The daily business briefing: March 7, 2019

1. Huawei sues U.S. over ban on its products

Embattled Chinese tech giant Huawei said Thursday it had filed a Texas lawsuit against the U.S. government, challenging a ban on its products. The National Defense Authorization Act prohibits federal agencies and contractors from purchasing equipment made by Huawei and another Chinese company, ZTE Corp. "This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers," Huawei Deputy Chair Guo Ping said. The lawsuit is the most aggressive move to date by Huawei against allegations from the Trump administration that its equipment can be used to spy for China. The U.S. considers Huawei a security threat and wants to keep it from building 5G networks worldwide.

CNN The Week

2. Amazon to close all 87 of its pop-up kiosks

Amazon said Wednesday it would close its 87 U.S. pop-up locations in April. The online retail giant put the mini-stores in its Whole Foods markets, as well as in Kohl's stores and shopping malls. Customers can go to Amazon's kiosks to try out some of its products, including Fire tablets, Kindle e-readers, and Echo smart speakers. Shoppers also can sample Amazon's Prime Video, Audible, and Kindle Unlimited services. "After much review," an Amazon spokesperson told CNBC, "we came to the decision to discontinue our pop-up kiosk program, and are instead expanding Amazon Books and Amazon 4-star," where customers can browse products with high ratings on Amazon's website.

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CNBC

3. GM closes Ohio plant, eliminating 1,700 hourly jobs

General Motors on Wednesday idled a massive assembly plant in Lordstown, near Youngstown, Ohio, that had made vehicles for more than 50 years. The closure will result in the elimination of nearly 1,700 hourly jobs by the end of March. The move was part of a plan GM announced in late 2018 to close five North American assembly plants by early 2020. The Lordstown plant made the compact Chevy Cruze, which fell out of favor with customers as inexpensive gasoline boosted preferences for SUVs and small trucks. "It's gut-wrenching. People were crying. They're frustrated, and they feel like they've done everything right," said UAW Local 1112 President Dave Green. Production of the hatchback Cruze will continue in Mexico for foreign markets.

The Associated Press

4. Family Dollar to close 390 more stores

Family Dollar on Wednesday announced it will close 390 of its more than 8,000 stores. The retailer caters to low-income shoppers with a broad selection of items priced under $10. The discount chain's owner, Dollar Tree, also operates an eponymous chain of 7,000 similar stores in suburban areas. Dollar Tree bought Family Dollar for $8.5 billion in 2015 hoping to cut costs to better enable it to compete with bigger rivals, including Dollar General and Walmart. Family Dollar's announcement came after it posted slow holiday season growth, the latest in a series of disappointing quarters. The company already closed 120 stores in 2018. "We are confident we are taking the appropriate steps to reposition our Family Dollar brand," Dollar Tree CEO Gary Philbin said.

CNN

5. Stocks struggle after trade deficit data released

U.S. stock index futures fell early Thursday, pointing to a lower open after three days of losses. Futures for the Dow Jones Industrial Average were down by 0.3 percent, while those of the S&P 500 and the Nasdaq fell by 0.2 percent. U.S. stocks fell on Wednesday after data showed the U.S. trade deficit reached a 10-year high in December. Investors continue to await signs of progress toward a deal to end the U.S.-China trade war, part of President Trump's effort to use tariffs to help reduce the trade deficit. The corporate calendar on Thursday includes a report from Costco after the bell.

CNBC