The daily business briefing: June 7, 2019

1. Theresa May stepping down as Conservative Party leader

Theresa May steps down as leader of the U.K.'s Conservative Party on Friday, after her leadership crumbled over her failure to get lawmakers to approve her plan for the country's exit from the European Union. May, who announced her resignation two weeks ago, will continue to serve as prime minister until the party picks her successor. Party rules set a Monday deadline for nominations. Eleven Conservative members of Parliament are vying for the position, although party leaders have set rules designed to weed out those with no chance, to avoid dragging out the process.

Independent BBC News

2. U.S. added just 75,000 jobs in May, far below expectations

The U.S. added 75,000 jobs in May, falling short of the 185,000 new non-farm jobs economists polled by MarketWatch had expected. The Labor Department also said that it had adjusted April's blockbuster gains from 263,000 down to 224,000. March's job growth was cut from 189,000 to 153,000. The unemployment rate remained at 3.6 percent, near a 50-year low. Twelve-month hourly wage gains slowed from 3.2 percent to 3.1 percent. The average wage for American workers rose 0.2 percent, or 6 cents, to $27.83 an hour. The report added to concerns about slowing economic growth, and increased pressure on the Federal Reserve to boost the economy by cutting interest rates.

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MarketWatch

3. U.S., Mexico fail to reach deal averting tariffs, but keep talking

U.S. and Mexican officials failed Thursday to reach a deal to avert tariffs President Trump has threatened to impose Monday unless Mexico shows significant progress curbing the surge of Central American migrants coming over the U.S.-Mexico border. Vice President Mike Pence said the Trump administration was "encouraged" by Mexico's latest proposals in the second day of talks. Mexico said it would send 6,000 members of its national guard to its southern border with Guatemala to block undocumented migrants heading north. White House Press Secretary Sarah Huckabee Sanders said Trump's plan "has not changed" and he was "still moving forward with tariffs at this time." The last-minute talks resume Friday, the deadline Trump has set for Mexico to satisfy his demands or face a 5 percent tax on all of its goods entering the U.S.

The Associated Press CNN

4. Automakers warn Trump nixing pollution rules could hurt profits

Ford, General Motors, Toyota, and 14 other automakers sent President Trump a letter on Thursday, telling him if he goes through with his plan to roll back Obama-era pollution regulations, it could lower their profits and cause an "extended period of litigation and instability." The auto pollution regulations Trump is expected to eliminate include an ambitious plan to increase mileage standards to 54.5 miles per gallon by 2025. California and other states have said they will sue and still enact their own stricter rules, and in their letter, the automakers told Trump they "strongly believe the best path to preserve good auto jobs and keep new vehicles affordable for more Americans is a final rule supported by all parties — including California."

The New York Times

5. Stocks get boost from hope for Mexico deal

U.S. stocks rallied for the fourth straight day on Thursday on hope for progress in U.S.-Mexico trade talks. The Dow Jones Industrial Average gained 0.7 percent, the broader S&P 500 gained 0.6 percent, and the tech-heavy Nasdaq rose by 0.5 percent. Stocks hit the day's highest point after a report that the U.S. might postpone President Trump's threat to impose a 5 percent tariff on all Mexican goods starting Monday. Early Friday, futures for the Dow and the S&P 500 were up by 0.3 percent while those of the Nasdaq gained 0.4 percent, but the indexes gave up most of their gains after the Labor Department released a disappointing May jobs report.

CNBC