Labor tensions flare at American Airlines over hundreds of canceled flights

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. A U.S. federal court in Texas this week issued a permanent injuncti


Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. A U.S. federal court in Texas this week issued a permanent injuncti
Labor tensions flare at American Airlines over hundreds of canceled flights Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: leslie josephs
Keywords: news, cnbc, companies, united, mechanics, american, hundreds, contract, labor, max, airlines, canceled, flights, work, flare, southwest, workers, tensions, unions


Labor tensions flare at American Airlines over hundreds of canceled flights

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019.

American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. Now the airline wants compensation from the unions.

A U.S. federal court in Texas this week issued a permanent injunction against the mechanics unions for the slowdown that American alleged in a suit this spring. A day later, Fort Worth-based American Airlines, said it would seek damages from the unions — the Transport Workers Union of America and the International Association of Machinists and Aerospace Workers — saying they violated earlier court orders to resume usual work levels.

The unions, which represent the airline’s more than 12,000 mechanics, have denied the allegations.

The unions have caused “enormous financial losses to American, and untold harm in lost customer good will,” American said in its filing Tuesday. It said the amount would be determined at a hearing.

The cancellations and more than 200 delays of over two hours are compounding operational challenges at American, which like Southwest and United, has canceled thousands of flights since its new Boeing 737 Max planes were grounded in mid-March after two fatal crashes.

American last month said the Max grounding, which is now in its six month, and the mechanics’ dispute drove up its nonfuel costs in the second quarter by 5% from a year earlier.

The airline’s stock has trailed its closest competitors this year, falling 18% on Wednesday to a three-year low. Delta is up close to 15%, Southwest has risen more than 3% and United is down close to 3%.

“It would make no sense to not comply” with the judge’s orders to work at a regular pace, said TWU President John Samuelsen, adding that by complying “we will achieve contract justice for American Airlines workers.”

Work groups across airlines are clamoring for higher wages and better working conditions as the industry, better known for boom-and-bust cycles, heads toward its 10th consecutive year of profits.

Earlier this year, Southwest had a similar dispute with its mechanics, but later reached a contract with the group, their first in more than six years, and a higher pay raise than Southwest offered in previous rounds of negotiations.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: leslie josephs
Keywords: news, cnbc, companies, united, mechanics, american, hundreds, contract, labor, max, airlines, canceled, flights, work, flare, southwest, workers, tensions, unions


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Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav


Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav
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Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months.

The Chinese products include laptops and cellphones. The tariffs had been scheduled to start next month.

“The U.S.-China trade war has caused energy demand growth to take a big hit. Any glimmer of hope revives the prospects for a more positive demand landscape,” said John Kilduff, partner at energy hedge fund Again Capital Management in New York.

Brent futures were up 4.5%, at $61.20 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 4%, at $57.10.

That put Brent futures on track for their biggest daily percentage gain since December.

The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks.

“The possibility that the United States and China can get the trade talks on track … is raising hopes that they might actually get some type of deal,” said Phil Flynn, analyst at Price Futures Group in Chicago.

“That’s why we are seeing this big rebound in prices,” Flynn said.

Before the U.S. announcement about the tariff delay, Brent futures were still trading about 20% below the 2019 high they hit in April.

Oil prices seesawed earlier in the day, caught between demand worries and rising global supplies and expectations for deeper production cuts from leading producers.

U.S. oil output from seven major shale formations was expected to rise by 85,000 barrels per day (bpd) in September to a record 8.77 million bpd, the Energy Information Administration forecast in a report.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), last week said it planned to keep its crude exports below 7 million bpd in August and September to help drain global oil inventories.

“Saudi Arabia and its Gulf allies standing firm on their commitment to the OPEC+ output-cut agreement has supported prices,” said Abhishek Kumar, head of analytics at Interfax Energy in London.

OPEC and its allies, known as OPEC+, have agreed to cut 1.2 million bpd of production since Jan. 1.

In the United States, meanwhile, analysts forecast crude stockpiles fell by 2.8 million barrels last week, according to a Reuters poll.

