Stocks rise…Kraft Heinz plunges on word of SEC probe…US and China resume trade talks
NEW YORK (AP) – Technology and energy companies are leading stocks higher in morning trading on Wall Street, erasing some of yesterday’s losses. Wayfair vaulted higher after reporting quarterly results that topped Wall Street’s forecasts. Kraft Heinz plunged 26 percent at the opening bell after disclosing a federal investigation into its procurement operations and slashing the value of its Oscar Mayer and Kraft brands.
LONDON (AP) – Kraft Heinz has disclosed that it received a subpoena in October from the U.S. Securities and Exchange Commission related to its procurement operations. Those operations handle interactions with outside suppliers. The company said that it is fully cooperating with the SEC. Details of the investigation emerged in the company’s fourth-quarter earnings report late yesterday.
WASHINGTON (AP) – The Trump administration and Chinese negotiators have resumed talks in Washington aimed at resolving their trade dispute. A high-level Chinese team is meeting with U.S. Trade Representative Robert Lighthizer (LYT’-hy-zur) and other American officials. The world’s two biggest economies are sparring over U.S. allegations that China steals trade secrets and forces American companies to hand over technology. President Donald Trump is set to raise tariffs on $200 billion in Chinese imports if the two sides can’t reach a deal by March 2.
BUCHAREST, Romania (AP) – A European Union official says “there is full support” from member states to hit back if the U.S. imposes tariffs on cars and car parts. EU Trade Commissioner Cecilia Malmstrom says EU trade ministers discussed the bloc’s trading relationship with Washington during an informal meeting today in Bucharest. She says the EU is preparing a list of what she calls “rebalancing measures” if tariffs are levied.
UNDATED (AP) – YouTube has learned its latest hard lesson about dealing with schisms between its two big customer groups: advertisers and creators. YouTube’s year-in-review video is the site’s most down-voted video ever, with more than 15 million dislikes. The video faces controversy for leaving out some of the site’s most popular and contentious creators. Many creators felt the video was sanitizing YouTube’s image in favor of advertisers.