Afternoon Coffee: Intel Chip Shortage Strains Tech Sector, New Tariffs on Chinese Goods Take Effect

Intel’s manufacturing capacity can’t keep up with increasing demand from customers, leading to a shortage of CPU chips, The Wall Street Journal reports. While the company has already increased its planned capital expenditures for the year by $1 billion, the report emphasized that such facilities cannot be expanded quickly.

Tariffs Continue

The U.S.-China trade war escalated again Monday, as U.S. tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of U.S. products took effect, the Guardian reports. No date has been set for another round of talks to end the ongoing dispute. 

Japan Trade

While the U.S. and China are deadlocked on their trade positions, Japan made progress in its own trade discussions with the U.S., Reuters reports. Japanese Prime Minister Shinzo Abe and President Trump are scheduled to hold a summit meeting Wednesday on the sidelines of the United Nations General Assembly. Topics on the agenda include trade and investment, as well as the denuclearization of the Korean peninsula.

Oil Output 

And finally, an energy update: OPEC members signaled Sunday that they would not rush to increase oil output, which will likely keep prices climbing, the New York Times reports. Oil prices are currently hovering around $80 a barrel, but some critics, including President Trump, have been pressuring OPEC to boost supplies, staving off further increases.

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