Stocks were lowered on Monday, December 3, after Donald Trump proclaimed a 90-day "truce" in the still simmering trade war…
Stocks were lowered on Monday, December 3, after Donald Trump proclaimed a 90-day “truce” in the still simmering trade war between Washington and Beijing after the G20 summit in Argentina.
A statement from the White House of the weekend says that Trump will hold on to increasing the rate of Chinese goods that would kick-kick on January 1
for at least 90 days when the two parties negotiated a trade on technology, technology transfer and thief disputes for intellectual property rights that have eroded relations for the past year. China’s state-owned newspaper said the agreement was an “important consensus”, but did not refer to a 90-day timeframe and did not confirm any of the specificities mentioned in the White House Communication. However, China’s Foreign Ministry announced reporters Monday that it had been instructed to investigate the elimination of all trade duties between the two countries.
My meeting in Argentina with President Xi in China was an extraordinary one. Relations with China have taken a big step forward! Very good things will happen. We handle great strength, but China has as much to win and when a deal is complete.
Dow Jones Industrial Average rose 216 points, or 0.85% to 25.755, S & P 500 was up 0.82% and Nasdaq jumped 1.29%. Leading Dow Higher was Boeing Co. (BA) and Caterpillar Inc. (CAT), which rose 3.2% after Bank of America Merrill Lynch upgraded the manufacturer of construction and agricultural machinery to buy from neutral after the trade stoppage.
Apple Inc. (AAPL) increased 2.2% on Monday when investors warned that a US-China security warrior would eliminate an important tariff that had remained over the world’s most valuable technology company.
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Ford Motor C. (F) rose 2.9% on Monday even though sales decline was 6.9% in November. American car manufacturers were higher Monday after Trump said China had agreed to reduce tariffs on cars imported into the world’s largest market.
Nexstar Media Group Inc. (NXST) confirmed Monday that it was an agreement to purchase Tribune Media Co. (TRCO) for $ 6.4 billion, including debt.
The combined company would be the largest local American TV station operator. Reuters reported that the merger could be announced on Monday.
Nexstar invites private equity company Apollo Global Management LLC (APO) with an all-cash offer that values Tribune at about $ 46.50 per share. Tribune closed on Friday, November 30, at $ 40.26. GlaxoSmithKline PLC (GSK) said Monday that it would buy ovarian cancer physicians Tesaro Inc. (TSRO) for about $ 5.1 billion in cash, but warned that it would not add the pharma giant’s bottom line until 2022.
GlaxoSmithKline said that will pay $ 75 per share for Waltham, Mass. based Tesaro, a 110% premium to Tesaras 30-day moving averages. Glaxo said the deal will hit its short-term results with a “middle to high” one-digit percentage, but begins to begin its bottom line before 2022.
Tesaro jumped 58.5% on Monday to $ 73.50.
Qualcomm Inc. (QCOM) told Reuters that its collapsed acquisition of NXP Semiconductors NV (NXPI) of $ 44 billion will not be revived and rejects a White House proposal that it could be completed.
Following the weekend talks between Donald Trump and Chinese President Xi Jinping, the White House said that China was “open to approving the previously unqualified” Qualcomm deal to acquire NXP “if it would be presented again.” Qualcomm abandoned the deal to buy NXP in July after failing to secure Chinese approval.
Qualcomm said in an email to Reuters that there were no conditions for the acquisition to be revived.