1.
President Trump indicated Monday that he was considering heavy new tariffs on some French imports. Hours after Trump made the comment in a tweet, his top trade negotiator, Robert Lighthizer, released the results of a five-month investigation that concluded that France had discriminated against U.S. internet companies through a digital services tax. Lighthizer said that the U.S. should respond to the finding with tariffs of up to 100 percent on $2.4 billion worth of French products, including cheese, yogurt, sparkling wine, and makeup. The proposal would have to be approved by Trump. It threatens to increase tensions between the U.S. and European allies as Trump visits London for a NATO summit. [The Washington Post]
2.
U.S. stocks retreated from last week’s records on Monday, with all three of the main indexes falling after the Institute for Supply Management reported that U.S. manufacturing activity fell in November for the fourth straight month. The Dow Jones Industrial Average fell by nearly 1 percent to start the month, while the S&P 500 and the Nasdaq dropped by 0.9 percent and 1.1 percent, respectively. The manufacturing report fueled fears that the longest economic expansion in U.S. history could be sputtering. “The question is will consumers continue to keep the economy afloat,” said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. “And so far, the preliminary data regarding Black Friday spending is very positive. It’s a big number.” [Reuters]
3.
President Trump announced via Twitter on Monday that he would restore steel and aluminum tariffs on Brazil and Argentina, accusing the South American nations of “presiding over a massive devaluation of their currencies.” The cheapening of their currencies “is not good for our farmers,” Trump said. He also urged the Federal Reserve to “likewise act” to stop other countries from taking “advantage of our strong dollar.” The unexpected announcement was similar to previous spur-of-the-moment tariff moves by Trump, with no clarification about how and when the tariffs would take effect. Brazil’s President Jair Bolsonaro declined to comment until he talked to his economic minister, but he said “if needed,” he could “also talk to Trump.” [Bloomberg, The Wall Street Journal]
4.
Huawei founder Ren Zhengfei said the Chinese tech giant planned to move its Silicon Valley research center to Canada due to U.S. sanctions, the Globe and Mail newspaper reported Monday. “According to the U.S. ban, we couldn’t communicate with, call, email, or contact our own employees in the United States,” Zhengfei said. Huawei Technologies, the world’s No. 2 smartphone maker, said in June it had cut 600 jobs at the Santa Clara, California, research center, leaving it with just 250 employees there. The Trump administration curbed the company’s access to U.S. components and technology in May over allegations it skirted Iran sanctions, and concerns that its gear could be used to spy for Beijing. [The Globe and Mail, The Associated Press]
5.
Cyber Monday sales were projected to set a record, jumping by nearly 20 percent to between $9.2 billion to $9.4 billion to become the biggest online shopping day in U.S. history, according to Adobe Analytics. Coming after the biggest Black Friday online sales ever, Monday’s discounts got the holiday season off to a strong start. “Retailer fears of a shorter season meant that deals came much sooner than usual, and consumers took notice,” Taylor Schreiner, principal analyst and head of Adobe Digital Insights, said in a statement. Harsh winter weather didn’t hurt, as many people apparently avoided venturing out in the snow and ice and shopped online instead. Adobe said online sales in states with at least two inches of snow got a 7 percent boost. [Fox Business, USA Today]
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