Beijing Threatens Retaliation Over Development
The Trump administration announced this morning new regulatory measures that would restrict the sale of American semiconductors to Chinese tech giant Huawei.
A new rule, unveiled by the Commerce Department and first reported by Reuters, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker, reported Reuters.
“This action puts America first, American companies first, and American national security first,” a senior Commerce Department official told reporters in a telephone briefing on Friday.
China immediately threatened retaliation. You can read more here.
Markets sold off initially on the report but recovered by the closing bell as optimism over the reopening of the U.S. economy continued to move forward.
Foreign ownership of U.S. Treasuries fell by a record amount in March. The U.S. oil rig count fell to the lowest in over a decade. Job Openings fell the most on record as Coronavirus raged in March.
NY Empire State Manufacturing Index (May) printed at -48.5 vs -63.5 consensus estimate.
Retail Sales ex-Autos (MoM) (Apr) printed at -17.2% vs -8.6% estimate.
Retail Sales Control Group (Apr) printed at -15.3% vs -4.6% estimate.
Retail Sales (MoM) (Apr) printed at -16.4% vs -12.0% estimate.
Industrial Production (MoM) (Apr) printed at -11.2% vs -11.5% estimate.
Capacity Utilization (Apr) printed at 64.9% v 64% estimate.
Michigan Consumer Sentiment Index (May) PREL printed at 73.7 vs 68 estimate.
Business Inventories (Mar) printed at the estimate of -0.2%.
JOLTS Job Openings (Mar) printed at 6.191M vs 6.842M estimate.
Baker Hughes US Oil Rig Count printed at 258.
Total Net TIC Flows (Mar) printed at $349.9B vs -$9.3B estimate.
Net Long Term TIC Flows (Mar) printed at -$112.6B vs $31.9B estimate.