What's moving markets today: June 3, 2019
Twitter announced Monday that it was buying Fabula AI, a London-based startup that uses algorithms and machine learning technology to identify false information. In a blog post about the deal, Twitter did not use the term "fake news." It simply said that Fabula's tech would "improve the health of the conversation," "stop spam" and "help people feel safe."
But make no mistake. This deal is about trying to help Twitter combat the fake news problem. When you search Fabula AI on Google, the first result shows the website with the following SEO title. "FABULA AI - FACT NOT FAKE."
And Fabula announced in February that by focusing on the difference between how fake news and real news spreads, it has been better able to flag erroneous reports. Fabula said it can detect fake news with greater than 93% accuracy within milliseconds of processing an article and as little as 2 hours after it has started to spread.
America's business leaders are growing more worried that the United States will enter a recession by the end of 2020. Their primary fear: protectionist trade policy.
That is the topline finding of a report released Monday by the National Association for Business Economics. The survey, based on responses by 53 economists, is a leading barometer of where the US business community thinks the economy is headed.
The report found what it called a "surge" in recession fears among the economists.
Investors start the week with a sour mood. Trade tensions are again the chief reason. But what is new about the trade tumult, you ask? Sharp comments over the weekend from China.
And there is also a growing realization that the Trump Administration is comfortable waging trade wars on multiple front including China, Mexico, India. The White House even considered raising tariffs on aluminum from ally Australia, according to the New York Times,
The administration is trying to make the case that the rules of economics don't apply in the Trump economy. Acting Chief of Staff Mick Mulvaney told Fox News that contrary to almost every serious analysis, consumers will not feel tariffs, as seen in the clip below:
For major stock averages, June is beginning the same way May ended. For the month, the Dow fell 6.1%, the S&P 500 lost 5.8% and the Nasdaq fell 7.4%.
It was the worst May for the Nasdaq since 2010 and the Dow's weekly losing streak — six down weeks in a row — is the longest since June 2011.
The US Justice Department is laying the foundation for a potential antitrust investigation of Google, sending shares down 4% in early trading.
Three people familiar with the matter tell CNN Business that the government agency is zeroing in on the company as policymakers around the globe are calling for tougher regulation of an increasingly embattled industry.
Negotiations between DOJ and the Federal Trade Commission in recent weeks have resulted in the Justice Department gaining control over a possible investigation of the tech giant.
The Chinese government is investigating FedEx after Huawei said the delivery company diverted to the United States two packages intended for the company's offices in China.
Already on edge about Huawei and relations with the United States, Chinese government authorities issued a strong statement: FedEx's action has "seriously harmed the legitimate rights and interests of its client, and violated Chinese laws and regulations on the express delivery sector."
FedEx (FDX) slid 3% in premarket trading.
Boeing (BA) said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings. It's the latest problem Boeing faces as it tries to get its most important and popular airplane, the grounded 737 Max, back in the air.
Working with the Federal Aviation Administration, Boeing said it has reached out to airlines that fly 737 planes, advising them to inspect their slat track assemblies on Max and NG aircraft. The 737 NG series includes the 737-600, -700, -800 and -900 planes.
Shares fell 1.3% in premarket trading.
Germany's Infineon Technologies said it's buying US chipmaker Cypress in a deal that values the company at $10 billion.
The tie-up could help Infineon become a bigger player in chips used to power connected devices such as cars. But the price of the merger is raising eyebrows.