Good morning! Here’s what you need to know in markets on Tuesday.
1. US President Donald Trump said on Monday he will impose 10% US tariffs on about $US200 billion worth of Chinese imports, but he spared smartwatches from Apple and Fitbit and other consumer products such as bicycle helmets and baby car seats.Trump, in a statement announcing the new round of tariffs, warned that if China takes retaliatory action against US farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $US267 billion of additional imports.”
2. US stock futures dropped and Asian shares are expected to come under renewed pressure on Tuesday after US President Donald Trump said he will impose 10% US tariffs on about $US200 billion worth of Chinese imports. The US dollar was down 0.19% against the Euro at 7:40 a.m. BST.
3. German luxury car brand Audi on Monday staged the global launch of a new electric sport utility vehicle on the home turf of rival Tesla, and highlighted a deal with Amazon to make recharging its forthcoming e-tron models easier. The Audi e-tron midsize SUV will be offered in the United States next year at a starting price of $US75,795 before a $US7,500 tax credit.
4. Goldman Sachs named Tim O’Neill as its vice-chairman, according to an internal memo seen by Reuters, the latest top-level appointment ahead of David Solomon taking charge as chief executive officer of the Wall Street bank. The appointment on Monday comes four days after Stephen Scherr was named as the bank’s chief financial officer.
5. SpaceX, Elon Musk’s space transportation company, was set on Monday to name the first private passenger who will take a trip around the moon aboard its forthcoming Big Falcon Rocket spaceship, taking the race to commercialize space travel to new heights. SpaceX said it will name the first passenger to travel to the moon since the United States’ Apollo missions ended in 1972 at an event Monday evening at the company’s headquarters and rocket factory in the Los Angeles suburb of Hawthorne.
6. Symantec said on Monday it appointed three independent directors to the cybersecurity firm’s board, including Peter Feld from activist investor Starboard Value LP. Starboard had nominated five directors in August to Symantec’s board after taking a 5.8% stake in the company, upping pressure for moves to improve performance.
7. While US states’ financial health has strengthened in 2018 compared with last year, fewer than half have enough financial reserves to weather the first year of a moderate recession, according to an S&P Global Ratings report on Monday. Only 20 states have the reserves needed to operate for the first year of an economic downturn without having to slash budgets or raise taxes, S&P said.
8. The US Air Force estimated start-up costs for a proposed US Space Force, a new military service backed by President Donald Trump, will be around $US13 billion in the first five years, according to a Department of Defence memo seen by Reuters. The Air Force, the US military branch that takes responsibility for space, authored the September 14 memo outlining a proposal for “a lethality focused organisation that will field space superiority capabilities.”
9. Switzerland’s largest bank, UBS, has chosen German financial hub Frankfurt as its new EU headquarters as it puts in place contingency plans for the possibility of a no deal Brexit, its CEO said on Monday. Speaking to Bloomberg TV, UBS boss Sergio Ermotti said that the bank’s preparations for a disorderly Brexit have led it to choose Frankfurt as the base for future EU operations once Britain has left the EU.
10. Small jobs online platform TaskRabbit, which was bought last year by the word’s biggest furniture retailer IKEA Group, said on Tuesday it was expanding into Canada, its third market after the United States and Britain. TaskRabbit, whose platform connects people with freelance handymen and other workers for tasks such as minor home repairs, deliveries and IKEA furniture assembly, said it was launching in Toronto on Tuesday and would roll out in Vancouver in October, then in Montreal in 2019.
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