China faces possible hit to credit rating if the trade war isn’t resolved

Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies. An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.” Reductions in credit ratings often translate to higher interest rates for a country’s bonds. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $12


Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies. An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.” Reductions in credit ratings often translate to higher interest rates for a country’s bonds. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $12
China faces possible hit to credit rating if the trade war isn’t resolved Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jeff cox
Keywords: news, cnbc, companies, billion, isnt, chinas, tariff, faces, china, ratings, trade, resolved, chinese, hit, impact, possible, tariffs, credit, rating, war


China faces possible hit to credit rating if the trade war isn't resolved

“The tariff war is negative for China especially at a time when its policy makers are battling problems of rising debt and increasing leverage in its economy,” analysts at ratings agency DBRS said in a note. “The economic impact on China of rising tariffs would be broader than just via its trade with the U.S.”

China’s credit remains strong despite a weakening economy and a high-stakes tariff battle it is engaged in with the U.S. However, should the impasse linger on, the damages could become greater and start having some deeper impacts.

Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies.

An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.”

Reductions in credit ratings often translate to higher interest rates for a country’s bonds. China’s debt is currently equivalent to $5.3 trillion in U.S. dollars, or about 43% of its GDP.

DBRS, the fourth-largest ratings agency in the world, has China rated “A,” which is its third-highest classification. However, it recently changed the outlook to negative as the tariff issues pile up.

“China remains a middle-income country that generally lacks the historic openness, institutional credibility and transparency of the major global financial centers,” the firm said in an earlier note.

Negotiators on both sides say they remain optimistic a deal can be reached, though markets have been focused on the more immediate impacts of existing tariffs and threats of ones to come.

The U.S. this month hiked its tariffs to 25% from 10% on $200 billion of Chinese goods. China retaliated by raising its tariff rate from 10% to 20%-25% on $60 billion of U.S. imports. The U.S. is seeking a number of concessions, particularly focused on opening Chinese markets and halting the theft of intellectual property and forced technology transfers.

Should the U.S. not get what it is seeking, President Donald Trump has threatened to slap tariffs on another $300 billion in Chinese imports. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $120.3 billion in exports. The deficit through the first three months of 2019 was just shy of $80 billion.

Other ratings agencies have noted the danger to further intensifying relations.

“An abrupt breakdown in trade talks, if that were to occur, will inject considerable policy uncertainty, increase risk aversion and lead to an abrupt repricing of risk assets globally,” Moody’s analyst Madhavi Bokil said in a note. “In China, increased US tariffs will have a significant negative effect on exports amid an already slowing economy.”

Fitch said China could offset the additional tariffs with more monetary easing, but noted it expects GDP to fall to 6.1% this year from 6.6% in 2018.

Should the U.S. extend its sanctions, that could knock off another half-point from the growth figure, the agency said.

“But if trade tensions eventually lead to blanket U.S. tariffs on all Chinese goods, the potential rating impact could be greater, as it may tempt the authorities to abandon their restrained approach to policy easing, and adopt credit stimulus measures that exacerbate the country’s already significant financial vulnerabilities,” said Brian Coulton, Fitch’s economist.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jeff cox
Keywords: news, cnbc, companies, billion, isnt, chinas, tariff, faces, china, ratings, trade, resolved, chinese, hit, impact, possible, tariffs, credit, rating, war


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Trump’s latest tough trade action could hit already struggling chip stocks

Chip stocks have been struggling of late as trade tensions between China and the U.S. increase. The move could hurt semiconductor companies like Skyworks Solutions, Qorvo, Broadcom, Micron Technology and Analog Devices since they have considerable revenue exposure to Huawei. Micron, meanwhile, has had 13% of its sales come from Huawei the past two quarters while Analog Devices’ exposure ranges between in the mid-to-high single digits. The administration’s declaration of a national emergency foll


Chip stocks have been struggling of late as trade tensions between China and the U.S. increase. The move could hurt semiconductor companies like Skyworks Solutions, Qorvo, Broadcom, Micron Technology and Analog Devices since they have considerable revenue exposure to Huawei. Micron, meanwhile, has had 13% of its sales come from Huawei the past two quarters while Analog Devices’ exposure ranges between in the mid-to-high single digits. The administration’s declaration of a national emergency foll
Trump’s latest tough trade action could hit already struggling chip stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: fred imbert
Keywords: news, cnbc, companies, exposure, trade, chinese, micron, stocks, struggling, trump, chip, china, hit, worth, trumps, devices, action, huawei, skyworks, tough, latest, analog


Trump's latest tough trade action could hit already struggling chip stocks

Chip stocks have been struggling of late as trade tensions between China and the U.S. increase. The Trump administration’s latest move on that front could add pressure to the chipmakers.

