08Mar2018 Market Close: Wall Street Closes Higher, DOW Up 94 Points, Nasdaq Composite Ends Higher For Fifth Straight Session, Metals And Mining ETF’s Tumbles After Trump Details Tariffs Policy

Trump sets metals tariffs but exempts Canada and Mexico

WASHINGTON/SANTIAGO (Reuters) – President Donald Trump pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent on aluminum on Thursday but exempted Canada and Mexico, backtracking from earlier pledges of tariffs on all countries.

Health insurer Cigna to buy Express Scripts for about $52 billion

(Reuters) – U.S. health insurer Cigna Corp struck a $52-billion deal to buy pharmacy benefits manager (PBM) Express Scripts Holding Co on Thursday, looking for new ways to hold onto their profits as the industry faces greater scrutiny for rising healthcare costs.

S&P rises after report on Trump tariff plan

NEW YORK (Reuters) – The three major U.S. stock indexes gained ground on Thursday after a report that all countries could negotiate for exclusions from President Donald trump’s proposed metals tariffs and that Canada and Mexico could be exempted indefinitely.

U.S. jobless claims back off 48-year low; layoffs declining

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits rebounded last week from a more than 48-year low, but the trend continued to point to robust labor market conditions.

World steel markets unfazed by Trump’s tariff threat

LONDON (Reuters) – The prospect of 25 percent U.S. tariffs on steel imports has raised fears of a global trade war but steel producers outside North America believe they can weather the storm without too much disruption to their business or steel prices.

Exclusive: Mexico says U.S. tariffs will not pressure NAFTA talks

SANTIAGO (Reuters) – Mexico’s Economy Minister Ildefonso Guajardo said on Thursday he would not allow the United States to use planned tariffs on steel and aluminum imports to pressure the country in ongoing NAFTA talks.

Proxy firm ISS joins Glass Lewis to oppose Tesla’s stock award to Musk

(Reuters) – Proxy advisory firm Institutional Shareholder Services said on Thursday Tesla Inc shareholders should vote against a proposal for a $2.6 billion performance-based stock option grant for Chief Executive Officer Elon Musk.

Exclusive: Boeing says Embraer-size deals compatible with cash strategy

CHICAGO (Reuters) – The head of Boeing Co said on Thursday the U.S. planemaker can absorb transactions on the scale of a proposed tie-up with Brazil’s Embraer without putting at risk internal investments in its business or returning cash to shareholders.

Asia-Pacific nations sign sweeping trade deal without U.S.

SANTIAGO (Reuters) – Eleven countries including Japan and Canada signed a landmark Asia-Pacific trade agreement without the United States on Thursday in what one minister called a powerful signal against protectionism and trade wars.

Here Are The Full Details Of The “Negotiable” Tariffs Trump Will Enact

While much of what Trump is announcing today has already been leaked, here are the details of the import tariffs Donald Trump formally adopted on steel and aluminium imports which allow US allies to negotiate and apply for exemptions, a sign of the growing concern that the president was alienating America’s closest international partners, and that 2 of the 4 largest foreign suppliers of steel will be exempt.

The tariffs will come into force within 15 days and are expected to draw retaliation from the EU and other steel producers and heighten fears of a descent into a trade war.

Here are the highlights from Reuters:

TRUMP TO ANNOUNCE ON THURSDAY IMPORT TARIFFS OF 25 PCT ON STEEL, 10 PCT ON ALUMINUM STARTING IN 15 DAYS -SENIOR ADMINISTRATION OFFICIAL

U.S. OFFICIAL SAYS CANADA AND MEXICO TO BE EXEMPTED FROM TARIFFS FOR UNDETERMINED PERIOD; CONTINUATION OF EXEMPTION DEPENDS IN PART ON PROGRESS IN NAFTA TALKS

TRUMP’S TARIFF PROCLAMATIONS TO INCLUDE PROVISION TO CONSIDER ‘ALTERNATIVE WAYS’ TO ADDRESS THREAT TO U.S. NATIONAL SECURITY CAUSED BY OTHER NATIONS’ STEEL, ALUMINUM EXPORTS -OFFICIAL –

U.S. TRADE REPRESENTATIVE LIGHTHIZER TO HANDLE DISCUSSIONS WITH OTHER COUNTRIES ON ALTERNATIVE REMEDIES TO ‘FLEXIBLY MODIFY’ TARIFF PROCLAMATIONS -OFFICIAL

M …

Watch Live: President Trump Unveils “Fair & Flexible” Trade Tariffs

Will he ‘carve-out’ or won’t he?

“Fair and flexible” sounds reasonable but it would appear it all hinges on NAFTA. As President Trump said earlier, “we’re sticking with 10/25 tariffs,” adding that “if a [NAFTA] deal is reached, tariffs could change later.”

