Month: December 2018

Environment ministers from nearly 200 countries are arriving in the Polish city of Katowice to join haggling over ways to advance the 2015 Paris accord to curb climate change. National leaders have stayed away from this year’s climate change conference largely because it is devoted to agreeing the details of the implementation of the Paris agreement.

But as ever, the devil is in the details.

Ahead of the ministerial arrivals, climate activists from around the world marched Saturday in the Polish city to vent their frustration and to urge governments to “wake up” and “make the planet green again.”

“It’s time to save our home,” they chanted near the hall hosting the two-week U.N. Climate Change Conference.

Meanwhile, 1,500 kilometers away police in Paris battled Yellow Vest protesters mounting their fourth Saturday of action against the government of French President Emmanuel Macron, a revolt triggered initially by the imposition of higher taxes on fuel.

For Western governments, even environmentally-friendly ones, climate change poses a massive political dilemma the protests in France are bringing home.

Impose the tax hikes and costly regulations scientists say are needed to lower emissions and move economies away from dependency on fossil fuels and governments risk prompting a backlash, largely from lower-income workers and pensioners who can ill-afford to bear the expense. Or move slowly and risk blow back from climate activists and their supporters among largely middle-class and higher-income groups able to adapt with less hardship.

Squaring the circle between those who demand fast-track climate-friendly measures and those who want to slow down and mitigate the impact of moving towards a low-carbon future isn’t going to be easy, as the Paris protests demonstrate, say analysts.

Poland, which is hosting this year’s conference, used the opening last Monday of the 24th U.N. climate change conference to emphasize the dilemma and to try to temper ambitions when delegates come to finalize the rule book for the Paris agreement to make the accord operational.

Among other things Polish leaders called for a “just transition” for fossil fuel industries that face cuts and closures amid efforts to reduce greenhouse gas emissions, warning a badly managed transition to a low-carbon, renewable-energy future will cause major disruption to industry, hardship for ordinary people and could trigger social unrest not just in France, but in other industrialized nations.

Many climate activists attending the conference dismiss warnings about social and political repercussions, seeing them as merely efforts to impede progress, apply the brakes and of providing specious justification for propping up fossil-fuel industries.

British naturalist and documentary-maker David Attenborough gave voice to their frustration last week at the conference, warning time is running out to avert irreversible disaster.

“If we don’t take action, the collapse of our civilizations and the extinction of much of the natural world is on the horizon. The world’s people have spoken, their message is clear, time is running out, they want you, the decision-makers, to act now. They’re supporting you in making tough decisions, but they’re also willing to make sacrifices in their daily lives,” he said.

Climate activists remain furious that attempts to incorporate a key scientific study into the talks failed last week. U.N. Intergovernmental Panel on Climate Change report, published in October, said the world is completely off track from curbing global warming and is heading towards a catastrophic three-centigrade jump in temperatures this century.

Four oil-producing countries, the United States, Saudi Arabia, Kuwait and Russia, opposed the inclusion of the IPCC report into the conference’s key negotiating text. The report is likely to resurface in the final week of bargaining.

The issue of a “just transition” is fast developing into one of the core climate-related issues governments are debating, and it is prompting the attention of investor organizations as well as organized labor.

“As the world begins its much-needed transition from high-carbon to low-carbon economies, investors will have to look beyond physical environmental issues and consider the social aspects of workers and their communities who will be impacted by the move away from carbon-intensive industries,” says Fiona Reynolds, chief executive of the Principles for Responsible Investment, an international network of major institutional investors.

 
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General Motors is fighting to retain a valuable tax credit for electric vehicles as the nation’s largest automaker contends with the political fallout triggered by its plans to shutter several U.S. factories and shed thousands of workers.