“If we get the drawdown in (U.S.) inventory that most people are looking for, that is going to get the market a lot tighter,” said Flynn at Price Futures.

The American Petroleum Institute (API), an industry group, was due to release its inventory report at 4:30 p.m. EDT (2030 GMT) on Tuesday, followed by U.S. government data on Wednesday morning.


Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


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Dow futures higher after China fixes yuan at stronger-than-expected level

U.S. stock index futures were higher Monday morning, after China’s central bank set the official midpoint reference for the yuan at a stronger-than-expected level. Market focus is largely attuned to simmering trade tensions between the world’s two largest economies. Market participants have been monitoring the dollar/yuan exchange rate closely following an escalation in trade tensions between Washington and Beijing. The yuan depreciated past the 7-per-dollar level last week for the first time si


U.S. stock index futures were higher Monday morning, after China’s central bank set the official midpoint reference for the yuan at a stronger-than-expected level. Market focus is largely attuned to simmering trade tensions between the world’s two largest economies. Market participants have been monitoring the dollar/yuan exchange rate closely following an escalation in trade tensions between Washington and Beijing. The yuan depreciated past the 7-per-dollar level last week for the first time si
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Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, strongerthanexpected, washington, china, report, higher, futures, trade, tensions, weaker, president, level, set, yuan, dow, fixes


Dow futures higher after China fixes yuan at stronger-than-expected level

U.S. stock index futures were higher Monday morning, after China’s central bank set the official midpoint reference for the yuan at a stronger-than-expected level.

At around 02:30 a.m. ET, Dow futures rose 46 points, indicating a positive open of more than 55 points. Futures on the S&P and Nasdaq were both slightly higher.

Market focus is largely attuned to simmering trade tensions between the world’s two largest economies.

On Monday, the People’s Bank of China (PBOC) set its daily midpoint for yuan trading — which determines the limits for its onshore movement — at 7.0211 per dollar. That was weaker than Friday’s session, but beat market expectations.

Market participants have been monitoring the dollar/yuan exchange rate closely following an escalation in trade tensions between Washington and Beijing.

The yuan depreciated past the 7-per-dollar level last week for the first time since the global financial crisis in 2008. The move prompted the U.S. Treasury Department to designate China as a currency manipulator.

A weaker currency makes a country’s exports cheaper and President Donald Trump’s administration has consistently complained that a cheaper yuan would give China a trade advantage.

The U.S. president said Friday that the U.S. would continue to hold trade talks with Beijing, but that Washington was not prepared to make a deal for now.

On the data front, the Federal Budget for July is expected to be published at around 2:00 p.m. ET.

In corporate news, Sysco and Barrick Gold are both expected to publish quarterly earnings before the opening bell.

Bloom Energy and Tencent Music will report their latest results after market close.

— CNBC’s Saheli Roy Choudhury contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, strongerthanexpected, washington, china, report, higher, futures, trade, tensions, weaker, president, level, set, yuan, dow, fixes


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US Treasury yields tick lower amid trade war concerns

U.S. government debt prices were slightly higher Monday morning, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7223%, while the yield on the 30-year Treasury bond was also lower at around 2.2371%. Market focus is largely attuned to simmering trade tensions between Washington and Beijing. On Friday, President Donald Trump said


U.S. government debt prices were slightly higher Monday morning, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7223%, while the yield on the 30-year Treasury bond was also lower at around 2.2371%. Market focus is largely attuned to simmering trade tensions between Washington and Beijing. On Friday, President Donald Trump said
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Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, tick, concerns, president, china, trade, tensions, war, amid, billion, yields, yield, set, yuan, treasury, lower


US Treasury yields tick lower amid trade war concerns

U.S. government debt prices were slightly higher Monday morning, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth.

At around 02:45 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7223%, while the yield on the 30-year Treasury bond was also lower at around 2.2371%.

Market focus is largely attuned to simmering trade tensions between Washington and Beijing.

On Friday, President Donald Trump said he was not ready to make a deal with China and called into question the next round of trade talks. It comes after the U.S. president said he would impose a 10% tariff on the remaining $300 billion worth of Chinese imports on September 1. China responded by halting its purchases of U.S. agricultural products.

