China threatens countermeasures in trade war: Morning Brief

17-Aug-2019 Intellasia | Finance | 6:02 AM Print This Post


It’s been a wild week as markets tanked after the US Treasury yield curve a key metric of the health of the global economy inverted Wednesday morning for the first time since 2007. And there’s no sign that volatility is subsiding as markets continue to fall early Thursday. Today, investors will be looking to some key earnings reports and economic data for more clues on the health of the economy.

The US Census Bureau will release retail sales data for July at 8:30 a.m. ET. As other parts of the economy, such as manufacturing, get hit by the trade war, consumer spending has remained a bright spot and the main driver of GDP growth in the US However, the main question now is whether or not consumers will be able to continue doing the heavy lifting as the US looks to impose more tariffs on Chinese imports September 1 and December 15.

Meanwhile, Walmart (WMT) is set to release quarterly results ahead of the market open. Walmart has been thrust into the spotlight recently on criticism of its gun sales and concerns over looming tariffs. Nevertheless, the retailer is expected to continue its strong momentum. Wall Street analysts are expecting the company to report same-store sales that are at least in-line with estimates and boost its fiscal 2020 outlook. Analysts polled by Bloomberg expect Walmart to report adjusted earnings of $1.22 per share on $130.08 billion in revenue.

Investors will shift their focus to Nvidia (NVDA) after the bell when the chipmaker reports second quarter financial results. Trade tensions between the US and China have rocked the chip stocks this week, and Nvidia shares have fallen 2.67 percent as of Wednesday’s close. Nvidia’s report will be closely monitored for any commentary from management on whether or not the company will see a negative impact from the escalating trade war. Nvidia is expected to report adjusted earnings of $1.14 per share on $2.54 billion in revenue during the quarter, according to data compiled by Bloomberg.

Other notable earnings announcements scheduled for Thursday include Alibaba (BABA), JCPenney (JCP), Tapestry (TPR) before market open; Applied Materials (AMAT) after market close.

China threatens countermeasures in trade war: Stock markets sold off sharply on Thursday morning after China warned that recent tariffs from the US threatened to derail trade talks. China’s Ministry of Finance said that fresh 10 percent tariffs on $300bn of Chinese goods violated a consensus reached with the US and threatened trade talks, Bloomberg reported. China also warned it would put in place counter measures. [Yahoo Finance UK]

Bill Ackman’s Pershing Square makes big bet on Buffett’s Berkshire Hathaway: Pershing Square holdings snapped up a huge stake in Warren Buffett’s Berkshire Hathaway (BRK-B), according to a 13-F regulatory filing. As of the second quarter ended June 30, Pershing Square owned 3.51 million shares of Berkshire Hathaway’s B shares, a position that would be worth $686 million based on Wednesday’s close.[Yahoo Finance]

Buffett’s Berkshire increases bet on Warren Buffett’s Berkshire Hathaway Inc on Wednesday said it boosted its stake in Inc. (AMZN) by 11 percent during the second quarter, as US stock indexes traded near record highs. Berkshire said it owned 537,300 Amazon shares worth about $1.02 billion as of June 30, up from 483,300 shares three months earlier. [Reuters]

Stronger retail sales in July keep UK recession fears at bay: Retail sales in the UK unexpectedly climbed by 0.2 percent in July compared to the previous month, even after retail industry bodies had warned of a dire month for the sector. The boost was mainly driven by growth in online and non-store retailing, which surged 6.9 percent compared to June, according to the Office for National Statistics (ONS). [Yahoo Finance UK]


Category: China

Print This Post