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>> Global markets taking another nosedive Thursday as investors get steamrolled by uncertainty about US China trade relations. Economic slowdown worries and a sharp drop in oil prices. The Dow and S&P 500 falling back into negative territory for the year after a 2% drop right out of the gate, the Dow falling 700 points in early trade.
Hong Kong regains in New York, tech stocks are a big loser all over the world after the arrest of a top executive from Chinese tech giant, Huawei. Now, investors fear the arrest of the executive in Canada for extradition to the US will jeopardize the 90 day trade war truce between the US and China.
As well as put pressure on the chip industry. Why? Huawei, a smartphone and telecoms equipment maker, is a big buyer of semiconductors. So shares of Intel, Qualcomm, AMD, and Micron Technology are all down for the day. But that's not Wall Street's only headache. Worries tariffs are already causing a global economic slowdown sending investors running to the perceived safety of the bond market.
US government bond yields on the long end falling faster than the shorter end, threatening what is called a yield curve inversion. HIstory shows when that happens it's a signal a recession is on the way. Citigroup bearing the brunt of those worries, fell sharply. One more concern, oil. OPEC members meeting in Vienna signaling that a cut in oil production won't be as big as expected.
Oil prices are dropping as a result and so are shares in oil companies like Exxon Mobil. Leaving investors with no place to hide during the global market meltdown. It's not just Wall Street taking a hit, it was an ugly day in Asia and in Europe. London suffered its biggest one day fall in more than two years.