Last week, the U.S. accused China of being a currency manipulator after Beijing allowed the yuan to dip below the 7-per-dollar level for the first time in more than a decade.

On Monday, the People’s Bank of China (PBOC) set its daily midpoint for yuan trading — which determines the limits for its onshore movement — at 7.0211 per dollar. That was weaker than Friday’s session, but stronger than market expectations.

On the data front, the Federal Budget for July is expected to be published at around 2:00 p.m. ET.

Meanwhile, the U.S. Treasury is set to auction $42 billion in 13-week bills and $42 billion in 26-week bills.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, tick, concerns, president, china, trade, tensions, war, amid, billion, yields, yield, set, yuan, treasury, lower


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10-year Treasury yield dips back below 1.7% amid global growth worries

U.S. government debt yields were sharply lower on Monday, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth. The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.63%, while the yield on the 30-year Treasury bond was also lower at around 2.127%. The spread between 2-year and 10-year Treasury yields narrowed to about only 5 basis points on Monday, near its lowest level since 2007. Market f


U.S. government debt yields were sharply lower on Monday, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth. The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.63%, while the yield on the 30-year Treasury bond was also lower at around 2.127%. The spread between 2-year and 10-year Treasury yields narrowed to about only 5 basis points on Monday, near its lowest level since 2007. Market f
10-year Treasury yield dips back below 1.7% amid global growth worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, billion, dips, 17, yuan, amid, yields, lower, treasury, set, worries, trade, china, 10year, global, growth, yield, tensions


10-year Treasury yield dips back below 1.7% amid global growth worries

U.S. government debt yields were sharply lower on Monday, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.63%, while the yield on the 30-year Treasury bond was also lower at around 2.127%.

The spread between 2-year and 10-year Treasury yields narrowed to about only 5 basis points on Monday, near its lowest level since 2007.

“Persistently low inflation in developed economies should constrain nominal yields, and tariffs are more likely to weigh on prices via demand destruction,” Michael Reynolds, investment strategy officer at Glenmede Trust Company. “Overall, these factors are holding back aggregate demand for both consumer spending and business investment, culminating in lower bond yields that reflect diminished growth expectations.”

Market focus is largely attuned to simmering trade tensions between Washington and Beijing.

On Friday, President Donald Trump said he was not ready to make a deal with China and called into question the next round of trade talks. It comes after the U.S. president said he would impose a 10% tariff on the remaining $300 billion worth of Chinese imports on September 1. China responded by halting its purchases of U.S. agricultural products.

Last week, the U.S. accused China of being a currency manipulator after Beijing allowed the yuan to dip below the 7-per-dollar level for the first time in more than a decade.

On Monday, the People’s Bank of China set its daily midpoint for yuan trading — which determines the limits for its onshore movement — at 7.0211 per dollar. That was weaker than Friday’s session, but stronger than market expectations.

Meanwhile, the U.S. Treasury is set to auction $42 billion in 13-week bills and $42 billion in 26-week bills.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: sam meredith
Keywords: news, cnbc, companies, billion, dips, 17, yuan, amid, yields, lower, treasury, set, worries, trade, china, 10year, global, growth, yield, tensions


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US oil is likely to be China’s next target as trade war rages, energy analysts warn

An oil tanker sits beside transfer pipes at a terminal as it prepares to unload its cargo of fuel on July 4, 2018 in Zhoushan, China. China is expected to dramatically reduce its intake of U.S. crude imports over the coming weeks, energy analysts have warned, following the latest flare-up in trade war tensions between the world’s two largest economies. In response, energy analysts expect China to target U.S. oil imports. “I think it is a virtual shoo-in that volumes will slow to a trickle and ma


An oil tanker sits beside transfer pipes at a terminal as it prepares to unload its cargo of fuel on July 4, 2018 in Zhoushan, China. China is expected to dramatically reduce its intake of U.S. crude imports over the coming weeks, energy analysts have warned, following the latest flare-up in trade war tensions between the world’s two largest economies. In response, energy analysts expect China to target U.S. oil imports. “I think it is a virtual shoo-in that volumes will slow to a trickle and ma
US oil is likely to be China’s next target as trade war rages, energy analysts warn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: sam meredith
Keywords: news, cnbc, companies, oil, likely, analysts, trade, war, tensions, imports, target, crude, latest, brennock, rages, china, chinas, dispute, energy, warn


US oil is likely to be China's next target as trade war rages, energy analysts warn

An oil tanker sits beside transfer pipes at a terminal as it prepares to unload its cargo of fuel on July 4, 2018 in Zhoushan, China.

