A boost for the Chinese markets; Gap soars; Tesla reaches $ 35,000


Chinese tariffs are expected to rise from 10% to 25% on Saturday. US trade officials said Thursday in a statement that they would file documents to suspend increases "until further notice".

The Shanghai Composite rose 1.8% Friday, while the Shenzhen Composite, heavier in technology, rose 1.2%.

There was also positive economic data from China, where an unofficial indicator of manufacturing activity rebounded in February. Nevertheless, economists warn that the rebound could be temporary.

"While there are signs that credit growth is beginning to melt thanks to policy support, the usual delays mean that last year's slowdown in lending will likely continue to weigh on economic activity at least until the end of the year. In the middle of the year, "said Julian Evans-Pritchard. , Senior Economist at Capital Economics, wrote in a research note.

2. The gap soars with the split of the company: Actions in gap (GPS) climbed 23% in prolonged trading after the company announced Thursday that it would split into two activities.

One of the companies will contain Old Navy, while the other business will involve Gap, Banana Republic and other brands, including Athleta and Hill City.

Separation is a story of two very different companies. Old Navy has flourished in recent years and sales at stores open at least a year have increased by 3% in 2018.

Meanwhile, Gap struggled – its sales dropped 5% last year. Banana Republic closed stores, which allowed the company to improve its sales.

3. Musk reaches $ 35,000: Actions in You're here (TSLA) President and CEO Elon Musk announced that the company would close stores and fire workers to produce a cheaper model.

Tesla has long promised a version of its Model 3 sedan that would cost $ 35,000. The company said Thursday that it had finally reached the price level, which Musk described as "extremely difficult."

This move means Tesla will close its stores and move sales around the world only online. He refused to say how many of his stores would close or how many jobs would be affected

4. Huawei defends himself: Chinese tech company Huawei pleaded not guilty on Thursday to federal charges of trying to steal trade secrets T Mobile (TMUS).

The company was brought to the Seattle Federal Court, where a judge set the trial on March 2, 2020. The US Department of Justice released the charges last month.

The case comes as part of a broader US government lobbying campaign against the company, saying Huawei's technology posed a threat to national security. Huawei denied the allegations.

5. Global Market Overview: US equity futures were on the rise. European markets have opened with gains, following a positive session in Asia.
The Dow Jones Industrial Average, the S & P 500 and Nasdaq each fell 0.3% on Thursday. Despite the losses, all three major markets posted overall gains in February.
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6. Earnings and economy: Foot Locker (FL), Scripps (SSP), TEGNA (TGNA) and Tribune Media (TRCO) the intention to publish the results before the opening on Friday.

The US Bureau of Economic Analysis will release its December December Personal Consumption Report at 8:30 am Eastern Time. The Institute of Supply Management will release manufacturing data at 10:00 am Eastern Time.

Economic data published in Europe painted a gloomy picture of the region's economy.

Data from the survey of manufacturing industries published by IHS Markit showed that the activity of factories in Germany further declined in February. German companies attributed the decline to factors such as lower car sales, lower demand from China and anxiety about Brexit.

The manufacturing sector also declined across the euro area, as modest gains in France failed to offset further declines in Italy and Spain.

7. Coming this week:
Friday – Foot Locker (FL) and Tribune Media (TRCO) earnings
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