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Selasa, 11 Juni 2019

Trump says Fed is keeping interest rates 'way too high' - MarketWatch

President Donald Trump on Tuesday complained on Twitter that the Federal Reserve was keeping interest rates "way too high," allowing "the Euro and other currencies" to be devalued versus the dollar. "The Fed interest rate way too high, added to ridiculous quantitative tightening. They don't have a clue," he wrote. Trump highlighted a Bloomberg story that tourists are flocking to Europe this summer.

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https://www.marketwatch.com/story/trump-says-fed-is-keeping-interest-rates-way-too-high-2019-06-11

2019-06-11 13:13:00Z
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Trump says 'devalued' currencies put US at a disadvantage and the Fed doesn't have a 'clue' - CNBC

President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017.

Carlos Barria | Reuters

President Donald Trump said Tuesday the U.S. is at a disadvantage compared to other major currencies like the euro as other central banks keep interest rates low while the Federal Reserve's rates are higher by comparison.

"The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage," Trump tweeted, adding the Fed doesn't have "a clue."

Trump also said in a separate tweet the U.S. has low inflation, calling it "a beautiful thing."

The dollar fell slightly against the euro following Trump's tweets, but remained little changed.

Trump has repeatedly gone after the Fed for what he considers to be tight monetary policy. The Fed hiked rates four times in 2018.

In December, after the central bank raised rates for the last time last year, Trump eviscerated the Fed. Trump called the Fed "the only problem our economy has" in a tweet, noting they "don't have a feel for the Market."

Trump also told CNBC's Joe Kernen on Monday that the Fed "made a big mistake: They raised interest rates far too fast. " Meanwhile, China keeps devaluing its currency, Trump added. "Don't forget: the head of the Fed in China is President Xi ... he can do whatever he wants."

But market expectations for lower rates have increased recently after the release of weakening economic data. The Labor Department's jobs report for May showed employment growth of just 75,000, well below estimates. Meanwhile, manufacturing activity growth slowed last month to its slowest pace since October 2016.

The data, coupled with comments from Fed Chair Jerome Powell, led traders to price in a 78% chance of lower rates by July, according to the CME Group's FedWatch tool. Powell said last week the Fed will "act as appropriate" to keep the current economic expansion going.

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https://www.cnbc.com/2019/06/11/trump-says-devalued-currencies-put-us-at-a-disadvantage-and-the-fed-doesnt-have-a-clue.html

2019-06-11 12:40:19Z
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All US iPhones could be made outside of China if needed, says Foxconn - The Verge

A senior Foxconn executive says that the company could move production of all iPhones destined for the US out of China if the current trade war demands it. In comments reported by Bloomberg and The Wall Street Journal, the head of Foxconn’s semiconductor business group, Young Liu, said, “25 percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market.”

“We have enough capacity to meet Apple’s demand,” Liu said at an investors’ conference. Apple has yet to instruct Foxconn to move production out of China according to Liu.

Apple might need to rethink manufacturing after tariffs up to 25 percent come into effect at the end of June. The new tariff is expected to apply to the wholesale cost of devices like phones, laptops, and tablets imported from China to the USA, the market where a third of Apple’s iPhone revenue comes from. It would be up to Apple to decide how much of the extra cost to pass on to US consumers. Analysts quoted by Bloomberg suggest that passing the cost of the tariffs on in their entirety could result in price increases of between nine and 16 percent, resulting in a drop in demand of anywhere between 10 and 40 percent. Alternatively, absorbing the cost entirely could hit Apple’s earnings per share by six to seven percent.

Foxconn has a big incentive to help Apple since the company is said to be responsible for as much as half of Foxconn’s revenue. A drop in demand for iPhones would lead to a drop in manufacturing demand from Foxconn. The manufacturer is already preparing to shift some iPhone production to India in an attempt to avoid India’s 20 percent import duties.

However, with China planning to retaliate to the Trump administration with a tariff increase of its own, it will be difficult for Apple to escape the impact of the trade war entirely.

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https://www.theverge.com/2019/6/11/18661036/foxconn-iphone-production-china-usa-tariffs-import-duties

2019-06-11 11:56:26Z
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Amazon opens its second Go store in New York - Engadget

All US iPhones can be made outside China to escape trade war, says Foxconn - 9to5Mac

With US iPhones currently made in China, there has been much concern about the escalating trade war between the two countries. The worst-case scenario would be a 25% tariff on iPhones entering the US, which would either push up prices, hurt Apple’s bottom line, or both.

