Google is moving Nest production out of China | Calamatta Cuschieri

Today’s article gives an overview of the Maltese, European and U.S. markets on Wednesday, together with effects of Trump’s tariffs

The Maltese market closed in the green on Wednesday, with MSE Equity Total Return Index ending the session 0.121% higher, to 9,781.219 points. Best and only one performer was Bank of Valletta plc, by adding 0.79% to close at 1.275. There were no negative performance. Most of the stocks were active but closed unchanged.

European stocks fell Wednesday, tracking losses across global markets as oil prices fell and investors were filled with fresh uncertainty over a potential trade deal between the U.S. and China. The Stoxx 600 fell 0.5% to 378.74. In Germany, the DAX fell 0.6% to 12,086.16, the U.K.’s FTSE 100 dropped 0.7% to 7,340. Elsewhere, France’s CAC 40 fell 0.7%, nearly reversing a 0.8% gain Tuesday, while Italy’s FTSE MIB dropped 0.7%, from a 0.9% gain the prior session.

U.S. stocks were in negative territory on Wednesday as investors digested a reading on May consumer inflation and continued to eye the U.S.-China trade fight. The Dow Jones Industrial Average fell 0.23% to 25,983, the S&P 500 index declined 0.29% to 2,877 and the Nasdaq Composite Index retreated 0.48% to 7,785.

Google is moving US-bound Nest production out of China

Alphabet Inc.’s Google is moving some production of Nest thermostats and server hardware out of China, avoiding punitive U.S. tariffs and an increasingly hostile government in Beijing.

Google has already shifted much of its production of U.S.-bound motherboards to Taiwan, averting a 25% tariff, while U.S. officials have pinpointed Chinese-made motherboards as a security risk, Google didn’t bring that up during discussions with its suppliers. Tariffs have also pushed American-bound production of its Nest devices to Taiwan and Malaysia.

The migration is taking place as companies both foreign and domestic seek to pivot their production away from China amid U.S. President Donald Trump’s efforts to reset the perimeters for global trade and manufacturing. Beijing is showing growing signs also of clamping down on American corporations from Ford Motor Co. to FedEx Corp. within the world’s largest consumer market and production base.

That’s prompting U.S. companies, long accustomed to using China as the world’s workshop, to explore alternatives.

 

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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