What's moving markets today: May 6, 2019
Investor Warren Buffett is commenting President Donald Trump's new threat to hike tariffs on China, which resulted in a stock slide.
If we actually have a trade war, it would be bad for the whole world. It could be very bad depending on the extent of it," Buffett told CNBC.
He added that China and the United States are playing a "dangerous game."
Asian markets and US stock futures dropped sharply after President Donald Trump threatened to further increase tariffs on exports from China.
Trump warned yesterday that he would lift tariffs Friday on a bundle of Chinese goods to 25% from the current 10% threshold and warned he would tax nearly all of Chinese exports to the United States.
China is still planning to participate in trade talks in Washington this week despite the surprise threat.
Here's where US futures stand:
- The Dow is down roughly more than 500 points.
- The Nasdaq is down nearly 200 points.
- The S&P 500 is down more than 50 points.
Here's a look at Asian markets:
European stocks have also fallen sharply after President Donald Trump threatened to re-ignite the China trade war.
Stocks in Germany and France fell more than 2% in early trading, with automakers and tech firms among the big losers.
The UK’s FTSE 100 is closed for a public holiday.
The revised offer hikes the amount of cash included in the $76 per share offer to $59.
Occidental was backed last week by Berkshire Hathaway's (BRKA) Warren Buffett, who invested $10 billion in the company to help finance its takeover of Anadarko.
Vicki Hollub, the CEO of Occidental, increased pressure on Anadarko in a letter to its board of directors dated Sunday.
We remain perplexed at your apparent resistance to obtaining far more value for Anadarko shareholders which has been expressed clearly through our interactions over the last week," she wrote.
The bidding war for Anadarko reflects an intense desire by US oil companies to acquire America's best shale assets. Occidental is already the No. 1 oil producer in the vast Permian Basin.