Preserving the $7,500 tax incentive for buyers is crucial for GM as the company pivots from internal combustion engines in favor of building cars powered by batteries or hydrogen fuel cells. Yet the layoffs and plant closings could imperil GM’s push to keep the incentive. It helps make plug-ins such as the $36,000 Chevy Bolt more affordable at a time when competition from other electric vehicle makers is heating up.

GM faces opposition from President Donald Trump and other Republicans who consider the credit a waste of taxpayer money and want it eliminated. Trump, who has pledged a manufacturing rebirth in the Midwest, reacted angrily to GM’s “transformation “ announcement late last month, declaring that his administration was “looking at cutting all GM subsidies, including for electric cars.”

The company already is on the verge of being phased out of the tax credit program unless Congress changes a law that caps the break at 200,000 vehicles per manufacturer. Without the incentive, GM may be forced to cut the price of its electric cars to keep prospective customers from taking their business elsewhere, according to automotive industry experts.

As evidence of the credit’s importance to GM’s future, the automaker has expanded its lobbying footprint in Washington and even joined forces with two rivals, Tesla and Nissan, to call for 200,000-vehicle limit to be scrapped.

Standing in the way of that goal is Sen. John Barrasso, R-Wyo., the chairman of the Senate Environment and Public Works Committee. Barrasso introduced legislation in October to abolish the tax credit, a move he said would save about $20 billion over the next 10 years. He has argued the market for electric vehicles is already established and “no longer needs the crutch of government assistance.”

“The idea of the subsidies had to do with trying to make sure that electric vehicles would be a viable technology,” Barrasso said. “Well, that’s clearly there.”

The tax credit came up briefly during a private meeting on Wednesday between Ohio’s senators, Republican Rob Portman and Democrat Sherrod Brown, and GM chief executive Mary Barra, according to a congressional aide familiar with the conversation. As part of the restructuring, GM said it will stop making the Chevy Cruze at its Lordstown, Ohio, plant by March and is considering closing the plant for good.

Portman told Barra that it’s difficult to help with priorities such as the electric vehicle credit when GM is moving production out of Ohio, according to the aide, who was not authorized to publicly discuss the private conversation and spoke on condition of anonymity.

One of the lobbyists working to salvage the credit for GM is Kent Hance, a former chancellor of Texas Tech University who is well connected in GOP circles, according to his online profile. Hance lists his role as a fundraiser for the campaigns of outgoing House Speaker Paul Ryan, R-Wis., Senate Majority Leader Mitch McConnell, R-Ky., House Majority Leader Kevin McCarthy, R-Calif., and others. He has known Rick Perry, the energy secretary and former Texas governor, for nearly 30 years.

GM in early August named a former Trump White House official, Everett Eissenstat, its senior vice president for global public policy, a post that oversees the company’s lobbying operations. Eissenstat, however, is not registered as a lobbyist, according to disclosure records filed with Congress. Before coming to GM, he was Trump’s deputy assistant for international economic affairs.

Under federal law, the $7,500 credit for buyers begins to phase out after a manufacturer has sold 200,000 qualifying electric vehicles. GM has estimated it will hit that threshold by the end of December, just as the Bolt will be facing new and potentially stiff competition.

Sam Abuelsamid, a senior analyst at Navigant Research, said Hyundai and Kia each will be selling compact SUVs in the U.S. beginning early next year that can travel 240 miles on a single battery charge, about the same as the Bolt. Ford will be launching a number of new plug-in hybrid models in 2019, including the Lincoln Aviator, Explorer and Escape.

“With the intensifying market shift away from cars to utility vehicles all of these are expected to be more popular than the Bolt,” Abuelsamid said. To remain competitive against the new entries, “GM will likely have to cut the (retail price) of the Bolt as well as any additional EVs they launch next year by the corresponding reduction in the tax credits,” he said.

Karl Brauer, executive publisher of Autotrader and Kelley Blue Book, said the credit is “hugely important” to electric vehicle manufacturers. Lowering the up-front cost of the vehicle typically plays a significant role in sales, he said, citing surveys that show more consumers would buy electric vehicles if the cars were affordably priced.