President Donald Trump declared on Wednesday a national emergency over threats to American technology, which was followed by the Commerce Department adding China’s Huawei Technologies to its Bureau of Industry and Security (BIS) Entity List. This move makes it harder for U.S. companies to do business with the Chinese telecom giant.

The move could hurt semiconductor companies like Skyworks Solutions, Qorvo, Broadcom, Micron Technology and Analog Devices since they have considerable revenue exposure to Huawei. Morgan Stanley estimates that about 10% of Skyworks and Qorvo’s sales come from Huawei while Broadcom’s exposure is in the mid-single digits. Micron, meanwhile, has had 13% of its sales come from Huawei the past two quarters while Analog Devices’ exposure ranges between in the mid-to-high single digits.

“We believe the potential sanctions will push Huawei and other Chinese OEMs to start using more Japanese suppliers and local solutions, despite potentially higher costs compared to US component suppliers,” Jun Zhang, China TMT analyst at Rosenblatt Securities, said in a note. “We also think the potential ban on Huawei may drive Chinese consumers to support Huawei and boycott US brand products,” including Apple.

The administration’s declaration of a national emergency follows a tariff hike on $200 billion worth of Chinese goods earlier this month. China then retaliated by raising levies on $60 billion worth of U.S. products.

These moves have knocked down the S&P 500 by more than 2% since May 3. Chipmakers have also struggled. Through Wednesday’s close, Micron and Skyworks have fallen 11.4% and 10.1%, respectively, in that time period. Analog Devices is down 7.8% in that time period while Broadcom and Qorvo have lost 3.6% and 2.4%, respectively.

“While this is still only a threat, the implications for the semi supply chain could be very material,” Mizuho Securities analyst Vijay Rakesh wrote in a note, referring to the Huawei news. He said Huawei has between 20% and 30% of the global networking and 5G infrastructure market share.

—CNBC’s Michael Bloom contributed to this report.

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Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: fred imbert
Keywords: news, cnbc, companies, exposure, trade, chinese, micron, stocks, struggling, trump, chip, china, hit, worth, trumps, devices, action, huawei, skyworks, tough, latest, analog


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Latest data shows surprise slowing in US, China economies as trade war escalates

“The real message today is that both the economic data from the U.S. and China have disappointed. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consu


“The real message today is that both the economic data from the U.S. and China have disappointed. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consu
Latest data shows surprise slowing in US, China economies as trade war escalates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, tariffs, manufacturing, surprise, escalates, war, production, hit, china, chinas, economies, data, sales, gain, trade, goods, latest, shows, slowing


Latest data shows surprise slowing in US, China economies as trade war escalates

A worker cuts a steel coil at the Novolipetsk Steel PAO steel mill in Farrell, Pennsylvania, March 9, 2018. Aaron Josefczyk | Reuters

Consumer and industrial activity in both the U.S. and China slowed in April, even before the world’s two biggest economies entered the latest phase of an escalating trade war that could take a bite out of global growth. “The real message today is that both the economic data from the U.S. and China have disappointed. They’re like two boys in the sandbox that are spitting on each other, and it could get a lot worse,” said Marc Chandler, global market strategist at Bannockburn Global Forex. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods.

Economists see about a 0.4 to 0.5% hit on China’s GDP and about a 0.1% hit to the U.S. from the higher tariffs. Strategas Research estimates the higher tariffs would cut into U.S. growth by 0.1% for every two months the raised tariffs are in place, or 0.5% a year. Trump also threatened 25% tariffs on another $325 billion in Chinese goods, which economists say could hit Chinese sales and send prices higher for U.S. consumers. The impact of those tariffs would be even greater on GDP. China’s retail sales rose 7.2% in April, the slowest pace in 16 years and less than March’s 8.7% and forecasts of 8.6%. China’s April industrial production rose 5.4%, less than the 6.5% expected or the 8.5% gain in March. “This is the first bit of cleaner data we’re getting, and it paints a much less rosy picture of the economy than a lot of people thought was happening,” said Gareth Leather of Capital Economics. Leather said seasonal factors could have masked weakness in March data, which showed some improvement and had appeared to be signs of green shoots and recovery. “This really quashes those hopes for the time being.” U.S. retail sales slid 0.2% in April, down from the surprise jump of 1.7% gain in March. Car sales fell 1.1% last month, while sales at electronics and appliance stores lost 1.3%. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consumer, about 70% of the U.S. economy. U.S. industrial production, reflecting total production at factories, utilities and mines, fell 0.5% after a 0.2% gain in March. Manufacturing output dropped 0.5%, led by a 2.6% decline in motor vehicles and parts, the third decrease in four months and the latest manufacturing report to show softness.

