Thursday Morning Briefing: Huawei's $105 billion business at stake after U.S. broadside

Top News

The latest U.S. broadside against Huawei that puts the Chinese firm on an exports blacklist threatens to rattle the global tech supply chain, linked closely to the $105 billion business of the world’s top supplier of telecoms network equipment. The ban is not yet effective. The Trump administration has said it would add Huawei and 70 affiliates to its “Entity List” - a move that will likely ban the firm from acquiring U.S. components and technology without government approval, adding another incendiary element to the U.S.-China trade war. China slammed a decision by the U.S. government to put telecom equipment giant Huawei on a blacklist and said it will take steps to protect its companies, in a further test of ties as the economic heavyweights clash over trade.

Growing U.S. pressure on Iran has weakened pragmatic President Hassan Rouhani and made his hardline rivals more assertive at home and abroad, recent developments show. When he succeeded firebrand leader Mahmoud Ahmadinejad in 2013, Rouhani was seen as an establishment figure who would do little to end Iran’s long standoff with the West. Two years later, his administration signed the nuclear deal with six world powers that spurred hopes for wider political change.

Exclusive: A tanker carrying Iranian fuel oil in violation of U.S. sanctions has unloaded the cargo into storage tanks near the Chinese city of Zhoushan, according to ship tracking data on Refinitiv Eikon. The discharging of the nearly 130,000 tonnes of Iranian fuel oil onboard the tanker, the Marshal Z, confirmed by a representative of the oil storage terminal, marks the end of an odyssey for the cargo that began four months ago.

Walmart said that prices for shoppers will go up due to higher tariffs on imports from China as the world’s largest retailer reported its best comparable sales growth for the first quarter in nine years.

Chinese authorities have formally arrested on state secrets charges two Canadians detained last year, the government said, drawing condemnation from Canada in a case that is likely to further increase tension between Ottawa and Beijing.

Politics

New York City Mayor Bill de Blasio entered the crowded 2020 presidential race, arguing that his record of progressive accomplishments in the country's biggest city positioned him as the perfect foil to President Donald Trump.
De Blasio, 57, launched his candidacy with the central campaign message, "Working People First," becoming the 24th Democrat seeking to take on Trump in the election next year.

Washington Governor Jay Inslee, a 2020 Democratic presidential contender whose campaign is focused on climate change, unveiled a plan to invest $9 trillion in 10 years in modern manufacturing and green infrastructure to “revitalize America’s economy for the 21st century.”

Senator Elizabeth Warren, a Democrat seeking her party’s presidential nomination, called for new rules governing Pentagon contractors, saying the industry has become too close to Defense Department officials.

Democrats in the U.S. House of Representatives will read aloud the redacted version of Special Counsel Robert Mueller’s 448-page assessment of Russian interference in the 2016 presidential election.

Business

Nestle makeover advances with $10 billion sale of skin health unit

Nestle has entered exclusive talks to sell its skin health business to a consortium led by EQT Partners for 10.2 billion Swiss francs ($10.1 billion), as the food group shifts its portfolio in response to changing consumer demands.

5 min read

EU fines Barclays, Citi, JP Morgan, MUFG and RBS $1.2 billion for FX rigging

The European Union fined Barclays, Citigroup, JP Morgan, MUFG and Royal Bank of Scotland a combined 1.07 billion euros ($1.2 billion) for rigging the multi-trillion dollar foreign exchange market.

5 Min Read

Wells Fargo and Barclays back fintech company OpenFin

Financial services software startup OpenFin has raised $17 million in a funding round led by Wells Fargo & Co with participation from Barclays, the company said .

2 min read

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