WHAT HAPPENED THIS WEEK?
✈️Another one of Boeing’s (BA) 737 Max model crashed this weekend in Ethiopia, killing all 157 passengers. Boeing stock fell 10% pre-market on Monday and continued to fall throughout the week as nearly all major countries, including the US, called for the specific model to be grounded indefinitely following its 2nd major crash in the past 6 months.
🕰There is no clear timetable for the current pause on rate hikes, Federal Reserve Chair Jerome Powell announced during his appearance on 60 minutes Sunday night.
🛍Retail sales grew by 0.2% in January, the US Department of Commerce reported on Monday. This comes just 1 month after falling 1.6% in December, its greatest drop in 9 years.
🖥Nvidia (NVDA) acquired Israeli interconnect specialist Mellanox for $6.9 billion, the company announced on Monday. Nvidia stock is up nearly 11% on the week following the news.
🏭Toyota (TM) announced a $3 billion additional investment in its US plants on Thursday over ongoing tariff concerns on cars and other auto parts.
🇬🇧Parliament voted to extend the Brexit deadline on Thursday, just one day after rejecting British Prime Minister Theresa May’s no-deal vote and two days after rejecting her latest revised exit plan.
Word on the Street: China Trade Talks Edition
US and Chinese negotiations continued to progress this week as the two sides reported moving on to the next stage of talks. Here are a few comments by some people close to the situation:
Sarah Huckabee Sanders, the White House Press Secretary, said that the date for a meeting between President Trump and Chinese President Xi Jinping has not been set yet. Reports surfaced that Chinese officials are hesitant for Xi Jinping to finalize the deal in the US due to the unpredictable behavior of Trump. Last-minute concessions highlight just one of many causes for concern for the Chinese officials.
Gary Cohn, the former head of President Trump’ National Economic Council, explained on Tuesday that the president “needs a win” in terms of the trade discussions with China. He also added that the president is desperate for a deal as he believes the ongoing trade war and its ensuing economic drain has held down stocks recently.
Robert Lighthizer, the top US Trade Representative in China discussions, explained in a testimony to the Senate Finance Committee on Wednesday that the ability to raise tariffs will be necessary to ensure China lives up to any agreed-upon trade deal.
Rob Portman, a Republican Senator from Ohio, opinioned that no trade deal will be completed without changes to intellectual property rights between China and the US. This issue has been a major point of controversy between the 2 countries, as evidenced by the most recent charges against Huawei Technologies for stealing the functions of T-Mobile’s (TMUS) testing robot, Tappy.