Negotiating Tariffs With China as Britain Considers Surveillance Laws
09/06/2016 12:00
Talks in Beijing on trade rules and currency.
Treasury Secretary Jacob J. Lew and Secretary of State John Kerry are scheduled to be in Beijing on Monday and Tuesday for the eighth round of the U.S.-China Strategic and Economic Dialogue. Chinese officials are likely to complain about recent American antidumping tariffs imposed on their steel tariffs. The Obama administration’s position is that antidumping decisions are made through a quasi-judicial process that complies with World Trade Organization rules. Chinese officials are almost certain to ask that the United States recognize China as a market economy as opposed to a nonmarket economy, a change that would make it harder for plaintiffs to impose these tariffs on Chinese exports. The Chinese are also eager to learn more about when the Federal Reserve might raise interest rates. The United States wants China to adopt further financial liberalization, address industrial overcapacity at home and refrain from any devaluation of the renminbi that is aimed at seeking an advantage in trade. Keith Bradsher
TECHNOLOGY
‘Snooper’s Charter’ gets a hearing in Britain.
British lawmakers will hold a two-day debate, starting Monday, over newsurveillance legislation that could give the country’s intelligence agencies increased access to digital communications. The measure, called a “snooper’s charter” by critics, may force large technology companies like Apple to give these agencies access to encrypted messages in the name of national security. Officials hope to finalize the new laws by the end of the year. Mark Scott
ECONOMY
Signs from the Federal Reserve on interest rates.
Weak job growth in May means the Federal Reserve is not likely to raise interest rates in June. But how much longer will the central bank wait? Monday is the last day that Fed officials are allowed to speak publicly before the Fed meets on June 14 and 15. Janet L. Yellen, the Fed’s chairwoman, has decided to speak last. Ms. Yellen will deliver a lunchtime address in Philadelphia, then hold a round-table discussion with local workers. Ms. Yellen’s last public remarks, in late May, were relatively upbeat. She said the economy appeared to be rebounding after a weak winter. If she remains optimistic in her assessment, a rate increase could come as soon as July. But investors are increasingly betting that the Fed won’t move before September. Binyamin Appelbaum
DRUG INDUSTRY
Valeant to share its quarterly earnings report.
Valeant Pharmaceuticals International, which has been troubled in recent months by a series of scandals over its drug pricing, business dealings and accounting practices, is expected to belatedly report its first-quarter earnings on Tuesday morning. The Canadian company has seen its stock plummet in recent months as it has come under investigation by Congress,United States attorneys and the Securities and Exchange Commission. Analysts will probably be listening closely for signs that the company’s sales have begun to rebound and for reassurance that it has put its recent troubles behind it. This will be the first earnings call featuring the new chief executive, Joseph C. Papa, who replaced J. Michael Pearson in May. Katie Thomas
ECONOMY
Consumer confidence expected to remain high.
On Friday, at 10 a.m., the University of Michigan will release its preliminary estimate of consumer sentiment in June. After a series of tepid readings, consumer confidence rebounded in May to a healthy level of 94.7, and economists expect a similar number for June. The stock market’s advance lately has probably strengthened the outlook of many Americans, and the real estate market also continues to be healthy, further bolstering sentiment. One wild card — the surprisingly weak jobs report last Friday — could shift expectations among consumers down. Nelson D. Schwartz
Treasury Secretary Jacob J. Lew and Secretary of State John Kerry are scheduled to be in Beijing on Monday and Tuesday for the eighth round of the U.S.-China Strategic and Economic Dialogue. Chinese officials are likely to complain about recent American antidumping tariffs imposed on their steel tariffs. The Obama administration’s position is that antidumping decisions are made through a quasi-judicial process that complies with World Trade Organization rules. Chinese officials are almost certain to ask that the United States recognize China as a market economy as opposed to a nonmarket economy, a change that would make it harder for plaintiffs to impose these tariffs on Chinese exports. The Chinese are also eager to learn more about when the Federal Reserve might raise interest rates. The United States wants China to adopt further financial liberalization, address industrial overcapacity at home and refrain from any devaluation of the renminbi that is aimed at seeking an advantage in trade. Keith Bradsher
TECHNOLOGY
‘Snooper’s Charter’ gets a hearing in Britain.
British lawmakers will hold a two-day debate, starting Monday, over newsurveillance legislation that could give the country’s intelligence agencies increased access to digital communications. The measure, called a “snooper’s charter” by critics, may force large technology companies like Apple to give these agencies access to encrypted messages in the name of national security. Officials hope to finalize the new laws by the end of the year. Mark Scott
ECONOMY
Signs from the Federal Reserve on interest rates.
Weak job growth in May means the Federal Reserve is not likely to raise interest rates in June. But how much longer will the central bank wait? Monday is the last day that Fed officials are allowed to speak publicly before the Fed meets on June 14 and 15. Janet L. Yellen, the Fed’s chairwoman, has decided to speak last. Ms. Yellen will deliver a lunchtime address in Philadelphia, then hold a round-table discussion with local workers. Ms. Yellen’s last public remarks, in late May, were relatively upbeat. She said the economy appeared to be rebounding after a weak winter. If she remains optimistic in her assessment, a rate increase could come as soon as July. But investors are increasingly betting that the Fed won’t move before September. Binyamin Appelbaum
DRUG INDUSTRY
Valeant to share its quarterly earnings report.
Valeant Pharmaceuticals International, which has been troubled in recent months by a series of scandals over its drug pricing, business dealings and accounting practices, is expected to belatedly report its first-quarter earnings on Tuesday morning. The Canadian company has seen its stock plummet in recent months as it has come under investigation by Congress,United States attorneys and the Securities and Exchange Commission. Analysts will probably be listening closely for signs that the company’s sales have begun to rebound and for reassurance that it has put its recent troubles behind it. This will be the first earnings call featuring the new chief executive, Joseph C. Papa, who replaced J. Michael Pearson in May. Katie Thomas
ECONOMY
Consumer confidence expected to remain high.
On Friday, at 10 a.m., the University of Michigan will release its preliminary estimate of consumer sentiment in June. After a series of tepid readings, consumer confidence rebounded in May to a healthy level of 94.7, and economists expect a similar number for June. The stock market’s advance lately has probably strengthened the outlook of many Americans, and the real estate market also continues to be healthy, further bolstering sentiment. One wild card — the surprisingly weak jobs report last Friday — could shift expectations among consumers down. Nelson D. Schwartz
Source: NY Times
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