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U.S. raises tariffs on European aircraft in ongoing dispute over subsidies

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WASHINGTON (Reuters) – The U.S. government on Friday said it would increase tariffs on aircraft imported from the European Union to 15% from 10%, ratcheting up pressure on Brussels in a nearly 16-year transatlantic dispute over aircraft subsidies.

FILE PHOTO: The logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse, France, November 15, 2019. REUTERS/Regis Duvignau/File Photo

The U.S. Trade Representative’s Office said it remained open to reaching a negotiated settlement with the EU on the issue, but could revise its actions if the EU imposed tariffs of its own in connection with a pair of disputes over the subsidies.

In a statement released late on Friday, USTR said it would make minor modifications to 25% tariffs imposed on cheese, wine and other non-aircraft products from the EU, including dropping prune juice from the list. It did not raise the tariff rates on those product, as it had suggested it might do in October.

The higher aircraft tariff will take effect March 18.

The U.S. action comes as U.S. President Donald Trump, emboldened by agreement on a Phase 1 trade deal with China, has trained his sights on restructuring the more than $1 trillion U.S.-EU trade relationship, raising the specter of another major trade war as the global economy slows.

EU officials have said they want to negotiate with Washington but will not be bullied into submission.

European planemaker Airbus (AIR.PA) said the U.S. move would hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union in the longstanding dispute.

Airbus said it would continue discussions with U.S. customers to “mitigate effects of tariffs insofar as possible” and hoped USTR would change its position, particularly given the threat of EU tariffs on U.S. products in its own case before the World Trade Organization.

“USTR’s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they – and the U.S. flying public – ultimately have to pay these tariffs,” the company said in a statement.

EU officials had no immediate comment on Friday’s news.

The USTR had announced in December that it could increase tariff rates up to 100% and subject additional EU products to tariffs, following a decision by the WTO that EU launch aid to Airbus continued to harm the U.S. aerospace industry.

The WTO in October had awarded Washington the right to impose tariffs on $7.5 billion of annual EU imports in its case against Airbus. Washington then slapped 10% tariffs on most European-made Airbus jets and 25% duties on products ranging from cheese to olives and single-malt whisky, from Oct. 18.

Boeing, in a statement, said it was working with U.S. federal and state officials to “promptly bring the United States into full compliance” with WTO rulings.

“The EU and Airbus could end these tariffs by finally complying with their legal obligations, ending these illegal subsidies, and addressing their ongoing harm. We hope they will,” the company said in a statement.

The Wine & Spirits Wholesalers of America (WSWA) said it remains strongly opposed to tariffs on European-origin wine and spirits, and urged U.S. and EU trade officials to negotiate an end to a trade dispute that was lowering revenues.

A study commissioned by the group estimated that the 25% tariffs implemented in October could result in the loss of nearly 36,000 jobs in the beverage alcohol industry.

The Distilled Spirits Council of the United States said tit-for-tat tariffs on alcoholic beverages were hurting companies and consumers on both sides of the Atlantic.

It said new U.S. government data showed the U.S. spirit industry’s exports to the EU, its largest export market, fell 27% in 2019 from a year earlier, and global exports of American whiskey declined 16% in the same period.

“We urge both sides to resolve these disputes so that consumers can enjoy #ToastsNotTariffs,” the group said.

Reporting by Andrea Shalal and Makini Brice; Editing by Daniel Wallis

Our Standards:The Thomson Reuters Trust Principles.

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Trump Fed nominee Shelton hits bipartisan skepticism in Senate hearing

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WASHINGTON (Reuters) – Federal Reserve board nominee Judy Shelton faced deep skepticism from Republicans and Democrats on the Senate Banking Committee on Thursday, as lawmakers challenged her independence from President Donald Trump and characterized her thinking as too far outside the mainstream to trust with the nation’s economy.

After the hearing, three Republican senators indicated she had not fully alleviated their concerns – enough to sink her nomination in a committee divided between 13 of Trump’s fellow Republicans and 12 Democrats, who are unlikely to vote in her favor.

Over the course of the roughly two-hour hearing she found herself having to back away from prior views, explain that she would not pursue a common North American currency with Canada and Mexico if confirmed as a Fed governor, and even apologize for comparing a currency forger’s challenge of the federal government’s dominance over money to civil rights pioneer Rosa Parks’ challenge of segregation laws.

“I apologize for the comparison. I truly do,” Shelton said of an incident raised by Alabama Democratic Senator Doug Jones in which a North Carolina man issued millions of dollars of his own precious-metal backed currency. “I believe he was testing the idea” that money needed to be backed by gold and silver, Shelton explained.

“Is that something you want to test?” Jones shot back, summing up committee concerns about past Shelton writings seeming to support a return to something like a gold or other asset-backed standard to keep the value of the dollar stable.

“No, senator,” said Shelton, a member of the Trump transition team and a long-time conservative author and commentator on financial issues.

It was one of a series of pointed exchanges between senators and Shelton, an economist with a long track record criticizing the Fed and questioning, at least in theory, whether central banks can even do the job assigned to them.

