FT News Briefing
How to trade the trade war
Feb 7, 2025
Amazon's shares plummet after disappointing earnings, stirring uncertainty in the trading landscape. The Bank of England reduces interest rates to combat slowing growth. Meanwhile, rising tensions in the Democratic Republic of Congo highlight Rwanda's role in supporting rebel groups, raising concerns over regional stability. Investors are advised to diversify, looking particularly to European markets amid ongoing tariff talks and market volatility.
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Quick takeaways
- Amazon's disappointing earnings outlook reflects broader challenges for multinational companies amidst a strong U.S. dollar and mixed tech performance.
- The conflict in the Democratic Republic of Congo, fueled by resource control and external influences, poses significant risks to regional stability.
Deep dives
Amazon's Earnings and Currency Concerns
Amazon reported a disappointing outlook for its upcoming quarterly earnings, predicting net sales of $155 billion, which falls short of analysts' expectations of $158 billion. The e-commerce giant attributed this underperformance to the unfavorable impact of a strong U.S. dollar, which has created a challenging environment for multinational companies. As a result, Amazon's share price saw a decline of up to 7% in after-hours trading, reflecting the broader issues faced during a mixed tech earnings season. The downturn in performance was compounded by weaker-than-expected sales reported by Amazon Web Services, signaling potential ongoing struggles within the company's growth narrative.
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