President Trump signed a so-called "phase one" trade deal with China on Wednesday, signaling a détente in a protracted trade war that resulted in hundreds of billions of dollars of tariffs being exchanged on exports between the world's two largest economies over the better part of two years.
Speaking in front of a packed crowd in the East Room of the White House ー Cabinet members and Republican lawmakers sitting side-by-side with some of the biggest names in American business ー Trump called it a "momentous step...toward a future of fair and reciprocal trade."
"Most people thought this could never happen," said the president. "It should've happened 25 years ago."
The initial agreement is expected to increase American agricultural exports to China, open up the Chinese market to more American companies, and institute new rules intended to protect American intellectual property from being stolen. But the 86-page pact, set to be released to the media soon after the signing ceremony, also keeps the majority of tariffs in place and gives the White House the ability to re-impose and escalate tariffs up and until the next phase of the deal is signed. Both sides will now begin negotiations on that phase.
In another split-screen moment in a split-screen presidency, the president and his counterpart, Chinese Vice Premier Liu He, sat at matching tables and signed the trade pact just as House Speaker Nancy Pelosi announced the seven lawmakers who will prosecute the impeachment case against President Trump in the Senate.
The trade deal signing comes less than 10 months ahead of the general election, and three weeks from the Iowa caususes ー a state that has borne the brunt of the trade war.
The Chinese delegation at the White House was noticeably smaller than the delegation that typically arrives for trade negotiations, and notably did not include Chinese President Xi. President Trump said he planned to travel to China to "reciprocate" the signing in the near future.
Though the phase one deal had largely been priced into markets, stocks nevertheless appeared to express relief that the day had finally come; a day investors and the business community hope will lead to a new era of trade and commerce between the U.S. and China. All three major averages hit record intraday highs on Wednesday, with the Dow Industrials looking to close above 29,000 for the first time.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
