The daily business briefing: June 3, 2019

1. Top Trump economic adviser Kevin Hassett to step down

President Trump said Sunday that White House Council of Economic Advisers Chairman Kevin Hassett will step down "shortly." Trump did not say why Hassett was leaving, but he lavished praise on him. Trump said Hassett, the latest in a series of senior White House officials to resign, had "done such a great job for me and the Administration" and called him a "true friend." The president, who just arrived for a series of state visits in Europe, tweeted that Hassett's "very talented replacement will be named as soon as I get back to the U.S." Hassett's departure comes as the Trump administration's trade war with China intensifies, and Trump threatens to slap tariffs on all Mexican goods unless it curbs the number of undocumented immigrants trying to cross the U.S.-Mexico border.

CNBC

2. Mexico and U.S. head into immigration, tariff talks

Mexican and U.S. officials on Monday head into talks on averting a major trade fight following President Trump's threat to slap a 5 percent tariff on all Mexican goods starting June 10. Trump also has said he would hike the levies by 5 percent per month starting July 1 up to a maximum of 25 percent. Mexican Economy Minister Graciela Marquez said she and U.S. Commerce Secretary Wilbur Ross would meet Monday in Washington. On Sunday morning, Trump tweeted that Mexico was an "abuser of the United States, taking but never giving." He added that Mexico was "sending a big delegation to talk about the Border. Problem is, they've been 'talking' for 25 years. We want action, not talk."

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Reuters

3. FAA: Some Boeing 737s could have faulty wing parts

The Federal Aviation Administration said Sunday that more than 300 Boeing 737 jets, including some in the grounded MAX line, could have faulty wing parts that might be "susceptible to premature failure or cracks." The FAA made the announcement after a joint investigation with Boeing. The FAA plans to order airlines to replace the faulty slats, which move along a track to help create lift. The regulator said that "the complete failure of a leading edge slat track would not result in the loss of the aircraft," but "a risk remains that a failed part could lead to aircraft damage in flight." Worldwide, the issue affects 133 737 NG planes and 179 MAX jets, which have been grounded since two deadly crashes linked to problems with a flight control system.

CNBC

4. China, Mexico trade tensions continue to drag down stock futures

U.S. stock-index futures fell sharply early Monday, hitting multi-month lows in a sign of investors' anxiety over intensifying trade tensions between the U.S. and both China and Mexico. Futures for the Dow Jones Industrial Average and the S&P 500 fell by about 0.4 percent, while those of the Nasdaq dropped by 0.5 percent. Asian stocks also fell. Japan's Nikkei dropped by 1.1 percent to a four-month low after a senior Chinese official and trade negotiator said Sunday that the U.S. could not use pressure to force China into a trade deal. "Speculators are now building up trading positions to bet on a recession," said Masanari Takada, cross asset strategist at Nomura Securities.

Reuters CNBC

5. Cypress Semiconductor shares spike on news of purchase by Infineon

Shares of U.S.-based Cypress Semiconductor Corp., which specializes in wireless and USB technology, jumped by more than 20 percent in pre-market trading early Monday on the news that German chipmaker Infineon will buy the company for more than $10 billion. The sale price of $23.85 per share amounts to a 46 percent premium over the price of Cypress stock over the last six weeks, the companies said. Infineon said the deal would make it the world's eighth largest chipmaker. By 2022, the acquisition will result in cost synergies of $201 million a year, the companies said.

The Associated Press