But Foxconn has said that the iPhone would be able to escape this fate, as the assembler has enough capacity in other countries to supply all US iPhones …

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Bloomberg quotes a senior Foxconn exec speaking at an investor briefing.

The Cupertino, Calif.-based company’s primary manufacturing partner has enough capacity to make all iPhones bound for the U.S. outside of China if necessary, according to a senior executive at Hon Hai Precision Industry Co. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland […]

Hon Hai, known also as Foxconn, is the American giant’s most important manufacturing partner. It will fully support Apple if it needs to adjust its production as the U.S.-Chinese trade spat gets grimmer and more unpredictable, board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei on Tuesday.

“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” said Liu, adding that investments are now being made in India for Apple. “We have enough capacity to meet Apple’s demand.”

Liu even hinted that the as-yet fictitious Wisconsin plant could be a potential future option.

The company will respond swiftly and rely on localized manufacturing in response to the trade war, just as it foresaw the need to build a base in the U.S. state of Wisconsin two years ago, he said.

Back in April, Foxconn confirmed reports that it will begin mass-production of iPhones in India this year. This is believed to be primarily geared to serving the local market, avoiding Indian import tariffs, but it sounds like Foxconn would be in a position to boost capacity sufficiently to assemble US iPhones too.

Rival Apple product assembler Pegatron is also believed to be moving some production of MacBooks and iPads out of China this month.

Some Apple accessories are already taxed at 25% as they enter the US from China, with Apple absorbing this cost.

If Foxconn is right, it doesn’t solve all of Apple’s trade war related threats. There has been a growing movement in China to boycott Apple products in retaliation for US policy, as well as talk of the Chinese government making life difficult for Apple.

Goldman Sachs recently warned that the worst-case hit to Apple’s bottom line could be a 29% drop in global profits. That is, however, based on an extreme scenario of China banning the sale of iPhones within the country. Apple CEO Tim Cook recently said that he considers it unlikely that China would target Apple.

Photo: Shutterstock

Check out 9to5Mac on YouTube for more Apple news:

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https://9to5mac.com/2019/06/11/us-iphones/

2019-06-11 11:12:00Z
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Foxconn: Apple Has Capacity to Make All US-Bound iPhones Outside of China if Needed - Mac Rumors

Headline: "Foxconn: Apple Has Capacity to Make All US-Bound iPhones Outside of China if Needed"

The buried lede: "They'll pick a different low-wage country instead."

(You might infer from the headline that they'll simply make a US-bound iPhone in, I dunno, the US. Nope.)

Only those as naive as you would ever infer that the headline meant moving to US-based manufacturing.

Headline: "Foxconn: Apple Has Capacity to Make All US-Bound iPhones Outside of China if Needed"

The buried lede: "They'll pick a different low-wage country instead."

(You might infer from the headline that they'll simply make a US-bound iPhone in, I dunno, the US. Nope.)

They’re not stupid. That would double the price of a $1000 device

Headline: "Foxconn: Apple Has Capacity to Make All US-Bound iPhones Outside of China if Needed"

The buried lede: "They'll pick a different low-wage country instead."

(You might infer from the headline that they'll simply make a US-bound iPhone in, I dunno, the US. Nope.)

If only it were as easily done as it is said. If new tariffs on China start on July 1, it would take Foxconn months to shift production from China to India. Additionally, they would have to retool new factories for the 2019 versions of the iPhone in the midst of the production line move, as I’m sure the retooling process has already started in China. Foxconn is not going to spend all this money without charging Apple for it, and that charge will be enormous.

The new tariffs going in effect on July 1 would severely damage the Apple’s 2019 holiday season sales. There will be a shortage of Indian-made iPhones for the holiday season, and the Chinese made iPhones would be significantly more expensive due to the tariffs.

Let’s hope Tim has negotiated to save Apple from the tariffs, as it won’t be pretty if the Apple products become subject to the tariffs. Tim is playing with fire, being so nonchalant about what may be a serious hit to the future of Apple and being unprepared for what’s about to come even though he was warned about it over 2 1/2 years ago. Had he heeded the warnings then, Apple would have been much better positioned now to weather the trade war with China.

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https://www.macrumors.com/2019/06/11/apple-can-make-us-bound-iphones-outside-china/

2019-06-11 10:15:00Z
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Huawei Hints That U.S. Pressure Is Hurting Sales - TIME

Huawei Hints That U.S. Pressure Is Hurting Sales | Time

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https://time.com/5604516/china-huawei-sales/

2019-06-11 07:40:28Z
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Selasa, 11 Juni 2019

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