Tariff impact

“Autos had a weird swing, as a result of excess inventories,” said Michelle Meyer, chief U.S. economist at Bank of America Merrill Lynch. “I’ll be paying pretty close attention to manufacturing data, the survey datas, the confidence measures. It’s going to be very important to watch how the economy is going to fare around the escalation. Manufacturing has weakened already.” She said that manufacturing has been falling off since peaking last summer. She said the trade wars have had an impact on the manufacturing sector, with about 59% of companies in the ISM semi-annual survey saying that the tariffs have led to an increase in the price of goods produced. Meyer described the weaker April retail sales data as “noise,” but said it bears watching if the tariffs go into place on the $325 billion in goods since they would directly affect many consumer products. Manufacturers have been reporting impacts from tariffs, with 59% saying production costs went up as a result. Markets responded to the news from both countries by ramping up expectations for central bank and other policy easing. U.S. fed funds futures signaled expectations for more than one quarter-point rate cut this year, while China’s stock markets rallied on expectations of more fiscal and monetary stimulus. “Both economies softened before the tariff truce ended, but what’s interesting is still we’re not talking about recessionary levels. If China grows less than 6%, that’s a big deal,” said Chandler. He said U.S. growth currently looks to be averaging 2.4% in the first half.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, tariffs, manufacturing, surprise, escalates, war, production, hit, china, chinas, economies, data, sales, gain, trade, goods, latest, shows, slowing


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Wall Street analysts are sticking by these stocks hit hard by the trade war

The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday. CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes. Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. Wall Street will be watching Alibaba’s earn


The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday. CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes. Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. Wall Street will be watching Alibaba’s earn
Wall Street analysts are sticking by these stocks hit hard by the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: michael bloom
Keywords: news, cnbc, companies, war, sticking, buy, analysts, wall, earnings, trade, hard, street, tariffs, services, hit, chinese, china, company, stocks


Wall Street analysts are sticking by these stocks hit hard by the trade war

Apple CEO Tim Cook attends the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018.

The Dow dropped a s much 719 points on Monday as the trade war continued its escalation but is higher in early trading on Tuesday.

CNBC did a deep dive through sell-side stock research since the trade war escalated to find companies that analysts are singling out in their respective coverage universes.

Wall Street analysts aren’t backing down from their buy ratings on stocks that have been hit hard in the latest trade battle between the U.S. and China. While the two countries continue slapping tariffs on each other, many analysts say clients should use the market weakness as a time to buy these beaten down shares because the risks are overblown.

Wall Street will be watching Alibaba’s earnings report on Wednesday for any signs of the trade war effect on the Chinese e-commerce giant.

The most recent actions by the White House have brought “greater uncertainty,” to the company, but SunTrust analysts are sticking with their buy rated call. “The latest data out of National Bureau of Statistics of China suggests that the macro environment has been improving, a positive for Chinese consumption, and for BABA in particular,” analyst Youssef Squali said.

“Long term we view BABA as a winner considering 1) its dominance of the Chinese ecom. mkt and the insatiable appetite for China’s growing middle class, 2) it’s a 25%+ compounder over the next 5 yrs (our ests), and 3) its portfolio of strategic invests,” he added.

Shares of the company are down 4% over the last week.

Apple has also been hit hard by the ongoing trade uncertainty, but Wedbush analysts say things might not be as bad as they appear.

“That said, for Apple in particular we believe the way things stand today the bark will be worse than the bite for Cupertino around China headwinds and we would be buyers of the name on weakness,” said analyst Dan Ives who’s keeping his outperform rating on the stock.

Apple, which was the worst performer on the Dow on Monday, is down more than 8% over the last week.

Despite the trade dispute, Credit Suisse analysts are not backing down from their calls on some business services stocks.

