I had it to do over again, I’d say, ‘OK, we’ll go one more year.’”

He sold the Marlins in 1999 to John Henry, and sold the Panthers in 2001, unhappy with rising NHL player salaries and the stock price for the team’s public company.

Dolphins man

Huizenga’s first sports love was the Dolphins; he had been a season-ticket holder since their first season in 1966. But he fared better in the NFL as a businessman than as a sports fan.

He turned a nifty profit by selling the Dolphins and their stadium for $1.1 billion, nearly seven times what he paid to become sole owner. But he knew the bottom line in the NFL is championships, and his Dolphins perennially came up short.

Huizenga earned a reputation as a hands-off owner and won raves from many loyal employees, even though he made six coaching changes. He eased Pro Football Hall of Famer Don Shula into retirement in early 1996, and Jimmy Johnson, Dave Wannstedt, interim coach Jim Bates, Nick Saban, Cam Cameron and Tony Sparano followed as coach.

Johnson tweeted: “A great man, one of the nicest individuals I have ever known, Wayne Huizenga passed away. RIP.”

Garbage business

Harry Wayne Huizenga was born in the Chicago suburbs on Dec. 29, 1937, to a family of garbage haulers. He began his business career in Pompano Beach in 1962, driving a garbage truck from 2 a.m. to noon each day for $500 a month.

Huizenga was a five-time recipient of Financial World magazine’s “CEO of the Year” award, and was the Ernst & Young “2005 World Entrepreneur of the Year.”

Regarding his business acumen, Huizenga said: “You just have to be in the right place at the right time. It can only happen in America.”

In 1960, he married Joyce VanderWagon. Together they had two children, Wayne Jr. and Scott. They divorced in 1966. Wayne married his second wife, Marti Goldsby, in 1972. She died in 2017.
…

H. Wayne Huizenga, a college dropout who built a business empire that included Blockbuster Entertainment, AutoNation and three professional sports franchises, has died. He was 80.

Huizenga died Thursday night at his home, said Valerie Hinkell, a longtime assistant. The cause was cancer, said Bob Henninger, executive vice president of Huizenga Holdings.

Starting with a single garbage truck in 1968, Huizenga built Waste Management Inc. into a Fortune 500 company. He purchased independent sanitation engineering companies, and by the time he took the company public in 1972, he had completed the acquisition of 133 small-time haulers. By 1983, Waste Management was the largest waste disposal company in the United States.

The business model worked again with Blockbuster Video, which he started in 1985 and built into the leading movie rental chain nine years later. In 1996, he formed AutoNation and built it into a Fortune 500 company.

Sports team owner

Huizenga was founding owner of baseball’s Florida Marlins and the NHL’s Florida Panthers — expansion teams that played their first games in 1993. He bought the NFL’s Miami Dolphins and their stadium for $168 million in 1994 from the children of founder Joe Robbie but had sold all three teams by 2009.

“Wayne Huizenga was a seminal figure in the cultural history of South Florida,” current Dolphins owner Stephen Ross said in a statement. “He completely changed the landscape of the region’s sports scene. … Sports fans throughout the region owe him a debt of thanks.”

The Marlins won the 1997 World Series, and the Panthers reached the Stanley Cup Finals in 1996, but Huizenga’s beloved Dolphins never reached a Super Bowl while he owned the team.

“If I have one disappointment, the disappointment would be that we did not bring a championship home,” Huizenga said shortly after he sold the Dolphins to Ross. “It’s something we failed to do.”

Fan favorite — for a time

Huizenga earned an almost cultlike following among business investors who watched him build Blockbuster Entertainment into the leading video rental chain by snapping up competitors. He cracked Forbes’ list of the 100 richest Americans, becoming chairman of Republic Services, one of the nation’s top waste management companies, and AutoNation, the nation’s largest automotive retailer. In 2013, Forbes estimated his wealth at $2.5 billion.

For a time, Huizenga was also a favorite with South Florida sports fans, drawing cheers and autograph seekers in public. The crowd roared when he danced the hokey pokey on the field during an early Marlins game. He went on a spending spree to build a veteran team that won the World Series in the franchise’s fifth year.

But his popularity plummeted when he ordered the roster dismantled after that season. He was frustrated by poor attendance and his failure to swing a deal for a new ballpark built with taxpayer money.

Many South Florida fans never forgave him for breaking up the championship team. Huizenga drew boos when introduced at Dolphins quarterback Dan Marino’s retirement celebration in 2000 and kept a lower public profile after that.

In 2009, Huizenga said he regretted ordering the Marlins’ payroll purge.

“We lost $34 million the year we won the World Series, and I just said, ‘You know what, I’m not going to do that,’” Huizenga said. “If I had it to do over again, I’d say, ‘OK, we’ll go one more year.’”

