President Donald Trump announced late Friday that he wouldn’t impose a sliding scale of tariffs on goods from Mexico — from 5% to 25% over time — after that nation agreed to take a tougher stance on immigration, which was his goal all along. Trump on Saturday tweeted that Mexico will also buy “large quantities” of agricultural products, a stipulation that wasn’t included in a joint statement. The peso climbed. However, three Mexican officials said they were unaware of a side accord in the works, and that agricultural trade hadn’t been discussed during three days of negotiations in Washington.
The G-20 warned of escalating hazards from trade and geopolitical tensions. Finance ministers and central bank governors meeting in Japan made little progress in addressing the main threat of tit-for-tat tariffs, noting that while growth appears to be stabilizing, it “remains low and risks remain tilted to the downside.”
Hong Kong Protests
Up to a million people marched in Hong Kong protesting against legislation easing extraditions to China, increasing pressure on the Beijing-backed government. The demonstrators, many chanting for Chief Executive Carrie Lam’s resignation, choked central city boulevards. Skirmishes broke out after dark, prompting riot police to use pepper spray and batons.
United Technologies agreed to buy Raytheon in an all-stock deal, forming an aerospace and defense giant with $74 billion in sales. The new entity will be called Raytheon Technologies, with the combination taking place in the first half of 2020 after United Technologies’ planned spinoff of its Otis elevator and Carrier air-conditioner businesses.
Asia stocks looked set for gains Monday and U.S. equity futures climbed after President Donald Trump suspended his plans for tariffs on Mexico. The yen retreated. Futures pointed higher in Australia and Japan, though slipped in Hong Kong. The dollar steadied. U.S. shares closed higher and Treasury yields dropped Friday after weak U.S. jobs data added to speculation the Federal Reserve will ease rates. Oil climbed.