Alarm.com, provides cloud services for remote control home monitoring services and has an outperform rating at the firm.

The company recently reported earnings and stated that tariffs were indeed having an effect.

“ALRM highlighted on its most recent earnings call that higher tariffs have modestly impacted hardware sales,” analyst Kevin McVeigh said.

The stock is down more than 15% over the last week.

Here are other buy-rated stocks analysts are sticking by in the trade war:


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: michael bloom
Keywords: news, cnbc, companies, war, sticking, buy, analysts, wall, earnings, trade, hard, street, tariffs, services, hit, chinese, china, company, stocks


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Retailers to take a hit: Trade war could cause ‘widespread store closures’

Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures. “The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures


Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures. “The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures
Retailers to take a hit: Trade war could cause ‘widespread store closures’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, trump, struggling, 25, trade, list, cause, goods, hit, tariffs, retailers, closures, store, chinese, widespread


Retailers to take a hit: Trade war could cause 'widespread store closures'

Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures.

The White House on Monday evening released a fresh list for about $300 billion in Chinese goods that President Donald Trump has said he’s contemplating hitting with tariffs as high as 25%. The list includes everything from clothing and sneakers to sporting goods and other accessories, often found at the mall.

“The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.”

Just last week, the Trump administration raised tariffs to 25% from 10% on $200 billion worth of Chinese goods. But retailers, for the most part, were unscathed, with many of the items impacted by that hike hurting agricultural workers. Furniture, handbags and some consumer electronics were on that list, but not apparel and shoes.

Then, China retaliated on Monday by raising tariffs on about $60 billion of U.S. goods.

And now the Trump administration has proposed a new list that targets items like performance wear, windbreakers, headbands, gloves, bathing suits and ski suits.

UBS said it was already calling for nearly 21,000 stores to close by 2026 in the U.S. But now, it said a new round of tariffs could cause more than 50% of those closures to happen within the course of one year, rather than four, as it was estimating. And this is only looking a publicly traded retailers, Sole said. “We continue to think the apparel and footwear consumer’s willingness to spend remains tepid at best.”

Many retailers — and specifically those that sell clothing — have already been struggling, without the threat of tariffs hanging over them. Companies like Victoria’s Secret, Gap, Gymboree, Chico’s, Payless Shoesource and Charlotte Russe have been shutting stores, struggling to find ways to differentiate themselves from popular fast-fashion brands like Zara, and up-start brands like Everlane, Rockets of Awesome and ThirdLove.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, trump, struggling, 25, trade, list, cause, goods, hit, tariffs, retailers, closures, store, chinese, widespread


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These charts show Trump’s trade war could hit his base of voters most

It’s not surprising that Louisiana tops the list, since it is a large U.S. producer of so beans and also the top exporter of soybeans. Chinese imports of U.S. soybeans fell sharply in the second half of last year, and then flat lined until picking up in January and February, as trade talks progressed. Purchases by Mexico and the European Union surpassed those of China during the second half. Other major producers of soybeans include Ohio, Illinois, Indiana, North Dakota and Michigan, all states


It’s not surprising that Louisiana tops the list, since it is a large U.S. producer of so beans and also the top exporter of soybeans. Chinese imports of U.S. soybeans fell sharply in the second half of last year, and then flat lined until picking up in January and February, as trade talks progressed. Purchases by Mexico and the European Union surpassed those of China during the second half. Other major producers of soybeans include Ohio, Illinois, Indiana, North Dakota and Michigan, all states
These charts show Trump’s trade war could hit his base of voters most Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: patti domm, kevin lamarque
Keywords: news, cnbc, companies, louisiana, exporter, trade, larger, voters, second, war, hit, fell, charts, half, soybeans, base, illinois, trumps, ohio


These charts show Trump's trade war could hit his base of voters most

It’s not surprising that Louisiana tops the list, since it is a large U.S. producer of so beans and also the top exporter of soybeans. China chose to strike back at the U.S. by going after the crop. On Thursday, futures fell to the lowest price since December, 2008.

Chinese imports of U.S. soybeans fell sharply in the second half of last year, and then flat lined until picking up in January and February, as trade talks progressed. Purchases by Mexico and the European Union surpassed those of China during the second half. Even Canada became a larger importer of soy beans at the end of last year.

Other major producers of soybeans include Ohio, Illinois, Indiana, North Dakota and Michigan, all states that voted for the president.