NOT IN THE MAINSTREAM

Four previous Trump appointees to the Fed failed to clear the Senate, a sign of the weight Congress has put on keeping the country’s monetary policy as free as possible of political interference, given Trump’s open verbal attacks on the Fed and demand for lower interest rates.

Asked about Trump’s war-by-tweet against the Fed, Shelton responded “I don’t censor what someone says.”

But during the hearing Pennsylvania Republican Senator Patrick Toomey called her views about using the Fed to manage the value of the dollar against other currencies “a very very dangerous path to go down.” Trump has often blamed the Fed for a rising dollar, which he argues has hurt exports. Shelton has often written about the need for a “sound” dollar.

A spokesman for Toomey said afterwards that the senator was undecided and that Shelton’s answers “didn’t alleviate” his concerns.

Alabama Senator Richard Shelby also “has not decided at this point, I know he still has some concerns,” the senator’s communications director, Blair Taylor, told Reuters.

Shelton, who holds a doctorate in business administration and has been sharply critical of the Federal Reserve in her writings and commentary, pledged broadly that she would be an independent thinker who would work well with existing Fed officials.

“I pledge to be independent in my decision-making, and frankly no one tells me what to do,” Shelton said, deflecting questions about her past writings that, for example, characterized the Fed’s setting of a short-term interest rate as similar to Soviet central planning.

“I don’t claim to be in the mainstream of economists….I would bring my own perspective. But I think the intellectual diversity strengthens the discussion.”

Senate Democrats said flatly that they do not trust her.

“Shelton has flip-flopped on too many issues to be confirmed,” said Ohio Democratic Senator Sherrod Brown. “She is far outside the mainstream. She is outside the ideological spectrum.”

TWO NOMINEES

A second nominee, Christopher Waller, a career economist who is currently the research director of the St. Louis Federal Reserve, faced few questions about his views.

Both were nominated by Trump to fill vacant seats on the Fed’s seven-member Washington-based Board of Governors.

Both Waller and Shelton released opening statements on Wednesday ahead of their hearings that offered few clues about their views on monetary policy beyond promising to promote policies that support financial stability and help the Fed meet its goals of full employment and price stability.

The two emphasized the Fed’s accountability to Congress, which oversees the central bank.

Both said they agreed with many of the opinions held by current Fed officials, including a reluctance to use negative interest rates as some other central banks have done, and a willingness to renew Fed bond purchases and expand the Fed’s balance sheet to fight a future downturn.For Waller, that is an extension of his 11 years working at the Fed and helping shape current policy as a key adviser to St. Louis Fed President James Bullard.

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie

For Shelton, it was a seeming reversal from her earlier views that “quantitative easing” amounted to an inappropriate Fed intervention in markets that was inflating stock prices but doing little for the economy.

After cutting rates to zero, quantitative easing “is your only alternative,” Shelton said in response to a sharp and insistent series of questions from Louisiana Republican Senator John Kennedy on how she would respond to a downturn. Following the hearing, he remained undecided on whether to support Shelton’s nomination, according to an aide.

“It seems like you are taking a 180 degree position on all of this just to be appointed,” said Nevada Democratic Senator Catherine Cortez Masto. “Who are we getting?”

Additional reporting by Ann Saphir in San Francisco; Editing by Chizu Nomiyama, Dan Grebler and Andrea Ricci

Our Standards:The Thomson Reuters Trust Principles.

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Buhari wins election final result in Nigeria Buhari vs Atiku ,Nigerian 2019 Elections



This result for the two outstanding candidates in the Nigerian elections presidential election was predicted online you can drop your own predictions and comments

#president #2019elections #Nigerianelection #Atiku #Buhari #inec #markangelcomedy #oaktv #channelstelevision #ktnnewskenya #bbcnews #cnn #vote #olamide #woske

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Wall St. reaches new highs as China moves to limit coronavirus impact

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(Reuters) – U.S. stocks gained for a fourth straight session on Thursday and Wall Street’s main indexes hit record highs as concerns eased over the economic fallout from the coronavirus outbreak in China.

China said it would halve additional tariffs levied against some U.S. goods, seen by analysts as a move to boost confidence after the fast-spreading coronavirus disrupted businesses and sparked broad market volatility.

“The one primary thing that everyone has been listening to and watching and seeing how it moves the market has been the coronavirus,” said Jonathan Corpina, senior managing partner for Meridian Equity Partners in New York. “The headlines have been somewhat neutral lately, and that has been acceptable for the markets.”

Adding to the optimism for stocks were data showing that the number of Americans filing for unemployment benefits dropped to a nine-month low last week, with investors casting an eye toward Friday’s monthly U.S. employment report.

The Dow Jones Industrial Average .DJI rose 88.92 points, or 0.3%, to 29,379.77, the S&P 500 .SPX gained 11.09 points, or 0.33%, to 3,345.78 and the Nasdaq Composite .IXIC added 63.47 points, or 0.67%, to 9,572.15.

Among S&P 500 sectors, communication services .SPLRCL and technology .SPLRCT led the way, while energy .SPNY fell the most.

Even with optimism about containing the broad economic damage from the coronavirus, the impact of the health emergency in China continued to show up in corporate reports. Chipmaker Qualcomm Inc (QCOM.O) flagged a potential threat to the mobile phone industry from the outbreak. Its shares fell 0.3%.

