The arrest of Huawei CFO and other market updates | Calamatta Cuschieri

Market update together with Huawei’s CFO arrested for alleged violations of Iranian sanctions

European stocks ended sharply lower on Thursday, amid slumping oil prices, concerns about global economic growth and the arrest of a high-profile Huawei executive aggravating the resurfaced U.S.-China trade-war fears. The Stoxx Europe 600 closed down 3.1% at 343.31. Germany’s DAX 30 closed 3.5% lower at 389.26. France’s CAC 40 closed 3.3% lower at 163.91, and the U.K.’s FTSE 100 finished off 3.2% at 6,704.05.

U.S. stocks also closed mostly lower after a dramatic session that saw the Dow Jones Industrial Average plunge more than 700 points at one point on fears that the arrest of a Huawei executive would reignite trade worries. The Dow Jones Industrial Average declined 0.3%, to 24,947.67, the S&P 500 index dropped 0.2%, to 2,696.95 and the Nasdaq Composite Index fell 0.4%, to 7,188.26.

Canada arrests Huawei CFO, to extradite her to US

Canadian authorities in Vancouver have arrested Huawei Technologies Co.’s chief financial officer at the request of the U.S. government for alleged violations of Iranian sanctions, the latest move by Washington to crack down on the Chinese cellular-technology giant.

A spokesman for Canada’s justice department said Meng Wanzhou was arrested in Vancouver on December 1 and is sought for extradition by the U.S. A bail hearing has been tentatively scheduled for Friday, according to the spokesman. Meng, the daughter of Huawei’s founder, Ren Zhengfei, serves as the company’s CFO and deputy chairwoman.

Meng’s arrest comes amid a year-long U.S. government campaign against a company it views as a national-security threat. In the past year, Washington has taken a series of steps to restrict Huawei’s business on American soil and, more recently, launched an extraordinary international outreach campaign to persuade allied countries to enact similar curbs.

The U.S. is seeking Meng’s extradition so as to have her appear in federal court in the Eastern District of New York, according to people familiar with the matter. A Huawei spokesman had no immediate comment on Meng’s arrest Wednesday.

 

Disclaimer: This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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