Why a US-China deal that once looked close now seems far off
WASHINGTON (AP) — As recently as May, the Trump administration and China seemed on the verge of resolving their dispute over Beijing's combative trade policies. Then it all collapsed. A cease-fire failed to stick. Now, global financial markets are shaking and central banks across the world are trying to cushion their economies from the worst by slashing interest rates — all in the expectation that a trade war between the world's two biggest economies will continue to rage.
China's yuan weakens after signs of stability calm markets
BEIJING (AP) — China's yuan has weakened again after the central bank told companies the currency would not be allowed to continue to fall sharply. The yuan edged down on Wednesday to about 0.4 percent below its level late the previous day. Financial markets tumbled after Beijing allowed the yuan to fall Monday to an 11-year low against the dollar.
US stocks erase most of an early loss as volatility surges
Stocks overcame a big loss on Wall Street Wednesday, though the market's recovery left plenty of signs of worry among investors that the fallout from the trade war between the U.S. and China will spread. An afternoon rally lifted most of the major stock indexes out of the red, reversing most of an early slide that briefly pulled the Dow Jones Industrial Average down more than 580 points. Bond yields fell, the price of oil tanked and the price of gold surged as traders sought safe-haven holdings.
Lyft continues to post losses despite revenue growth
NEW YORK (AP) — Lyft is reporting strong revenue growth but deep losses in its second quarter, a trend that it has so far been unable to reverse. The ride-hailing company on Wednesday posted revenue of $867.3 million, up 72% from the same time last year. But the San Francisco-based company lost $664.2 million in the quarter, which was worse than what analysts polled by FactSet expected. They had predicted Lyft would lose $445 million.
Samsung ditches headphone jack after jabs at jackless rivals
NEW YORK (AP) — Samsung's newest smartphone won't have a headphone jack. The Galaxy Note 10 loses that, even though Samsung executives have long poked fun at rivals for ditching it. The Note 10 squeezes in more battery power and other goodies. That's forcing the company to do an about-face and declare that many people use wireless headphones anyway. Samsung is releasing the Note 10 in two sizes on Aug. 23.
Japan says export step not aimed at hurting ties with Seoul
TOKYO (AP) — A spokesman says Japan's downgrading of South Korea's trade status is not intended as retaliation for disputes over court rulings ordering Japanese companies pay compensation for their treatment of Korean laborers during World War II. The move to drop South Korea from a list of countries granted preferred trade status became official Wednesday, and will take effect on Aug. 28. It adds to Japan's export controls imposed in July on three key materials for South Korea's semiconductor industry.
German production drops in June in latest sign of weakness
BERLIN (AP) — German industrial production dropped significantly for the second time in three months in June, the latest sign of weakness from Europe's biggest economy. Wednesday's report fueled expectations of an overall decline in the second quarter.
Trade war escalation comes at inopportune moment for economy
WASHINGTON (AP) — The escalation of the U.S.-China trade fight comes at a particularly inopportune moment for the global economy, when growth in the United States and the world is already weakening. The trade tensions threaten to turn a period of slower growth into recession. The conflict could also spread to currency markets and threaten to involve other countries.
Perdue: US farmers will regain markets lost in trade war
U.S. Agriculture Secretary Sonny Perdue is telling nervous farmers he's confident they'll eventually regain the markets they've lost in the Trump administration's trade war with China. Perdue spoke Wednesday at a trade show in Minnesota. After hearing criticism from farmers about the trade war, Perdue said he believes U.S. farmers will get the China market back. But he says it's got to be a fair, reciprocal and free trade environment.
FedEx to end ground delivery business with Amazon
NEW YORK (AP) — FedEx will no longer make ground deliveries for Amazon as the online shopping giant builds its own fleet and becomes more of a threat to delivery companies. The decision comes two months after FedEx said it was terminating its air delivery contract with Amazon. FedEx said the dumping of Amazon is part of its plan to go after more e-commerce deliveries from other companies.
The S&P 500 index eked out a gain of 2.21 points, or 0.1%, to 2,883.98. The Dow dropped 22.45 points, or 0.1%, to 26,007.07. The Nasdaq climbed 29.56 points, or 0.4%, to 7,862.83. The Russell 2000 index of smaller companies lost 1.40 points, or 0.1%, to 1,500.69.