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What the agreement means for the USA UU. And China
President Trump and Deputy Prime Minister Liu He of China signed a long-awaited phase one commercial agreement at the White House yesterday. Here is who benefited from the agreement and who stayed outside.
• Mr. Trump. He is claiming a political victory by negotiating an agreement that says his predecessors could not do. (Even if the covenant does not keep its previous promises).
• President Xi Jinping of China. It eases trade tensions at a time when the Chinese economy is weakening.
• Financial companies. US banks can now take control of their joint ventures in China, while credit card processors advanced their search to operate in the country.
• American farmers. They will continue to export to China, after being the biggest victims of the trade war.
• American farmers. China’s commitment to buy American agricultural products is only for two years, and Beijing is vague about what will come after that.
• Chinese exporters. They remain subject to tariffs on goods worth $ 360 billion that will not be raised until a phase two agreement is reached.
• China hawks in the Trump administration and elsewhere. The agreement does not address Chinese state subsidies, cybersecurity or Beijing’s technology policies.
The agreement stabilized relations between the United States and China something and changed American thinking about Beijing. “There is now a broad consensus in the United States challenge China in its worst actions, ”writes Heather Long of WaPo.
But there is at least one unintended consequence, James Politi of the FT writes: The United States “could be said to depend more on trade with entities backed by the Chinese government than before the Trump trade war began.”
Today’s DealBook briefing was written by Andrew Ross Sorkin in New York and Michael J. de la Merced in London.
The deal that still haunts Goldman
Goldman Sachs had a profitable 2019. But it is still dealing with the consequences of an eight-year bond sale that the bank made on behalf of 1MDB, a now controversial Malaysian investment fund.
Thirteen percent of Goldman’s earnings were reserved for legal costs related to your participation with 1MDB. The Justice Department accused the bank of ignoring corruption at the bottom of the Malaysian government, which is now insolvent. (The bank is expected to resolve the U.S. investigation for approximately $ 2 billion.)
“We are working hard to close on this matter as quickly as possible, “David Solomon, Goldman’s executive director, told analysts yesterday.
1MDB is an expensive distraction for Goldman at a time when it also has other challenges. The bank is trying to reinforces its consumer operations, where it is far behind JPMorgan Chase (which reported record profits this week).
Jeff Bezos makes a great promise in India amid the opposition
Amazon boss yesterday promised invests an additional $ 1 billion in its company’s operations in India to help small businesses in its platform, reports WSJ. Its objective is to mitigate the growing opposition in an important market.
Things have become more difficult for Amazon in India recently:
• A senior regulator this week ordered an investigation into whether Amazon (and Flipkart, of which Walmart bought control in 2018) violated antitrust laws and harmed family retailers.
• The Indian government is considering a stronger regulation of data storage in the country.
• And a union of small retailers, the Confederation of All Merchants of India, is planning protests against Amazon in 300 cities across the country.
Amazon says it is helping small businesses and that your investment commitment promotes that goal. “We are making this announcement now because it is working,” said Bezos.
Some criticisms seem not to be influenced. “Sir. Bezos is creating a false narrative of empowering small retailers,” Praveen Khandelwal of the Confederation of All Merchants of India told the BBC.
Why the Indian market is important: The country has 1.3 billion people, many of whom are now online only. Bezos said yesterday that he thought the 21st century “was going to be the Indian century.”
Why a large labor market can be bad for your health?
Employment in the United States continues to rise to almost record levels. That could make the flu season worse, writes Aimee Picchi of CBS News.
• Workplaces are crowding, making it easier to spread the flu virus.
• Each percentage point increase in employment correlates with a 16 percent increase in flu-related doctor visits, according to Erik Nesson, an economics professor at Ball State University.
• “It seems to be a place where increased economic activity is detrimental to people’s health,” Nesson told CBS News.
The next phase of transmission rivalry
NBCUniversal plans to present Peacock, Your streaming service, today, joins the real battle of online videos. Now the hard part begins, writes Alex Sherman of CNBC.
Peacock will go against Netflix, Disney Plus, Apple TV Plus, HBO Max, Amazon Prime, Hulu, CBS All Access and others.
The service implementation will be the easy part. The task now for NBCUniversal and other old-school media companies is to discover “how these services interact with each other and traditional pay-TV,” according to Mr. Sherman.
An advertising-free version of Peacock It is expected to cost $ 10 a month. Comcast subscribers, the parent company of NBCUniversal, would get free access to Peacock content with limited ads, which would cost $ 5 per month for non-subscribers. A free version will have limited content and many ads.
NBCUniversal and Comcast seem to be betting that “the transition from pay-TV to transmission is better for NBCUniversal if that movement is as slow as possible,” concludes Sherman.
‘Will you at least say:” Thank you, Mr. President “?
At the signing ceremony of the trade agreement yesterday, President Trump He pointed out some jokes to business leaders, many of whom attended, says Max Abelson of Bloomberg.
• For Mary Erdoes, director of the asset management unit at JPMorgan Chase, she said she deserved some credit for the bank’s stellar earnings report. “They simply announced profits and they were incredible,” Trump said. “Would you say:” Thank you, Mr. President, “at least?”
• Mr. Trump sought out Ken Griffin, the head of the huge Citadel hedge fund. “Where the hell is he?” The president asked. “He’s trying to hide some of his money” (Mr. Griffin was not in the room).
• And to Raymond McDaniel, the C.E.O. From Moody’s credit rating agency, Mr. Trump asked, “Are you giving us good grades, Raymond, please?”
• The final arguments in a lawsuit of 13 states to block the acquisition of Sprint for $ 26 billion proposed by T-Mobile were made yesterday, leaving the fate of the agreement in the hands of a federal judge. (WSJ)
• The XPO logistics company said it was considering splitting some of its businesses, undoing an empire built in M. & A. (WSJ)
• KKR has raised $ 2.2 billion for its second fund dedicated to investments in new technology companies in North America, Europe and Israel. (KKR)
• An investment company run by Thomas Farley, the former director of the New York Stock Exchange, and backed by Dan Loeb’s third point, according to reports, is close to buying Global Blue, a payment company, for about $ 2.6 billion. (WSJ)
Politics and politics
• The Treasury Department’s controlling body is investigating areas of opportunity, a tax exemption that was intended to help low-income areas, but became an unexpected gain for wealthy investors. (NYT)
• The head of antitrust of the Department of Justice, Makan Delrahim, plans to focus on the pricing of medicines and agreements between companies so as not to steal each other’s employees. (WSJ)
• Elizabeth Warren to Bernie Sanders: “I think you called me a liar on national television.” (NYT)
• Twitter will probably never allow users to edit tweets, says Jack Dorsey. (Edge)
• Goldman Sachs sold its stake in Uber at the end of last year. (CNBC)
The best of the rest
• The Virgin Islands sued Jeffrey Epstein’s property, claiming that the financier was dealing with hundreds of girls from his private Caribbean island in 2018. (NYT)
• Yamaha warned musicians not to go into boxes for musical instruments after reports that Carlos Ghosn was smuggled out of Japan in one. (Reuters)
• According to reports, the World Athletics sports federation is considering restrictions on the use of Nike Vaporfly running shoes. (Guardian)
• Climate change could mean the end of alpine skiing. (Bloomberg)
Thank you for reading! See you tomorrow.
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