China is expected to dramatically reduce its intake of U.S. crude imports over the coming weeks, energy analysts have warned, following the latest flare-up in trade war tensions between the world’s two largest economies.

The tit-for-tat tariff dispute between the U.S. and China has already sent oil prices plunging, in large part because of worries about a severe global economic slowdown and potentially even a U.S. recession.

Wednesday’s session saw crude drop at one stage to a seven-month low.

President Donald Trump raised the stakes in his administration’s protracted dispute with Beijing last week, threatening to impose new charges against the country from September 1.

The U.S. has since accused China of being a currency manipulator, as the yuan sank to levels against the dollar not seen in more than a decade.

In response, energy analysts expect China to target U.S. oil imports.

“I think it is a virtual shoo-in that volumes will slow to a trickle and may even grind to a complete halt,” Stephen Brennock, oil analyst at PVM Oil Associates, told CNBC via email.

Chinese buyers recently rekindled their interest in U.S. crude, as imports climbed to a nine-month high of 247,000 barrels per day in May, according to figures from the Energy Information Administration (EIA).

However, Brennock said the latest ramp-up in trade tensions would most likely reverse this trend.

“The outlook for China-bound U.S. crude shipment is firmly skewed to the downside,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: sam meredith
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Christmas in August: What you should buy now as trade tensions heat up

Kamil Krzaczynski | ReutersIt’s time to shop — not only for back to school, but for Christmas. (Exactly how those higher prices are passed on depends on a number of factors, including whether suppliers absorb the additional cost, source production in another country or increase prices.) “This round is much more consumer-focused,” said Katheryn Russ, a University of California, Davis, professor of economics and specialist in international trade. In all, the Federal Reserve Bank of New York and re


Kamil Krzaczynski | ReutersIt’s time to shop — not only for back to school, but for Christmas. (Exactly how those higher prices are passed on depends on a number of factors, including whether suppliers absorb the additional cost, source production in another country or increase prices.) “This round is much more consumer-focused,” said Katheryn Russ, a University of California, Davis, professor of economics and specialist in international trade. In all, the Federal Reserve Bank of New York and re
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Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jessica dickler
Keywords: news, cnbc, companies, prices, start, tariffs, billion, cost, buy, american, higher, trade, tensions, university, costs, consumers, heat, christmas


Christmas in August: What you should buy now as trade tensions heat up

An employee works on a display ahead of Black Friday at a Walmart store in Chicago, November 20, 2018. Kamil Krzaczynski | Reuters

It’s time to shop — not only for back to school, but for Christmas. President Donald Trump’s latest threat to slap elevated tariffs on a widening selection of Chinese products could mean American shoppers will face higher prices throughout the fall and into the holidays. Tariffs on goods traded between the U.S. and China have already increased in several stages since early 2018. Now, Trump has announced another round of tariffs on the roughly $300 billion of Chinese goods that had not already been targeted by American levies. The charge will take effect from Sept. 1. That is in addition to the 25% tariff Trump imposed in May (up from his original proposal of 10%) on another $200 billion worth of Chinese imports. The president has said that China will bear the brunt of the costs from the tariffs, yet experts say the burden will land squarely on U.S. consumers. (Exactly how those higher prices are passed on depends on a number of factors, including whether suppliers absorb the additional cost, source production in another country or increase prices.)

As of the latest tally, the new tariffs will mean higher prices on consumer staples, such as clothing, shoes, toys and household appliances, including toasters, coffee makers, irons, microwave ovens and hair dryers. “This round is much more consumer-focused,” said Katheryn Russ, a University of California, Davis, professor of economics and specialist in international trade. And once implemented, “price increases should start filtering through from mid-October.”