GM joined forces with Tesla and Nissan as well as several consumer and environmental groups to broaden its lobbying push even further. The EV Drive Coalition, which was launched in November, urged lawmakers in an open letter last week to put a provision in the must-pass government spending bill that does away with the 200,000-car limit.

“Eliminating the per-manufacturer cap will level the playing field for all EV manufacturers and spur innovation among domestic manufacturers, ensuring America’s leadership in the hyper-competitive, global auto market,” the coalition said.

Tesla hit its 200,000 mark in July and Nissan has sold nearly 128,000 electric vehicles, according to data compiled by the car shopping site Edmunds.com. Other automakers are a long way from the ceiling: Hyundai, for example, has sold 15,550 plug-in vehicles, the numbers show, while Toyota is around 94,000 in electric vehicle sales.

Jeannine Ginivan, a GM spokeswoman, said the tax credit should be modified but declined to say whether the automaker backs a specific piece of legislation that would remove the cap.

“We believe an important part of reaching a zero emissions future and establishing the U.S. as the leader in electrification is to continue to provide a federal tax credit to help make electric vehicles more affordable for all customers,” Ginivan said in an email.

In addition to GM’s in-house lobbyists, four lobbyists from Hance Scarborough, the Austin, Texas-based firm that Hance founded in 1994, are working on GM’s behalf, including Hance, according to disclosure records.

GM also contracted with two other lobbying firms earlier this year to focus on electric and automated vehicle issues: the Polaris-Hutton Group and the DS2 Group. A fourth firm, the S-3 Group, was hired by GM in 2014 and earlier this year added the tax credit to its portfolio of lobbying issues.

 
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Stocks around the world are falling Monday morning, and U.S. indexes gave up modest early gains and turned lower, hurt by sharp drops for energy and financial companies.

The British pound is dropping after the U.K. prime minister postponed a vote on its departure from the European Union, and oil has resumed its sharp slide.

Keeping score: The S&P 500 index lost 47 points, or 1.8 percent, to 2,585, as of 11 a.m. Eastern time. The Dow Jones industrial average fell 435 points, or 1.8 percent, to 23,904, and the Nasdaq composite dropped 73, or 1.1 percent, to 6,894.

U.S. indexes have been lurching up and down since October, mostly down, and the S&P 500 plunged 4.6 percent last week for its biggest loss in more than eight months, as investors felt the U.S. and China are still nowhere close to ending their trade dispute.

Volatility has been high not only week to week but also minute to minute. The S&P 500 zoomed from a gain of 0.2 percent to a loss of 1.8 percent Monday morning.

Brexit pause: British Prime Minister Theresa May postponed a vote on her deal for Britain to exit the European Union, which had been scheduled for Tuesday. She acknowledged that she would have lost the vote by a significant margin.

The pound sank to $1.2517, down from $1.2751 late Friday. The FTSE 100 stock index fell 0.5 percent.

Huawei CFO Arrest: China raised the pressure over the weekend on the United States and Canada following the detention of Huawei Chief Financial Officer Meng Wanzhou. She is suspected of trying to evade U.S. trade curbs on Iran, and she was detained while changing planes in Canada.

China summoned both the U.S. and Canadian ambassadors to meetings over the weekend, where it protested the detention and called it “extremely egregious.”

Meng’s arrest has jolted the stock market, and investors fear it is adding to the tensions between the world’s two largest economies.

Energy: Benchmark U.S. crude fell 98 cents, or 1.8 percent, to $51.66 per barrel in New York. Brent crude, the international standard, lost 40 cents to $61.27 a barrel.

It’s a resumption of the steep decline for crude’s price that began in October. Last week, crude steadied after OPEC and other major oil producers said they will reduce production by 1.2 million barrels a day starting from January. The cuts will last for six months.