He sold the Marlins in 1999 to John Henry, and sold the Panthers in 2001, unhappy with rising NHL player salaries and the stock price for the team’s public company.

Dolphins man

Huizenga’s first sports love was the Dolphins; he had been a season-ticket holder since their first season in 1966. But he fared better in the NFL as a businessman than as a sports fan.

He turned a nifty profit by selling the Dolphins and their stadium for $1.1 billion, nearly seven times what he paid to become sole owner. But he knew the bottom line in the NFL is championships, and his Dolphins perennially came up short.

Huizenga earned a reputation as a hands-off owner and won raves from many loyal employees, even though he made six coaching changes. He eased Pro Football Hall of Famer Don Shula into retirement in early 1996, and Jimmy Johnson, Dave Wannstedt, interim coach Jim Bates, Nick Saban, Cam Cameron and Tony Sparano followed as coach.

Johnson tweeted: “A great man, one of the nicest individuals I have ever known, Wayne Huizenga passed away. RIP.”

Garbage business

Harry Wayne Huizenga was born in the Chicago suburbs on Dec. 29, 1937, to a family of garbage haulers. He began his business career in Pompano Beach in 1962, driving a garbage truck from 2 a.m. to noon each day for $500 a month.

Huizenga was a five-time recipient of Financial World magazine’s “CEO of the Year” award, and was the Ernst & Young “2005 World Entrepreneur of the Year.”

Regarding his business acumen, Huizenga said: “You just have to be in the right place at the right time. It can only happen in America.”

In 1960, he married Joyce VanderWagon. Together they had two children, Wayne Jr. and Scott. They divorced in 1966. Wayne married his second wife, Marti Goldsby, in 1972. She died in 2017.
…

Randy Poskin, a soybean farmer in rural Illinois, voted for Donald Trump in the 2016 presidential election. But ask him now he feels about that decision, and you get a tepid response.

“I’m not sure,” Poskin said.

Like many farmers in the Midwest, Poskin is concerned about getting caught in the middle of a trade war, as Trump ramps up economic pressure on China.

Those fears were heightened after Trump announced plans Thursday to impose tariffs on as much as $60 billion worth of Chinese imports.

“I’m fearful they will retaliate on those tariffs,” Poskin said. “Soybean exports, wheat, poultry, chicken, beef — [there are] any number of products that we export to their country that they could retaliate with.”

The announcement has unnerved many in Trump’s base of supporters in U.S. agriculture. The trade tensions have also rattled global markets, which until recently had performed strongly.

Intellectual property theft

Trump’s tariff decision was meant to punish Chinese companies that benefit from unfair access to U.S. technology.

U.S. businesses have long bristled at Beijing’s requirement that they transfer technology to Chinese companies as a condition of entering the Chinese market. U.S. businesses have also had their technology stolen through cyberattacks.

“We have a tremendous intellectual property theft situation going on,” Trump said during the signing ceremony Thursday.

Some U.S. companies in China cheered the move and suggested that concerns about a trade war were overblown.

William Zarit, chairman of the American Chamber of Commerce in China, dismissed the “hair on fire” concern that Trump’s proposed moves would hurt the global economy.

“That the U.S. is willing to risk these disruptions indicates how serious the U.S. administration finds China’s forced technology transfer, cybertheft and discriminatory industrial policies,” he said in a statement to VOA.

Zarit pointed to a recent survey suggesting members of his organization wanted the White House to “advocate more strongly for a level playing field and for reciprocal treatment to improve market access” in China.

But it’s not yet clear whether Trump’s words will translate into that kind of action. That’s in part because the president’s move on Thursday did not actually implement tariffs.

Delayed move

Instead, Trump gave the U.S. trade representative 15 days to identify specific Chinese goods that will be subject to the penalties. There will then be a 30-day window for public comment. That means any move is at least 45 days away.

Trump took a similar approach to steel and aluminum tariffs earlier this month. Although the White House initially leaked news that there would be a universal tax on all steel and aluminum imports, at least six countries and the European Union have since received exemptions.

“You have announcements with a lot of big, very aggressive, very dramatic rhetoric, but when it comes time to actually implement the policy, it’s much more toned down, much more in line with historical U.S. trade enforcement policy,” said Geoffrey Gertz of the Brookings Institution.

Such a negotiating tactic often gets Trump the “tough on trade” headlines that he desires, even while reducing the immediate risk of starting a trade war.

But there are still uncertainties. For instance, it still isn’t clear how China will respond to Trump’s protectionist measures.

China’s response

On Friday, China blasted Trump’s move but did little in the way of countermeasures.

“If somebody imposes a trade war on China, we’ll fight to the end,” Cui Tiankai, the Chinese ambassador to Washington, said on state TV.

