U.S. Automotive and Dairy Industries Score in New Trade Deal
*By Carlo Versano*
Investors on Monday appeared to sign off on a renegotiated North American Free Trade Agreement (NAFTA) agreement ー with the Dow closing up nearly 200 points, marking its second highest close ever.
Among the biggest winners from the deal was the U.S. dairy industry, said Lauren Gardner, reporter for POLITICO Pro Canada.
"The president seized on that after hearing from stakeholders in Wisconsin who were very unhappy with how the Canadian dairy market was being protected by that country," she said in an interview with Cheddar Monday. "Another front was autos...They didn't totally take tariffs off the table, but they did get Canada to agree to a higher cap."
Those stocks certainly seemed to respond in kind. Shares of General Motors ($GM) were up about 1.3 percent on Monday, while Ford ($F) rose a percent.
The market reaction came after the U.S. and Canada announced hours before a midnight deadline Sunday a framework for a deal that ー paired with a previous agreement from August between the U.S. and Mexico ー would replace NAFTA and deliver a policy win for President Trump one month before a crucial midterm election.
The deal, the United States-Mexico-Canada Agreement (USMCA), will include concessions from Canada for greater U.S. access to its dairy market. In exchange, the U.S. will modify its language on dispute settlements. The latest agreement also puts an end to over a year of tumultuous negotiations between the three countries.
It also creates new language for the tech industry, which was in its infancy when NAFTA was conceived in the early 90s. The new deal also requires automakers to build more cars in North America with higher-paid workers.
"It's a good day for Canada," Prime Minister Justin Trudeau, who reasserted himself in frantic negotiations over the weekend to close the deal, said Monday.
President Trump [tweeted](https://twitter.com/realDonaldTrump/status/1046714711268622336) his support early on Monday, saying the pact "will bring all three Great Nations together in competition with the rest of the world."
Mexico had been eager to have a deal in place before sitting president Enrique Pena Nieto leaves office and the president-elect Andres Manuel Lopez Obrador takes up the mantle on Dec. 1. The question remains stateside whether lawmakers in Congress will formally ratify the pact when they vote on it, likely in early 2019. That probability will shift further if Democrats, unwilling to hand a victory to the Trump administration, take the House in November.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
