FT News Briefing Friday, August 2
Aug 2, 2019
Tensions rise as the US announces a 10% tariff on $300 billion worth of Chinese goods, sparking concerns about global trade. Corporate share buybacks begin to slow, signaling shifts in the market. Pinterest experiences a significant surge in shares after promising upgraded forecasts. Meanwhile, the UK faces a daunting economic outlook with a one-in-three chance of contraction as Boris Johnson navigates his first week as Prime Minister amidst Brexit uncertainties and public sentiment shifts.
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Tariff Impact
- Trump announced a 10% tariff on $300 billion of additional Chinese goods, impacting all Chinese exports to the U.S.
- This could escalate global economic pressure and influence the Federal Reserve's monetary easing cycle.
Buyback Slowdown
- Corporate share buyback growth is slowing, creating uncertainty for investors already concerned about economic growth and trade tensions.
- While buybacks are projected to reach $940 billion this year, the growth rate is significantly lower than previous years.
Pinterest Surge
- Pinterest's stock surged after raising its full-year revenue forecast and announcing user growth to 300 million.
- This positive news contrasts with general investor concern over slowing economic growth and trade tensions.