China also released a list of potential tariffs on $3 billion worth of U.S. goods, including pork, fruit, wine, steel pipes and other products.

“China responded strong verbally but soft in actual countermeasures,” said Allan Von Mehren, a China analyst at the Copenhagen-based Danske Bank.

“This is a very measured reaction, as $3 billion is a drop in the ocean out of the $131 billion the U.S. exports to China every year,” he said.

However, China has signaled it may impose more significant measures should Trump follow through with his tariffs.

Should China retaliate further, a prime target is soybean farmers like Poskin, who are uniquely vulnerable to Chinese retaliation.

One in every three rows of U.S. soybeans is exported to China, according to the American Soybean Association.

That vulnerability is leaving Poskin to wonder whether he did the right thing in supporting Trump.

“I mean, I do like the regulation side of things, the way he’s backing things off,” Poskin said. “But just the same, these areas of trade are very important to agriculture. We can’t interrupt this.”
…

Randy Poskin, a soybean farmer in rural Illinois, voted for Donald Trump in the 2016 presidential election. But ask him now he feels about that decision, and you get a tepid response.

“I’m not sure,” Poskin said.

Like many farmers in the Midwest, Poskin is concerned about getting caught in the middle of a trade war, as Trump ramps up economic pressure on China.

Those fears were heightened after Trump announced plans Thursday to impose tariffs on as much as $60 billion worth of Chinese imports.

“I’m fearful they will retaliate on those tariffs,” Poskin said. “Soybean exports, wheat, poultry, chicken, beef — [there are] any number of products that we export to their country that they could retaliate with.”

The announcement has unnerved many in Trump’s base of supporters in U.S. agriculture. The trade tensions have also rattled global markets, which until recently had performed strongly.

Intellectual property theft

Trump’s tariff decision was meant to punish Chinese companies that benefit from unfair access to U.S. technology.

U.S. businesses have long bristled at Beijing’s requirement that they transfer technology to Chinese companies as a condition of entering the Chinese market. U.S. businesses have also had their technology stolen through cyberattacks.

“We have a tremendous intellectual property theft situation going on,” Trump said during the signing ceremony Thursday.

Some U.S. companies in China cheered the move and suggested that concerns about a trade war were overblown.

William Zarit, chairman of the American Chamber of Commerce in China, dismissed the “hair on fire” concern that Trump’s proposed moves would hurt the global economy.

“That the U.S. is willing to risk these disruptions indicates how serious the U.S. administration finds China’s forced technology transfer, cybertheft and discriminatory industrial policies,” he said in a statement to VOA.

Zarit pointed to a recent survey suggesting members of his organization wanted the White House to “advocate more strongly for a level playing field and for reciprocal treatment to improve market access” in China.

But it’s not yet clear whether Trump’s words will translate into that kind of action. That’s in part because the president’s move on Thursday did not actually implement tariffs.

Delayed move

Instead, Trump gave the U.S. trade representative 15 days to identify specific Chinese goods that will be subject to the penalties. There will then be a 30-day window for public comment. That means any move is at least 45 days away.

Trump took a similar approach to steel and aluminum tariffs earlier this month. Although the White House initially leaked news that there would be a universal tax on all steel and aluminum imports, at least six countries and the European Union have since received exemptions.

“You have announcements with a lot of big, very aggressive, very dramatic rhetoric, but when it comes time to actually implement the policy, it’s much more toned down, much more in line with historical U.S. trade enforcement policy,” said Geoffrey Gertz of the Brookings Institution.

Such a negotiating tactic often gets Trump the “tough on trade” headlines that he desires, even while reducing the immediate risk of starting a trade war.

But there are still uncertainties. For instance, it still isn’t clear how China will respond to Trump’s protectionist measures.

China’s response

On Friday, China blasted Trump’s move but did little in the way of countermeasures.

“If somebody imposes a trade war on China, we’ll fight to the end,” Cui Tiankai, the Chinese ambassador to Washington, said on state TV.

China also released a list of potential tariffs on $3 billion worth of U.S. goods, including pork, fruit, wine, steel pipes and other products.

“China responded strong verbally but soft in actual countermeasures,” said Allan Von Mehren, a China analyst at the Copenhagen-based Danske Bank.

“This is a very measured reaction, as $3 billion is a drop in the ocean out of the $131 billion the U.S. exports to China every year,” he said.

However, China has signaled it may impose more significant measures should Trump follow through with his tariffs.

Should China retaliate further, a prime target is soybean farmers like Poskin, who are uniquely vulnerable to Chinese retaliation.

One in every three rows of U.S. soybeans is exported to China, according to the American Soybean Association.

