Global markets surge higher … China cuts tariffs … Huawei sues Verizon
UNDATED(AP) – Global stock markets surged today after President Donald Trump was acquitted in an impeachment trial and China announced a tariff cut on U.S. imports and aid to businesses reeling from a virus outbreak. London and Frankfurt opened higher, while Tokyo, Hong Kong and Seoul rose more than 2%. Markets also were boosted by strong U.S. corporate earnings. Wall Street is expected to open higher, with S&P 500 futures up 0.5% and Dow futures up 0.6%.
BEIJING (AP) – China has cut tariffs on $75 billion of U.S. imports including soybeans, pork and auto parts in a trade truce with Washington. The cuts follow last month’s signing of a “Phase 1” agreement toward ending a long-running tariff war over Beijing’s technology ambitions and trade surplus. Both sides have made conciliatory gestures but the lingering dispute threatens to chill global economic growth. The ministry says the tax rate on some 916 items including soybeans, pork and fish will be cut from 10% to 5%, effective Feb. 14.
BEIJING (AP) – Chinese tech giant Huawei (WAH’-way) is accusing U.S. phone carrier Verizon of violating its patents. In a lawsuit filed by Huawei Technologies Ltd., the company accuses Verizon Communications Inc. of violating 12 patents on optical transmission, digital communications and other technology. In separate cases, Huawei also is challenging U.S. government measures to limit its access to the American market on security grounds. The company faces sanctions imposed by Washington last year that block most access to U.S. components and technology on security grounds.
HELSINKI (AP) – Finnish telecom equipment maker Nokia Corp. reports increased fourth-quarter earnings mainly due to cost savings. It also pledges to boost investments into next-generation 5G networks, of which it is one of the world’s main suppliers. Net profit during the October-December period rose 11% to 821 million euros ($903million) while sales remained flat at 6.9 billion euros. Nokia says it expects to resume dividend payments after the company’s net cash position improves to around 2 billion euros.
CINCINNATI (AP) – Macy’s has closed its corporate headquarters in downtown Cincinnati as part of its plan to shutter about a fifth of its retail locations nationwide. The retail giant announced this week the major restructuring that includes the elimination of 2,000 corporate jobs and the closure of 125 stores in the next three years. Macy’s says the majority of its roughly 500 employees in the Ohio headquarters will be relocated to Springdale. The company will add another 600 new jobs in Mason, where it operates a call center that is growing because of a closure in Arizona.