Morning Brief: EU readies $20B worth of tariffs against US

Wednesday, July 25, 2018

What to watch today

REUTERS/Regis Duvignau/File Photo

On Wednesday, Facebook (FB) earnings after the bell will be the day’s most anticipated report, though Tuesday’s reaction to Alphabet’s report casts doubt on the notion that big tech earnings will help boost the market to new highs.

Inside Facebook’s earnings, investors will be paying particular attention to the company’s expenses — which it said were set to rise 50% this year — as well as results out of its Instagram segment. In a note to clients published Monday, Goldman Sachs analysts said at least one ad partner it talked to indicated that spending on Instagram was up 177% in the second quarter.

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Top news

EU ready to respond to US tariffs with duties worth $20B: The European Union says it’s ready to retaliate against the United States with tariffs on products worth $20 billion if President Donald Trump puts duties on cars and auto parts from Europe. EU Trade Commissioner Cecilia Malmstrom said in an interview with Swedish newspaper Dagens Nyheter that she hoped a solution is found and “things wouldn’t go that far”. [AP]

Former Fiat Chrysler CEO dies: Former Fiat Chrysler Chief Executive Sergio Marchionne has died, the carmaker’s controlling family shareholder said on Wednesday. Marchionne fell gravely ill after suffering complications following recent surgery in a Zurich hospital. He was replaced as chief executive last weekend after Fiat Chrysler (FCAU) said his condition had worsened. [Reuters]

Trump is buying votes, not helping farmers: President Donald Trump thinks he can apply bandages wherever his trade wars are starting to hurt, neutralizing mounting opposition to his trade policy that threatens to tip the scales to Democrats in the upcoming midterm elections. He’s going to have to keep doling as companies like Whirlpool (WHR) and Harley Davidson (HOG) are getting hit by the tariffs. [Yahoo Finance]

AT&T opens new era as media giant:  AT&T Inc. (T), fresh off its $85 billion purchase of Time Warner Inc., reported second-quarter wireless subscriptions that fell short of analysts’ estimates. The phone giant added 73,000 new wireless customers, according to a statement Tuesday, less than the 83,300 projected by analysts. [Bloomberg]

US airlines change Taiwan reference on websitesThe three biggest U.S. airlines, American Airlines Group Inc. (AAL), Delta Air Lines (DAL) and United Airlines,  changed how they refer to self-ruled Taiwan on their websites to avoid Chinese penalties ahead of a Wednesday deadline — revisions Beijing described as “positive developments”. Earlier this year, China demanded that foreign firms, and airlines in particular, not refer to Taiwan as a non-Chinese territory on their websites. [Reuters]

For more of the latest news, go to Yahoo Finance

The death toll from forest fires that raged through seaside resorts near the Greek capital has increased to 74. Fire service spokeswoman Stavroula Malliri said that a further 164 adults and 23 children are still being treated in hospitals for injuries after the fires broke out near Athens. [AP Photo]

Yahoo Finance Originals

Trump’s $12B aid to farmers won’t ease the pain from the trade war

Ivanka Trump’s embattled fashion brand is shutting down

Trump is buying votes, not helping farmers

Exclusive: Amazon says James Gunn ‘Starsky and Hutch’ reboot is off

Whirlpool CEO: Steel prices have reached ‘unexplainable levels’

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.