News Archive


Ontario to include Tesla in rebate program after court decision

(Reuters) – Ontario will include some Tesla Inc car owners under its rebate plan as the province winds down an incentive program for electric cars, the ministry of transportation said on Friday.

The decision follows the Ontario Superior Court of Justice on Tuesday striking down a transition program, including the Electric and Hydrogen Vehicle Incentive Program, set up by the new Ontario government, which excluded Tesla customers from qualifying for rebates.

The incentive program provides rebates of up to C$14,000 ($10,640) for people who bought electric cars.

“I have directed the ministry to expand the wind-down process,” minister of transportation John Yakabuski said in a statement on Friday. (bit.ly/2MJtTpu)

“Ending the Electric and Hydrogen Vehicle Incentive Program could save Ontario taxpayers up to an estimated $1 billion over four years,” he said.

The ministry said on Friday incentives will be provided as long as certain conditions were met.

Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/F26FwDA3IE8/ontario-to-include-tesla-in-rebate-program-after-court-decision-idUSKCN1LG2W9

Disney World workers reach tentative agreement on wages

(Reuters) – Walt Disney World workers have reached a tentative agreement with parent Walt Disney Co (DIS.N) regarding wages, union body International Brotherhood of Teamsters said on Friday.

The union said the tentative deal will be voted on next week and a contract will be in effect until October 1, 2022 if approved.

If ratified, Disney World workers will receive a minimum of $4.75 in wage increases over the lifetime of the contract, with everyone at the resort getting a minimum increase of $2.50 by March 6, 2019.

Employees will also receive retroactive pay back to September 24, 2017, and a bonus of $1,000.

By 2021, all employees will be at a minimum starting rate of $15, the union said.

The contract follows a year of negotiations with the company and the Service Trades Council Union, a coalition of Teamsters Local 385 and five other unions who represent more than 39,000 workers at Walt Disney World.

Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/GOvGY2mz3DQ/disney-world-workers-reach-tentative-agreement-on-wages-idUSKCN1LG2T7

Wall Street mixed as U.S.-Canada trade talks end

NEW YORK (Reuters) – The SP 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as Canada and the United States concluded trade talks without resolution ahead of the Labor Day weekend.

Capping a low-volume, late-summer week marked by tariff-related volatility, all three major U.S. indexes posted net gains for the period. The indexes were also up for the month of August, with the Nasdaq posting its largest monthly gain since January.

Talks between Canada the United States to renegotiate the North American Free Trade Agreement (NAFTA) ended on a sour note as the two sides were unable to reach a deal, according to the Wall Street Journal.

In recent days trade jitters abated as Mexico and the United States reached a bilateral deal, but re-emerged later in the week following a report that U.S. President Donald Trump is prepared to impose tariffs on an additional $200 billion of Chinese imports as soon as next week.

“We may not have a replacement for NAFTA as quickly as we thought,” said John Toohey, head of equities at USAA in San Antonio. “That initial optimism that existed at the beginning of the week, that good news scenario is off the table.”

Amazon.com’s shares (AMZN.O) continued to inch upward, rising 0.5 percent as investors watch the company close in on its $1 trillion market share milestone.

Apple Inc AAPL. closed up 1.2 percent, reaching a new closing high for the fifth straight session.

The Dow Jones Industrial Average .DJI fell 22.1 points, or 0.09 percent, to 25,964.82, the SP 500 .SPX gained 0.39 points, or 0.01 percent, to 2,901.52 and the Nasdaq Composite .IXIC added 21.17 points, or 0.26 percent, to 8,109.54.

Slideshow (4 Images)

Of the 11 major sectors in the SP 500, five closed lower.

Coca-Cola Co (KO.N) agreed to buy the coffee chain Costa from Britain’s Whitbread PLC (WTB.L) for $5.1 billion.. Its shares dipped 0.8 percent.

Tesla Inc (TSLA.O) had a fifth consecutive decline following news that fund manager BlackRock voted in favor of replacing Elon Musk with an independent chairman.

Gun maker American Outdoor Brands (AOBC.O) was the top percentage gainer on the Nasdaq. The stock soared 43.6 percent after its upbeat earnings report. Peer Sturm Ruger Co (RGR.N) shares jumped 7.3 percent.

Chipotle Mexican Grill CNG.N shares extended their loss, dipping 1.8 percent after William Ackman’s Pershing Square cut its stake in the burrito chain.