Price increases should start filtering through from mid-October. Katheryn Russ professor of economics at the University of California, Davis

A report prepared for National Retail Federation found the proposed new round of tariffs would cost Americans $4.4 billion each year for apparel, $3.7 billion for toys, $2.5 billion for footwear and $1.6 billion for household appliances. “These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods,” said David French, senior vice president of government relations at the NRF. They will also hit hardest on lower-income households, who spend a much larger percentage of their income on these staples, he said. “Tariffs are a very regressive form of taxation,” he said. “The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers.” In preparation, retailers are stocking up on merchandise. Imports at the nation’s major container ports are near record high levels this summer, according to the NRF’s monthly Global Port Tracker report. However, French said, “you can only have so much inventory.” It’s more likely that consumers will end up shouldering most, if not all, of the added costs, he added. More from Personal Finance:

Coming soon to a store near you: more expensive items

How to take control of your spending and start saving

Are you afraid of running out of money? When tariffs were imposed on imported washing machines last year, U.S. manufacturers responded to reduced competition from imports by raising their prices, and as a result, more than the full amount of the tariff was passed on in the way of higher prices. “U.S. consumers paid 125% to 225% more,” French said, referring to a working paper co-authored by Ali Hortacsu and Felix Tintelnot of the University of Chicago and Federal Reserve Board economist Aaron Flaaen. In all, the Federal Reserve Bank of New York and researchers at Princeton and Columbia universities conservatively estimated that U.S. tariffs cost American consumers at least $6.9 billion last year. A separate report from Oxford Economics estimated that tariffs could cost every American household about $800.

Buy what you can now, then buy less


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jessica dickler
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Pakistan reacts to India’s revoking of Kashmir’s special status amid rising tensions

Pilgrims with their luggage seen going to the railway station during restrictions on Aug. 5, 2019 in Jammu, India. Nitin Kanotra | Hindustan Times | Getty ImagesPakistan has blamed India for illegally scrapping Kashmir’s special status, as tensions rise between the two nations. On Monday, Pakistan government said that New Delhi’s move to revoke a special status granted to the Indian state of Jammu and Kashmir was in breach of international law. Jammu and Kashmir is India’s only Muslim-majority s


Pilgrims with their luggage seen going to the railway station during restrictions on Aug. 5, 2019 in Jammu, India. Nitin Kanotra | Hindustan Times | Getty ImagesPakistan has blamed India for illegally scrapping Kashmir’s special status, as tensions rise between the two nations. On Monday, Pakistan government said that New Delhi’s move to revoke a special status granted to the Indian state of Jammu and Kashmir was in breach of international law. Jammu and Kashmir is India’s only Muslim-majority s
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Pakistan reacts to India's revoking of Kashmir's special status amid rising tensions

Pilgrims with their luggage seen going to the railway station during restrictions on Aug. 5, 2019 in Jammu, India. Nitin Kanotra | Hindustan Times | Getty Images

Pakistan has blamed India for illegally scrapping Kashmir’s special status, as tensions rise between the two nations. On Monday, Pakistan government said that New Delhi’s move to revoke a special status granted to the Indian state of Jammu and Kashmir was in breach of international law. The Indian High Commissioner to Pakistan, Ajay Bisaria, was summoned by Islamabad’s ministry of foreign affairs. During that meeting, “the Foreign Secretary conveyed Pakistan’s unequivocal rejection of these illegal actions as they are in breach of international law and several UN Security Council resolutions,” Pakistan’s foreign ministry said in a statement. On Monday, Interior Minister Amit Shah told India’s parliament that the central government would scrap Article 370, a constitutional provision that allows Jammu and Kashmir to make its own laws and grants special rights and privileges to permanent residents of the state. The order was subsequently approved by the Indian president. Jammu and Kashmir is India’s only Muslim-majority state and is part of the broader disputed Kashmir region. Pakistan called for a joint session of its parliament on Tuesday while the country’s army chief summoned an important conference to discuss regional security, local media reported. Analysts told CNBC that Monday’s move in New Delhi will likely intensify the animosity between the nuclear-powered rivals who’ve fought multiple wars over Kashmir.