Energy stocks in the S&P 500 fell 2.7 percent for the largest loss among the 11 sectors that make up the index.

Overseas markets: In Europe, Germany’s DAX lost 1.2 percent, and the CAC 40 in France declined 1.1 percent.

Asian stocks were hurt by weak economic data from Japan and China. Revised data showed the Japanese economy shrank by 2.5 percent in the third quarter, a larger decline than analysts expected. Chinese imports and exports climbed at a much slower pace in November than they had in October.

Japan’s benchmark Nikkei 225 slid 2.1 percent, South Korea’s Kospi fell 1.1 percent and Hong Kong’s Hang Seng shed 1.2 percent.

Bulking up: Nutrisystem surged 27.5 percent to $43.61 after Tivity Health agreed to buy it for $47 a share in cash and stock. That’s a 37 percent premium from the weight loss company’s closing price on Friday. Tivity stock dropped 32.7 percent to $27.32.

Bad reviews: One of Yelp’s biggest shareholders said it wants online reviews company Yelp to add new directors to its board. SQN Investors said the board hasn’t held itself responsible for strategic mistakes and weak quarterly reports, and should add representatives for shareholders.

The stock rose 2 percent to $35.27.

Bonds: The yield on the 10-year Treasury note fell to 2.83 percent from 2.85 percent late Friday. The 30-year yield fell to 3.11 percent from 3.14 percent.

Other currencies: The dollar rose to 112.94 Japanese yen from 112.64 yen late Friday. The euro slipped to $1.1375 from $1.1422.
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The International Telecommunication Union reports that for the first time in history, half of the global population is using the internet. A new report finds by the end of the year, 3.9 billion people worldwide will be online.

The report finds access to and use of information and communication technologies around the world is trending upwards. It notes most internet users are in developed countries, with more than 80 percent of their populations online. But it says internet use is steadily growing in developing countries, increasing from 7.7 percent in 2005 to 45.3 percent this year.

The International Telecommunication Union says Africa is the region with the strongest growth, where the percentage of people using the internet has increased from just over two percent in 2005 to nearly 25 percent in 2018.

The lowest growth rates, it says, are in Europe and the Americas, with the lowest usage found in the Asia-Pacific region.

In addition to data on internet usage, newly released statistics show mobile access to basic telecommunication services is becoming more predominant. ITU Senior Statistician, Esperanza Magpantay says access to higher speed mobile and fixed broadband also is growing.

“So, there is almost 96 percent of the population who are now covered by mobile population signal of which 90 percent are covered by 3G access. So, this is a high figure, and this helps explain why we have this 51 percent of the population now using the internet,” she said.

With the growth in mobile broadband, Magpantay says there has been an upsurge in the number of people using the internet through their mobile devices.

The ITU says countries that are hooked into the digital economy do better in their overall economic well-being and competitiveness. Unfortunately, it says the cost of accessing telecommunication networks remains too high and unaffordable for many.

It says prices must be brought down to make the digital economy a reality for the half the world’s people who do not, as yet, use the internet.

 

 

 
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Corruption costs the world economy $2.6 trillion each year, according to the United Nations, which is marking International Anti-Corruption Day on Sunday.

“Corruption is a serious crime that can undermine social and economic development in all societies. No country, region or community is immune,” the United Nations said.

The cost of $2.6 trillion represents more than 5 percent of global GDP.

The world body said that $1 trillion of the money stolen annually through corruption is in the form of bribes.

Patricia Moreira, the managing director of Transparency International, told VOA that about a quarter of the world’s population has paid a bribe when trying to access a public service over the past year, according to data from the Global Corruption Barometer.

Moreira said it is important to have such a day as International Anti-Corruption Day because it provides “a really tremendous opportunity to focus attention precisely on the challenge that is posed by corruption around the world.”

​Anti-corruption commitments

To mark the day, the United States called on all countries to implement their international anti-corruption commitments including through the U.N. Convention against Corruption.