That vulnerability is leaving Poskin to wonder whether he did the right thing in supporting Trump.

“I mean, I do like the regulation side of things, the way he’s backing things off,” Poskin said. “But just the same, these areas of trade are very important to agriculture. We can’t interrupt this.”
…

New orders for key U.S.-made capital goods rebounded more than expected in February after two straight monthly declines and shipments surged, which could temper expectations of a sharp slowdown in business spending on equipment in the first quarter.

The Commerce Department’s report on Friday could prompt economists to raise their economic growth estimates for the first three months of the year. They were slashed last week after data showed retail sales fell in February for the third month in a row.

The Federal Reserve on Wednesday painted an upbeat picture of the economy when it raised interest rates and forecast at least two more increases for 2018.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 1.8 percent last month. That was the biggest gain in five months and followed a downwardly revised 0.4 percent decrease in January.

Economists polled by Reuters had forecast those orders rising only 0.8 percent in February after a previously reported 0.3 percent decline in January. Core capital goods orders increased 7.4 percent on a year-on-year basis.

Shipments of core capital goods increased 1.4 percent last month, the biggest advance since December 2016, after an upwardly revised 0.1 percent gain in January. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

They were previously reported to have slipped 0.1 percent in January. Business spending on equipment powered ahead in 2017 as companies anticipated a hefty reduction in the corporate income tax rate. The Trump administration slashed that rate to 21 percent from 35 percent effective in January.

U.S. financial markets were little moved by the data as investors worried that President Donald Trump’s announcement on Thursday of tariffs on up to $60 billion of Chinese goods could start a global trade war.

Prices of U.S. Treasuries were mixed while U.S. stock index futures were largely flat. The dollar fell against a basket of currencies.

Strong business spending

The surge in core capital goods orders in February suggests further gains. There had been concerns spending could slow sharply after double-digit growth in the past quarters.

Investment in equipment is likely to be bolstered by robust business confidence, strengthening global economic growth and a weakening dollar, which is boosting demand for U.S. exports.

That is helping to support manufacturing, which accounts for about 12 percent of U.S. economic activity.

The strength in core capital goods shipments, together with a surge in industrial production in February, could help offset the impact of soft consumer spending on first-quarter growth.

The Atlanta Federal Reserve is forecasting gross domestic product increasing at a 1.8 percent annualized rate in the first three months of the year.

The government reported last month that the economy grew at a 2.5 percent pace in the fourth quarter. However, revisions to December data on construction spending, factory orders and wholesale inventories have suggested the fourth-quarter growth estimate could be raised to a 3.1 percent pace. The government will publish its third GDP estimate on Wednesday.

Last month, orders for machinery soared 1.6 percent. There were also hefty increases in orders of primary metals and electrical equipment, appliances and components.

Orders for computers and electronic products fell 0.2 percent, with bookings for communications equipment recording their biggest drop since December 2015.

Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, vaulted 3.1 percent last month as demand for transportation equipment soared 7.1 percent.

That followed a 3.5 percent tumble in January. Orders for motor vehicles and parts increased 1.6 percent last month after edging up 0.1 percent in January.
…

New orders for key U.S.-made capital goods rebounded more than expected in February after two straight monthly declines and shipments surged, which could temper expectations of a sharp slowdown in business spending on equipment in the first quarter.

The Commerce Department’s report on Friday could prompt economists to raise their economic growth estimates for the first three months of the year. They were slashed last week after data showed retail sales fell in February for the third month in a row.

The Federal Reserve on Wednesday painted an upbeat picture of the economy when it raised interest rates and forecast at least two more increases for 2018.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 1.8 percent last month. That was the biggest gain in five months and followed a downwardly revised 0.4 percent decrease in January.

Economists polled by Reuters had forecast those orders rising only 0.8 percent in February after a previously reported 0.3 percent decline in January. Core capital goods orders increased 7.4 percent on a year-on-year basis.

Shipments of core capital goods increased 1.4 percent last month, the biggest advance since December 2016, after an upwardly revised 0.1 percent gain in January. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

They were previously reported to have slipped 0.1 percent in January. Business spending on equipment powered ahead in 2017 as companies anticipated a hefty reduction in the corporate income tax rate. The Trump administration slashed that rate to 21 percent from 35 percent effective in January.

U.S. financial markets were little moved by the data as investors worried that President Donald Trump’s announcement on Thursday of tariffs on up to $60 billion of Chinese goods could start a global trade war.

Prices of U.S. Treasuries were mixed while U.S. stock index futures were largely flat. The dollar fell against a basket of currencies.

Strong business spending

The surge in core capital goods orders in February suggests further gains. There had been concerns spending could slow sharply after double-digit growth in the past quarters.