International pressure

Pakistan will likely increase diplomatic pressure on India by turning to the international community, experts said. “They will continue to raise this at multilateral forums, including the UN General Assembly, to bring diplomatic attention back to India’s actions,” Akhil Bery, South Asia analyst at risk consultancy Eurasia Group, told CNBC. India deployed tens of thousands of troops across the Kashmir Valley in anticipation of a backlash. Authorities also banned public movements, shut down schools and colleges indefinitely and put two former chief ministers of the state under house arrest ahead of the announcement. Moeed Yusuf, associate vice president of the Asia Center at the U.S. Institute of Peace, told CNBC that there will likely be “strong resistance” from locals inside India-controlled Kashmir. “If that happens, Pakistan is surely going to up the diplomatic temperature to raise UN concerns about the human rights aspects of the Indian crackdown,” he said. Bery added that many Kashmiris believe the special provisions are crucial to their identity and they have “long been weary of a strong influence from Delhi.”

Greater military activity along the border

Analysts said they expect greater military activity along the so-called Line of Control, which is the de facto border between the Indian and Pakistani parts of Kashmir, and more unrest in the region. Islamabad said Monday it would “exercise all possible options” to counter the move.

“It’s important to keep in mind that in Kashmir, there’s actually two levels — there’s a domestic level, which is between the central government and the state of (Jammu and) Kashmir. Then, there’s an international component between India and Pakistan,” Faisel Pervaiz, South Asia analyst at Stratfor, told CNBC’s “Squawk Box ” on Tuesday. Both Pakistan and India lay claim to the region in full but control only parts of it. Within the India-controlled region of Kashmir, an insurgency began in the late 1980s when some fought to join Pakistan and some fought for independence. India has accused Pakistan of backing separatists by arming and training them. Islamabad denies that and says it only offers political support to the Kashmiri people, according to Reuters. International agencies have raised concerns over violence and human rights in India-controlled Jammu and Kashmir, as well as in the Pakistan-controlled regions of Azad Kashmir and Gilgit-Baltistan. “There is a long-running insurgency in Kashmir and the question is that is there going to be an uptick in attacks?” Pervaiz said. “Because as we saw back in February, when an uptick in attack happens, that can rapidly escalate tensions.” In February, India and Pakistan carried out air strikes in each others’ territories after a terrorist attack in India-controlled Kashmir killed more than 40 security officers.

The US position


Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: saheli roy choudhury
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Latest US-China tensions could be the trade version of ‘the end of the world as we know it’

“It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” Whether the current events detonate a f


“It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” Whether the current events detonate a f
Latest US-China tensions could be the trade version of ‘the end of the world as we know it’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jeff cox
Keywords: news, cnbc, companies, uschina, version, tensions, shearing, implications, latest, markets, china, war, trade, trump, world, tariffs, end, know


Latest US-China tensions could be the trade version of 'the end of the world as we know it'

As the U.S.-China trade dispute hits another level and hammers financial markets, the bigger casualty over the longer term could be the globalization trend that has developed over the past quarter century or so. Only the European Union exports more good to the U.S. than China, making the impact of a prolonged tit-for-tat tariff potentially severe. American businesses have begun looking for alternative markets from which to get the goods they had been buying from China, pushing imports from China down 12.2% year to date, according to government data released Friday. The trend threatens fundamental change to the interconnected global economy, said Neil Shearing, group chief economist at Capital Economics.

Shearing said that the move for the U.S. to levy tariffs on all Chinese imports, which President Donald Trump announced last week, shouldn’t come as a surprise, but it still carries broad implications that may not be fully appreciated. “Lingering in the background is a more fundamental concern – namely that we may be witnessing the end of globalization,” Shearing said in a note to clients. “If so, the rapid increase in cross-border movement of goods, services, capital and people that has been the defining feature of the global economy over the past two decades may be about to reverse – with macroeconomic implications that would extend well beyond the narrow impact of tit-for-tat tariffs,” he said.