In a statement Friday, the U.S. State Department said that corruption facilitates crime and terrorism, as well as undermines economic growth, the rule of law and democracy.

“Ultimately, it endangers our national security. That is why, as we look ahead to International Anticorruption Day on Dec. 9, we pledge to continue working with our partners to prevent and combat corruption worldwide,” the statement said.

Moreira said that data about worldwide corruption can make the phenomena understandable but still not necessarily “close to our lives.” For that, we need to hear everyday stories about people impacted by corruption and understand that it “is about our daily lives,” she added.

She said those most impacted by corruption are “the most vulnerable people — so it’s usually women, it’s usually poor people, the most marginalized people in the world.”

The United Nations Development Program notes that in developing countries, funds lost to corruption are estimated at 10 times the amount of official development assistance.

What can be done to fight corruption?

The United Nations designated Dec. 9 as International Anti-Corruption Day in 2003, coinciding with the adoption of the United Nations Convention against Corruption by the U.N. General Assembly.

The purpose of the day is to raise awareness about corruption and put pressure on governments to take action against it.

Tackling the issue

Moreira said to fight corruption effectively it must be tackled from different angles. For example, she said that while it is important to have the right legislation in place to curb corruption, governments must also have mechanisms to enforce that legislation. She said those who engage in corruption must be held accountable.

“Fighting corruption is about providing people with a more sustainable world, with a world where social justice is something more of our reality than what it has been until today,” she said.

Moreira said change must come from a joint effort from governments, public institutions, the private sector and civil society.

The U.S. Statement Department said in its Friday statement that it pledges “to continue working with our partners to prevent and combat corruption worldwide.”

It noted that the United States, through the U.S. Department of State and U.S. Agency for International Development, helps partner nations “build transparent, accountable institutions and strengthen criminal justice systems that hold the corrupt accountable.”

Moreira said that it is important for the world to see that there are results to the fight against corruption.

“Then we are showing the world with specific examples that we can fight against corruption, [that] yes there are results. And if we work together, then it is something not just that we would wish for, but actually something that can be translated into specific results and changes to the world,” she said.

VOA’s Elizabeth Cherneff contributed to this report.

 
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Despite repeated calls by U.S. President Donald Trump for oil production to remain steady, the Saudi-led Organization of the Petroleum Exporting Countries, along with Russia and its allies, announced Friday they would cut their pumping of crude to reduce oil flows onto the global market by 1.2 million barrels of per day, a bigger-than-expected cut. 

 

OPEC officials say there was no political motive behind the decision, arguing an oil glut forced the move and that their decision was spurred by oversupply concerns and forecasts for lower demand next year — as well as a surge of shale oil production in the U.S. 

Price slide

 

Oil economists agree that a reduction is needed to stem a further slide in prices, which fell 30 percent in October, and OPEC’s decision was praised by many market analysts. 

 

Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas, told Bloomberg: “Given how much expectations were downplayed around the outcome of this meeting, this result comes as a welcome surprise. OPEC has given the oil market a rudder that appeared largely absent.” 

 

Oil prices surged following the announcement, with a barrel of Brent crude jumping nearly 6 percent, to $63.11.  

But with the U.S. Senate determined to punish Saudi Arabia for the killing in October of journalist Jamal Khashoggi, a U.S. resident and prominent critic of the Gulf kingdom’s Crown Prince Mohammed bin Salman, some Western diplomats and analysts aren’t so sure that the Saudi-led cut was without a political motive.  

 

They argue Riyadh’s determination to force through a larger-than-expected cut was partly a warning shot in line with thinly veiled threats by Saudi officials to jolt the global economy, if the U.S. moves to impose sanctions on the kingdom for Khashoggi’s brazen killing.  

 

Pledge on sanctions

A bipartisan group of U.S. senators has vowed to sanction Saudi Arabia after a briefing by CIA Director Gina Haspel convinced them the Saudi crown prince ordered the killing, which took place Oct. 2 in the Saudi Consulate in Istanbul.  

