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FINANCIAL MARKETS
Pound jumps on expected Tory win; trade talk lifts shares
BANGKOK (AP) — The British pound surged today as Prime Minister Boris Johnson's Conservative Party claimed a robust majority in Parliament, while talk of China-U.S. trade deal buoyed share prices in Asia.
The British pound strengthened to $1.3425 from $1.3385 late Thursday as projections showed the conservatives likely to win a solid majority of seats in Parliament.
In Asia, Japan's Nikkei 225 index jumped 2.6% and Hong Kong's Hang Seng surged 2.2%. The Shanghai Composite index advanced 1.8% and South Korea's Kospi climbed 1.5%.
Australia's S&P ASX 200 picked up 0.5%. Shares also rose in Taiwan and Southeast Asia.
Yesterday on Wall Street, the S&P 500 climbed 0.9% to 3,168.57 and is up about 0.5% from its last all-time closing high on Nov. 27.
The Dow Jones Industrial Average rose 0.8% to 28,132.05, while the Nasdaq gained 0.7% to 8,717.32. The index, which is heavily weighted with technology stocks, is now up about 0.1% its record set on Nov. 27.
CHINA-US-TRADE
China says trade deal with US must be 'mutually beneficial'
BEIJING (AP) — Expectations for a U.S.-Chinese trade truce to avert an American tariff hike rose today, though Beijing said any settlement to their costly, long-running conflict must be “mutually beneficial.”
A senior administration official said an announcement regarding China would take place today. The official spoke on condition of anonymity to discuss internal planning.
said Myron Brilliant, the U.S. Chamber of Commerce's head of international affairs says, a "deal is close.'' He was briefed by both sides.
Brilliant said the Trump administration agreed to suspend a planned tariff increase on $160 billion of Chinese imports Sunday and to reduce existing tariffs, though it wasn't clear by how much.
In return, Beijing would buy more U.S. farm products, increase Americans companies' access to the Chinese market and tighten protection for intellectual property rights.
The deal awaits final approval from President Donald Trump. Trump did not comment to reporters on the talks late Thursday when returning to the White House.
CHINA-ECONOMY
China leaders promise to shore up 2020 growth amid trade war
BEIJING (AP) — China's leaders are promising to shore up economic growth next year in the face of a tariff war with Washington and to reduce poverty and pollution.
Leaders of the ruling Communist Party, in a statement reported today by state media, pledged at an annual planning meeting to promote technology-based development and competition by opening the state-dominated economy wider.
The annual Economic Work Meeting, which ended Thursday, lays out overall goals for the coming year. Companies and investors usually have to wait for the meeting of China’s ceremonial legislature the following March for details of how they will be achieved.
JAPAN-ECONOMY
Japan's 'tankan' economic survey shows sentiments souring
TOKYO (AP) — A closely watched economic survey by the Bank of Japan showed sentiments among major manufacturers soured for the fourth straight quarter, while a trade war between the U.S. and China crimped trade and growth. Japan’s growth is dependent on exports and any slowdown in pan-Pacific trade hurts company sentiments. Corporate optimism in Japan was also believed to have been dampened by a tax increase and damage from a typhoon, which both took place in October.
The “tankan” survey showed manufacturers' sentiment was zero in December, down from plus 5 in September. The measurement means the number of respondents who said business conditions were negative equaled the number who said conditions were negative.
Recent data show that the world's third-largest economy has been eking out strength but worries remain about the U.S.-China trade dispute as well as a slowdown in consumer spending, which was inflated as shoppers sought to buy items ahead of the hike.
MEXICO-TRADE DEAL
Mexican Senate ratifies changes to USMCA trade pact
MEXICO CITY (AP) — Mexico's Senate has approved the modifications negotiated this week to the U.S.-Mexico-Canada Agreement, known as the USMCA. The Senate vote of 107 to 1 gave approval to increased enforcement of labor and environmental rules. Thursday's vote clears the way for the revamped version of a 25-year-old North American free trade agreement to take effect, after the U.S. and Canada ratify it. Mexico agreed to dispute resolution panels to ensure its workers can organize and demand better wages.
