The daily business briefing: February 22, 2019
High-level officials meet in a push for a U.S.-China trade deal, Kraft Heinz shares drop after disclosure of SEC subpoena, and more
- 1. High-level officials join U.S.-China trade talks
- 2. Kraft Heinz shares fall after it discloses SEC subpoena
- 3. Duke's Williamson recovering but Nike takes a hit from shoe blowout
- 4. Stock futures rebound from losses fueled by weak economic data
- 5. Ford launches investigation into possible errors in mileage, emission estimates
1. High-level officials join U.S.-China trade talks
The U.S. and China resumed high-level negotiations Thursday after days of lower-level talks in a push to reach a trade deal before a three-month truce in their trade war expires March 1. China's delegation, led by Vice Premier Liu He, met with a U.S. team that was led by Trade Representative Robert Lighthizer and included Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, White House economic adviser Larry Kudlow, and trade adviser Peter Navarro. President Trump has accused China of using unfair practices to boost Chinese companies and erode U.S. technological dominance. He has imposed new tariffs on hundreds of billions of dollars' worth of Chinese imports, and China has responded in kind, dragging down global economic growth.
2. Kraft Heinz shares fall after it discloses SEC subpoena
Kraft Heinz shares plummeted on Thursday, losing more than 16 percent after the company cut its dividend and disclosed that it had received a subpoena from the Securities and Exchange Commission in October. Kraft Heinz said the subpoena concerned its procurement accounting policies. The company, owner of widely known food brands, said it started an internal investigation after learning of the SEC's investigation into the matter. After its investigation, Kraft Heinz said it hiked its estimate of the cost of products sold in recent quarters. The company said it was fully cooperating with the SEC investigation.
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3. Duke's Williamson recovering but Nike takes a hit from shoe blowout
Duke said Thursday that freshman basketball superstar Zion Williamson suffered a mild knee sprain when his Nike PG 2.5 shoe burst apart at the start of the Blue Devils' prime-time televised game against North Carolina, suggesting he could return soon to the currently No. 1-ranked team. Nike shares dropped by 1 percent on Thursday as the athletic apparel maker scrambled to figure out why the shoe disintegrated. Former President Barack Obama was courtside, and was shown in a widely seen video reacting by pointing toward Williamson and saying, "His shoe broke!" Duke struggled after Williamson's injury, losing to No. 8 UNC in a stunning upset. The incident renewed debate over whether playing college ball is worth the risk for players who stand to make millions as pros.
4. Stock futures rebound from losses fueled by weak economic data
U.S. stock index futures rose early Friday, bouncing back after weak economic data fueled fears of an economic slowdown and dragged down the market on Thursday. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq-100 were all up by 0.4 percent to 0.5 percent several hours before the start of trading. Investors continued to monitor U.S.-China trade talks, with optimism rising after a new round of high-level talks began and both countries pushed for a deal before a March deadline that could trigger higher tariffs. "There's obviously an incentive for both sides to reach a deal," James Athey, senior investment manager at Aberdeen Standard Investments, told CNBC's Squawk Box Europe on Friday.
5. Ford launches investigation into possible errors in mileage, emission estimates
Ford Motor Co. said Thursday that it had launched an investigation into whether it overstated numerous vehicles' gas mileage and understated their emissions. The company said some of its employees in September reported possible problems with a mathematical model used to make the calculations. The automaker said it had no evidence the numbers were incorrect but that it had just started looking into the matter. It has hired an outside firm to run tests, starting with the 2019 Ford Ranger small pickup truck. If those tests uncover problems, the company will examine earlier models. The Environmental Protection Agency said Ford disclosed the issues to regulators on Tuesday.
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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.
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