Posts belonging to Category USA



Foxconn unveils $10 billion plan to build LCD display plant in US

Trump announces that Apple’s top supplier is building a $10 billion factory in Wisconsin

Taiwanese electronics manufacturer Foxconn Technology Group announced at the White House Wednesday its plans to invest $10 billion to build a massive display panel plant in Wisconsin that could employ up to 13,000 workers but would require up to $3 billion in subsidies from state taxpayers.

“America does not have a single LCD plant to produce a complicated system. We are going to change that,” Foxconn chairman Terry Gou said at a news conference. “It starts today with this investment in Wisconsin.”

Foxconn is a major supplier of Apple iPhones and other Apple devices and comes a day after President Donald Trump told the Wall Street Journal that Apple CEO Tim Cook promised him the company would build “three big plants, beautiful plants” in the U.S.

The Wisconsin-based Foxconn plant will focus on display panels used in televisions and other devices. Last year, Foxconn bought Japanese electronics maker Sharp Corp.

http://www.usatoday.com…   Thu.,  27  July 2017

US/China trade war

Trump challenging China’s industrial policies

The top U.S. trade negotiator said late on Tuesday that President Donald Trump is determined to challenge China’s use of unfair subsidies and “non-economic” industrial policy to build up export industries that are costing American jobs.

U.S. Trade Representative Robert Lighthizer, in a rare media interview, said that the Trump administration would work to hold China’s practices to the rules of the World Trade Organization, an organization that he has criticized for being ineffective in enforcing fair trade.

Speaking on the syndicated “Kevin McCullough Radio” conservative talk show, Lighthizer said there was “no question that China has an industrial policy that is designed to create jobs and wealth in China.”

http://www.reuters.com…   Wed.,  26  July 2017

U.S. home sales stumble

Prices hit record high

U.S. home resales fell more than expected in June as a dearth of properties amid strong demand pushed prices to a record high, keeping first-time buyers on the sidelines. The housing market has experienced an acute shortage of homes for sale for about two years. As the labor market churns out more jobs and builders struggle to secure land, building materials and skilled labor, the situation could worsen.

“The fact that demand is so high is actually a good sign of economic health,” said Svenja Gudell, chief economist at Zillow. “But that’s probably small comfort to buyers, especially first-time buyers that are having an especially difficult time finding entry-level homes for sale.”The National Association of Realtors said on Monday existing home sales dropped 1.8 percent to a seasonally adjusted annual rate of 5.52 million units last month.

Economists had forecast sales falling 1.0 percent to a 5.58 million-unit rate. Sales were up 0.7 percent from June 2016. The shortage of properties has led to bidding wars, culminating in house price increases outpacing wage gains.

http://www.reuters.com…   Tue.,  25  July 2017

Oil price down

OPEC faces ‘mission impossible’ in sustaining oil prices

IHS Markit’s Victor Shum predicts Brent crude prices may settle around mid to high $40s per barrel as OPEC’s compliance to production cuts falls.

http://www.cnbc.com…   Mon.,  24  July 2017

Morgan Stanley beat Wall Street’s profit expectations

More trading revenue than the rival Goldman Sachs

Morgan Stanley beat Wall Street’s profit expectations on Wednesday, reporting gains across most of its businesses and producing more trading revenue than rival Goldman Sachs Group Inc, a rare feat. The sixth-largest U.S. bank by assets reported an 11 percent rise in second-quarter profit, generating more revenue from giving corporations advice, underwriting securities, trading equities and managing customers’ money.

The one dark spot, bond trading, fell 4 percent, much less than at Wall Street rivals that reported earnings in recent days. The $1.3 billion in revenue from that business topped Chief Executive Officer James Gorman’s $1 billion quarterly target and beat Goldman’s $1.2 billion.