 

U.S. Sen. Lindsey Graham, R-S.C., said he wanted to “sanction the hell out of” the Saudi government. 

 

“A cut in production is one thing, but this was much larger than was forecast; and the Saudis had to go out of their way to persuade Moscow to agree,” a senior British diplomat said. 

 

Initially, the Kremlin refused to scale back its own output at the meeting in Vienna, and Russian envoy Alexander Novak had to rush back to Moscow for talks. On Friday, the Saudi and Russian envoys haggled in Vienna for two hours, consulting their governments by phone during the bargaining, OPEC officials said. 

 

Some analysts see the Russian agreement for the production cut as further evidence of the warming ties between Russian President Vladimir Putin and the Saudi crown prince, who enthusiastically shared a high-five a hand slap at last week’s Group of 20 summit in Buenos Aires. 

 

In the run-up to the meeting featuring the OPEC countries and a so-called Russia-led super cartel of 10 oil-producing countries, including Kazakhstan, analysts had forecast that a muddled middle course would be plotted, with Saudi Arabia likely to be more cautious about defying Trump while moving to bump up prices.  

 

On Wednesday, the U.S. leader tweeted he hoped OPEC would “be keeping oil flows as is, not restricted.” He added: “The World does not want to see, or need, higher oil prices!” 

 

In October as sanctions talk flared in Washington, Saudi officials warned that the Gulf kingdom could exploit its oil status to disrupt the global economy, if it wanted. The Saudi government threatened to retaliate against any punishment such as economic sanctions, outside political pressure or even “repeated false accusations” about the Khashoggi killing, although it walked back the threat subsequently following signs that the Trump administration had no appetite for imposing sanctions on the long-term U.S. ally.  

Saudi Arabia doesn’t wield the same level of power on the oil market — thanks in part to U.S. shale oil production — as it did in 1973, when it triggered an oil embargo against Western countries for supporting Israel. However, it still wields enormous influence, analysts say. The U.S. is the third-biggest destination for Saudi crude. OPEC accounts for about one-third of global crude production. 

 

If the U.S. Congress decides to impose sanctions, the Saudis could react by reducing oil exports further and force prices to rise to $100 a barrel, some market experts said. 

 

Exemptions for importers

U.S. officials said they had expected that OPEC would decide to cut production. They said that is why U.S. Secretary of State Mike Pompeo granted exemptions last month for eight oil-importing countries to continue to buy oil from Tehran when announcing details of the reimposition of sanctions against Iran. 

 

This week, U.S. senators are due to take aim at the Saudi-led coalition fighting in Yemen and will hold an unprecedented vote on ending U.S. support for the war. 
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The International Monetary Fund says it has approved a three-year loan of about $3.7 billion for Angola, which seeks to diversify its economy and curb corruption after a new president took office last year.

The IMF said Friday that the loan aims to help the southern African country restructure state-owned enterprises and take other measures to improve economic governance.

 

Angola had experienced a surge in growth because of oil exports under former president Jose Eduardo dos Santos, but poverty and cronyism persisted. A fall in commodity prices years ago tipped the Angolan economy into crisis and showed that it was too reliant on oil.  

 

President Joao Lourenco, who succeeded dos Santos, has distanced his administration from his former boss, pledging to fight corruption and meeting with government critics.
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China’s export growth slowed in November as global demand weakened, adding to pressure on Beijing ahead of trade talks with Washington.

Exports rose 5.4 percent from a year ago to $227.4 billion, a marked decline from the previous month’s 12.6 percent increase, customs data showed Saturday. Imports rose 3 percent to $182.7 billion, a sharp reversal from October’s 20.3 percent surge.

That adds to signs a slowdown in the world’s second-largest economy is deepening as Chinese leaders prepare for negotiations with President Donald Trump over Beijing’s technology policy and other irritants.

