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Rolling coverage of the latest economic and financial news, as shares are hit by the shock arrest of Huawei CFO Meng Wanzhou
Huawei arrest shatters market confidence
Shares have slumped in Asia – China down 2%
Coming up: Opec meeting LIVE Updated
A pedestrian walks past a stock indicator board showing share prices of the Tokyo Stock Exchange in Tokyo today Photograph: Kazuhiro Nogi/AFP/Getty Images Graeme Wearden
Thu 6 Dec 2018 07.47 GMT First published on Thu 6 Dec 2018 07.42 GMT
Share on Facebook Share on Twitter Share via Email Key events Show 7.38am GMT 07:38 The agenda: Huawei arrest rattles markets Live feed Show 7.47am GMT 07:47
Meng Wanzhou’s arrest will probably tensions between the US and China, my colleague Lily Kuo reports:
US authorities have been investigating Huawei since at least 2016 for allegedly shipping US-origin products to Iran and other countries in violation of US export and sanctions laws, sources told Reuters in April.
Huawei, one of the world’s largest makers of telecommunications network equipment, said in a statement that Meng had been “temporarily detained” and faced unspecified allegations” in the Eastern district of New York.
The company said it had complied with “all applicable laws and regulations where it operates,” including sanction laws.
“There has been very little information provided to Huawei on the specific allegations. Huawei is not aware of any misconduct by Ms. Meng,” Guo Ping, rotating CEO of the company said in a statement posted on his Wechat account on Thursday.
“The company believes the Canadian and US legal systems will ultimately reach a just conclusion,” he said.
Huawei CFO arrested in Canada on suspicion of violating US sanctions Read more Facebook Twitter Google plus 7.38am GMT 07:38
The agenda: Huawei arrest rattles markets
A Chinese woman rests near boards displaying stock market prices in Beijing, China, Thursday. Photograph: Ng Han Guan/AP
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
A chilly wave of fear is rippling through the markets today, after a leading Chinese executive was arrested in Canada.
Meng Wanzhou , the global chief financial officer of telecoms equipment Huawei , is facing extradition to the US — reportedly to face charges of violating sanctions against Iran.
The arrest of Meng — who’s also the daughter of Huawei’s founder — has rocked Asia-Pacific markets, and is likely to spark fresh jitters in Europe and the US.
It threatens to reignite the trade war clashes between Washington and Beijing, just days after the two country’s leaders agreed a truce.
The Chinese stock market has slumped by 2%, and there are heavy losses in Tokyo and Hong Kong too:
Photograph: Bloomberg TV
Jasper Lawler of London Capital Group says sentiment has been ‘smashed’ this morning.
Asian markets and US futures plummeted overnight as news broke that Huawei’s CFO had been arrested in Canada to be extradited back to the US. The CFO, Wanzhou Meng, was arrested for allegedly breaching Iran sanctions. China criticized the US and Canada for the arrest, demanding her immediate release.
Traders have quickly moved out of riskier assets reflecting nerves that the arrest is likely to escalate tensions between the US and China once again.
Mike van Dulken (@Accendo_Mike) #FTSE100 called -55pts at 6865 pic.twitter.com/WFFmctcM7f
December 6, 2018 The timing is fascinating, incidentally. Meng was apparently arrested 1 December, the very day that Donald Trump and Xi Jinping were enjoying dinner together at the G20 meeting in Buenos Aires.
Investors will fear that the shock detention of such a significant business figure could easily anger the Chinese government, and potentially scupper plans to buy more US goods.
Holger Zschaepitz (@Schuldensuehner) Asia stocks slumped w/ US Futures as US-China trade tensions escalate once again after Canada arrested Huawei CFO for extradition to US AND US yield curve edged closer toward inversion. US 10y yield drops <2.9% bringing 2s/10s spread to 11bps. Oil subdued ahead of Opec meeting. pic.twitter.com/4pIEwjAO6f
December 6, 2018 Also coming up today Oil ministers are gathering in Vienna for an Opec meeting, where the cartel is widely expected to agree a production cut.
A chunky reduction to output might push oil prices higher....on the other hand, investors may already have priced it in! Brent crude is trading around $61 per barrel this morning, around 20% lower than two months ago.
Donald Trump has already chipped in:
Donald J. Trump (@realDonaldTrump) Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!
December 5, 2018 Plus, we get new manufacturing and employment data from the US.
The agenda 9am GMT: Opec meeting scheduled to begin
1.30pm GMT: US weekly jobless figures
3pm GMT: US factory orders
Updated at 7.42am GMT
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