Morgan Stanley shares jumped 3.9 percent to $46.95 in morning trading.

http://www.reuters.com…   Thu.,  20  July 2017

US: Latest health care bill collapses

Republicans fail to overhaul the Affordable Care Act

The Republican Party’s efforts to gut former President Barack Obama’s legacy health care law came to an abrupt — if temporary — halt Monday night.
Just hours after the Senate was gaveled back into session, Senate Majority Leader Mitch McConnell was handed two more public defections on his health care bill to overhaul Obamacare. The dramatic and simultaneous announcement from Sens. Jerry Moran of Kansas and Mike Lee of Utah means McConnell officially does not have the votes to even begin debate on his legislation to overhaul the Affordable Care Act.
http://www.cnn.com…   Wed.,  19  July 2017

Netflix profits up 56%

Original content splurge pays off

A year ago Netflix added more than 130 countries to its service. On Wednesday, it announced a 56 per cent rise on profits and a global customer base of 93.8 million people. Netflix added a record 7.05 million new customers in the three months to December 31, 2016, beating its forecast of 5.2 million for the quarter. The split between international and US members is also narrowing (Netflix added 5.1 million in the quarter) bringing the total to 44.4 million – or more than 47 per cent of its total membership.

A lot of that success is down to investments in original programming. Netflix spent $5 billion (£4 billion) in 2016 on shows such as The Crown, Luke Cage and Stranger Things. It produced 600 hours of original programming in 2016, which it says will increase to 1,000 in 2017. Budgets for original shows will be increased to $6 billion to cope with the extra demand, Netflix said.Annual revenue in 2016 was $8.83 billion with a profit of $186.7 million. Quarterly profits were up 56 per cent year-on-year to $67m. The better-than-expected results sent Netflix’s share up eight per cent in after-hours trading.

http://www.wired.com…   Tue.,  18  July 2017

Legal marijuana, a very profitable business

Nevada sold out of legal marijuana so quickly, the government used a ‘statement of emergency’ to bring in more weed

On July 1, Nevada locals and tourists visiting from out of state waited hours in line in triple-digit temperatures to become the first in the state to purchase legal recreational marijuana. Less than two weeks later, the 47 retailers licensed to sell the drug are running out of supply. The Nevada Tax Commission, a subsidiary of the state Department of Taxation, has passed a new regulation to address the shortage in a unanimous vote.

The commission found that the current pool of stores licensed to distribute marijuana is insufficient to support the market. It will reopen applications and allow dispensaries previously operating in the medical marijuana program to vie for a spot in the recreational market. The regulation come as a response to a “statement of emergency” issued by the department and endorsed by Governor Brian Sandoval late last week.

http://www.businessinsider.com…   Fri.,  14  July 2017

America’s pledge on climate change

California Governor Jerry Brown and Michael Bloomberg Launch “America’s Pledge”

 Today, California Governor Jerry Brown and Michael Bloomberg launched America’s Pledge on climate change, a new initiative to compile and quantify the actions of states, cities and businesses in the United States to drive down their greenhouse gas emissions consistent with the goals of the Paris Agreement.

Since the White House announcement of its intention to withdraw from the Paris Agreement, an unprecedented number of U.S. states, cities, businesses, and colleges and universities have reaffirmed their support for the Paris Agreement through collaborations including the “We Are Still In” declaration, the Climate Mayors coalition of cities, the U.S. Climate Alliance group of states, and others.

Building on this positive momentum, the America’s Pledge initiative will for the first time aggregate the commitments of these and other “non-Party actors” in a report on the full range of climate-related activities across the whole of U.S. society. The process of developing America’s Pledge will also provide a roadmap for increased climate ambition from U.S. states, cities, businesses and others, and will transparently demonstrate to the international community how and in which ways these entities can help the U.S. deliver on its pledge under the Paris Agreement.

http://www.bloomberg.com…   Thu.,  13  July 2017

Sales record for Amazon

Amazon.com breaks sales record for ‘Prime Day’

 Amazon.com Inc (AMZN.O) said on Tuesday its Prime Day sale was on track to be the biggest shopping event in its history by sales. The world’s largest online retailer said customers ordered more than three times as many Echo-family speakers than during Prime Day 2016, which at the time broke records for Amazon devices. Third-party sellers sold over 50 percent more items on the site by noon local time (1900 GMT) than in the same timeframe last year, Amazon said in a statement.

The company has not disclosed sales figures, overall or for the Echo. Analysts estimated last year’s event brought in well over $500 million. The news underscores Amazon’s break-neck pace of growth as more shoppers order online instead of going to brick-and-mortar stores. It also highlights the winning formula of Amazon’s shopping club Prime, the cornerstone of its business. Customers had to join Amazon Prime to get discounts during the 30-hour event. U.S. members of the club pay $99 per year for benefits like two-day shipping, and they tend to buy more goods, more often from Amazon. A timer showing when the deals would expire added further shopping encouragement.

http://www.reuters.com…   Wed.,  12  July 2017