Tata Motors earnings disappointed, the Pope disappointed WSJ, Venezuela’s inflation is up and sentiments are down, and short sellers are eyeing South Korea.
The iShares MSCI Emerging Markets exchange-traded fund (EEM) fell 0.9% Wednesday with traders nervous about this year’s lofty equity moves and President Donald J. Trump‘s threat of “fire and fury” should North Korea misbehave.
The iShares MSCI South Korea Capped ETF (EWY) fell 1.9% Wednesday and continued to slip after hours.
U.S. shares of Indian auto manufacturer Tata Motors (500570.India and TTM) tumbled 6% in U.S. trading after its latest earnings report revealed weak margins. At its Jaguar Land Rover unit, Tata reported a 7.9% margin and analysts were looking for 12.5%, Bloomberg Quint reports. Tata Motor’s 25% rise in net profit was largely due to a one-time gain resulting from changes in Jaguar Land Rover pensions.
The Pope was too easy on Venezuelan President Nicolas Maduro last week when he called for the leader to suspend a new assembly that has the power to rewrite the constitution and ignore the elected opposition, writes William McGurn, a member of The Wall Street Journal editorial board, in an Aug. 7 opinion essay. “How different the tone is when the subject is President Donald Trump or Uncle Sam,” he writes.
A shortage of dollars has contributed to Venezuela inflation of 248% in the first seven months of 2017, the opposition-led congress said Wednesday, Reuters reports. The government has not reported inflation data in more than a year.
In case you missed it, The Wall Street Journal’s feature on Egypt’s austerity is a good explainer. Everyday people who depend on government bread, among other things, are feeling the pain.