Shares drop…Retailers, shoppers coul feel trade war pinch…China seeks trade war support
SINGAPORE (AP) – World markets were broadly lower on Thursday as traders focused on tensions between the U.S. and China and braced for the impact of their tariff hikes. Futures point to opening losses on Wall Street. Benchmark U.S. crude oil fell to just below $61 per barrel. The dollar fell against the yen and strengthened against the euro.
NEW YORK (AP) – An escalating trade war between the U.S. and China could mean higher prices on a broad array of products from toys to clothing. But some retailers will be less equipped to handle the pain than others, leaving consumers to carry the load. Analysts say the losers will be the ones that have been struggling all along – the mall-based clothing stores and others that sell commoditized products like basic sweaters or that don’t have the financial wherewithal to absorb extra costs.
BEIJING (AP) – China is seeking support from Russia and from its Central Asian neighbors in its escalating tariff fight with the U.S., while also stepping up protests against moves to penalize its technology sector. Speaking Wednesday at a meeting of the Shanghai Cooperation Organization in Kyrgyzstan, Foreign Minister Wang Yi said representatives of the eight-nation grouping had expressed “broad support” for China’s position.
BERLIN (AP) – German prosecutors have fined auto components and technology company Robert Bosch GmbH 90 million euros ($100 million) over its role in the diesel emissions scandal that erupted at Volkswagen in 2015. Prosecutors in Stuttgart said Wednesday that Bosch was fined for a negligent violation of supervisory obligations, and that the company had decided not to appeal.
BERLIN (AP) – A closely watched index of German business optimism has fallen for the second month in a row as the mood among company managers in Europe’s largest economy weakened further. The Munich-based Ifo institute said Thursday its business climate index slipped to 97.9 points in May from 99.2 in April. Despite some recent positive signs, Ifo says the poll indicates “the German economy is still lacking in momentum.”