America’s ‘Economic Terrorism’

It’s your move, America. That was the message from China’s Ministry of Commerce spokesman, who said trade talks hinge on the U.S.’s “attitude and sincerity,” and that the country’s “various tricks” have escalated tensions. Another official accused the U.S. of “economic terrorism.” Threats from Trump and his unpredictability coupled with a slowing economy have left the Chinese looking for a way to “fight without severing relations,” and have left at least one of the country’s major companies rethinking U.S. deals.

Too Big a Threat

Huawei poses too big of a threat to Canada and should be banned from its 5G network, according to Rogers Communications. The Canadian government is still mulling whether to ban Huawei from its 5G telecommunications system due to potential security challenges. Trump and Theresa May plan to discuss the Chinese telecom giant, which the U.S. has blacklisted, during his state visit to London next week, a U.K. official said.

HSBC Job Cuts

HSBC plans to eliminate hundreds of investment banking jobs in a drive to cut costs, people familiar said. At least 500 roles could go within global banking and markets starting as soon as mid-June. It’s the latest stage in the bank’s “Project Oak” revamp, which includes a centralized cost budget that should encourage managers to make aggressive reductions.

Rate Cut Coming?

The U.S. economy is solid but the Fed is watching for signs of further slowdown, said Vice Chairman Richard Clarida, signaling a possible rate cut. U.S. GDP was revised down to an annualized 3.1%, consumer spending grew the slowest in a year, and initial jobless claims rose by 3,000.  Asian equity futures are up after U.S. stocks meandered before closing slightly positive.