The daily business briefing: November 9, 2017

(Image credit: KENA BETANCUR/AFP/Getty Images)

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1. Regulators demand sale of CNN or DirecTV before AT&T-Time Warner deal
2. China reports decline in trade gap as Trump calls relationship 'unfair'
3. Stocks under pressure as crunch time nears for tax overhaul
4. Trump administration announces new travel restrictions for Cuba
5. TripAdvisor posts alerts on pages about hotels where sexual assaults reported

published 9 November 2017

1. Regulators demand sale of CNN or DirecTV before AT&T-Time Warner deal

U.S. antitrust regulators have told AT&T to sell either Turner Broadcasting — the parent of CNN — or its DirecTV satellite television unit before they will approve its bid to buy media company Time Warner, The New York Times and Reuters reported Wednesday, citing sources familiar with the matter. The demands could threaten the prospects of the $85.4 billion deal, which could create a powerhouse with wireless and broadband services, satellite TV service, the Warner Brothers movie studio, and cable content providers HBO and CNN. AT&T says it won't sell CNN. The Trump administration's opposition has raised First Amendment concerns, as CNN is a frequent critic of President Trump, who has said deals like the proposed merger "destroy democracy."

As President Trump arrived in China on Wednesday, Beijing reported that the trade surplus with the U.S. narrowed in October, as exports to the U.S. rose by 11.2 percent and imports of American goods rose by 17.4 percent. Trump, speaking in front of Chinese business leaders and President Xi Jinping on Thursday, said that the U.S. trade relationship with China is "one-sided and unfair," but that he doesn't fault China. "Who can blame a country that is able to take advantage of another country for the benefit of its citizens," Trump said. "I give China great credit." During Trump's visit, part of a 12-day tour of Asia, China and U.S. companies have signed nearly $250 billion in trade deals, including the sale of 300 Boeing planes worth $37 billion to China Aviation Supplies Holding Company.

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U.S. stock futures fell back from record levels early Thursday on fears of delays to the Republican tax overhaul. The Senate version is due to be unveiled Thursday, with promises of billions in tax cuts for people and corporations, paid for partly through the repeal of the federal deduction for state and local taxes. It also would reduce the number of personal income tax brackets from seven to four. House tax writers are putting the finishing touches on their version, which would keep the deduction for property taxes but cap it at $10,000, drawing opposition from lawmakers from high-tax states such as New York and New Jersey. Differences over paying for the cuts threaten the GOP's goal of rushing through the legislation this year, as budget rules bar it from adding more than $1.5 trillion to deficits over the next decade if it is to pass without Democratic support.

The Trump administration said on Wednesday it was imposing travel and trade restrictions on Cuba, reversing some of the Obama administration's moves to normalize relations with the Communist-ruled Caribbean island. Most U.S. individual travel to the island will no longer be allowed, with Americans going to Cuba required to go with a group licensed by the Treasury Department, as they were before former President Barack Obama eased the rules. Americans also will have to stay away from hotels and restaurants the State Department believes to be linked to members of the Cuban government. A senior Trump administration official said the changes are intended to steer money away from Cuba's military and intelligence services, and "encourage the government to move toward greater economic freedom" for Cubans.

TripAdvisor confirmed Wednesday that it had added a badge on pages about hotels where sexual assaults have been reported. A spokesman for the site told CBS News that three hotels were marked with the alerts on Wednesday. "These badges will remain on TripAdvisor for up to 3 months; however, if the issues persist we may extend the duration of the badge. These badges are intended to be informative, not punitive," a TripAdvisor spokesperson said. Travelers have accused TripAdvisor of deleting posts warning of serious crimes, including rape, robberies, and druggings with tainted alcohol, against tourists visiting certain locations in Mexico.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.