The daily business briefing: May 7, 2019

Chinese Vice Premier Liu He, Treasury Secretary Steven Mnuchin, and U.S. Trade Representative Robert Lighthizer pose

(Image credit: Andy Wong/AFP/Getty Images)

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1. China stays in trade talks after Trump tariff threat
2. Mnuchin rejects Democrats' demand for Trump tax returns
3. U.S. stock futures fall as new tariffs on Chinese imports loom
4. CBS News names Norah O'Donnell anchor in post-scandal shakeup
5. Maximum Security owner appeals Derby disqualification, loses again

published 7 May 2019

1. China stays in trade talks after Trump tariff threat

China confirmed Monday that it will send a delegation to the U.S. for trade talks this week. The status of the negotiations was thrown into doubt on Sunday when President Trump tweeted a threat to impose new 25 percent tariffs on another $200 billion worth of Chinese imports this week. The Treasury Department confirmed Monday that the new levies would be imposed Friday. It accused Beijing of reneging on commitments toward a deal. China said Vice Premier Liu He would lead a scaled-down team on Thursday and Friday. The news renewed hope for a deal, as Liu has authority to make final decisions on behalf of President Xi Jinping.

Treasury Secretary Steven Mnuchin notified House Democrats on Monday that he would not turn over President Trump's tax returns. He said the Ways and Means Committee's request for the documents "lacks a legitimate legislative purpose." Due to a 1924 law, Ways and Means Chair Richard Neal (D-Mass.) is one of just a few lawmakers with the authority to request the president's tax returns. In his letter to Neal, Mnuchin said he spoke with Justice Department officials who concluded that the Trump administration could not legally provide the returns because doing so could amount to a violation of privacy. The Justice Department has not released a legal opinion to undergird Mnuchin's decision. House Democrats have said they are on strong legal ground and expect to file a lawsuit to continue pressing for the release of Trump's returns.

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U.S. stock index futures dropped sharply early Tuesday on fears of intensifying trade tensions between the U.S. and China following President Trump's threat to raise tariffs on $200 billion worth of Chinese goods this week. Futures for the Dow Jones Industrial Average were down by nearly 0.5 percent, while those of the S&P 500 and the Nasdaq dropped by 0.5 percent and 0.6 percent, respectively. The Dow fell by nearly 0.3 percent on Monday, while the other two main U.S. indexes lost about 0.5 percent, after markets clawed back from deeper losses. Investors and analysts remain optimistic about a U.S.-China trade deal, although the looming tariffs renewed uncertainty about the latest round of negotiations scheduled this week in Washington. Earnings reports from AB InBev, Lyft, and other companies also could steer markets.

CBS News announced Monday that Norah O'Donnell would become anchor and managing editor of the CBS Evening News as part of a shakeup intended to give the network a fresh start after a troubled period of declining ratings and workplace misconduct scandals. Gayle King will head CBS This Morning with two new cohosts as the network remakes that show following the 2017 firing of Charlie Rose over misconduct allegations. The changes were initiated by 47-year CBS News veteran Susan Zirinsky, who took over as the division's president in March after the departures of Rose and the top executive of 60 Minutes. CBS News will also move its flagship news show from New York to Washington, D.C.

The owner of Maximum Security on Monday appealed the horse's disqualification as winner of the Kentucky Derby, and the Kentucky Horse Racing Commission rejected the appeal on the same day. The owner, Gary West, said Maximum Security would be dropping out of the Preakness, the second race in horse racing's Triple Crown. The 1 1/8-mile Preakness, scheduled for May 18, requires horses to quickly recover and prepare to run again, and West said it wasn't worth it now that Maximum Security has no shot at the Triple Crown. "The horse will be better off long term with the rest," West said. "He ran a really good and a really hard race on Saturday." Maximum Security finished first in the muddy Derby but was disqualified for interference, the first time that has happened to a Derby winner.

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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.