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| US targets Huawei; Shutdown consequences; Bank warning |
| By Charles Riley, CNN Business |
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| 1. Huawei targeted: Chinese telecom giant Huawei is reportedly the subject of a US criminal investigation. |
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| According to the Wall Street Journal, federal prosecutors are looking into whether the company stole trade secrets from US business partners. |
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| The probe could complicate efforts by the US and Chinese governments to reach a deal to end the trade war that has hurt companies, slowed growth and shaken financial markets around the globe. |
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| US officials have previously warned that Huawei devices could be used to spy on Americans. |
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| The Journal reported that the investigation was spurred in part by civil litigation between Huawei, which makes phones and other telecom equipment, and T-Mobile. |
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| T-Mobile (TMUS) had accused Huawei of stealing information related to a robot used for testing mobile phones. |
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| Huawei declined to comment directly on the report. But it said in a statement that the disputes with T-Mobile were settled in 2017 "following a jury verdict finding neither damage, unjust enrichment nor willful and malicious conduct." |
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| 2. Shutdown consequences: The US government shutdown is putting some key economic reports on ice, creating more uncertainty for businesses, investors and farmers. |
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| The shutdown, now in its fourth week, has delayed the release of several reports ranging from new home sales to soybean purchases. |
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| Much of the data is normally published by the Commerce Department, but other agencies like the Treasury and the Department of Agriculture are also shutdown, or operating with razor-thin staffs. |
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| On Wednesday, a report on December retail sales was missing, because the Commerce Department remains unfunded. It leaves investors in the dark on how Americans spent their money during the holiday season. |
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| There is growing evidence that the shutdown is making a dent in the US economy. |
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| Businesses are warning investors that it has taken a chunk out of revenues that they might never recoup, like the $25 million that Delta Airlines lost because of fewer bookings than anticipated in February. |
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| 3. European banks: Shares in Societe Generale (SCGLY) dropped 3% after the French bank warned investors that its fourth-quarter performance had been affected by the "challenging environment in global capital markets." |
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| There were also a series of media reports on the future of Deutsche Bank (DB). |
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| The Financial Times reported that Germany's Finance Ministry has asked banking regulators to share analysis on a potential merger of Deutsche Bank and Commerzbank (CRZBY), another large German bank. |
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| There has long been speculation that the lenders would be pushed together as part of a wave of bank consolidation in Europe. |
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| Bloomberg reported that Deutsche Bank's regulators at the European Central Bank would prefer it to find a partner in another European country in order to better integrate the region's financial markets. |
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| 4. What's next for Brexit: Prime Minister Theresa May survived a confidence vote on Wednesday, leaving her in power but without a workable plan for Brexit. |
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| May now faces two key deadlines. The first is Monday, when she is required to tell parliament how she intends to proceed. The second is March 29, the date that Britain will leave the European Union unless drastic action is taken. |
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| The scenario must feared by business is continued political gridlock that results in Britain crashing out the bloc without an agreement. That would result in new trade barriers and snarled supply chains. |
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| The pound has taken the recent tumult in its stride, reflecting the market consensus that the most likely outcome is an extension of negotiations beyond the end of March. |
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| For business, that means even more uncertainty about the substance of a final deal with the European Union. |
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| 5. Global market overview: US stock futures were lower. |
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| European markets opened in negative territory. Most major indexes in Asia finished with losses. |
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| The Dow closed up 0.6% on Wednesday. The S&P 500 added 0.2% and the Nasdaq increased 0.2%. |
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| 6. Earnings and economics: BB&T Corp (BBT) and Morgan Stanley (MS) will release earnings before the open. |
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| American Express (AXP) and Netflix (NFLX) will follow after the close. |
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| US banks turned in solid earnings on Wednesday, with Goldman Sachs' (GS) stock spiking 10% after its quarterly report. Bank of America (BAC) jumped 7% on its own earnings beat. |
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