China's currency tumbles after Trump's new tariff threats: Morning Brief

Monday, August 5, 2019

Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

WHAT TO WATCH

Several big earnings announcements and trade war developments will be on investors’ radars this week.

Though earnings season is slowly winding down, a handful of key names are gearing up to report quarterly results this week. So far, more than 80% of the S&P 500’s market cap reported second-quarter results. “Earnings are beating by 5.7%, with 68% of companies exceeding their bottom-line estimates. This compares to 5.5% and 71% over the past 3 years,” according to Credit Suisse strategist Jonathan Golub.

The biggest names set to report this week include Shake Shack (SHAK), Marriott (MAR), Papa John’s (PZZA), Disney (DIS), Wynn Resorts (WYNN), CVS (CVS), Roku (ROKU), Lyft (LYFT), Kraft Heinz (KHC) and Uber (UBER).

Meanwhile, this week, market participants will be closely watching any trade war developments following last weeks’ announcement by President Donald Trump to slap additional 10% tariffs on the remaining $300 billion worth of Chinese goods. The president’s tweet sent the markets in a frenzy and stocks had their worst week of the year.

The additional tariffs will be enacted on September 1, unless the Chinese and U.S. can come to some sort of agreement before then. Any new developments on the trade feud will be closely monitored.

Read more

TOP NEWS

China Yuan of Mao dollar bank note are arranged for a photograph on 07 September 2017, in Hong Kong, Hong Kong. ((Photo by studioEAST/Getty Images)

Trump's tariff threats smash China’s currency: The Chinese yuan tanked against the U.S. dollar (CNHUSD=X) in early Asian trading after U.S. President Donald Trump said he would impose tariffs on $300 billion worth of Chinese products. Chinese yuan fell by over 1.6% to 7.108 against the dollar, breaking the 7-level — a key threshold for the currency — hitting a low last seen in 2008. [Yahoo Finance UK]

Also: Bitcoin surges above 6% to $11,600 as US-China trade tensions soar [Yahoo Finance UK]

HSBC CEO John Flint is out: John Flint, CEO of HSBC (HSBA.L), has stepped down at the bank after 30 years at the major bank. On the day the bank unveiled its interim results, HSBC said in a statement that Flint would be leaving the lender "by mutual agreement with the board." [Yahoo Finance UK]

Huawei reportedly tests smartphone with own operating system: Huawei Technologies Co Ltd is testing a smartphone equipped with Hongmeng, the company's self-developed operating system, which could potentially go on sale by the end of this year, Chinese state-media outlet Global Times reported. [Reuters]

Tesla’s biggest investor unveils its major milestone: In its Baillie Gifford US “Annual Financial Report,” the UK-headquartered group highlighted why it is such a major stakeholder in Tesla (TSLA) and how its long-term investment will pay off for clients. [Yahoo Finance UK]

Berkshire Hathaway profit falls: Berkshire Hathaway Inc. (BRK-ABRK-B) on Saturday said its quarterly operating profit fell, as the conglomerate run by billionaire Warren Buffett reported less income from insurance underwriting. Second-quarter operating profit declined 11% to $6.14 billion from $6.89 billion a year earlier. [Reuters]

MORE FROM YAHOO FINANCE

Why U.S. investors will be feasting on Treasury debt

The 25 most expensive U.S. cities to live in

Cannabis short sellers add $169 million against top marijuana companies in July

Online sneaker marketplace StockX was hacked

StubHub president: ‘Am I looking to wake up and be regulated? No.'

2019 GMC Sierra AT4 review: An off-road daily driver

To ensure delivery of the Morning Brief to your inbox, please add newsletter@yahoofinance.com to your safe sender list.

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.