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Trump is bluffing on more China tariffs: Morning Brief

Wednesday, July 17, 2019

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WHAT TO WATCH

The first “FANG” name — Netflix (NFLX) — will deliver its second-quarter financial results after the market close Wednesday.

In April, Netflix warned investors of weaker new subscriber growth. The company projected 5 million new subscribers from April to June, and 4.7 million of those subscribers are expected to have come from international markets. Subscriber growth remains a concern as growth rates are expected to decline in a competitive environment.

Analysts polled by Bloomberg are expecting Netflix to report adjusted earnings of 77 cents per share on $4.93 billion of revenue. Typically following second-quarter earnings, Netflix stock has seen a 5.9% drop the next day, according to Bespoke Investment Group. The options market is currently implying an 8% one-day move in either direction on the announcement.

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TOP NEWS

FILE - In this Jan. 31, 2019, file photo President Donald Trump holds a meeting with Chinese Vice Premier Liu He in the Oval Office of the White House in Washington. Trump turned up the pressure on China Sunday, May 5, threatening to hike tariffs on $200 billion worth of Chinese goods. (AP Photo/Susan Walsh, File)

Trump is bluffing on China tariffs: If a Trump action would rattle the stock market, it’s unlikely to happen—at least for long. Markets are generally okay, for instance, with the tariffs he has imposed so far, most of them on imports from China. But Trump would cross into a no-go zone if he imposed the latest set of tariffs he has threatened. Trump reminded the world on July 16 that he might still impose tariffs of up to 25% on $300 billion worth of imports from China. [Yahoo Finance]

China's Treasury holdings extend drop: China’s holdings of U.S. Treasuries dipped in May to the lowest in two years amid an escalation of the trade war between the world’s two largest economies. The Asian nation’s pile of notes, bills and bonds fell by $2.8 billion to $1.11 trillion, according to Treasury Department data released Tuesday in Washington. [Bloomberg]

UK inflation rate holds steady at 2% in June, raising spending fears: The rate of price inflation in the UK held steady in June at 2%, the Office for National Statistics (ONS) said on Wednesday. Though the figure means that price growth in the UK is still at the Bank of England’s target, it will likely raise concerns that low unemployment and high wage growth in the UK have not yet translated into higher consumer spending. [Yahoo Finance UK]

EU antitrust regulators to investigate Amazon: EU antitrust regulators will investigate Amazon (AMZN), the world's largest online retailer, to see if its use of other merchants' data breaches EU antitrust rules, the European Commission said on Wednesday. [Reuters]

Also: Amazon settles German antitrust probe [Bloomberg]

Tencent-backed live-streaming firm DouYu prices U.S. IPO: DouYu International Holdings Ltd <DOYU.N>, China's largest live-streaming platform, on Tuesday said it sold $775 million in stock at a $3.73 billion valuation after pricing its U.S. initial public offering (IPO) at the bottom of an indicative range. [Bloomberg]

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