Among the biggest exporters are Ohio, Illinois, and Iowa but Louisiana is much larger. Washington state was the second largest exporter, but it is a blue state.

WATCH: Beijing preparing to play hard ball on trade


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: patti domm, kevin lamarque
Keywords: news, cnbc, companies, louisiana, exporter, trade, larger, voters, second, war, hit, fell, charts, half, soybeans, base, illinois, trumps, ohio


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Wolters Kluwer accounting giant hit by malware, causing ‘quiet panic’

After the attack, Wolters Kluwer to many of its systems offline, including “communications systems,” to prevent the malware from spreading further. The accountant said he was still unable to access documents stored in Wolters Kluwer cloud servers as of 2:20 p.m. On Wednesday afternoon, Wolters Kluwer provided the accountant’s firm with a back-up customer service number. A cybersecurity professional at one Big Four accounting firm said she had received reassurances from Wolters Kluwer that accoun


After the attack, Wolters Kluwer to many of its systems offline, including “communications systems,” to prevent the malware from spreading further. The accountant said he was still unable to access documents stored in Wolters Kluwer cloud servers as of 2:20 p.m. On Wednesday afternoon, Wolters Kluwer provided the accountant’s firm with a back-up customer service number. A cybersecurity professional at one Big Four accounting firm said she had received reassurances from Wolters Kluwer that accoun
Wolters Kluwer accounting giant hit by malware, causing ‘quiet panic’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-08  Authors: kate fazzini, hill street studios llc, digitalvision, getty images
Keywords: news, cnbc, companies, attack, malware, wolters, information, speak, accounting, quiet, firm, panic, causing, service, kluwer, accountant, including, hit, giant


Wolters Kluwer accounting giant hit by malware, causing 'quiet panic'

The attack started around 8am Eastern Time on Monday. Queen said she could not yet release information on the specific type of attack against the company. But the incident is reminiscent of the NotPetya ransomware attacks of 2017, which spread quickly throughout firms, knocking out services including voice and email, and rendering huge databases of documents inaccessible.

After the attack, Wolters Kluwer to many of its systems offline, including “communications systems,” to prevent the malware from spreading further. This made it difficult for accountants and IT staff to reach the company for information about the incident.

“It really gave us the opportunity to investigate the problem safely,” Queen explained. “It takes time to gather information, and we are informing our customers and employees about the situation, updating them as best we can.”

One accountant in the Southeast said his investment firm uses to store client tax returns, working papers and other important information. He asked to speak to CNBC on background because he is not authorized by his employer to speak to media.

The accountant said he was still unable to access documents stored in Wolters Kluwer cloud servers as of 2:20 p.m. ET Wednesday, and that his firm was unable to get much information from the company because of the downed communications channels, including customer service numbers he said his firm typically uses.

“Since Tuesday, it was the same thing, no new information,” he said.

On Wednesday afternoon, Wolters Kluwer provided the accountant’s firm with a back-up customer service number. When called, the new technical support number yielded a message saying “we do not have a specific timeline for when we expect to have service fully restored.”

A cybersecurity professional at one Big Four accounting firm said she had received reassurances from Wolters Kluwer that account information had not been accessed. But she also said her firm took additional precautions to “limit any possible exposure” to the malware attack through the accounting giant’s technology connections to the software company.

“We’re, of course, watching it closely and having our own people look at the problem,” she said. The cybersecurity professional asked to remain anonymous because she is not authorized to speak to media.

The accountant from the Midwest-based accounting firm said that data loss was his “primary concern.” But he said he’d only received one call from a client asking about data.

“I’d characterize it as a bit of a ‘quiet panic’ right now in the corporate accounting world, without a lot of information,” he said.

For the clients who need to file by May 15, the accountant said he is coming up with a back-up plan: “Do it by hand.”