Democrats in the U.S. Congress have hailed the changes. In the past, corrupt Mexican unions have signed low-wage contracts behind workers' backs. Critics say Mexico's low wages have played a big role in luring manufacturing jobs south, especially in the auto industry.
The modifications also increase regional content requirements for steel, with a seven-year phase-in period.
EU-BRITAIN-ELECTION
Boris Johnson projected to win, UK opposition leader calls election results 'disappointing'
LONDON (AP) — EU leaders are already gearing up to move forward with Brexit plans now that the British election is over. The leaders of Austria and Poland congratulated Prime Minister Boris Johnson on his Conservative party's projected win, based on an exit poll. France said the vote appears to provide the “clarity” the EU needs. EU leaders will meet the bloc’s Brexit negotiator Friday about next steps. Johnson wants to take Britain out of the EU on Jan. 31. That will make Britain the first country to leave in the history of the union. The EU was formed from the ashes of World War II to prevent new conflict.
Labour Party leader Jeremy Corbyn says Britain’s election result is “very disappointing” for his party, but he is resisting pressure to step down right away. Corbyn says the divisive issue of Brexit has “contributed to the result.” Labour is losing seats to Prime Minister Boris Johnson’s Conservative Party. Many Labour figures are calling on Corbyn to resign. He said early Friday he would not lead the party into another election but would stay on during a “process of reflection.” Corbyn also accused the media of attacking Labour and contributing to its poor result.
FACEBOOK-INJUNCTION
Reports: FTC may try to block Facebook from integrating apps
SAN FRANCISCO (AP) — Facebook's stock dropped almost 3% in regular trading after news reports suggested that the FTC may take antitrust action to prevent Facebook from integrating its messaging apps.
The reports said the Federal Trade Commission may seek a court injunction that would block Facebook's “interoperability” plans for Facebook Messenger, WhatsApp and Instagram, which involves revising them to use the same underlying software.
Facebook has been planning to integrate the apps since early 2019. Federal regulators are concerned that Facebook's plan could make it hard to break up the company should the FTC find that necessary.
ANTI-TRUST TRIAL-T-MOBILE-SPRINT
T-Mobile CEO says if Sprint deal fails, prices may go up
NEW YORK (AP) — T-Mobile CEO John Legere says that if his company's $26.5 billion deal to buy Sprint fails, it may have to raise prices to slow user growth and relieve stress on the T-Mobile network. He testified Thursday in the high-profile antitrust trial. Fourteen state attorneys general are suing to block the combination of T-Mobile and Sprint. They have said the deal would cost consumers billions by limiting competition.
Federal regulators have already cleared the merger. They require T-Mobile and Sprint to set up satellite TV provider Dish as a new wireless competitor. The states say that's not enough.
A lawyer for the states laid out evidence that T-Mobile had options beyond acquiring Sprint that would let it obtain more spectrum, the airwaves that signals travel over and the lifeblood of a wireless network. Adding spectrum would shore up the network from the strain of its growing user base watching Netflix and uploading cat videos to Instagram.
TRUMP-IMPEACHMENT
House panel delays historic Trump impeachment vote
WASHINGTON (AP) — The House Judiciary Committee abruptly delayed action on a historic vote to approve articles of impeachment against President Donald Trump. Chairman Jerrold Nadler postponed voting until Friday morning. The panel slogged for more than 14 hours through debate that split sharply along party lines.
The panel was expected to vote to send the charges to the full House for action next week.
All day and into Thursday night, committee members clashed in pointed and at times emotional debate.
The Republicans insisted on lengthy debate and votes on a series of amendments aimed at killing the charges. They kept at it though they won no Democratic support and had no hope of winning any.
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