Ford Motor Co (F.N) dropped 2.3 percent after scrapping a plan to sell a Chinese-made small vehicle in the United States due to tariff concerns.

Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favored advancers.

The SP 500 posted 34 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 121 new highs and 29 new lows.

Volume on U.S. exchanges was 5.77 billion shares, compared with the 6.08 billion average for the full session over the last 20 trading days.

Reporting by Stephen Culp; Editing by Dan Grebler

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/zDyOWhyeHvo/wall-street-mixed-as-u-s-canada-trade-talks-end-idUSKCN1LG1IU

Ford kills plan to sell Chinese-made vehicle in the United States

DETROIT (Reuters) – Ford Motor Co (F.N) has abruptly killed a plan to sell a Chinese-made small vehicle in the United States because of the prospect of higher U.S. tariffs, the head of the automaker’s North American operations said Friday.

The automaker’s decision came as U.S. President Donald Trump is escalating a trade battle with China, threatening to impose duties on another $200 billion in Chinese goods.

The Trump administration has already imposed duties on Chinese-made vehicles of up to 25 percent. Trump is separately evaluating a proposal to impose tariffs on all imported vehicles on national security grounds.

The Chinese-made Focus Active, which Ford calls a crossover, would have been a niche vehicle for the United States, and the decision to abandon plans to launch it in the U.S. market next year will not cost jobs or have a significant impact on the automaker’s U.S. sales, Ford North America chief Kumar Galhotra told reporters during a conference call on Friday.

“It basically boils down to how we deploy our resources,” Galhotra said. Given the prospect of high tariffs, the Focus Active’s costs in the U.S. “would be substantially higher.”

Asked when the decision was taken, Galhotra said, “we just made it. Literally.”

Plans to build and sell the Focus Active in Europe and China will move ahead, Galhotra said.

Ford’s decision to abandon the Focus Active contrasts with the effort by rival General Motors Co (GM.N) to seek an exemption to new, 25 percent U.S. tariffs on its Buick Envision utility vehicle.

The Envision is a larger vehicle than the Focus Active, with a starting price of about $35,000. Ford had not set a U.S. price for the compact Focus Active, but it would have competed in a segment where prices start at around $20,000, leaving less profit margin to absorb additional import duties.

Ford and its rivals also are closely watching the outcome of negotiations toward a revised North American Free Trade Agreement, which continued on Friday. A Ford spokesman declined to comment on proposed changes to NAFTA auto trade rules, and Galhotra did not address them.

Ford in April said it would drop most of its traditional passenger car models for the North American market, and dropped an earlier plan to import Focus sedans from China.

About 95 percent of the vehicles Ford sells in the U.S. are assembled in the U.S., Canada or Mexico, Galhotra said. The company U.S. dealers get the EcoSport small sport utility from India and Transit Connect small vans from Spain.

“At the moment we do not see any significant risk to those products,” Galhotra said.

Reporting By Joe White; Editing by Marguerita Choy

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/XkWt7oCrz3U/ford-kills-plan-to-sell-chinese-made-vehicle-in-the-united-states-idUSKCN1LG22S

U.S. to move ahead with Mexico trade pact, keep talking to Canada

WASHINGTON/TORONTO (Reuters) – U.S. President Donald Trump notified Congress on Friday of his intent to sign a trade agreement with Mexico after talks with Canada broke up on Friday with no immediate deal to revamp the tri-nation North American Free Trade Agreement.

U.S. Trade Representative Robert Lighthizer said U.S. officials would resume talks with their Canadian counterparts next Wednesday with the aim of getting a deal all three nations could sign.

All three countries have stressed the importance of NAFTA, which governs billions of dollars in regional trade and a bilateral deal announced by the United States and Mexico on Monday paved the way for Canada to rejoin the talks this week.

  • Canada’s Freeland says ‘win-win-win’ trade deal with U.S. within reach
  • U.S. trade pact with Mexico will be ‘fast-track’ compliant: official
  • Mexico calls U.S. notification to Congress on trade deal ‘step forward’

But by Friday the mood had soured, partly on Trump’s off-the-record remarks made to Bloomberg News that any trade deal with Canada would be “totally on our terms”. He later confirmed the comments, which the Toronto Star first reported.