Company: cnbc, Activity: cnbc, Date: 2019-05-08  Authors: kate fazzini, hill street studios llc, digitalvision, getty images
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BMW quarterly profit tumbles 78%, hit by 1.4 billion euro legal provision

BMW’s first-quarter operating profit fell 78 percent to 589 million euros, despite higher deliveries of luxury vehicles, as the carmaker felt the effects of higher investment spending and a 1.4 billion euro ($1.6 billion) legal provision. The European Commission last month told German carmakers they face hefty fines for alleged collusion in the area of emissions filtering technology. Adding to the downbeat tone, the company reiterated that it expects group profit before tax to be well below the


BMW’s first-quarter operating profit fell 78 percent to 589 million euros, despite higher deliveries of luxury vehicles, as the carmaker felt the effects of higher investment spending and a 1.4 billion euro ($1.6 billion) legal provision. The European Commission last month told German carmakers they face hefty fines for alleged collusion in the area of emissions filtering technology. Adding to the downbeat tone, the company reiterated that it expects group profit before tax to be well below the
BMW quarterly profit tumbles 78%, hit by 1.4 billion euro legal provision Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07
Keywords: news, cnbc, companies, provision, 78, euros, analyst, euro, billion, tumbles, profit, higher, quarterly, legal, hit, firstquarter, fell, bmw, electric, million, spending


BMW quarterly profit tumbles 78%, hit by 1.4 billion euro legal provision

BMW’s first-quarter operating profit fell 78 percent to 589 million euros, despite higher deliveries of luxury vehicles, as the carmaker felt the effects of higher investment spending and a 1.4 billion euro ($1.6 billion) legal provision.

The European Commission last month told German carmakers they face hefty fines for alleged collusion in the area of emissions filtering technology. BMW denies participating in anti-trust activities and is contesting the allegations.

Adding to the downbeat tone, the company reiterated that it expects group profit before tax to be well below the previous year’s level.

BMW’s first-quarter earnings before interest and taxes were below the 666 million euros forecast in an analyst poll, weighed down by a 36 percent jump in spending on property, plants and equipment to convert its factories to build electric cars.

Analysts said BMW’s results were underwhelming, adding that sales of electric and hybrid cars were not stellar. Shares fell 1 percent after the market opened.

“Business is not doing well at BMW,” NordLB analyst Frank Schwope said. That view was shared by Evercore ISI analyst Arndt Ellinghorst who said: “BMW has entered a period of weakness. The question is, how long will it last?”


Company: cnbc, Activity: cnbc, Date: 2019-05-07
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Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat

“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ” “My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said. Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalati


“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ” “My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said. Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalati
Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, gave, trade, tariff, apple, confidence, cramer, china, dow, numbers, stocks, saying, didnt, hit, overplayed, trump, threat


Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat

People are saying that American companies that didn’t reduce their China exposure after months and months of watching Washington and Beijing clash on trade have only themselves to blame, CNBC’s Jim Cramer reported Tuesday.

“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ”

“My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. That’s when things changed. In other words, the Chinese played a little tougher but they overplayed their hand is what my people say. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said.

“I am saying 12:01 Friday will be different,” added the “Mad Money” host, referring to the midnight deadline later this week that President Donald Trump set for increases in China tariffs from 10% to 25% if trade talks don’t make progress.

U.S. stocks opened sharply lower Tuesday on trade concerns. The Dow Jones Industrial Average on Monday was off as much as 471 points but was able to recoup much of those losses by the close.

Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalation in the trade war, including Apple, Caterpillar and Boeing.

“So who’s hurting the Dow?” asked Cramer. “Boeing, but they have a lot of orders. Caterpillar, they didn’t move out fast enough. Apple, who knows what their game is.”

Correction: Apple shares fell Monday. An earlier version misstated their move.


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, gave, trade, tariff, apple, confidence, cramer, china, dow, numbers, stocks, saying, didnt, hit, overplayed, trump, threat


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Trump’s escalated trade war with China could hit California ports especially hard

They say the major California ports, which serve as a gateway to trade with China, have already been hit on the export side due to Beijing’s retaliatory tariffs on U.S. agricultural and other products. For one, China represents about 60% of the trade volumes at the Port of Los Angeles, the busiest container port in the nation. “On the export side, we’ve been hammered,” said Gene Seroka, executive director of the Port of Los Angeles. Experts warn California ports could see a further slowdown in v


They say the major California ports, which serve as a gateway to trade with China, have already been hit on the export side due to Beijing’s retaliatory tariffs on U.S. agricultural and other products. For one, China represents about 60% of the trade volumes at the Port of Los Angeles, the busiest container port in the nation. “On the export side, we’ve been hammered,” said Gene Seroka, executive director of the Port of Los Angeles. Experts warn California ports could see a further slowdown in v
Trump’s escalated trade war with China could hit California ports especially hard Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: jeff daniels
Keywords: news, cnbc, companies, california, especially, port, trumps, impact, los, china, hit, war, say, ports, escalated, long, hard, tariffs, trade


Trump's escalated trade war with China could hit California ports especially hard

An American flag flies as cranes for shipping containers stand in the distance at the Port of Los Angeles.