Investors were also digesting the acquittal on Wednesday of U.S. President Donald Trump on impeachment charges.

“The outcome was fairly well telegraphed and I think widely believed, but it ends the chapter for now and I think that is a modest positive for investor sentiment,” said James Ragan, director of wealth management research at D.A. Davidson in Seattle.

With the fourth-quarter corporate reporting season more than halfway completed, S&P 500 companies are expected to have increased earnings by 2.1% for the period, according to IBES data from Refinitiv.

In earnings news, Becton Dickinson and Co (BDX.N) shares slid 11.8%, contributing the biggest drag on the S&P 500, after the medical technology company cut its 2020 forecast.

Kellogg (K.N) shares slumped 8.5% after the breakfast cereal maker forecast full-year earnings that widely missed market expectations.

Twitter shares (TWTR.N) soared 15.0% after the social media company reported $1 billion in quarterly revenue for the first time.

Philip Morris International shares (PM.N) rose 2.7% after the tobacco company released results.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., February 6, 2020. REUTERS/Lucas Jackson

Advancing issues outnumbered declining ones on the NYSE by a 1.07-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored decliners.

The S&P 500 posted 62 new 52-week highs and no new lows; the Nasdaq Composite recorded 122 new highs and 41 new lows.

About 7.3 billion shares changed hands in U.S. exchanges, below the 7.7 billion daily average over the last 20 sessions.

Reporting by Lewis Krauskopf; Additional reporting by Medha Singh in Bengaluru; Editing by Leslie Adler and Alistair Bell

Our Standards:The Thomson Reuters Trust Principles.

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Trump touts stock market’s record run, but who benefits?

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(Reuters) – Donald Trump loves to trumpet the hot U.S. stock market as a key achievement of his presidency, and he was in full self-congratulatory mode on that front during Tuesday night’s State of the Union address.

U.S. President Donald Trump delivers his State of the Union address to a joint session of the U.S. Congress in the House Chamber of the U.S. Capitol in Washington, U.S. February 4, 2020. REUTERS/Leah Millis/POOL

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90 and 100 percent and even more,” Trump said in his address to a joint session of Congress.

While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich.

That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year – such as the nearly 30% rise in the S&P 500 benchmark index in 2019 – the payoff primarily goes to people who are already rich.

“For most Americans, a stock price increase is pretty immaterial to their well-being,” said Wolff, who published a paper about wealth inequality in the National Bureau of Economic Research in 2017.

Roughly half of Americans own some stocks through a brokerage account or a pension or retirement fund. But for most people, the exposure is too small for market gains to be life-changing or leave them feeling much better about their finances, Wolff said. “They’ll see a small increase in their wealth, but it’s not going to be anything to write home about,” he said.

Graphic: The stock boom’s unequal gains png, here

What’s more, nearly 90% of families who own stock do so through a tax-deferred retirement account, meaning they can’t access the money until they reach retirement age, unless they pay a penalty, Wolff said.

So who owns most of the stock market? The majority of corporate equities and mutual fund shares are held by investors who are white, college educated and above the age of 54, according to an analysis from the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis.

The typical middle-class family gets the bulk of its wealth from the housing market. Households in the middle three quintiles of wealth held 61.9% of their assets in their principal residence in 2016, according to Wolff’s analysis. That compares to households in the top 1%, who held 7.6% of their wealth in their homes.

Because most consumers accumulate the majority of their wealth through their homes, a rise in property values can provide a more substantial boost to household wealth than a stock market rally, said William Emmons, lead economist at the St. Louis Fed’s Center for Household Financial Stability.

Still, the recent revival in the housing market, spurred in part by the Federal Reserve’s interest rate cuts, is not helping all Americans equally. Rising property values benefit homeowners but make it harder for aspiring home buyers to break into the market, said Eugene Steuerle, co-founder of the Tax Policy Center, a joint venture between the Urban Institute and the Brookings Institution.

And some people who bought homes immediately before the recession hit may still be trying to recover their losses, Steuerle said. Their wealth may have been wiped out by foreclosure, meaning they then struggled to qualify for a new mortgage during the recovery, he said.

That’s in sharp contrast to well-off investors, whose overall wealth surged after the crisis thanks to strong returns on stocks, property and other investments. Some 72% of wealth accumulated between the third quarter of 2009 and the third quarter of 2019 went to the richest 10% of households, according to an analysis by Oxford Economics. Over that same time period, the poorest 50% of households reaped only 2% of wealth gains.

“There are a lot of families that have not yet recovered from the financial crisis,” Emmons said.

Some more evidence that the recent stock market boom is not making everyone feel richer: There has been little evidence of the “wealth effect,” which says that people tend to spend more when stock markets are up, said Lydia Boussour, a senior economist for Oxford Economics.

Since the recession, people have mostly continued to increase their savings even as the stock market rose. “Consumers are a lot more cautious,” she said.

Reporting by Jonnelle Marte; Editing by Dan Burns and Leslie Adler

Our Standards:The Thomson Reuters Trust Principles.

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