Exports to US rise

Chinese exports to the United States rose by a relatively robust 12.9 percent from a year ago to $46.2 billion. Shipments to the U.S. market have held up as exporters rush to fill orders before additional duty increases, but forecasters say that effect will fade in early 2019.

Imports of American goods rose 5 percent to $10.7 billion, down from the previous month’s 8.5 percent growth. China’s politically volatile trade surplus with the United States widened to a record $35.5 billion.

Trump agreed during a Dec. 1 meeting with this Chinese counterpart, Xi Jinping, to postpone tariff hikes by 90 days while the two sides negotiate. But penalties of up to 25 percent imposed earlier by both sides on billions of dollars of each other’s goods still are in effect.

Companies and investors worry the battle between the two biggest economies will chill global economic growth.

Chinese economy cools

The Chinese economy grew by a relatively strong 6.5 percent from a year earlier in the quarter ending in September. But that was boosted by government spending on public works construction that helped to mask a slowdown in other parts of the economy.

An official measure of manufacturing activity fell to its lowest level in two years in November. Auto sales have shrunk for the past three months, and real estate sales are weak.

Chinese leaders have responded by easing lending controls, boosting spending on construction and promising more help to entrepreneurs who generate the state-dominated economy’s new jobs and wealth. But they have moved gradually to avoid reigniting a rise in corporate and local government debt that already is considered to be dangerously high.

Tariffs

The Trump administration imposed 25 percent duties on $50 billion of Chinese goods in July in response to complaints that Beijing steals or pressures companies to hand over technology. Washington also imposed a 10 percent charge on $200 billion of Chinese goods. That was set to rise to 25 percent in January but Trump postponed it.

Beijing responded with tariff hikes on $110 billion of American goods. Trump has threatened to expand U.S. penalties to all goods from China.

Washington, Europe and other trading partners complain plans such as “Made in China 2025,” which calls for creating Chinese global champions in artificial intelligence, robotics and other fields, violate Beijing’s market-opening obligations.

Trump said Beijing committed to buy American farm goods and cut auto import tariffs as part of the tariff cease-fire. Chinese officials have yet to confirm details of the agreement.

China’s Commerce Ministry expressed confidence the two sides can reach a deal during the 90-day delay. That indicates Beijing sees resolving the conflict as too important to allow it to be disrupted by last week’s dramatic arrest in Canada of an executive of Huawei Technologies Ltd., one of China’s most prominent companies, on accusations of violating trade sanctions on Iran.

Big trade disputes

Private sector analysts say that there is little time to resolve sprawling conflicts that have bedeviled U.S.-Chinese trade for years. That suggests Beijing will need to find ways to persuade Trump to extend his deadline.

Also in November, China’s exports to the 28-nation European Union rose 11.4 percent over a year earlier to $35.9 billion, down from October’s 12 percent growth. Imports rose 13.2 percent to $24.4 billion.

China’s trade surplus with the EU widened by 6.4 percent over a year earlier to $11.5 billion.
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Wall Street capped a turbulent week of trading Friday with the biggest weekly loss since March as traders fret over rising trade tensions between Washington and Beijing and signals of slower economic growth. 

The latest wave of selling erased more than 550 points from the Dow Jones Industrial Average, bringing its three-day loss to more than 1,400. For the week, major indexes are down more than 4 percent. 

Worries that the testy U.S.-China trade dispute and higher interest rates will slow the economy has made investors uneasy, leading to volatile swings in the market from one day to the next.

Dispute between U.S. and China 

On Monday, news that the U.S. and China had agreed to a 90-day truce in their escalating trade conflict drove stocks sharply higher, adding to strong gains the week before. The next day, as doubts mounted over the likelihood of a swift resolution to the trade dispute, stocks sank. On Friday, another early rally faded into another sharp drop.

