Here are five things you need to know this morning
Trump postpones Iran strikes, announces talks: U.S. President Donald Trump says strikes against Iranian energy infrastructure and power plants will be postponed for five days following the start of talks with Iran to end the war. Trump also says the halt to attacks are subject to the success of the ongoing meetings and discussions. Trump had initially given Iran until this evening to reopen the Strait of Hormuz or the U.S. and Israel would start bombing the country’s power plants.
Stocks soar, oil plunges: Stocks and bonds rebounded after U.S. President Donald Trump said the U.S. and Iran had “very good” conversations about an end to the conflict in the Middle East. Futures for the S&P 500 jumped 1.7 per cent. Brent crude oil was down more than seven per cent near US$104 a barrel. Gold trimmed losses. Before Trump’s comments, futures were pointing to more losses for equity markets under siege from skyrocketing oil prices and uncertainty about when the duration of the Iran conflict. However, stock futures were off their highest levels of the session after Iranian state media said there were no direct talks between the U.S. and Iran.
Fatal Air Canada collision: An Air Canada Express plane with 76 people aboard collided with a fire truck shortly after landing at New York’s LaGuardia airport. The two Air Canada pilots who were flying the plane died on impact. About 41 people were taken to the hospital and many in serious condition. Air Canada says it is cooperating with the Transportation Safety Board of Canada and the National Transportation Safety Board in the U.S. in the investigation of the cause of this incident.
Berkshire Japan bet: Berkshire Hathaway is investing US$1.8 billion in Tokio Marine Holdings, expanding its presence in Japan’s financial sector. The investment was made through Berkshire’s national indemnity unit. The investment will give the firm a 2.49 per cent stake and establish a strategic partnership spanning reinsurance and global dealmaking. The agreement includes a ten-year collaboration and limits on competing partnerships in its early years.
Sony pulling back on TVs: Bloomberg News is reporting Sony is nearing a US$1 billion deal to sell a majority stake in its home entertainment unit to TCL Electronics, as the Japanese company accelerates a shift away from hardware. The transaction would build on a previously announced joint venture that would see TCL take a fifty one per cent stake and oversee production of televisions under Sony’s Bravia brand.
