Business news live - US-China trade war escalates as Beijing hits $75bn of goods with tariffs
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China has shocked global markets by hitting $75bn of US imports with tariffs, in a further escalation of trade tensions that risks tipping the world economy into recession.
Stock markets dropped after Beijing announced that tariffs of 10 per cent and 5 per cent on two tranches of goods will come into effect on 1 September..
China appeared to have softened its stance towards Donald Trump’s administration, calling on the US president this week for a compromise.
Having been rebuffed by Washington, China hit back today with its own measure in retaliation for Mr Trump’s announcement earlier this month that the US would put 10 per cent tariffs on $300bn of Chinese imports.
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New Yorker writer Jane Mayer is reporting that billionaire industrialist and political donor David Koch has died, according to sources close to the Koch family.
China hits US with retaliatory tariff hikes
China has increased tariffs on around $75bn of US imports in retaliation for Donald Trump’s tariff rises, in a further escalation of trade tensions that risks tipping the world economy into recession.
Tariffs of 10 per cent and 5 per cent on two tranches of goods will come into effect on 1 September, China’s official Xinhua News Agency said
The move appears to be in direct retaliation to Mr Trump’s announcement earlier this month that the US would put 10 per cent tariffs on $300bn of Chinese imports.
David Koch dies, aged 79
David Koch, one of two billionaire brothers best known for their political lobbying, has died aged 79.
News of the death of the world's 11th richest person was first reported by The New Yorker and later confirmed by CBS News.
Mr Koch was the director emeritus of Koch Industries and served as the VP of the multinational corporation until 2018. He announced he was retiring from his web of political activities last year amid deteriorating health.
In a statement announcing his brother’s death, Charles Koch, the chairman and chief executive of Koch Industries, wrote:
“It is with a heavy heart that I announce the passing of my brother David.”
“Anyone who worked with David surely experienced his giant personality and passion for life. Twenty-seven years ago, David was diagnosed with advanced prostate cancer and given a grim prognosis of a few years to live,” the statement continued.
“David liked to say that a combination of brilliant doctors, state-of-the-art medications and his own stubbornness kept the cancer at bay. We can all be grateful that it did, because he was able to touch so many more lives as a result.”
Stock markets fall after Beijing's tariff announcement signals escalation of trade war
In New York, the Dow Jones has opened down 0.5 per cent after China announced new tariffs on US goods.
Shares in big oil companies including Shell, Exxon and Chevron are down in response to news that China will subject US oil imports to additional tariffs from 1 September.
Light aircraft, cars and agricultural products are also among more than 5,000 products affected.
The S&P 500 index also opened down 0.45 per cent while in Europe, markets in London, Frankfurt and Paris also suffered falls.
Donald Trump is again pressuring the Federal Reserve, minutes before its chair, Jerome Powell, is due to speak at a meeting of central bankers in Jackson Hole.
The US president has repeatedly attacked the central bank over interest rates which he claims are too high.
Mr Powell's speech will be closely watched for any signal of the direction of the Fed's monetary policy.
Investors in Kevin McCloud's eco-homes business face heavy losses
Small investors who have sunk millions of pounds into the eco-friendly building business of Kevin McCloud, one of Britain’s favourite property show presenters, have been told they could lose up to 97 per cent of their money, The Guardian has reported.
Mr McCloud, who has presented Channel 4’s Grand Designs for two decades, has promised investors returns of up to 9 per cent a year from his Happiness Architecture Beauty (HAB) companies.
But this week those who bought £2.4m worth of HAB mini-bonds in January 2017 were informed they would lose 74 per cent of their money in the best case or 97 per cent in the worst case.
Jerome Powell has pointed the finger at US trade policy for hurting the economy.
Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States.
The architect of that policy, Donald Trump, admitted this week that Americans could be hurt by it but said that "somebody had to take China on".
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