Investment in equipment is likely to be bolstered by robust business confidence, strengthening global economic growth and a weakening dollar, which is boosting demand for U.S. exports.

That is helping to support manufacturing, which accounts for about 12 percent of U.S. economic activity.

The strength in core capital goods shipments, together with a surge in industrial production in February, could help offset the impact of soft consumer spending on first-quarter growth.

The Atlanta Federal Reserve is forecasting gross domestic product increasing at a 1.8 percent annualized rate in the first three months of the year.

The government reported last month that the economy grew at a 2.5 percent pace in the fourth quarter. However, revisions to December data on construction spending, factory orders and wholesale inventories have suggested the fourth-quarter growth estimate could be raised to a 3.1 percent pace. The government will publish its third GDP estimate on Wednesday.

Last month, orders for machinery soared 1.6 percent. There were also hefty increases in orders of primary metals and electrical equipment, appliances and components.

Orders for computers and electronic products fell 0.2 percent, with bookings for communications equipment recording their biggest drop since December 2015.

Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, vaulted 3.1 percent last month as demand for transportation equipment soared 7.1 percent.

That followed a 3.5 percent tumble in January. Orders for motor vehicles and parts increased 1.6 percent last month after edging up 0.1 percent in January.
…

Russia will likely prepare a list of restrictions on imported products from the United States in response to U.S. tariffs on steel and aluminum, Moscow’s trade ministry said on Friday, according to Interfax news agency.

The announcement came after China threatened to retaliate to U.S. President Donald Trump’s measures, stoking fears of a looming global trade war.

“We will prepare our position, submit it to the Economy Ministry and apply to the WTO [the World Trade Organization],” Russia’s Deputy Trade Minister, Viktor Yevtukhov, said, according to Interfax.

“We will probably prepare proposals on the response measures. Restrictions against the American goods. I think that all countries will follow this path,” Yevtukhov added.

The United States has said the tariffs are needed to protect its national security and therefore do not need to be cleared by the WTO. Many trade experts disagree saying they fall under the jurisdiction of the Geneva-based global trade body.

Russian steel and aluminum producers have been playing down the potential impact of the U.S. tariffs. But Russia’s Trade Ministry said there would be an impact.

Russian steel and aluminum producers may lose $2 billion and $1 billion, respectively, from the U.S. tariffs introduction, Yevtukhov said, citing preliminary estimates for the Trade Ministry. It was not clear whether he was referring to annual losses.

China’s commerce ministry said on Friday that the country was planning measures against up to $3 billion of U.S. imports to balance the steel and aluminum tariffs, with a list of 128 U.S. products that could be targeted.
…

Russia will likely prepare a list of restrictions on imported products from the United States in response to U.S. tariffs on steel and aluminum, Moscow’s trade ministry said on Friday, according to Interfax news agency.

The announcement came after China threatened to retaliate to U.S. President Donald Trump’s measures, stoking fears of a looming global trade war.

“We will prepare our position, submit it to the Economy Ministry and apply to the WTO [the World Trade Organization],” Russia’s Deputy Trade Minister, Viktor Yevtukhov, said, according to Interfax.

“We will probably prepare proposals on the response measures. Restrictions against the American goods. I think that all countries will follow this path,” Yevtukhov added.

The United States has said the tariffs are needed to protect its national security and therefore do not need to be cleared by the WTO. Many trade experts disagree saying they fall under the jurisdiction of the Geneva-based global trade body.

Russian steel and aluminum producers have been playing down the potential impact of the U.S. tariffs. But Russia’s Trade Ministry said there would be an impact.

Russian steel and aluminum producers may lose $2 billion and $1 billion, respectively, from the U.S. tariffs introduction, Yevtukhov said, citing preliminary estimates for the Trade Ministry. It was not clear whether he was referring to annual losses.

China’s commerce ministry said on Friday that the country was planning measures against up to $3 billion of U.S. imports to balance the steel and aluminum tariffs, with a list of 128 U.S. products that could be targeted.
…

Just a week after the empire he started announced it is shutting down, Toys R Us founder Charles Lazarus died at 94.

“There have been many sad moments for Toys R Us in recent weeks and none more heartbreaking than today’s news about the passing of our beloved founder,” the company said Thursday.

No cause of death was given.

Lazarus, a World War II veteran, started Toys R Us in 1948 as a single store in Washington, D.C., selling baby furniture.

At customer requests, he soon expanded his line to include toys and began opening large stores the size of supermarkets, devoted to toys and bicycles.

Toys R Us and its massive selection became a favorite of suburban American families.

Toys R Us opened stores all over the world before Lazarus stepped down as the head of the company in 1994.

In recent years, Toys R Us found itself struggling to compete with other large stores, especially with the onslaught of such online retailers as Amazon.

