US and China work on ZTE rescue; Mnuchin denies quid pro quo
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WASHINGTON (AP) — The United States and China are working toward an agreement that would ease U.S. sanctions that were imposed on ZTE Corp. and let the Chinese telecommunications giant stay in business. President Donald Trump said Tuesday that the deal might require ZTE to revamp its board and to pay a fine of $1 billion or more. The ZTE talks occur after the U.S. and China over the weekend suspended plans to impose tariffs on as much as $200 billion in each other's goods, pulling back from the brink of a trade war. China on Tuesday made a conciliatory gesture by cutting the tariff on imported vehicles to 15 percent from 25 percent, effective July 1.
Facebook chief faces EU grilling over his 'digital monster'
BRUSSELS (AP) — Facebook CEO Mark Zuckerberg faced tough questions from European Union lawmakers Tuesday over what one of them branded Zuckerberg's "digital monster," and he apologized for the way the social network has been used to produce fake news, interfere in elections and sweep up people's personal data. At a hearing in the European Parliament in Brussels, legislators sought explanations about the growing number of false Facebook accounts and whether Facebook will comply with new EU privacy rules, but many were left frustrated by Zuckerberg's lack of answers. After short opening remarks, Zuckerberg listened to all the questions first, and then responded to them all at once.
Low US unemployment rate masks financial struggles for many
WASHINGTON (AP) — A Federal Reserve survey shows that despite an ultra-low 3.9 percent unemployment rate, about one-third of U.S. adults faced financial insecurity last year and often struggled to pay unexpected expenses. For three in 10 adults, their monthly incomes fluctuated — often because their work schedules changed at short notice — and that caused about one in ten Americans to miss some bill payments. Forty percent of adults would have had to borrow money or sell something to pay an emergency expense of just $400. At the same time, the survey finds the improving economy is benefiting more Americans, including at all education and income levels.
Congress nears dismantling of post-crisis bank rules
WASHINGTON (AP) — Congress was taking a final step Tuesday toward dismantling a chunk of the rules framework for banks installed to prevent a recurrence of the 2008 financial crisis that brought millions of lost jobs and foreclosed homes. The House planned to approve legislation to roll back the Dodd-Frank law, easing rules for banks and notching a legislative win for President Donald Trump, who made gutting the landmark law a campaign promise. The Republican legislation, pushed by Wall Street banks as well as regional banks and smaller institutions, carries bipartisan support. The bill splintered Democrats into two camps when the Senate voted 67-31 to approve it in March.
Navarro clashes with State Department over UAE airline deal
WASHINGTON (AP) — After striking a delicate deal with the United Arab Emirates this month on rules for airline competition, the Trump administration went to war with itself. It's a story of how a wonky aviation pact became a bitter, lobbyist-fueled international incident when Peter Navarro, President Donald Trump's trade adviser, repeatedly contradicted the State Department's carefully crafted script about what the agreement actually said. The Emiratis complained to the administration. The drama has played out as Navarro, a nationalist who has sought aggressive protections for U.S. businesses, seeks to assert authority from his perch at Trump's recently created White House trade and manufacturing policy shop.
Airlines caving to Beijing despite White House protest
SHANGHAI (AP) — Global airlines are obeying Beijing's demands to refer to Taiwan explicitly as a part of China, despite the White House's call this month to stand firm against such "Orwellian nonsense." The Associated Press found 20 carriers, including Air Canada, British Airways and Lufthansa, that now refer to Taiwan, the self-ruled island that Beijing considers Chinese territory, as a part of China on their global websites. There are just three days left for dozens of foreign airlines to decide whether to comply with Beijing's orders, or face consequences that could cripple their China business, including legal sanctions. Many have already sided with Beijing.
Stocks sink late as smaller companies and industrials fade
NEW YORK (AP) — Stocks faded Tuesday afternoon and finished the day mostly lower as industrial companies and retailers fell. Smaller and more U.S.-focused companies slumped after setting records the last few days. Large industrial companies like Boeing, 3M and Caterpillar slipped, and retailers including Kohl's, AutoZone and Advance Auto Parts fell after releasing their quarterly results. Smaller companies had their worst day of the month as a winning streak that brought them to all-time highs came to an end. For most of the day stocks were on track for small gains. Automakers rose after China said it will reduce duties on imported cars in July, a sign the U.S.
The S&P 500 index slid 8.57 points, or 0.3 percent, to 2,724.44. The Dow Jones industrial average lost 178.88 points, or 0.7 percent, to 24,834.41. The Nasdaq composite fell 15.58 points, or 0.2 percent, to 7,378.46. The Russell 2000 index of smaller company stocks gave up 12.20 points, or 0.7 percent, to 1,625.24 after it closed at record highs the last four days.
Benchmark U.S. crude shed an early gain and fell 0.2 percent to $72.13 per barrel in New York. Brent crude, used to price international oils, rose 0.4 percent to $79.57 per barrel in London. Wholesale gasoline rose 0.6 percent to $2.27 a gallon. Heating oil added 0.3 percent to $2.28 a gallon. Natural gas jumped 3.5 percent to $2.91 per 1,000 cubic feet.