Week In Review: How Trump's Policies Moved Stocks - Saturday, Feb. 1
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:
1. CORONAVIRUS: Early this week, President Trump tweeted: "We are in very close communication with China concerning the virus. Very few cases reported in USA, but strongly on watch. We have offered China and President Xi any help that is necessary. Our experts are extraordinary!"
On Thursday, President Trump commented on the coronavirus outbreak while speaking at at an axle parts manufacturing plant for auto supplier Dana (DAN) in Warren, Michigan, according to CNBC. Trump said, "we have it all under control," adding that it's a "very small problem in this country," according to CNBC writer Michael Wayland.
By Friday, the novel coronavirus was reported to have infected over 10,000 people around the world, with the vast majority of the figure still contained in China. The big three major U.S. air carriers - Delta (DAL), American Air (AAL) and United (UAL) - have announced they are suspending operations to and from the Chinese mainland after the U.S. Department of State's increase of the China travel advisory to "Level 4."
U.S.-CHINA PACT REMOVES COST THREAT FOR CONSOLES
The "Phase One" trade agreement recently signed by the U.S. and China removed the threat of higher prices for upcoming video game consoles such as the PlayStation 5 (SNE) and Xbox Series X (MSFT), Polygon's Charlie Hall reported on Tuesday. The tariffs that Trump threatened to slap on Chinese goods last summer had the potential to raise the cost of the PS5 and Xbox Series X, which will likely be constructed in China this year for sale in the U.S. and abroad, Hall added.
The circumstance prompted solidarity among console manufacturers, as Sony, Nintendo (NTDOY), and Microsoft had signed a letter to the USTR decrying the proposed duties, the author noted. "USTR has suspended the tariffs on consoles until further notice," the Entertainment Software Association confirmed to Polygon last week via email. "We are encouraged that the Administration suspended the implementation of tariffs on video game consoles and controllers. These tariffs would have significant implications for our industry, which boasts a trade surplus for the American economy. Tariffs will erode innovation, decrease job opportunities for American workers, and increase prices for consumers."
HUAWEI AND GOOGLE:
Huawei said it is still open to using Google (GOOG; GOOGL) services after being barred from including such services on devices last year, the Verge's Chris Welch reported. The statement comes in contrast to comments from Huawei's Fred Wangfei, who told Der Standard that the company does not currently have plans to return to using Google's mobile services even if the U.S. government opts to lift the trade ban that forced the company to come up with its own alternatives, Welch noted. "Our first choice is the open Android ecosystem, including GMS (Google Mobile Services) - that was what helped us become number two in the world for smartphone shipments," a Huawei spokesperson told The Verge by email.
U.S.-KENYA TRADE TALKS
The U.S. and Kenya are anticipated to announce talks on a free-trade deal next week, America's first such accord with a sub-Saharan country, Bloomberg's Jenny Leonard and David Herbling reported, citing a person familiar with the plans. The White House wants the agreement to be a model for future agreements with other nations in the region, the authors noted. An announcement on the negotiations will coincide with Kenyan President Uhuru Kenyatta's visit to the U.S. next week, the publication added. Macharia Kamau, Kenya's principal secretary for foreign affairs, said that the two sides anticipate real progress on a deal by the third quarter of 2020, depending on how the talks go.
Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at more