DealBook Briefing: The Slippery Trade Aid Slope

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DealBook Briefing: The Slippery Trade Aid Slope


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Good Wednesday morning. Breaking: Sergio Marchionne, the former C.E.O. of Fiat Chrysler, has died. (Was this email forwarded to you? Sign up here.)

$12 billion for farmers may only be the first trade bailout

The Trump administration has promised America’s farmers $12 billion to offset economic damage from its trade wars. President Trump’s tariffs have provoked retaliatory levies on American pork, beef, soybeans and sorghum.

It’s only a “short-term solution,” according to Agriculture Secretary Sonny Perdue. It still faces criticism. Farmers would rather sell goods than receive handouts. And if the World Trade Organization decides it’s an unfair subsidy, it could open the way to yet more retaliation. Then, as the editorial board of the NYT argues, there are the other candidates for trade aid:

Why shouldn’t manufacturing companies and other businesses ask to be made whole for having to pay higher prices for steel and aluminum after Mr. Trump raised tariffs on those metals? What about the workers at Harley-Davidson who will lose their jobs when the company moves some production overseas to avoid the European Union’s retaliatory tariffs on American motorcycles?

Elsewhere in trade: Jean-Claude Juncker, president of the European Commission, will offer Mr. Trump ideas for easing tensions today (it could be a sticky meeting). Many U.S. manufacturers are taking tariffs in their stride (Apple may become an exception). The trade war could dampen Chinese enthusiasm for U.S. oil. And here’s how to spot if tariffs damage the economy.

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Today’s DealBook Briefing was written by Andrew Ross Sorkin and David Gelles in New York, and Jamie Condliffe and Amie Tsang in London.

So was that a sign that Deutsche Bank’s turnaround plan — which has included over 7,000 job cuts — is on track for triumph? Not a clear one, says Edward Evans of Bloomberg Opinion:

It’s important to stress that these are only preliminary figures, and it’s far from clear that they’re sustainable. The new CEO Christian Sewing was helped by a 100 million-euro gain on an asset sale and some strangely perverse accounting rules that let the bank book a gain when its bonds perform badly.

Revolving Door

Calvin McDonald, president and chief executive of Sephora, will replace Laurent Potdevin as C.E.O. of Lululemon. (FT)

Jason Ropell, the head of Amazon’s film unit, is leaving. (FT)

John Malone is retiring from the board of Charter Communications. (WSJ)

Virginie Costa, who was finance chief for Burberry in the Americas, will become C.F.O. at Godiva Chocolatier. (WSJ)

The speed read

Deals

■ Ford is spinning out its autonomous vehicle program. (WSJ)

■ A partnership between RWJBarnabas Health and Rutgers University will create one of America’s largest health care systems. (WSJ)

■ Tsinghua Unigroup, China’s top state chip manufacturer, will reportedly buy Linxens, a French company that makes components for smart bank cards, for about $2.6 billion. (Reuters)

Politics and policy

■ Intel lost a tax case about share-based compensation overseas. (WSJ)

■ Prime Minister Theresa May is taking over Brexit negotiations. (FT)

■ Ivanka Trump is shutting her fashion brand. (NYT)

Tech

■ How Amazon is bringing its cloud computing technology into other companies’ data centers. (Information)



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