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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/dec/03/trade-war-eu-us-france-tariffs-cheese-champagne-donald-trump-uk-construction-business-live
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| Wall Street and FTSE 100 sink as Trump intensifies trade war fears - business live | |
| (32 minutes later) | |
| US president alarms investors by hinting that a China trade deal could wait until after the 2020 election | US president alarms investors by hinting that a China trade deal could wait until after the 2020 election |
| Today’s burst of trade war drama has been a wake-up call for investors who had hoped that the dispute was being ended peacefully. | |
| Michael Hewson of CMC Markets explains: | |
| CNBC’s Michelle Caruso-Cabrera is losing faith that China and the US will ever reach a trade deal.... | |
| All these negative headlines on trade have knocked China’s currency to its lowest level since October, as Bloomberg’s Katherine Griefeld points out here: | All these negative headlines on trade have knocked China’s currency to its lowest level since October, as Bloomberg’s Katherine Griefeld points out here: |
| Wilbur Ross, Donald Trump’s commerce secretary, has just dampened hopes of a trade breakthrough with China. | Wilbur Ross, Donald Trump’s commerce secretary, has just dampened hopes of a trade breakthrough with China. |
| Ross has told CNBC that delaying a trade deal with China until after the 2020 election could make sense, as it “takes leverage away” from Beijing. That chimes with Donald Trump’s comments in London earlier. | Ross has told CNBC that delaying a trade deal with China until after the 2020 election could make sense, as it “takes leverage away” from Beijing. That chimes with Donald Trump’s comments in London earlier. |
| Ross added that no high-level meetings are planned between the two sides, even though the US will impose new tariffs on 15 December unless there’ s a deal.... | Ross added that no high-level meetings are planned between the two sides, even though the US will impose new tariffs on 15 December unless there’ s a deal.... |
| Wall Street is having a seriously bad day now, with the Dow shedding 421 points or 1.5%. | Wall Street is having a seriously bad day now, with the Dow shedding 421 points or 1.5%. |
| This takes the index down to a one-month low, wiping out all the gains made in November when the Dow hit a series of record highs. | This takes the index down to a one-month low, wiping out all the gains made in November when the Dow hit a series of record highs. |
| Donald Trump and Emmanuel Macron’s press conference in London is one of the most awkward such events we’ve seen in a while. | Donald Trump and Emmanuel Macron’s press conference in London is one of the most awkward such events we’ve seen in a while. |
| At one stage, Trump even patronised Macron for giving a classic “non-answer”, when the French president talked about the importance of eradicating ISIS. | At one stage, Trump even patronised Macron for giving a classic “non-answer”, when the French president talked about the importance of eradicating ISIS. |
| That came after Trump challenged him to take back French Islamist fighters captured in the region. | That came after Trump challenged him to take back French Islamist fighters captured in the region. |
| But on trade, Trump has also threatened France with “substantial taxes”, unless it changes its plan to tax tech giants. | But on trade, Trump has also threatened France with “substantial taxes”, unless it changes its plan to tax tech giants. |
| The two leaders are also clashing over Turkey, with Macron furious that it plans to buy a Russian missile system, and over its invasion of Syria. | The two leaders are also clashing over Turkey, with Macron furious that it plans to buy a Russian missile system, and over its invasion of Syria. |
| Donald Trump has sent another shiver through the markets, as he tells reporters in London that Europe isn’t trading fairly with the US. | Donald Trump has sent another shiver through the markets, as he tells reporters in London that Europe isn’t trading fairly with the US. |
| The US president says his country “cannot continue to lose the money that it has lost” since the EU was created. | The US president says his country “cannot continue to lose the money that it has lost” since the EU was created. |
| This further hardens concerns that Trump is ratcheting up his threats to impose more tariffs if European countries don’t address American concerns. | This further hardens concerns that Trump is ratcheting up his threats to impose more tariffs if European countries don’t address American concerns. |
| Ouch! America’s stock market has fallen 1% at the start of trading in New York. | Ouch! America’s stock market has fallen 1% at the start of trading in New York. |
| The Dow Jones industrial average: down 285 points at 27,497 | The Dow Jones industrial average: down 285 points at 27,497 |
| S&P 500: Down 32 points at 3,081.84 points | S&P 500: Down 32 points at 3,081.84 points |
| Donald Trump’s warning that a trade deal with China might not happen before next November’s presidential election has alarmed traders, as has the prospect of a trade war with France. | Donald Trump’s warning that a trade deal with China might not happen before next November’s presidential election has alarmed traders, as has the prospect of a trade war with France. |
