Good morning! Here’s what you need to know in markets on Tuesday.
1. Iconic US motorcycle company Harley-Davidson announced Monday that it was moving more of its production outside of the US in response to new tariffs, showing the reality of how President Donald Trump’s trade fights can backfire.Harley-Davidson said the EU’s new tariffs on US-made motorcycles would drive up costs and force the company to shift a sizable portion to its production outside of the US to avoid the tariff.
2. Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven U.S. Treasuries and keeping the dollar on the defensive. Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months on Monday.
3. The dollar edged lower against the yen in early Asian trade on Tuesday, hovering near a two-week low, as worries about an intensifying trade fight between the United States and its trade partners continued to hurt risk appetite.Markets were buffeted by mixed messages from Washington on its international trade actions.
4. Oil prices rose on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag. Eastern Libyan commander Khalifa Haftar’s forces have handed control of oil ports to a separate National Oil Corporation (NOC) based in the East of the country. The official state-owned oil company based in the capital Tripoli, also called NOC, will not be allowed to handle that oil anymore, he said.
5. British MPs have voted in favour of plans to build a third runway at Heathrow Airport as Conservative colleagues openly criticised Foreign Secretary Boris Johnson for missing the vote. Parliament gave its approval to the proposals on Monday evening by a majority of 415 to 119, with the plan receiving support from almost all Conservative MPs, and a significant number of Labour MPs.
6. Uber will hear on Tuesday if a bid to overturn a ruling stripping it of its licence to operate in London, its biggest European market, has succeeded after it said its corporate culture and practice had changed. The taxi-hailing app overhauled its policies and personnel in Britain after Transport for London (TfL) refused to renew its licence in September for failings in its approach to reporting serious criminal offences and background checks on drivers.
7. Iranian President Hassan Rouhani lambasted on Tuesday U.S. President Donald Trump’s withdrawal from a deal with Iran on its nuclear program, and said Iranians will not give in to U.S. pressure but would defend their independence and Islamic values.Rouhani, in a speech broadcast live on state television, said Trump’s action on the international deal was “appalling and illegal” and had hurt America’s global reputation.
8. Alibaba CEO Jack Ma repeated his warning against bitcoin. Ma said blockchain technology could “change our world more than people imagine,” but warned that bitcoin could be a bubble.
9. Instagram would be worth $US100 billion if it were a standalone company.An analysis by Bloomberg Intelligence found the picture sharing platform is worth 100 times what Facebook bought it for in 2012.
10. Andreessen Horowitz is launching a $US300 million fund to invest in cryptocurrency companies and protocols, called “a16z crypto.” The top VC firm hired Katie Haun, a former prosecutor with the US Department of Justice, to lead the fund alongside partner Chris Dixon.
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