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BUSINESS Tuesday 14 May 2019
A25

Escalating US-China trade war sends stocks plunging

By DAMIAN J. TROISE ered ultra-safe investments,
ALEX VEIGA rose sharply, sending yields
Associated Press lower. The yield on the 10-
The Dow Jones Industrial year Treasury fell to 2.39%
Average plunged more from 2.45% late Friday.
than 700 points Monday Overseas markets also fell.
as investors sought shelter European indexes were
from an escalating trade mostly down a bit more
war between the U.S. and than 1%. In Asia, the Shang-
China. hai Composite index fell
The Dow and S&P 500 in- 1.2%. Japan's Nikkei 225
dex each fell more than index gave up 0.7% and
2% as investors sold trade- South Korea's Kospi fell
sensitive shares in a broad 1.4%.
sell-off that extended the Trade talks between the
market's slide into a second U.S. and China concluded
week. Friday with no agreement
Technology stocks led the and with the U.S. increas-
way lower, with digital stor- ing import tariffs on $200
age companies and chip- billion of Chinese goods to
makers among the big de- 25% from 10%. Officials also
cliners. Heavy equipment said they were preparing to
makers Deere and Cater- In this May 9, 2019, file photo trader Jonathan Corpina works on the floor of the New York Stock expand tariffs to cover an-
pillar drove losses in the in- Exchange. other $300 billion of goods.
dustrial sector. Associated Press China on Monday an-
The world's largest econ- nounced tariff increases on
omies had seemed on warned that failed trade dex fell 2.8%. The bench- technology companies $60 billion of US imports.
track to resolve the ongo- talks and the deterioration mark index is coming off its have warned that uncer- Analysts have said investors
ing trade dispute that has in relations will put a dent worst week since January, tainty over the trade war's should prepare for a more
raised prices for consum- in the U.S. and China's eco- though it's still up sharply outcome is prompting a volatile stock market while
ers and pinched corporate nomic prospects. for the year. The Nasdaq, slowdown in orders. the trade dispute deepens.
profit margins. Investor con- The Dow dove 711 points, which is heavily weighted Bank stocks also fell sharply. Many are still confident
fidence that the two sides or 2.7%, to 25,230 as of 1:24 with technology stocks, slid Bank of America dropped that both sides will eventu-
were close to a resolution p.m. Eastern Time. Boeing 3.5%, on track for its biggest 4.6% and JPMorgan Chase ally reach a deal.
had helped push the mar- and Caterpillar fell the most daily loss of the year. fell 2.9%. "Since we see a trade ac-
ket to its best yearly start in in the Dow. Both companies Technology stocks were Safe-play holdings were cord being reached in
decades. get a significant amount of bearing the heaviest losses. the only winners as trad- the not-too-distant future,
Those hopes are now be- revenue from China and Apple fell 6.1% and Cisco ers sought to reduce their we don't expect the mar-
ing dashed and replaced stand to lose heavily if the slid 4.2%. Seagate Technol- exposure to risk. Utilities ket to endure more than
by concerns that the trade trade war drags on. Boe- ogy dropped and chip- were the only sector to rise a short-lived spate of indi-
war could crimp what is ing slid 4.8% and Caterpillar maker Microchip Technol- on the stock market, and gestion," said Sam Stovall,
otherwise a mostly healthy was 5.4% lower. ogy each gave up 6.9%. prices for U.S. government chief investment strategist
economy. Analysts have The broader S&P 500 in- Chipmakers and other bonds, which are consid- at CFRA.q

Amazon offers to help employees start delivery business

By JOSEPH PISANI and leave their jobs. The reimbursements to military
Associated Press company says it will also veterans.
NEW YORK (AP) — Amazon, pay them three months' The program's expansion is
which is racing to deliver worth of their salary. part of the company's plan
packages faster, is turn- The offer is open to most to control more of its deliv-
ing to its employees with a part-time and full-time eries on its own, rather than
proposition: Quit your job Amazon employees, in- rely on UPS, the post office
and we'll help you start a cluding warehouse workers and other carriers. Startup
business delivering Amazon who pack and ship orders. costs start at $10,000 and
packages. Whole Foods employees contractors that partici-
The offer, announced Mon- are not eligible to receive pate are able to lease blue
day, comes as Amazon the new incentives. vans with the Amazon smile
seeks to speed up its ship- Seattle-based Amazon. logo stamped on the side.
ping time from two days to com Inc. declined to say Overall, more than 200 Am-
one for its Prime members. how many employees it ex- azon delivery businesses
The company sees the new pects to take them up on have been created since In this Aug. 3, 2017, file photo, packages ride on a conveyor
incentive as a way to get the offer. it launched the program system at an Amazon fulfillment center in Baltimore.
more packages delivered The new employee incen- last June, said John Felton, Associated Press
to shoppers' doorsteps fast- tive is part of a program Amazon's vice president of
er. Amazon started a year global delivery services. Since then, it has grown to preparing for the one-day
Amazon says it will cover up ago that let anyone apply One of them is run by Milton 120 employees with a fleet shipping switch by hiring
to $10,000 in startup costs to launch an independent Collier, a freight broker who of 50 vans that can handle more people.
for employees who are ac- Amazon delivery business started his business in Atlan- up to 200 delivery stops in "We're ready," says
cepted into the program and provided $10,000 in ta about eight months ago. a day. It has already been Collier.q