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FINANCIAL MARKETS
Stocks mostly lower on Wall Street with trade in focus
NEW YORK (AP) — U.S. stocks are mostly lower in afternoon trading as investors wait for the latest updates about trade negotiations and the economy.
Wall Street is particularly focused on any developments in the trade war ahead of a new round of tariffs on $160 billion of Chinese imports due to take effect on Sunday. That would raise prices on key products, including cell phones and laptops, and threaten to affect consumers.
Gains from communications companies were held in check by losses from technology stocks. Merck and Sanofi slipped after announcing acquisitions of biotech companies.
TRUMP-TRADE
Trump, Democrats in tentative deal on trade pact
WASHINGTON (AP) — House Democrats have reached a tentative agreement with labor leaders and the White House over a rewrite of the U.S.-Mexico-Canada trade deal that has been a top priority for President Donald Trump. That's according to a Democratic aide not authorized to discuss the talks and granted anonymity.
Details still need to be finalized and the U.S. Trade Representative will need to submit the implementing legislation to Congress. No vote has been scheduled.
The new, long-sought trade agreement with Mexico and Canada would give both Trump and his top adversary, House Speaker Nancy Pelosi, a major accomplishment despite the turmoil of Trump's likely impeachment.
MEXICO-US TRADE
Mexico may accept US steel trade rule, rejects aluminum
UNDATED (AP) — Mexico may accept US requests for greater region content on steel, as long as there is a five-year phase-in period.
Foreign Relations Secretary Marcelo Ebrard says a U.S. request for 70% regional content on steel could be written into an addendum to the U.S.-Mexico Canada free trade agreement. But Ebrard says Mexico won't accept such regional content rules on aluminum, because Mexico lacks any aluminum production.
Ebrard repeated Mexico's refusal to accept requests for U.S. inspectors at Mexican factories to ensure the country enforces its labor laws.
Pro-company unions have long been allowed to sign low-wage contracts behind workers' backs. The low wages help Mexico lure tens of thousands of auto jobs away from the United States.
OBIT-PAUL VOCKER
Ex-Fed Chair Volcker dies, tamed inflation with recession
WASHINGTON (AP) — Former Federal Reserve Chairman Paul Volcker has died at age 92.
As Federal Reserve chairman in the early 1980s he elevated interest rates to historic highs and triggered a recession as the price of quashing double-digit inflation.
Volcker took charge of the Fed in August 1979 when the U.S. economy was sinking into the grip of runaway inflation. Consumer prices skyrocketed 13% in 1979 and then by the same amount again in 1980. Working relentlessly to bring prices under control, Volcker raised the Fed’s benchmark interest rate from 11% to a record 20% by late 1980 to try to slow the economy’s growth and thereby shrink inflation.
AMAZON-PENTAGON-WAR CLOUD
Amazon says Trump's ímproper pressure' doomed Pentagon bid
UNDATED (AP) — Amazon says President Donald Trump's “improper pressure" and behind-the-scenes attacks harmed its chances of winning a $10 billion Pentagon contract.
The Pentagon awarded the cloud computing contract to Microsoft in October. Amazon argues in a lawsuit unsealed Monday that the decision should be revisited because of “substantial and pervasive errors" and Trump's interference.
Amazon and its founder Jeff Bezos have been a frequent target of Trump. Bezos personally owns the Washington Post, which Trump has referred to as “fake news.”
A Pentagon spokeswoman said Monday the decision to select Microsoft was made by career public servants and military officers and without external influence.
NABE-ECONOMIC OUTLOOK
Business economists see US slowing but avoiding recession
WASHINGTON (AP) — Business economists expect U.S. economic growth to slow this year and next, but they say the economy will avoid recession. If it does, that will extend a record-breaking expansion already in its 11th year.
The latest survey by 53 forecasters with the National Association for Business Economics shows that they expect economic growth to slow from 2.9% last year to 2.3% in 2019 and 1.8% in 2020.
Despite worries over President Donald Trump's trade war with China, the economists put the odds of a recession starting at just 5% this year, 21% in the first half of 2020 and 43% by the end of next year.
UNITEDHEALTH-DIPLOMAT ACQUISITION
UnitedHealth plans bargain bid for Diplomat Pharmacy
UNDATED (AP) — UnitedHealth plans to acquire Diplomat Pharmacy at a steep discount about a month after the specialty drug provider said it may not be able to make its debt payments.
United Health Group's OptumRx says the company will spend $4 for each share of Diplomat in a cash tender offer. That’s 31% cheaper than the stock’s closing price of $5.81 on Friday. Shares of Diplomat tumbled in early trading.
Diplomat provides specialty drugs that treat cancer patients and others with complex medical conditions. It also offers infusion services. The company said Nov. 12 that it lost $177 million in the third quarter, and it was in advanced discussions about strategic alternatives for its business.
CELEDON-BANKRUPTCY
Celadon, major Indiana-based trucker, files for bankruptcy
INDIANAPOLIS (AP) — An Indiana trucking company with nearly 4,000 employees says it has filed for bankruptcy and will shut down all operations.
Just days ago, two former company officials with Celadon Group were charged in a fraud scheme. Celadon says it faces significant costs related to a federal investigation and also must deal with debt and “enormous challenges" in the industry.
The company says it was the largest provider of international truckload services in North America. Earlier this year,
Celadon agreed to pay $42 million to settle securities fraud allegations stemming from falsely reporting profits and assets.
EU-BATTERIES
EU approves state aid to develop car batteries industry
BRUSSELS (AP) — The European Union has approved 3.2 billion euros ($3.5 billion) in subsidies from seven member countries that want to boost the electric battery industry.
The EU says the plan will support research and innovation in a crucial sector where Europe is lagging behind Asian competitors like China and largely rely on imports.
The subsidies are from Belgium, Finland, France, Germany, Italy, Poland and Sweden.
The states funding is expected to unlock an additional 5 billion euros in private investment in the sector.
AUSTRIA-WEEDKILLER
Austria's ban on weedkiller glyphosate hits roadblock
BERLIN (AP) — Austria's government says a ban on the weedkiller glyphosate (GLY'-foh-sayt) can't take effect on Jan. 1 as supporters hoped.
The country's parliament voted in July to ban the herbicide, which is best known as an ingredient in Roundup and has long been disputed in Europe and beyond.
Interim Chancellor Brigitte Bierlein says European Union regulations required the EU's executive commission to be notified of the draft law but that didn't happen.
It isn't immediately clear what will happen now with the plan to ban glyphosate in Austria.
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