The daily business briefing: June 24, 2019
1.
China on Monday called on the U.S. to cancel "inappropriate" actions against Chinese companies. The Trump administration blacklisted Chinese telecom and smartphone maker Huawei in May, and on Friday added five more Chinese technology companies to the so-called entity list, effectively barring them from buying parts from U.S. firms. "We hope the U.S. side, under the principles of free trade and the spirit of WTO (World Trade Organization) principles, can cancel these inappropriate measures against Chinese companies, and remove them from the entity list. This has benefits for both sides," China's vice commerce minister, Wang Shouwen, said Monday. President Trump and his Chinese counterpart, Xi Jinping, spoke by phone last Tuesday about their plan to meet at the upcoming G-20 summit. [CNBC]
2.
Eldorado Resorts has agreed to an $18 billion merger with Caesars Entertainment Corp., Reuters reported Sunday, citing people familiar with the matter. The deal values Caesars shares at $12.75. Caesars shares closed at $9.99 on Friday and shot up by 16 percent in pre-market trading on Monday. The news of the cash and stock deal came three months after Caesars gave Eldorado, a U.S. casino operator, access to its books under pressure from billionaire activist investor Carl Icahn, who was awarded seats on the Caesars board earlier this year. The deal is expected to be announced Monday. Neither Eldorado nor Caesars provided immediate comment on the report. Eldorado said it did not comment on rumors or speculation. [Reuters]
3.
Daimler announced Sunday that it was slashing its 2019 profit expectations in the latest sign of the lasting effects of the German auto industry's diesel emissions scandal. Daimler, which makes Mercedes-Benz luxury cars, said the downgrade stemmed from "various ongoing governmental proceedings and measures relating to diesel vehicles." The company's shares dropped by 3.6 percent in Frankfurt, extending a nearly 20 percent retreat from a recent April high. German automakers have faced increased scrutiny since Volkswagen admitted in 2015 that it cheated on diesel emissions tests. In April, the European Commission said VW, BMW, and Daimler delayed introducing two emissions cleaning systems, in violation of antitrust rules. [CNN]
4.
U.S. stock index futures rose early Monday despite rising tensions between the U.S. and Iran. Futures for the Dow Jones Industrial Average and the S&P 500 were up by 0.3 percent, while those of the Nasdaq gained 0.4 percent. After calling off a military strike against Iran, President Trump announced over the weekend that the U.S. would hit Tehran with "major" additional sanctions, a threat Iran said was "just propaganda." Investors also are continuing to watch for developments in the U.S. trade war with China, which warned the U.S. on Monday to stop "inappropriate" actions against Chinese companies. [CNBC]
5.
Toy Story 4 topped the North American box office in its opening weekend, bringing in $118 million. This was the fourth-largest debut for an animated movie, following Incredibles 2 ($182 million), Finding Dory ($135 million), and Shrek the Third ($121 million), and the third movie this year to hit $100 million in ticket sales during its opening, behind Captain Marvel and Avengers: Endgame. While still a good launch, it fell below expectations, as experts predicted the film — which introduced a few new toys to the beloved crew, including Forky (voiced by Tony Hale) — would earn $140 million. Child's Play came in a distant second place with $14 million, followed by Aladdin with $12 million, Men in Black: International with $10.8 million, and The Secret Life of Pets 2 with $10.2 million. [Variety]