China's US Treasury holdings fall to six-month low
- China's holdings of U.S. Treasury bills, notes and bonds dropped to a six month low of $1.171 trillion in July, from $1.178 trillion in June.
- The data is closely watched, since dumping Treasury securities is viewed as one way China could retaliate against the U.S. in an ongoing trade dispute, but bond strategists are skeptical China is really trying to send a message this way.
- China is the biggest holder of U.S. Treasurys, followed by Japan.
- Japan's holdings rose to $1.04 trillion from $1.03 trillion in June.
- Strategists say China is much more likely to retaliate against U.S. tariffs by slapping its own tariffs on American goods, which it has done.
- Some market pros believe China would use its currency as a weapon before it would dump Treasurys.
Netflix shares up 5 percent after solid Emmys performance
- Netflix shares closed about 5 percent higher Tuesday after cleaning up at the Emmys Monday night.
- The company took home 23 honors at the television awards ceremony.
- Netflix tied with HBO, which had previously been the top network award winner for 16 years.
- "The Crown" took home five awards, with "Black Mirror" and "Godless" taking home statues as well.
- Netflix has been doubling down on its original content budget, spending up to $8 billion on original content in 2018.
- It is estimated to have around 1,000 original series by the end of this year.
- it received 112 nominations, four more than HBO.
- Though prices have fluctuated throughout the year, Netflix shares are still up more than 90 percent year-to-date.
Elon Musk considers going to the moon: 'Maybe I would join on this' SpaceX flight
- Elon Musk paused.
- The founder and CEO of SpaceX was thinking out loud about whether he would hitch a ride on one of his company's rockets.
- SpaceX has flown from milestone to milestone over the past year and is preparing an attempt to put humans in orbit next year for NASA.
- Japanese billionaire Yusaku Maezawa is the first to sign with SpaceX to fly around the moon on the company's Big Falcon Rocket (BFR), targeted to launch in 2023.
- He wants Musk to go with him.
- It may be over half a decade until Maezawa's artistic flight around the moon, so Musk has plenty of time to decide if he will go along.
- For now, Musk is not ruling out taking Maezawa up on his invitation.
Lyft Has Delivered its 1 Billionth Ride
- Ride-sharing service Lyft has delivered its 1 billionth ride.
- In October 2017, six years after its initial launch, Lyft had just surpassed 500 million rides.
- Over the past year, the service has launched in 20 new markets, including Ottawa and Toronto, Canada.
- Those 1 billion trips included 76 million rides to the airport and 500,000 visits to Disney World.
- Uber surpassed that 1 billion mark in December of 2015 and announced it had surpassed 10 billion rides in July of this year.
- Lyft is steadily gaining market share but is still significantly behind Uber.
- Left currently holds 29% of the ride-sharing market to Uber’s 69%, reports CNBC.
- It recently purchased bike-share company Motivate for around $250 million and will potentially offer options, such as bikes and scooters, in the app in the future.
- Uber is making similar moves and recently acquired bike-sharing company JUMP bikes.
Report: Tesla facing criminal probe over “funding secured” tweet
- Elon Musk's August 7 tweet that he had "funding secured" to take Tesla private has become the subject of a criminal investigation by the Justice Department, Bloomberg reports, citing two anonymous sources.
- While Musk's initial tweet claimed he had "funding secured" to buy out existing shareholders, he soon admitted he didn't actually have anything in writing.
- Further Reading“A huge outlier”: Musk’s Tesla buyout tweet could get him in legal trouble"That's not what anyone in the financial markets thinks of when you say 'funding secured,'" said Stephen Diamond, an expert on securities law at Santa Clara University, in an interview with Ars last month.
- In an interview with Ars Technica last month, securities law expert William Sjostrom said it wasn't common for the Securities and Exchange Commission to refer cases to the Justice Department for possible criminal charges.
These 14 states could see 'extremely significant damage' from Trump's trade wars
- President Donald Trump announced tariffs on $200 billion worth of Chinese imports Monday, prompting Beijing to impose retaliatory taxes on $60 billion worth of American imports.
- The two countries had already placed tariffs on $50 billion worth of each other's products.
- But many economists and public officials warn import taxes will cause financial strain for American companies and consumers, pushing up costs and reducing access to foreign markets.
- The US Chamber of Commerce, a private lobbying group, said in a report that 14 states could suffer "extremely significant damage" after the latest round of tariffs.
- Here are their results, drawn from US Department of Commerce data.
'Another trillion in debt, here we come:' Cohn sees Trump working with Democrats on infrastructure
- Former White House economic advisor Gary Cohn said President Donald Trump will work with Congress to pass a massive debt-fueled infrastructure bill if Democrats take control of the House of Representatives in November.
- Cohn, who quit the White House post earlier this year after 15 months as director of the National Economic Council, said his conviction on the topic comes from the way Trump crafts his economic philosophy.
- But despite agreements over deregulation and tax cuts, Cohn and Trump frequently sparred over the president's plans to impose trade sanctions on economic allies.
- For his part, Cohn said he would have preferred a public-private partnership to tackle infrastructure, but that his plan faced fierce opposition on Capitol Hill.
Ferrari's Icona Is Its Most Powerful Road Car Ever
- The Italian sports carmaker has debuted two new limited-edition, open-top racing-style road cars, a single-seater and a two-seater, dubbed the Icona.
- The car, which Ferrari has described as “probably the closest and purest driving experience to Formula 1,” is reportedly the most powerful Ferrari road car ever created, with an 810 horsepower engine.
- The debut of the Icona came at the end of Ferrari’s first capital markets day since the passing of the company’s former CEO, Sergio Marchionne.
- Other announcements include a plan to launch a larger car—that is definitely not a SUV—called the Purosangue by 2022, at which time Ferrari plans for most of its cars to be hybrid.
- Ferrari intends to launch 15 new models between 2019 and 2020.
- The introduction of these limited-edition models are part of new CEO Louis Camilleri’s five-year plan to increase volume and double its profits by 2022, as the Wall Street Journal reports.
Look for a Kaepernick sales 'bump' in Nike's earnings next week
- The aftermath of Nike's controversial Colin Kaepernick ad could show up in quarterly results next week — in a very good way.
- When asked "What do you think of Nike's ad with Colin Kaepernick?", 15 percent of respondents said they "support it," more than twice that percentage of respondents who said they "don't support it." Thirty one percent of survey respondents said they would absolutely buy more Nike after seeing the ad, while 14 percent said they would purchase less of it.
- Its online sales surged in the days after the advertisement debuted.
- In the same period last year, they dropped by 2 percent.
- Calls for Nike to drop its sponsorship of Kaepernick, who signed with the brand in 2011, started after he protested during the national anthem for the 2016 season.
China says new tariffs on US goods worth $60 billion effective Sept. 24
- China said it will institute new tariffs on U.S. goods worth $60 billion on Sept.
- 24, according to a Reuters report.
- The media outlet said the Asian country's tariff rate on a list of 5,207 U.S. products will range between 5 percent and 10 percent.
- On Monday, President Donald Trump's administration announced it will impose 10 percent tariffs on about $200 billion of imports from China effective Sept.
- Trump, in a statement, said that the tariffs would rise to 25 percent on Jan. 1, 2019.
- Earlier on Monday, White House economic advisor Larry Kudlow said Trump has "not been satisfied" with the trade talks with China.
- The world's two largest economies have already applied tariffs to $50 billion of each other's goods.