It declared bankruptcy last year, and announced last week it was shutting down its remaining stores.
…

Just a week after the empire he started announced it is shutting down, Toys R Us founder Charles Lazarus died at 94.

“There have been many sad moments for Toys R Us in recent weeks and none more heartbreaking than today’s news about the passing of our beloved founder,” the company said Thursday.

No cause of death was given.

Lazarus, a World War II veteran, started Toys R Us in 1948 as a single store in Washington, D.C., selling baby furniture.

At customer requests, he soon expanded his line to include toys and began opening large stores the size of supermarkets, devoted to toys and bicycles.

Toys R Us and its massive selection became a favorite of suburban American families.

Toys R Us opened stores all over the world before Lazarus stepped down as the head of the company in 1994.

In recent years, Toys R Us found itself struggling to compete with other large stores, especially with the onslaught of such online retailers as Amazon.

It declared bankruptcy last year, and announced last week it was shutting down its remaining stores.
…

U.S. President Donald Trump signed a presidential memorandum on Thursday initiating actions to consider imposing tariffs on a long list of nearly 1,300 Chinese imported products worth about $60 billion.

The move could limit China’s ability to invest in the U.S. technology industry, setting the stage for a possible trade war with Beijing.

The decision to take action is a result of an investigation conducted by the U.S. trade representative to determine whether Beijing’s trade practices may be “unreasonable or discriminatory” and may be “harming American intellectual property rights, innovation or technology development.” After a seven-month investigation, the USTR’s office found the policies were in violation.

At the signing ceremony, Trump said, “We have a tremendous intellectual property theft going on.”

He said the U.S. wants reciprocal trade and tariff deals with China and other countries. “If they charge us, we charge them the same thing,” Trump said at the White House ceremony.

He also blamed the “unfair Chinese trade practices” for the U.S. trade deficit with China, which has reached a record $375 billion on his watch.

Campaign promises

Trump campaigned on promises to bring down America’s massive trade deficit — $566 billion last year — by rewriting trade agreements and cracking down on what he called abusive commercial practices by U.S. trading partners.

The investigation concluded that China “uses foreign ownership restrictions, including joint venture requirements, equity limitations and other investment restrictions to require or pressure technology transfer from U.S. companies to Chinese entities.”

Trade associations representing a wide range of the business community said they largely agreed with criticism of China’s intellectual property practices, but criticized the tariffs as a poor remedy that could ultimately harm U.S. businesses and raise prices for consumers.

Earlier this week, some of the largest American retailers and tech companies, including Walmart and Apple, urged Trump to carefully consider the impact the tariffs would have on consumer prices.

“As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices,” a coalition of more than 40 business groups, led by the Information Technology Industry Council, said Sunday in a letter to the president.

“As the industry closest to consumers, retailers know firsthand how high tariffs will hurt American families,” the letter continued.

The prospect of a trade war sent markets plummeting, with the Dow Jones industrial average closing down 724 points, almost 3 percent, its biggest drop in six weeks.

Global trade conflagration

Bloomberg Economics estimated a global trade conflagration could wipe $470 billion off the world economy by 2020.

As news of the impending announcement spread, China announced it was preparing tariffs of its own on U.S. soybeans, sorghum and live hogs.

“China will not sit idly to see its legitimate rights damaged and must take all necessary measures to resolutely defend its legitimate rights,” the Commerce Ministry in Beijing said in a statement on its website.

The Trump administration has said it is simply taking long overdue action following years of unfair Chinese trading practices that they argue previous administrations have insufficiently countered.

Peter Navarro, Trump’s hawkish top trade adviser, said that the administration had decided on the tariffs in lockstep and that the U.S. had opted to take tariff actions after dialogues with China over the past 15 years failed to change Chinese behavior significantly.

The tariffs will be subject to a 15-day comment period before the U.S. trade representative finalizes the move. Other measures, including new restrictions on Chinese investment in the U.S., will take longer.
…

U.S. President Donald Trump signed a presidential memorandum on Thursday initiating actions to consider imposing tariffs on a long list of nearly 1,300 Chinese imported products worth about $60 billion.

The move could limit China’s ability to invest in the U.S. technology industry, setting the stage for a possible trade war with Beijing.

The decision to take action is a result of an investigation conducted by the U.S. trade representative to determine whether Beijing’s trade practices may be “unreasonable or discriminatory” and may be “harming American intellectual property rights, innovation or technology development.” After a seven-month investigation, the USTR’s office found the policies were in violation.

At the signing ceremony, Trump said, “We have a tremendous intellectual property theft going on.”

He said the U.S. wants reciprocal trade and tariff deals with China and other countries. “If they charge us, we charge them the same thing,” Trump said at the White House ceremony.

