The daily business briefing: December 13, 2019
1.
British Prime Minister Boris Johnson's Conservative Party was headed for a landslide victory in elections called to break an impasse over Brexit. Johnson campaigned on the slogan "Get Brexit Done," while Jeremy Corbyn's opposition Labour Party had promised a new referendum on leaving the European Union, increased spending on health care, and the nationalization of key industries. Corbyn said he would step aside after early results showed the Conservatives winning 364 seats in Parliament's House of Commons, a gain of 47 seats that would give them their largest majority since 1987. The Labour Party was predicted to lose 59 seats, leaving them with 203. [CNBC, The New York Times]
2.
President Trump on Thursday agreed to a limited trade deal with China just days before the U.S. was due to impose another round of new tariffs on Chinese goods. Under the agreement, the U.S. will cancel the new tariff hikes and roll back existing tariffs on some Chinese goods. In exchange, Beijing agreed to increase purchases of U.S. farm goods, along with other concessions, The Wall Street Journal reported, citing people familiar with the matter. Trump agreed to the terms after discussing it with economic and trade advisers on Thursday. If the deal is finalized, U.S. trade representative Robert Lighthizer and Chinese Ambassador Cui Tiankai are expected to formalize the agreement, or at least its outlines, on Friday. [The Wall Street Journal]
3.
U.S. stock index futures rose early Friday, adding to Thursday's gains after the U.S. and China reached a "phase one" deal toward ending their trade war. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were up by 0.5 percent or more several hours before the opening bell. All three of the main U.S. indexes rose sharply on Thursday on the news that the world's two biggest economies had reached an agreement and were close to signing it. The deal came in time to avoid new tariffs on Chinese goods that were due to take effect on Sunday, while China promised increased purchases of U.S. agricultural goods. Global stocks also got a lift from the U.K. Conservative Party's election landslide, which gave Prime Minister Boris Johnson a solid majority he can use to deliver his promised Brexit plans. [CNBC]
4.
Congressional negotiators announced Thursday they had reached a preliminary $1.3 trillion spending deal for 2020, potentially averting a partial federal government shutdown next week. "There's a meeting of the minds," House Appropriations Committee Chairwoman Nita M. Lowey (D-N.Y.) said in a joint announcement with Senate Appropriations Committee Chairman Richard Shelby (R-Ala.). The news followed a visit by Treasury Secretary Steven Mnuchin to Capitol Hill, where he went over the last points of contention with the negotiators. The House could vote on the bill by Tuesday, with the Senate following before the end of next week. President Trump has signaled support for the deal. [The Washington Post]
5.
The National Labor Relations Board on Thursday ordered a judge to approve a previously rejected settlement proposal between McDonald's and the government. Under the settlement, more than a dozen workers would get up to $50,000 each. The federal labor board, split along party lines, concluded that the terms were "reasonable," and in line with the board's tradition of "encouraging the amicable resolution of disputes." The case, which originated during the Obama administration, held the fast-food giant responsible for alleged labor-law violations at some of its franchises. McDonald's said it was "pleased" with the decision to resolve the matter, because it meant that "current and former franchisee employees involved in the proceedings can now receive long overdue satisfaction of their claims." [The New York Times]
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