Business News

5 things you need to know today

  • The war of words has ramped up between North Korea and the United States, spurring a sell off on US share markets. Share markets were initially driven lower after North Korea detailed plans to fire four intermediate-range missiles over Japan to land near the US Pacific territory of Guam. US President Donald Trump added to the negative sentiment by saying his initial warnings to North Korea – that it would be met with “fire and fury” if continues to threaten the United States – may not have been tough enough. Read Peter Switzer’s article today for more on what these geopolitical tensions mean for stocks. 

Source: AAP.

  • So just how far did US stocks fall after tensions ramped up between the US and North Korea? The Dow Jones fell by nearly 205 points, or 0.9%. The S&P 500 fell by almost 36 points or 1.5%, while the NASDAQ fell 136 points or 2.1%. See the table below for closing prices.

  • National Australia Bank’s third-quarter cash profit rose by 5% to $1.7 billion compared to the prior corresponding period. The bank also reported a statutory net profit of $1.6 billion for the June quarter. NAB said cash earnings growth reflected improved revenue growth and stronger asset quality. Revenue rose 2% on the back of “growth in lending and proved Group net interest margin (NIM) partly offset by lower Markets and Treasury Income”. 

Source: AAP.

  • In more earnings news, News Corp posted a full-year loss of $US643 million from $US235 million last year on the back of impairments. “The loss includes approximately $1 billion of pre-tax non-cash impairments and write-downs and a one-time pre-tax gain of $107 million as a result of the sale of REA Group’s European business”, explained a statement to the ASX. For the fiscal 2017 year, the media giant announced total revenues of $8.14 billion compared to $8.29 billion in the prior year – a 2% decline. Read the full announcement here
  • At 0700 AEST on Friday, the share price futures index was down 68 points, or 1.19 per cent, at 5,631. 

Published on: Friday, August 11, 2017

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