He also blamed the “unfair Chinese trade practices” for the U.S. trade deficit with China, which has reached a record $375 billion on his watch.

Campaign promises

Trump campaigned on promises to bring down America’s massive trade deficit — $566 billion last year — by rewriting trade agreements and cracking down on what he called abusive commercial practices by U.S. trading partners.

The investigation concluded that China “uses foreign ownership restrictions, including joint venture requirements, equity limitations and other investment restrictions to require or pressure technology transfer from U.S. companies to Chinese entities.”

Trade associations representing a wide range of the business community said they largely agreed with criticism of China’s intellectual property practices, but criticized the tariffs as a poor remedy that could ultimately harm U.S. businesses and raise prices for consumers.

Earlier this week, some of the largest American retailers and tech companies, including Walmart and Apple, urged Trump to carefully consider the impact the tariffs would have on consumer prices.

“As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices,” a coalition of more than 40 business groups, led by the Information Technology Industry Council, said Sunday in a letter to the president.

“As the industry closest to consumers, retailers know firsthand how high tariffs will hurt American families,” the letter continued.

The prospect of a trade war sent markets plummeting, with the Dow Jones industrial average closing down 724 points, almost 3 percent, its biggest drop in six weeks.

Global trade conflagration

Bloomberg Economics estimated a global trade conflagration could wipe $470 billion off the world economy by 2020.

As news of the impending announcement spread, China announced it was preparing tariffs of its own on U.S. soybeans, sorghum and live hogs.

“China will not sit idly to see its legitimate rights damaged and must take all necessary measures to resolutely defend its legitimate rights,” the Commerce Ministry in Beijing said in a statement on its website.

The Trump administration has said it is simply taking long overdue action following years of unfair Chinese trading practices that they argue previous administrations have insufficiently countered.

Peter Navarro, Trump’s hawkish top trade adviser, said that the administration had decided on the tariffs in lockstep and that the U.S. had opted to take tariff actions after dialogues with China over the past 15 years failed to change Chinese behavior significantly.

The tariffs will be subject to a 15-day comment period before the U.S. trade representative finalizes the move. Other measures, including new restrictions on Chinese investment in the U.S., will take longer.
…

Stocks plunged Thursday after the Trump administration slapped sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world’s largest economies would escalate.

The planned sanctions include tariffs on $48 billion worth of Chinese imports as well as restrictions on Chinese investments. Trump said he’s taking those steps in response to theft of American technology, and the Chinese government said it will defend itself. Investors are worried that trade tensions would hurt U.S. companies and harm the world economy.

On Thursday they fled stocks and bought bonds, which sent bond prices higher and yields lower. With interest rates falling, banks took some of the worst losses. Technology and industrial companies, basic materials makers and health care companies also fell sharply.

Peter Donisanu, an investment strategy analyst for the Wells Fargo Investment Institute, said the risk of a damaging trade war is still low because the Trump administration is targeting specific goods that aren’t central to China’s economy. That could change if it puts tariffs on products like electronics or appliances imported from China.

“If the Trump administration really wanted to hurt China and start a trade war, then they would go after those larger sectors,” he said. Still, Donisanu said that after last year’s rally, investors are looking for new reasons to feel optimistic about stocks. With trade tensions in focus over the last month, they’ve had trouble finding any.

The S&P 500 index skidded 68.24 points, or 2.5 percent, to 2,643.69. The Dow Jones industrial average sank 724.42 points, or 2.9 percent, to 23,957.89. The Nasdaq composite gave up 178.61 points, or 2.4 percent, to 7,166.68. The Russell 2000 index of smaller-company stocks lost 35.43 points, or 2.2 percent, to 1,543.87.

Construction equipment maker Caterpillar fell $8.90, or 5.7 percent, to $146.90, for its worst loss since mid-2016. Aerospace company Boeing slid $17.49, or 5.2 percent, to $319.61.

Investors also sold some of the market’s biggest recent winners. Among technology companies, Microsoft fell $2.69, or 2.9 percent, to $89.79 and Alphabet, Google’s parent company, fell $40.85, or 3.7 percent, to $1,053.15. Online retailer Amazon slid $36.94, or 2.3 percent, to $1,544.92.

Recent tariffs

Earlier this month the Trump administration ordered tariffs on imported steel and aluminum, and stocks dropped as investors worried about the possibility of tougher restrictions on international trade and smaller profits for corporations.

Their fears eased when the administration said some countries will be exempt from the tariffs. That continued Thursday, as U.S. Trade Representative Robert Lighthizer said the tariffs won’t apply to the European Union, Canada, Mexico, Argentina, Brazil and Australia.

Donisanu, of Wells Fargo, said the Trump administration isn’t hostile to trade necessarily, but wants to get other countries to revise the terms of America’s trade deals.