“At least Canada knows where I stand,” he later said on Twitter.

Ottawa has stood firm against signing “just any deal.”

Canada’s lead negotiator and Foreign Minister Chrystia Freeland is scheduled to hold a press conference at 4:30 P.M. Eastern Time on Friday (2030 GMT).

The Canadian dollar CAD= weakened to C$1.3081 to the U.S. dollar after the Wall Street Journal first reported that the talks had ended on Friday with no agreement. Canadian stocks .GSPTSE remained 0.5 percent lower.

Global equities were also down following the hawkish turn in Trump’s comments on trade.

Lighthizer has refused to budge despite repeated efforts by Freeland to offer some dairy concessions to maintain the Chapter 19 independent trade dispute resolution mechanism in NAFTA, The Globe and Mail reported on Friday.

However, a spokeswoman for USTR said Canada had made no concessions on agriculture, which includes dairy, but added that negotiations continued.

Slideshow (4 Images)

The United States wants to eliminate Chapter 19, the mechanism that has hindered it from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday Mexico had agreed to cut the mechanism. For Ottawa, Chapter 19 is a red line.

But Freeland said earlier on Friday her team is “not there yet” in resolving still big differences.

“We’re looking for a good deal, not just any deal. And we’ll only agree to a deal that is a good deal for Canada,” Freeland told reporters.

Trump argues Canada’s hefty dairy tariffs are hurting U.S. farmers, an important political base for his Republican party. But dairy farmers have great political clout in Canada too, and concessions could hurt the ruling Liberals ahead of a 2019 federal election.

At a speech in North Carolina on Friday Trump took another swipe at Canada. “I love Canada, but they’ve taken advantage of our country for many years,” he said.

Reporting by Julie Gordon and Sharay Angulo in Washington, Allison Martell in Toronto,; Additional reporting by David Lawder in Washington, Veronica Gomez in Mexico City and Allison Lampert in Montreal; Writing by Denny Thomas; Editing by Paul Tait and Susan Thomas

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/5oKO1MCYkKQ/u-s-to-move-ahead-with-mexico-trade-pact-keep-talking-to-canada-idUSKCN1LG1DM

Mexico calls U.S. notification to Congress on trade deal ‘step forward’

MEXICO CITY (Reuters) – Mexico’s Economy Ministry said on Friday that the U.S. notification to Congress of its intent to sign a trade accord with Mexico represents progress in formalizing agreements reached in talks to renegotiate the North American Free Trade Agreement (NAFTA).

“The notification sent by the United States represents a step forward in the formalization of the understandings reached between Mexico and the United States in relation to NAFTA,” the Economy Ministry said in a statement.

The ministry also said Mexico will participate in trilateral talks and keep pushing for Canada to remain a part of the revamped NAFTA.

Reporting by Anthony Esposito; Editing by Leslie Adler

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/6hbqsUOjLtc/mexico-calls-u-s-notification-to-congress-on-trade-deal-step-forward-idUSKCN1LG2RY

Canada’s Freeland says ‘win-win-win’ trade deal with U.S. within reach

WASHINGTON (Reuters) – Canadian Foreign Minister Chrystia Freeland on Friday expressed confidence that Canada could reach agreement with the United States on a renegotiated NAFTA trade pact if there was “good will and flexibility on all sides.”

“We continue to work very hard and we are making progress. We’re not there yet,” Freeland told reporters after days-long talks wrapped up without a deal.

“We know that a win-win-win agreement is within reach,” she added. “With goodwill and flexibility on all sides, I know we can get there.”

Reporting by Julie Gordon and Makini Brice; Writing by Tim Ahmann; editing by Jonathan Oatis

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/Q6oCg47EZm4/canadas-freeland-says-win-win-win-trade-deal-with-u-s-within-reach-idUSKCN1LG2RK

U.S. trade pact with Mexico will be ‘fast-track’ compliant: official

WASHINGTON (Reuters) – The Trump administration believes that it will be in compliance with congressional “fast-track” trade negotiating authority whether it pursues a bilateral trade deal with Mexico or the trilateral North American Free Trade Agreement that also includes Canada, a senior administration official said on Friday.

The official told reporters on a conference call that the administration was on track to publish text of the accord within 30 days as required by the fast-track statute. Trump on Friday sent notice to Congress that he intends to sign a new trade pact with Mexico, and with Canada if it is willing.

