DealBook Briefing: Huawei Gets Its Breather, Sort Of


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Commerce Secretary Wilbur Ross confirmed yesterday that the Trump administration will issue licenses for American companies that want to do business with Huawei “where there is no threat to national security,” Jim Tankersley and Ana Swanson of the NYT report.

• Larry Kudlow, the director of the National Economic Council, said that the U.S. had “relaxed a bit” the licensing requirements from the Commerce Department for companies that sell to Huawei.

• Another top official suggested the move would allow chip makers to continue selling certain technology to Huawei.

That could be good news for some U.S. tech companies, including Broadcom, Intel and Qualcomm, who all sell microchips to Huawei. American businesses “have lobbied the administration, saying that the ban will cut them off from a major source of revenue, while doing little to hold back Huawei’s technological advancement,” Mr. Tankersley and Ms. Swanson write.

But the reprieve is not a broad amnesty. Mr. Ross, speaking at an export-control conference in Washington, said the administration would continue efforts to protect America’s advanced technologies. “It is wrong to trade sensitive I.P. or source codes for access to a foreign market,” he said, “no matter how lucrative that market might be.”

More: Trade talks between the U.S. and China have resumed. Robert Lighthizer, the United States trade representative, and Treasury Secretary Steven Mnuchin spoke with the Chinese vice premier, Liu He, and commerce minister, Zhong Shan, yesterday to continue negotiations.

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Today’s DealBook Briefing was written by Andrew Ross Sorkin in Sun Valley, Idaho, and Michael J. de la Merced and Jamie Condliffe in London.

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As a federal prosecutor, Alexander Acosta oversaw a controversial plea deal for the financier a decade ago. Now, Glenn Thrush and Patricia Mazzei of the NYT report, he faces pressure to resign — including from inside the Trump administration.

The U.S. company has held the spot for seven years, delivering more jets each year than its European rival. It had previously been in second place for a decade.

But the 737 Max scandal could end that. Boeing’s jet deliveries “fell by more than a third in the first half of 2019 with the grounding of its 737 Max aircraft,” Mr. Cameron and Mr. Wall write. Boeing hasn’t had any orders for Max aircraft for three straight months.

“Airbus shipped 389 planes through June and is on track to deliver a record number of jets this year,” Mr. Cameron and Mr. Wall write. It has also committed to increasing output of its A320neo, a direct rival to the Max jets.

“Boeing now builds its 737 jets at a rate of 42 a month after cutting output by almost a fifth in April and shelving its plan to boost production,” Mr. Cameron and Mr. Wall write. And 150 undelivered Max jets are parked around the U.S., which will cost Boeing.

He was best-known for his 1992 presidential campaign. Considered an unlikely candidate — an outspoken, wealthy businessman who had never held public office — he mounted a surprisingly effective third-party bid. His main campaign message was to scrap the newly born Nafta: “We do the world’s dumbest trade deals,” he later said.

Sound familiar? John Harris of Politico writes: “A quarter-century before Donald Trump, Perot was a brash, can-do showman who expressed contempt for politics as usual and promised voters who shared his disdain that the path to national greatness was to send an autocratic businessman with a touch of jingo to the White House to kick ass in Washington.”

Bob Forrester was fired as C.E.O. of the Newman’s Own Foundation after employees accused him of inappropriate behavior.

Chilton Trust, the wealth management firm, hired Pepper Anderson from JPMorgan Chase as its C.E.O.

Surterra Wellness, a cannabis start-up, hired Fareed Khan, the former C.F.O. of Kellogg, as its finance chief.

Citigroup said that it plans to hire more senior investment bankers, especially in the health care and tech sectors.

Deals

• IBM’s $34 billion takeover of the software maker Red Hat closed yesterday. (NYT)

• The founder of the South Korean gaming business Nexon has reportedly abandoned efforts to sell control of its parent company, which would have been a $16 billion deal. (Reuters)

• Levi Strauss blamed costs from its I.P.O. for missing quarterly profit estimates. (Business Insider)



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