“This is probably intended to get China to get more serious in discussions around violations of intellectual property rights and addressing those issues,” he said.

Bond prices climbed, sending yields lower. The yield on the 10-year Treasury note slipped to 2.82 percent from 2.88 percent. Falling bond yields are bad for banks because they force interest rates on loans lower. Bank of America lost $1.32, or 4.1 percent, to $30.55 and JPMorgan Chase gave up $4.79, or 4.2 percent, to $109.95.

Utility companies and real estate investment trusts moved higher. When bond yields decline, investors often bid up those stocks and others that pay big dividends.

The decline in rates comes a day after the Federal Reserve raised interest rates and said the U.S. economy and the job market continued to improve over the last two months. The Fed expects to raise rates three times this year, although some investors think a fourth increase is possible. The Fed also said it might raise rates three more times next year instead of two.

Overseas markets closed mostly lower.
…

Stocks plunged Thursday after the Trump administration slapped sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world’s largest economies would escalate.

The planned sanctions include tariffs on $48 billion worth of Chinese imports as well as restrictions on Chinese investments. Trump said he’s taking those steps in response to theft of American technology, and the Chinese government said it will defend itself. Investors are worried that trade tensions would hurt U.S. companies and harm the world economy.

On Thursday they fled stocks and bought bonds, which sent bond prices higher and yields lower. With interest rates falling, banks took some of the worst losses. Technology and industrial companies, basic materials makers and health care companies also fell sharply.

Peter Donisanu, an investment strategy analyst for the Wells Fargo Investment Institute, said the risk of a damaging trade war is still low because the Trump administration is targeting specific goods that aren’t central to China’s economy. That could change if it puts tariffs on products like electronics or appliances imported from China.

“If the Trump administration really wanted to hurt China and start a trade war, then they would go after those larger sectors,” he said. Still, Donisanu said that after last year’s rally, investors are looking for new reasons to feel optimistic about stocks. With trade tensions in focus over the last month, they’ve had trouble finding any.

The S&P 500 index skidded 68.24 points, or 2.5 percent, to 2,643.69. The Dow Jones industrial average sank 724.42 points, or 2.9 percent, to 23,957.89. The Nasdaq composite gave up 178.61 points, or 2.4 percent, to 7,166.68. The Russell 2000 index of smaller-company stocks lost 35.43 points, or 2.2 percent, to 1,543.87.

Construction equipment maker Caterpillar fell $8.90, or 5.7 percent, to $146.90, for its worst loss since mid-2016. Aerospace company Boeing slid $17.49, or 5.2 percent, to $319.61.

Investors also sold some of the market’s biggest recent winners. Among technology companies, Microsoft fell $2.69, or 2.9 percent, to $89.79 and Alphabet, Google’s parent company, fell $40.85, or 3.7 percent, to $1,053.15. Online retailer Amazon slid $36.94, or 2.3 percent, to $1,544.92.

Recent tariffs

Earlier this month the Trump administration ordered tariffs on imported steel and aluminum, and stocks dropped as investors worried about the possibility of tougher restrictions on international trade and smaller profits for corporations.

Their fears eased when the administration said some countries will be exempt from the tariffs. That continued Thursday, as U.S. Trade Representative Robert Lighthizer said the tariffs won’t apply to the European Union, Canada, Mexico, Argentina, Brazil and Australia.

Donisanu, of Wells Fargo, said the Trump administration isn’t hostile to trade necessarily, but wants to get other countries to revise the terms of America’s trade deals.

“This is probably intended to get China to get more serious in discussions around violations of intellectual property rights and addressing those issues,” he said.

Bond prices climbed, sending yields lower. The yield on the 10-year Treasury note slipped to 2.82 percent from 2.88 percent. Falling bond yields are bad for banks because they force interest rates on loans lower. Bank of America lost $1.32, or 4.1 percent, to $30.55 and JPMorgan Chase gave up $4.79, or 4.2 percent, to $109.95.

Utility companies and real estate investment trusts moved higher. When bond yields decline, investors often bid up those stocks and others that pay big dividends.

The decline in rates comes a day after the Federal Reserve raised interest rates and said the U.S. economy and the job market continued to improve over the last two months. The Fed expects to raise rates three times this year, although some investors think a fourth increase is possible. The Fed also said it might raise rates three more times next year instead of two.

Overseas markets closed mostly lower.
…

U.S. Federal Reserve officials voted to raise the central bank’s benchmark interest rate by a quarter of a percent this week, signaling perhaps three or more rate hikes this year as economic conditions improve. But as Mil Arcega reports, rising rates mean higher borrowing costs for consumers, many who have yet to see a significant increase in wages.
…