| Trump then repeats his earlier argument that it’s wrong for France to tax US companies, through its digital services tax. | Trump then repeats his earlier argument that it’s wrong for France to tax US companies, through its digital services tax. |
| [America’s complaint is that the French plan is based on the revenues of US tech firms, not simply the profits they make in France] | [America’s complaint is that the French plan is based on the revenues of US tech firms, not simply the profits they make in France] |
| Newsflash: Donald Trump and Emmanuel Macron are holding a press conference at the NATO summit now. | Newsflash: Donald Trump and Emmanuel Macron are holding a press conference at the NATO summit now. |
| Trump seems to be trying to calm the tariff row, telling reporters that “we have a very good relationship with France”. | Trump seems to be trying to calm the tariff row, telling reporters that “we have a very good relationship with France”. |
| The US president also says that he believes the two sides can work out their clash over France’s digital sales tax. Thins s will “be looking rose” between us soon, he adds. | The US president also says that he believes the two sides can work out their clash over France’s digital sales tax. Thins s will “be looking rose” between us soon, he adds. |
| But, Trump is also emphasising that all NATO members need to make a fair contribution to its budget, and suggests that he could use trade as a weapon to get them into line... | But, Trump is also emphasising that all NATO members need to make a fair contribution to its budget, and suggests that he could use trade as a weapon to get them into line... |
| France’s wine and spirits industry is calling on Emmanuel Macron to help. | France’s wine and spirits industry is calling on Emmanuel Macron to help. |
| Antoine Leccia, chairman of trade body FEVS says the threat of champagne tariffs at the US border must be pushed back: | Antoine Leccia, chairman of trade body FEVS says the threat of champagne tariffs at the US border must be pushed back: |
| A EU delegation to the US says it will seek “immediate talks” on how to resolve the dispute over France’s digital service tax, Reuters reports. | A EU delegation to the US says it will seek “immediate talks” on how to resolve the dispute over France’s digital service tax, Reuters reports. |
| If you missed it earlier, here’s a video clip of Donald Trump criticising France’s new levy on the revenues of US technology giants: | If you missed it earlier, here’s a video clip of Donald Trump criticising France’s new levy on the revenues of US technology giants: |
| The Paris stock market is also suffering a dose of tariff blues. | The Paris stock market is also suffering a dose of tariff blues. |
| The CAC 40 index is down 1%, with consumer companies and factories suffering the biggest losses. | The CAC 40 index is down 1%, with consumer companies and factories suffering the biggest losses. |
| Luxury goods firm Kering is down 2.3%, with LVMH (Moët Hennessy – Louis Vuitton) losing 2%. As explained earlier, they’re in the firing line from higher tariffs on handbags and champagne. | Luxury goods firm Kering is down 2.3%, with LVMH (Moët Hennessy – Louis Vuitton) losing 2%. As explained earlier, they’re in the firing line from higher tariffs on handbags and champagne. |
| The US stock market is also heading for sharper losses in an hour’s time: | The US stock market is also heading for sharper losses in an hour’s time: |
| Just in: Britain’s FTSE 100 index of top shares has hit its lowest level since late October. | Just in: Britain’s FTSE 100 index of top shares has hit its lowest level since late October. |
| The Footsie has now lost 108 points to 7,177, its weakest level in six weeks. | The Footsie has now lost 108 points to 7,177, its weakest level in six weeks. |
| Donald Trump’s latest trade war escalation is causing alarm in the City, as traders fear that a deal with China could be a year away. The new tariffs being threatened on France have also raised worries that UK-EU relations could worsen. | Donald Trump’s latest trade war escalation is causing alarm in the City, as traders fear that a deal with China could be a year away. The new tariffs being threatened on France have also raised worries that UK-EU relations could worsen. |
| Separately, the the rise in the pound is hurting multinationals - whose overseas earnings become less valuable in sterling terms. | Separately, the the rise in the pound is hurting multinationals - whose overseas earnings become less valuable in sterling terms. |
| Steelmaker Evraz is the top faller, down 6%, followed by NMC Health, the UAE-focused healthcare chain. | Steelmaker Evraz is the top faller, down 6%, followed by NMC Health, the UAE-focused healthcare chain. |
| US-focused plumbing and building materials provider Ferguson has lost 3%, while global advertising firm WPP is down 2.5%. | US-focused plumbing and building materials provider Ferguson has lost 3%, while global advertising firm WPP is down 2.5%. |
| Data firm Panjiva has calculated that America’s new proposed tariffs cover 4.1% of all French exports to the US, worth just over $2.4bn. | Data firm Panjiva has calculated that America’s new proposed tariffs cover 4.1% of all French exports to the US, worth just over $2.4bn. |
| Cosmetics takes the biggest hit, followed by sparkling wine. | Cosmetics takes the biggest hit, followed by sparkling wine. |
| It explains: | It explains: |