NEW YORK: Wall Street stocks bounced early Thursday, recovering some of the prior session’s declines that were stoked by trade war worries.
About 15 minutes into trading, the Dow Jones Industrial Average stood at 24,840.58, up 0.6 percent. The broad-based S&P 500 gained 0.4 percent to 2,784.05, while the tech-rich Nasdaq Composite Index advanced 0.5 percent to 7,753.76. US stocks snapped a four-day winning streak on Wednesday after President Donald Trump’s administration announced it would push ahead with new tariffs on China, prompting a sharp response from Beijing. But stocks pushed back higher again on Thursday, with some analysts pointing to a more conciliatory stance by Trump at a NATO summit in Brussels. Trump had on Wednesday lambasted Germany and other allies for not contributing enough funds for defense. But Trump said Thursday he supported NATO and claimed to win concessions for more funds from allies.
Among data releases, the annual measure of US consumer inflation stayed at a six-year high in June, the Labor Department reported. For the last 12 months the consumer price index, which tracks prices for household goods and services, was 2.9 percent higher, the same as in May which was the highest rate since February 2012. Software and services firm CA Technologies surged 17.9 percent after agreeing to be acquired by semiconductor giant Broadcom for $18.9 billion. Broadcom slumped 17.9 percent. Delta Air Lines gained 2.1 percent after reporting better-than-expected second quarter profits. However, the US carrier projected annual earnings between $5.35 to $5.70 per share, below the $5.74 expected by analysts. Delta cited the drag from higher fuel costs as a factor.
A relevant piece published earlier:
The EU on Thursday slashed its growth forecast for the eurozone in 2018, warning that the rising trade tensions with the United States were hitting the economy.
The European Commission, the EU’s executive arm, said the 19-country single currency bloc would expand by 2.1 percent in 2018, lower than the 2.3 percent forecast just weeks ago in early May. “Our forecast is for a continued expansion in 2018 and 2019, although a further escalation of protectionist measures is a clear downside risk,” said EU Economic Affairs Commissioner Pierre Moscovici in a statement. “Trade wars produce no winners, only casualties,” he added.
The commission added that the economy in the eurozone would expand by 2.0 percent in 2019, the same forecast as in May. The worry about the European economy stems from the ongoing trade dispute with the administration of US President Donald Trump, which has now threatened to impose tariffs on European auto imports, with German auto giants the intended target.
If confirmed, the policy would be one of the most aggressive transatlantic blows since the Great Depression and risks bitterly splitting the allies amid divisions over the Iran nuclear deal and the Paris climate accord. The threat by Trump comes after the mercurial leader already slapped 25 percent tariffs on steel and 10 percent on aluminum on imports from Europe and other key allies.
“First and foremost, if trade tensions with the US were to escalate further, this could dampen confidence more permanently, … likely disrupting the current global (economic recovery),” the commission said in its forecast report. The commission also pointed to “political and policy uncertainty in a number of EU countries” as an important downside risk to the forecast, which included the fallout of stalled Brexit talks.
This also included heavily-indebted Italy, after a far-right/populist coalition formed a government on the promise to break EU budget and spending rules. The commission said higher oil prices, which have spiked partly due to growing tensions over Iran, were also a negative factor. (Published on 12th July 2018)
15 countries attending Int’l plastic products expo in Tehran
TEHRAN: Iranian Deputy Petroleum Minister Reza Norouzzadeh and other officials from the country’s oil and petrochemical industry participated in the inauguration ceremony of the ‘Iran Plast’ exhibition.
The biggest-of-its-kind in the Middle East, the exhibition hosts as well as visitors from 22 countries. Iranian petrochemical companies are planned to engage with their peers in other countries during the event.
The 12th edition of Iran Plast exhibition is underway in Tehran International Permanent Fairground. The four-day event is expected to wrap up on Thursday, 27th September.
USCS leads Pak businessmen to Solar Power Trade Event in US!
KARACHI: The United States Commercial Service (USCS) is leading a 15-member delegation of Pakistani companies to Solar Power International (SPI) trade show, held in Anaheim, California from September 25 – 27, 2018.
The SPI trade show is the largest solar show in North America. SPI 2018 is expected to attract over 650 exhibitors and over 20,000 attendees from more than 100 countries. Focused on providing the latest updates and information for the solar energy industry, SPI features multi-track conference sessions and workshops on business and market trends, solar storage, utility, and grid integration.
“The Pakistani market is poised to take off in Solar Power, guided by a motivated government working to strengthen and expand economic and foreign investment opportunities and development,” said Mark Russell, Commercial Counselor at the U.S. Consulate in Karachi.”
Chinese industrialists to invest $400 m in Sindh
HYDERABAD: The industrialists belonging to China’s Chongqing Federation of Industry and Commerce will invest $400 million in several trade and industrial projects in Hyderabad and other parts of Sindh.
The federation’s representative Zhang Yang informed a press conference at the office of Hyderabad Chamber of Commerce and Industry (HCCI) here Sunday that a memorandum of understanding (MoU) has already been signed in this regard. Yang informed that the MoU, which would last for 5 years, was signed between the Federation and HCCI in China in May this year.
He said under the MoU the investments would be made in steel, textile, and clothing, real estate, agriculture, tourism, education and training, municipal and solid waste disposal sectors. “We have declared Chongqing and Hyderabad as the friendly cities,” he told, adding that up to 34 industries and investors from Chongqing would make their investments in the joint ventures in Hyderabad and other cities of Sindh.
He told that the industrialists from the 2 cities had already maintained a promising cooperation in the industry. “We now want to further bolster the business ties in the steel, textile, real estate, and other sectors,” Yang said. He said Chongqing was a beautiful city in China and that it was home to the automobile and motorbike industry.
The Chinese businessmen said Hyderabad was a favorite place for investment where the Chinese industrialists intended to introduce advanced technology. He informed that Hyderabad was selected for the investment after HCCI submitted investment proposals to the federation. “This MoU is part of the CPEC as 34 Chinese companies will be making investments in various sectors,” former HCCI president Seth Goharullah said.
The HCCI’s vice president Ziauddin, who signed the MoU with his Chinese counterparts earlier in China, apprised that a formal agreement between the mayors of Chongqing and Hyderabad would be signed in October in Pakistan. He told that the Chinese delegations would visit Hyderabad and sign agreements with the local companies. According to him, a sub-office of the federation was also established in Hyderabad’s SITE area and it would also be inaugurated in October. The office bearers and members of HCCI were present on the occasion.