“We’re in a market where investors just want to sell any upside that they see,” said Lindsey Bell, investment strategist at CFRA. “The volatility we’ve seen the last couple of weeks has been pretty extreme in both directions.”

The S&P 500 index fell 62.87 points, or 2.3 percent, to 2,633.08. The index has ended lower three out of the last four weeks. The Dow dropped 558.72 points, or 2.2 percent, to 24,388.95. 

The Nasdaq composite slid 219.01 points, or 3 percent, to 6,969.25. The Russell 2000 index of small-company stocks gave up 29.32 points, or 2 percent, to 1,448.09.

The S&P 500 and Dow are now in the red for the year again. The Nasdaq was holding on to a modest gain. 

Markets upset since October 

Volatility has gripped the market since early October, reflecting investors’ worries that the Federal Reserve might overshoot with its campaign of rate increases and hurt U.S. economic growth.

Traders also fear that a prolonged trade dispute between the U.S. and China could crimp corporate profits and that tariffs will raises costs for businesses and consumers. Uncertainty over those issues helped drive the market’s sell-off this week. 

“The Fed has taken the punch bowl away in getting back to rates where they are today,” said Doug Cote, chief market strategist for Voya Investment Management. “We’re also going to get back to more normal volatility.”

At the same time, traders are also worried about a sharp drop in long-term bond yields as investors plow money into Treasurys, which tends to happen when investors expect slower economic growth. 

Technology stocks accounted for much of the market’s broad slide Friday. Chipmaker Advanced Micro Devices slid 8.6 percent to $19.46.

Health care stocks take big hit

Health care sector stocks, the biggest gainer in the S&P 500 this year, took some of the heaviest losses. Medical device company Cooper lost 12.3 percent to $243.01.

Utilities, which investors favor when they’re fearful, eked out a slight gain. PPL Corp. gained 2.8 percent to $31.09.

Oil prices rose after OPEC countries agreed to reduce global oil production by 1.2 million barrels a day for six months, beginning in January. The move would include a reduction of 800,000 barrels per day from OPEC countries and 400,000 barrels per day from Russia and other non-OPEC nations. 

The news, which had been widely anticipated, pushed crude oil prices higher. U.S. benchmark crude rose 2.2 percent to $52.61 a barrel in New York. Brent crude, used to price international oils, gained 2.7 percent to $61.67 a barrel in London.

The Labor Department said U.S. employers added 155,000 jobs in November, a slowdown from recent months but enough to suggest that the economy is expanding at a solid pace despite sharp gyrations in the stock market. The unemployment rate remained at 3.7 percent, nearly a five-decade low, for the third straight month. 

Bond prices rose, sending yields slightly lower. The yield on the 10-year Treasury fell to 2.86 percent from 2.87 percent late Thursday. 

The decline in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on banks, which make more money when rates are rising. Morgan Stanley slid 3 percent to $41.32.

The dollar rose to 112.66 yen from 112.65 yen late Thursday. The euro strengthened to $1.1418 from $1.1373.

Small gains for gold, silver

Gold gained 0.7 percent to $1,252.60 an ounce. Silver climbed 1.3 percent to $14.70 an ounce. Copper added 0.6 percent to $2.76 a pound.

In other commodities trading, wholesale gasoline climbed 3.7 percent to $1.49 a gallon. Heating oil rose 1.5 percent to $1.89 a gallon. Natural gas gained 3.7 percent to $4.49 per 1,000 cubic feet.

In Europe, Germany’s DAX dipped 0.2 percent while the CAC 40 in France rose 0.7 percent. Britain’s FTSE 100 jumped 1.1 percent. Major indexes in Asia finished mostly higher. 

Japan’s benchmark Nikkei 225 added 0.8 percent and Australia’s S&P/ASX 200 gained 0.4 percent. South Korea’s Kospi rose 0.3 percent. Hong Kong’s Hang Seng gave up 0.3 percent. 

 

            
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