But, the latest headlines from AP suggest that the Trump tariffs will take effect in 15 days and more importantly Canada and Mexico will be “exempted indefinitely.”

Which as we detailed earlier, makes little sense, since while the decision to exempt Mexico and Canada may be strategic, perhaps meant to streamline Nafta negotiations, the reality is that it will thoroughly water down the impact of Trump’s tariffs in the first place, because as Harbor Intelligence wrote overnight, if Trump exempts Canada from proposed aluminum tariffs, “it would impair the ability of U.S. smelters to restart capacity and defeat the purpose of the import duties.”

As Harbor managing director Jorge Vazquez adds, “excluding the biggest aluminum shipper into the U.S. from the tariffs could also encourage other U.S. allies to ask for exemptions, thereby driving down the cost of delivering metal to the Midwest and making imported metal more affordable for users.

Ultimately, if exemptions are limited to Canada it could mean a windfall of as much as $300 million for Canadian producers given the Midwest premium would still reflect the tariff, Vazquez said adding that “This shows that the entire section 232 is a mistake.”

He is right, after all last month, Commerce Secretary Wilbur Ross said the aim of his duty recommendations to …

Reporter “Harassed” By Police After Exposing China’s “Dirty” Steel Secret

While the whole world is up in arms over Trump’s trade tariffs, virtually nobody wants, or dares to, point out that Trump is actually spot on when slamming China’s trade practices. And for confirmation, look no further than China’s own behavior when caught in the act.

As a reminder, it all started in December 23, 2015 – which we said at the time was “the date the global trade wars officially began” because that’s when president Obama imposed a 266% tariff on Chinese cold-rolled steel imports which Beijing had been quietly dumping around the world, a consequence of China’s attempt to overstimulate its economy (capex, capex, capex) starting in 2014.

To be sure, with Chinese mills, smelters and refiners all producing far more than can be purchased domestically amid slowing domestic demand, as well as the government’s anti-pollution crackdown, China’s decision to ship the excess overseas, and the dump it at far below prevailing prices, was understandable.

As was the collective global response: it wasn’t just the US that slapped China with tarif …

Canada, Mexico To Be “Exempted Indefinitely” From Tariffs; Peso, Loonie Soar

With just minutes to go until Trump’s 3:30 pm press conference, the big leaks have started hitting the tape, and according to the AP, while the Trump tariffs will take effect in 15 days, more importantly Canada and Mexico will be “exempted indefinitely.”

TRUMP METAL TARIFFS ARE SAID TO TAKE EFFECT IN 15 DAYS: AP

MEXICO, CANADA EXEMPTED INDEFINITELY FROM TARIFFS, AP REPORTS

Of course, the market’s attention is drawn much closer to the latest flip-flopping by the admin which as recently as a few hours ago had decided against exemptions, only to change its mind again in the last minute.

And while the decision to exempt Mexico and Canada may be strategic, perhaps meant to streamline Nafta negotiations, the reality is that it will thoroughly water down the impact of Trump’s tariffs in the first place, because as Harbor Intelligence wrote overnight, if Trump exempts Canada from proposed aluminum tariffs, “it would impair the ability of U.S. smelters to restart capacity and defeat the purpose of the import duties.”

As Harbor managing director Jorge Vazquez adds, “excluding the biggest aluminum shipper into the U.S. from the tariffs could also encourage other U.S. allies to ask for exemptions, thereby driving down the cost of delivering metal to the Midwest and making imported metal more affordable for users.

Ultimately, if exemptions are limited to Canada it could mean a windfall of as much as $300 million for Canadian producers given the Midwest premium would still reflect the tariff, Vazquez said adding that “This shows that the entire section 232 is a mistake.”

He is right, after all last month, Commerce Secretary Wilbur Ross said the aim of his duty recommendations to the president was to boost domestic aluminum capacity utilization to 80 percent. If Canada is exempt it would achieve none of that stated goal.

…

Hong Kong Exchange May Have Reached Its Peak

What next for Hong Kong? The city’s future as one of Asia’s pre-eminent financial centers has felt ever more precarious in recent years, as rival mainland Chinese markets have expanded and opened up to foreign investors.

The Trade Deficit Trump Wants to Fix May Only Worsen

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United Technologies Doesn’t Need to Lose Weight

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Called to Account: How tax and accounting changes obscured a strong quarter for earnings

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Capitol Report: Here are the details on Trump’s tariffs on steel and aluminum

President Donald Trump is moving ahead with tariffs on steel and aluminum, bucking many members of his own party as he seeks to reinvigorate U.S. industry and protect national security. Here are the details of what Trump is ordering.

Read this before signing a ‘hush agreement’

Signing a nondisclosure agreement — and breaking it — can have serious financial consequences.