LOS ANGELES — An escalation of trade tensions between the U.S. and China, including President Donald Trump’s threat to punish Beijing with additional tariffs, could deal a severe blow to California’s ports and economy, potentially putting at risk thousands of jobs, according to experts.

They say the major California ports, which serve as a gateway to trade with China, have already been hit on the export side due to Beijing’s retaliatory tariffs on U.S. agricultural and other products. For one, China represents about 60% of the trade volumes at the Port of Los Angeles, the busiest container port in the nation.

On Sunday, Trump tweeted he was prepared to increase tariffs from 10% to up to 25% on $200 billion of Chinese goods this week. In February, Trump announced he would delay an increase in Chinese tariffs, citing progress in talks — and then in early April the president indicated a deal was “very close.”

“On the export side, we’ve been hammered,” said Gene Seroka, executive director of the Port of Los Angeles. “We call for a negotiated settlement so we can get moving in the direction that we need to.”

Seroka said exports to China last year declined by about 25%, and as a region and port declined on exports to China by about 22%. He said cargo that goes through the port includes items not only produced in California but coming via rail from Midwestern states, including soybeans.

“We imported a heck of a lot more last year than we exported,” he said.

Besides food and agricultural items, Seroka said other sectors already hit by the trade war on the export side are electronic products, household goods and recyclables. He said many were down double-digit percentage levels in 2018 from the prior year.

Overall, California represented a 15.4% share of total U.S. exports to China in the year-to-date period through February, according to U.S. Census Bureau data. The Golden State also accounted for nearly 30% of all imports from China, which includes goods received at seaports and airports.

Experts warn California ports could see a further slowdown in volumes of trade between the U.S. and China from new tariffs.

“The impact of that will be felt most directly at the ports of LA and Long Beach, and all of the tens of thousands of people whose livelihoods are directly tied to the fluid movement of containers through those two maritime gateways,” said Jock O’Connell, a Sacramento, California-based international trade advisor for Beacon Economics, a research and consulting firm. “That in itself could have a very dramatic effect on employment in Southern California.”

Jobs at risk include dock workers and truckers, as well as rail and other trade-related jobs.

According to Los Angeles County Economic Development Corp. estimates, the international trade sector is responsible for over 160,000 jobs in that county alone. Other estimates indicate the twin LA and Long Beach ports represent more than 500,000 jobs when including the five-county Southern California region.

“We’re concerned about the potential impact, not only with regard to the tariff as it applies to Chinese imports but of course the expected action by China — some form of retaliation on American exporters,” said Mario Cordero, executive director of California’s Port of Long Beach, the nation’s second-largest container port. “Any time you have market uncertainty by way of tariff applications, I think that does put an additional factor that could impact the economy.”

Also, on the import side, experts say the uncertainty of not knowing how long the trading war will last and where it will go is a headache for U.S. retailers and others. Last year, some importers rushed to beat increased tariffs of 25% that the administration had previously threatened would go into effect Jan. 1, 2019.

So far, observers say expansion of tariffs will likely impact everything from clothing and footwear to consumer electronics.

“The public will definitely begin to feel the impact of the tariffs,” said O’Connell. “That will happen nationally, but to the extent that California consumers are sensitive to higher prices because of other high costs of living here, that will have a particularly egregious effect.”

Moreover, O’Connell said he expects Beijing will likely retaliate if they can’t work things out in Washington.

O’Connell said China could impose new tariffs on electronic components and chips, including items made by companies such as San Diego-based Qualcomm. The economist added that Boeing commercial aircraft also could face tariffs from China and noted that up to 2,600 vendors in California supply components on those planes.

China’s foreign ministry indicated Monday that a trade delegation still plans to visit Washington later this week. However, the ministry didn’t say whether the delegation would be headed by a high-level trade official, such as Vice Premier Liu He.

“It is concerning in terms of the length of the trade war and tariff discussions,” said Cordero. “However, we remain optimistic that there will be some resolution.”

— Graphics by CNBC’s John Schoen.


Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: jeff daniels
Keywords: news, cnbc, companies, california, especially, port, trumps, impact, los, china, hit, war, say, ports, escalated, long, hard, tariffs, trade


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