The New York Stock Exchange on Nov. 15, 2017.
Bryan R. Smith | Afp | Getty Images
After Thursday’s sell-off, the S&P 500 has joined the Nasdaq Composite in correction territory, which is typically taken to mean a decline of 10% or more from a recent high.
Investors looking to distract themselves with a drink might, in fact, feel even more pain. U.S. President Donald Trump threatened to impose a 200% tariff on alcoholic products from European Union nations, in response to the latter lifting its prior suspension on levies on American whiskey.
With Trump remaining adamant on tariffs despite the three-week market rout, that glass of champagne from France might lose some of its effervescent quality and take on bitter notes.
What you need to know today
Highlights of CNBC’s CONVERGE LIVE
CNBC hosted CONVERGE LIVE in Singapore on Wednesday and Thursday. Highlights of Day 2 include former U.K. Prime Minister David Cameron saying that Trump’s approach to peace in Ukraine is “very worrying” for Russia’s neighbors; Oliver Jay, managing director of international strategy at OpenAI, revealing the firm’s “biggest challenge”; and Serena Tan, CEO of an investment firm, observing that several fund managers are finding it difficult to raise cash.” Catch up on Day 2’s action here.
Trump threatens tariff retaliations
U.S. President Donald Trump said Thursday he plans to put a 200% tariff on alcohol from France and other European nations. That’s in response to the European Union reinstating an import tax on American whiskey — which, along with California almonds and rearview mirrors from Michigan, will be among some of the products hardest hit by the EU’s tariffs. At an Oval Office meeting on Thursday, Trump said he’s “not going to bend at all” on tariffs.
S&P 500 slides into correction
U.S. markets ended Thursday in the red. The S&P 500 dropped 1.39% and is now 10.1% off its record close, putting it in correction territory. The Dow Jones Industrial Average lost 1.3%, its fourth straight day down, and the Nasdaq Composite fell 1.96%. By contrast, Asia-Pacific stocks mostly rose Friday. China’s CSI 300 jumped more than 2%, while Australian mining stocks climbed on the back of gold prices hitting a record high.
Flat PPI, but not all good news
The U.S. producer price index was flat in February, seasonally adjusted figures from the Bureau of Labor Statistics showed Thursday, lower than the 0.3% increase expected in a Dow Jones survey. Core PPI decreased 0.1%, also against an estimate for a 0.3% rise and the first negative reading since July. However, the muted consumer and producer price reports for February might not necessarily be good news for the U.S. Federal Reserve.
Russia’s muted response to ceasefire deal
Moscow agrees in principle with the U.S.-led ceasefire plan backed by Ukraine earlier this week, “but there are issues that need to be discussed,” Russian President Vladimir Putin said Thursday, according to an NBC translation. A U.S. delegation led by Trump’s special envoy, Steve Witkoff, arrived in Russia for ceasefire talks on Thursday. Earlier indications from Russian officials suggested that the country was hesitant on the deal.
[PRO] Recession fears not to blame: JPMorgan
Market watchers have cited fears of an economic recession in the U.S. as a catalyst for stocks’ horrid run this week. JPMorgan thinks something else may be the culprit — and if the bank’s assessment is right, there may be a silver lining to the current sell-off.
And finally…
Some companies are using next-generation tech such as robotics in their warehouses.
Imaginima | E+ | Getty Images
Robots, drones and AI: How next-generation tech is changing the global supply chain
In a world where speed and convenience are paramount to customers, logistics companies are turning to emerging technologies such as artificial intelligence and robotics to stay competitive.
Multinational logistics company DHL has been using robotics “very extensively” across its warehouses, said Javier Bilbao Uzquiano, Asia-Pacific CEO of DHL Supply Chain.
Dubai-based online food ordering service Talabat is also working on developing its AI capabilities. The company is primarily focused on using the technology’s predictive abilities to persuade more customers to order on its platform, the company’s CEO Tomaso Rodriguez said Thursday at CONVERGE LIVE, a two-day CNBC event at Singapore’s Jewel Changi Airport.
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