‘The end of the world’

There’s evidence of that starting to happen. Foreign direct investment in the U.S. was $410.7 billion in the first quarter, up marginally from the end of 2018 but down 57% from the peak four years ago. Among the implications for more deterioration in the global picture that Shearing cites are the “disintegration of the rules-based system” that has governed international commerce since the end of the World War II, and a potential “Balkanization” of the world economy as the U.S. and China develop their own standards, tech platforms and payment systems. “It’s too soon to say exactly how events will pan out, but this casts the escalation in the US-China trade war over the past year in an altogether more ominous light. We may be witnessing the end of the world as we know it,” he wrote. Shearing is not alone in his concern for how globally destructive the U.S.-China schism could be. Progressive economist Paul Krugman, a persistent Trump critic, compared the situation to the events that kicked off World War I, with the Trump tariff salvo “the event that tripped an uneasy situation into all-out trade war.” And Deutsche Bank strategist Parag Thatte noted that this is the fourth time that Trump has used a stock market peak to launch a trade-related Twitter offensive against China. Markets have recoiled over the developments, with stocks Thursday staging a more than 500-point reversal after Trump announced the expanded tariffs, then tumbling around 900 points by late-day Monday after China saw an overnight currency devaluation. Whether the current events detonate a full-scale trade and currency war that poses an existential threat to globalization remains to be seen. “You want to think of it as something more than a pinprick, a little bit of damage, a little regression of the global trend that we’ve been seeing for many decades. But it has the potential to get worse,” said Alan Blinder, a Princeton University economist. “We’re not yet in a full-scale trade war, we’re certainly not anywhere close to a full-scale currency war of competitive devaluations. But those two things are no longer unthinkable, and that’s got the markets spooked.” Trump himself has been a proponent of nationalism and used to chide some of his advisors — former National Economic Council director Gary Cohn, for one — as being globalists. The president has pushed an “America first” political agenda, with one specific goal being the reduction of the trade deficit with China, which was at $167 billion through the first half of the calendar year. Blinder said one negative scenario would see the U.S. start to become alienated from the rest of the trading world as it continues to levy tariffs not only on China but also on such traditional allies as Europe, Mexico and Canada. “One of the real fears for me as an American is this is not really shaping up as China vs. the West, it’s shaping up as the U.S. vs. everybody else,” he said. “I tend to think that the bad outcome is not that China gets disconnected from the rest of the world, it’s that the U.S. gets disconnected from the rest of the world. That’s the doomsday scenario, and that’s just dumb.”

Market implications


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jeff cox
Keywords: news, cnbc, companies, uschina, version, tensions, shearing, implications, latest, markets, china, war, trade, trump, world, tariffs, end, know


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US-China investment flows fall to five-year low amid escalating trade war

Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said. Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spi


Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said. Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spi
US-China investment flows fall to five-year low amid escalating trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: yen nee lee
Keywords: news, cnbc, companies, escalating, low, tensions, fall, lowest, rhodium, according, investment, china, months, level, uschina, amid, firm, trade, war, report, fiveyear, flows


US-China investment flows fall to five-year low amid escalating trade war

Investment flows between the U.S. and China fell to the lowest level in five years amid escalating tensions between the two countries, according to a study led by research firm Rhodium Group.

Two-way direct and venture capital investments between the U.S. and China totaled $13 billion in the first six months this year, according to the report on Thursday. That’s an 18% fall from the second-half of 2018 and the lowest level since January-to-June in 2014, the report published Thursday said.

Relations between the U.S. and China — the two largest economies in the world — have been rocky over the past year. What started out as a trade dispute in recent months spilled over to areas such as technology and security, which affected sentiment among investors.

Some Chinese firms had initially considered setting up manufacturing in the U.S. to avoid elevated tariffs, but put their plans on hold as bilateral tensions escalated, said Rhodium. One such company is tech firm Bitmain Technologies, which froze its planned investment of $500 million, the report said.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: yen nee lee
Keywords: news, cnbc, companies, escalating, low, tensions, fall, lowest, rhodium, according, investment, china, months, level, uschina, amid, firm, trade, war, report, fiveyear, flows


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