Wall Street opens considerably lower


The stock markets in New York are expected to start the week on Monday with red price signs. Investors were shocked after a series of tweets from President Donald Trump who threatened to give the trade war a new turn. Trump promised to increase import duties on Chinese goods unless the Chinese work at an accelerated pace on the trade deal. This change in sentiment came after a strong report on the US job market, late last week.

This Friday, the United States will raise import tariffs on some products from China to 25 percent. The list of products that fall under levies is also being expanded. Trump wants to increase the pressure on China. He tweeted: ,, A trade agreement with China is coming, but it is going too slowly because they want to keep negotiating. Not so. “Trade negotiations between the two countries would continue this week.

In the absence of new macroeconomic data, investors are still chewing on the job report. Employment in April increased more than expected. According to the Ministry of Labor, 263,000 jobs were added last month (excluding agriculture). With this, unemployment in the US fell to its lowest level in almost fifty years.

The market focuses on the results of Berkshire Hathaway, the investment vehicle of billionaire Warren Buffett. The operating result in the first quarter increased by 5 percent to $ 5.6 billion. Companies affiliated with Buffett were also in the news. The European Commission, for example, would start a formal investigation into Apple, in which Buffett has a stake of around 50 billion dollars.

Kraft Heinz, where Berkshire is the largest shareholder, will review its annual accounts for 2016, 2017 and part of 2018. The employees in the purchasing division would have fooled with the costs of products sold.

Oil and gas company Occidental Petroleum tightened its billions of euros for Anadarko Petroleum. The part of the price that will be paid in cash is now higher. Buffett recently invested 10 billion dollars in Occidental on the condition that the Anadarko acquisition succeeds.

Aircraft manufacturer Boeing is also in the spotlight. The company admitted that it had been aware of the software problem with the 737 MAX in question for a year.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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