Reporting by David Lawder; Editing by Leslie Adler

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/stXERYa0Xy4/u-s-trade-pact-with-mexico-will-be-fast-track-compliant-official-idUSKCN1LG2RG

Global shares extend fall on Trump trade threats

NEW YORK (Reuters) – Global stocks ended August much as they began the month – under the dark cloud of a potentially worsening trade war.

A closely watched barometer of equities worldwide fell for a second day on Friday after the United States and Canada failed to reach a trade deal and a report that U.S. President Donald Trump was preparing to step up a trade war with Beijing. The news dampened risk appetite and erased some gains from a rally this week.

“It’s very hard to see a decisive resuscitation of risk appetite until these tensions are resolved,” said Paul O’Connor, head of the multi-asset team at Janus Henderson Investors.

“We have learned to under-react to some of the individual headlines because if you try to extrapolate from any of them you could find yourself in big trouble.”

The MSCI All-Country World Index .MIWD00000PUS, which measures stocks in 47 countries, shed 0.34 percent for the day, but eked out a 0.7 percent return for the month, including dividends.

The index’s modest rise masked a chasm between U.S. and emerging markets. The SP 500, which includes large U.S. companies, is up nearly 3 percent for the month, while the MSCI Emerging Markets index .MSCIEF is down by roughly the same margin.

On Friday the Dow Jones Industrial Average .DJI fell 22.1 points, or 0.09 percent, to 25,964.82, the SP 500 .SPX gained 0.39 points, or 0.01 percent, to 2,901.52 and the Nasdaq Composite .IXIC added 21.17 points, or 0.26 percent, to 8,109.54. [.N]

Canada and the United States failed to reach a deal on Friday to update the North American Free Trade Agreement, with U.S. Trade Representative Robert Lighthizer saying in a statement that U.S. officials would resume talks with their Canadian counterparts next Wednesday. The United States and Mexico, the other NAFTA member, have already come to an agreement.

Meanwhile, Trump is ready to impose tariffs on another $200 billion in Chinese imports as soon as a public comment period on the plan ends next week, Bloomberg News reported on Thursday, citing unidentified people. The White House declined to comment.

Trump, in an interview with Bloomberg, also threatened to withdraw from the World Trade Organization if “they don’t shape up,” a move that would further undermine one of the foundations of the modern global trading system.

Oil, which could see less demand if trade tensions slash economic growth, settled lower. Brent LCOcv1 was down 0.45 percent to $77.42 per barrel.

Trade anxieties boosted the dollar, seen as a short-term winner if the United States reduces imports. The greenback .DXY rose 0.4 percent against an index of its peers.

The Mexican peso lost 0.02 percent versus the U.S. dollar and the Canadian dollar fell 0.50 percent.

EMERGING MARKETS ON EDGE

Broadly, emerging market currencies showed signs of stability even as the posted their fifth straight month of losses in dollar terms. An index of those countries’ currencies .MIEM00000CUS rose 0.11 percent on Friday.

Currencies in two particularly troubled economies, Turkey and Argentina, strengthened against the dollar TRY= ARS=.

The Turkish government said it would lower the level of withholding tax on lira bank deposits, while raising it on foreign currency deposits.

Argentine Finance Minister Nicolas Dujovne said Thursday night that the government will announce new economic measures on Monday and target a fiscal deficit below levels agreed with the International Monetary Fund.

There are other trouble spots. The Indonesian rupiah IDR= hit a nearly three-year low and approached levels not seen since the 1990s Asian financial crisis even as the country’s central bank said it was “decisively” intervening to support the currency. The Indian rupee INR= touched a record low.

(Graphic: World FX rates in 2018: tmsnrt.rs/2egbfVh)

(Graphic: Global assets in 2018: tmsnrt.rs/2jvdmXl)

(Graphic: Emerging markets in 2018: tmsnrt.rs/2ihRugV)

(Graphic: MSCI All Country World Index Market Cap: tmsnrt.rs/2EmTD6j)

Reporting by Trevor Hunnicutt; Additional reporting by Ritvik Carvalho and Helen Reid in London and Hideyuki Sano in Tokyo; Editing by Richard Chang and Chizu Nomiyama

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/AkranHTvhSA/global-shares-extend-fall-on-trump-trade-threats-idUSKCN1LG04U