National Business

Trade dispute with US a political challenge for China’s Xi

The Associated Press

May 08, 2019 10:41 PM

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FILE – In this April 27, 2019, file photo, Chinese President Xi Jinping waves as he arrives for a press conference at the closing of the Belt and Road Forum at Yanqi Lake on the outskirts of Beijing. The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing.

Mark Schiefelbein, File

AP Photo

BEIJING

The tariff war between Washington and Beijing poses one of the biggest challenges yet for Chinese President Xi Jinping, potentially exposing his political vulnerabilities at a time when the Chinese economy is already slowing.

Xi needs to balance standing firm against U.S. pressure with the increasing urgency to reach a deal that would relieve battered exporters who have long underpinned growth and job creation, particularly outside the major cities.

The U.S. effort to win concessions from China on strategic industrial policies has put Xi’s own prestige on the line. It also has cast into question the ruling Communist Party’s social contract with the Chinese people: keeping authoritarian, one-party rule and ruling class privileges in exchange for delivering robust economic growth, better living standards and a higher global profile for China.

National Business

The Latest: Man arrested, 1,000 guns seized at LA mansion

The Associated Press

May 08, 2019 08:06 PM

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This photo from video provided by KCBS/KCAL-TV shows investigators from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the police inspecting a large cache of weapons seized at a home in the affluent Holmby Hills area of Los Angeles Wednesday, May 8, 2019. Authorities seized more than a thousand guns from the home after getting an anonymous tip regarding illegal firearms sales in a posh area near the Playboy Mansion and served a search warrant around 4 a.m. Wednesday at the property on the border of the Bel Air and Holmby Hills neighborhoods.

KCAL-TV via AP

KCBS

LOS ANGELES

The Latest on the seizure of more than 1,000 guns in Los Angeles (all times local):

8:05 p.m.

Authorities say they’ve arrested a man after seizing more than 1,000 guns from a mansion in a posh area of Los Angeles.

Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives served a search warrant at around 4 a.m. Wednesday at the home on the border of Bel Air and Holmby Hills, not far from the Playboy Mansion.

Authorities said they received an anonymous tip regarding illegal firearms sales at a home that records indicate is worth several million dollars.

Authorities seized stacks of hundreds of rifles and handguns and thousands of rounds of ammunition, along with weapons manufacturing equipment.

Police arrested a man on suspicion of violating a state law that forbids the manufacture and sale of assault weapons and high-powered rifles.

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6:12 p.m.

Authorities seized more than a thousand guns from a large Los Angeles home after getting an anonymous tip regarding illegal firearms sales in a posh area near the Playboy Mansion.

Officials say Los Angeles police and the Bureau of Alcohol, Tobacco, Firearms and Explosives served a search warrant around 4 a.m. Wednesday at the property on the border of the Bel Air and Holmby Hills neighborhoods.

The ATF says guns were recovered along with weapons manufacturing equipment and tools. Authorities say there is no danger to the public.

Photos from the scene showed stacks of hundreds of rifles and handguns and thousands of rounds of ammunition.

Police officials say the investigation is ongoing in the hillside area where homes typically sell for millions of dollars.

Business

Asian shares mostly lower amid jitters ahead of trade talks

By YURI KAGEYAMA AP Business Writer

May 08, 2019 07:56 PM

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FILE – In this March 11, 2019, file photo specialist Peter Mazza, left, and trader James Riley work on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Wednesday, May 8.

Richard Drew, File

AP Photo

TOKYO

Asian shares were mostly lower Thursday amid investor jitters ahead of the latest round of trade talks between the U.S. and China.

Japan’s benchmark Nikkei 225 was down 1.3% in early trading to 21,333.22. Australia’s S&P/ASX 200 gained 0.4% to 6,291.60. South Korea’s Kospi dropped 1.0% to 2,145.82. Hong Kong’s Hang Seng lost 1.6% to 28,549.70, while the Shanghai Composite shed 1.0% to 2,862.98.

On Wall Street, a late-afternoon reversal added to the market’s losses following a steep sell-off a day earlier as investors worry that the costly trade dispute between the world’s two biggest economies will escalate.

Financial markets turned volatile this week after President Donald Trump threatened to impose more tariffs on Chinese goods, a threat that is set to become reality early Friday. Negotiations between the U.S. and China are scheduled to continue in Washington on Thursday, and will include China’s top trade official.

The S&P 500 index fell 4.63 points, or 0.2%, to 2,879.42. The benchmark index had been up 0.5%. The Dow Jones Industrial Average inched up 2.24 points, or less than 0.1%, to 25,967.33. The Nasdaq composite dropped 20.44 points, or 0.3%, to 7,943.32. The Russell 2000 index of small company stocks slid 7.34 points, or 0.5% to 1,574.97.

“The pressure looks to continue amid the trade concerns found within the market with heightened volatility a new normal this week,” said Jingyi Pan, market strategist with IG in Singapore.

The U.S. and China have raised tariffs on tens of billions of dollars of each other’s goods in their dispute over U.S. complaints about China’s technology ambitions and practices.

Investors have been anticipating a deal throughout this year, which contributed to double-digit gains in all the major indexes. But the latest tough talk is raising anxiety on Wall Street and casting more doubt about a resolution.

The U.S. government has filed plans to raise tariffs on $200 billion worth of Chinese imports from 10% to 25% Friday. If it follows through on those plans, it would mark a sharp escalation in the yearlong trade dispute that has raised prices on goods for consumers and companies.

The Trump administration also has threatened to extend 25% tariffs to another $325 billion in Chinese imports, covering everything China ships to the United States.

The possibility that the trade dispute could escalate represents a marked shift from just a few weeks ago, when talks between the U.S. and China appeared to be on track for an agreement.

ENERGY:

Benchmark U.S. crude fell 63 cents to $61.49 a barrel. Brent crude, the international standard, lost 69 cents to $69.69.

CURRENCIES:

The dollar slipped to 109.89 yen from 110.06 yen. The euro fell to $1.1187 from $1.1202.

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