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Dow falls 400 points as Apple leads technology shares lower




Axios reported that President Donald Trump believes that threatening more tariffs abroad is his best negotiation tactic on trade. The report says that Trump has told him that he could get a better trade deal with Canada because he threatened Canadian Prime Minister Justin Trudeau with charges on cars made in Canada.

Trump has overweight to throw 25 percent tax on cars made outside of the United States since earlier this year. Car manufacturers and foreign authorities have criticized Trump for this and note that such a levee would increase car costs and damage sales and jobs.

The Axios report comes as Trump and Chinese President Xi Jinping will be set to meet at the G20 summit last month.

Haibin Zhu from JP Morgan, said in a note that there is a 55 percent chance that the two leaders will not reach an agreement at the summit.

"We are cautious as the challenge to take us to the United States and China's conflict is still high," said Zhu. "The US-China conclusion extends beyond trade to areas such as technology, intellectual property, market access, industrial policy and ultimately centers on about the competition between the two economic superpowers. "

" It is not clear if China is willing to make visible changes outside of trade (eg market access, IP protection, technology) and whether the US will prioritize its demand list, "said Zhu.

Apple's decline and concerns about trade overshadowed by large corporate agreements.

SAP agreed to buy Qualtrics, a privately owned company competing with SurveyMonkey for $ 8 billion. Meanwhile, Veritas Capital and Elliott Management able to buy Athenahealth for more than 5 billion dollars.

Older tobacco stocks fell widely after the Wall Street Journal reported that Food and Drug Administration n plans to pursue a ban on mentol cigarettes in American shares of British American Tobacco dropped almost 7 percent while Philip Morris and Altria Group dropped by 1[ads1].3 percent and 2.5 percent respectively.

General Electric shares dropped 7.3 percent to trade under $ 8 after CEO Larry Culp told CNBC David Faber that he feels "urgent

-CNBCs
Spriha Srivastava
contributed to this reports.



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