10 things you need to know in markets, October 26

Good morning! Here’s what you need to know in markets on Friday.

Essential CEO and founder
Andy Rubin holding the PH-1.

Brian
Ach/Stringer

1. The
Chinese yuan has fallen to the lowest level since May 2008,
leading to a new wave of risk aversion across the Asian
region. The US dollar compared to the
onshore-traded yuan hit a high of 6.9642 in early trade on
Friday, surpassing the previous high of 6.9603 set in early
January last year. The ongoing weakening of China’s
currency helps to keep the nation’s exports somewhat competitive
when increasing numbers of its goods are being subjected to
import tariffs by the Trump administration.

2. In the wake of a bombshell New
York Times story detailing Android creator Andy Rubin’s
departure from Google following a sexual misconduct
investigation,
CEO Sundar Pichai sent an email to Alphabet
employees. In the memo, Pichai says that the company
has fired 48 people for sexual harassment in the past two years,
and claims that none of them received an exit package. He said
that 13 of these people were senior managers or above.

3. Surveys of US businesses from the Federal Reserve and
market-research firm Markit
found widespread worries about escalating tariffs resulting from
President Donald Trump’s trade war with China.
Individual companies have started to tabulate the new costs
they’re likely to incur from the tariffs — Tesla, 3M, Ford, and
Harley-Davidson have said they’re expecting millions of dollars
in costs.

4. Amazon on Thursday reported third-quarter earnings
that were more than $2 a share better than analysts had
forecast. But the company’s revenue for the period
was lower than expected, and it
offered a disappointing revenue forecast for the fourth
quarter. Investors sold off the stock, shares at one
point plunged 9% lower in extended trading. 

5. Two Sears board directors have
hired investment bank Evercore to scrutinize deals that were
led by former Sears CEO Eddie Lampert before the US retailer
filed for bankruptcy protection, people familiar with the matter
said on Friday. The deals, including separations of
Sears’ businesses and real estate, may come under examination in
bankruptcy proceedings, with creditors claiming the transactions
stripped the retailer of valuable assets.

6. The
US economy likely slowed in the third quarter, held back by a
tariff-related drop in soybean exports, but the pace probably
remained strong enough to stay on track to hit the Trump
administration’s 3% target this year. Gross
domestic product probably increased at a 3.3% annualized rate,
according to a Reuters survey of economists. The Commerce
Department will publish its snapshot of third quarter economic
growth on Friday at 8:30 a.m. in Washington.

7. The
United Nations on Thursday said journalist Jamal Khashoggi’s
murder “bears all the hallmarks of an extrajudicial
execution” committed by the Saudi
state. Speaking at a press conference, Agnes
Callamard, the United Nations Special Rapporteur on
Extrajudicial, Summary or Arbitrary
Executions, said that those who masterminded
Khashoggi’s killing are “are high enough to represent the state.”

8.
Ethiopia elected its first female president. Sahle-Work Zewde
was unanimously elected Thursday by the African country’s
lawmakers, CBS News reports. Sahle-Work Zewde,
who has worked as a diplomat for several United Nations
organizations, will take over for Mulatu Teshome, who
resigned the presidency Wednesday. 

9. Australia’s former foreign minister Julia Bishop says

direct and consistent pressure from Beijing effectively skewered
any chance Canberra had of even striking up a conversation with
Taiwan on a free trade deal. The startling
concession highlights how Beijing is apparently comfortable
exerting pressures at the very highest corridors of power to
secure its interests.

10. Drought is
expected to cut eastern Australia’s crop production this year to
less than half the average over the past 20 years,
with New South Wales to be worst hit, the country’s agricultural
commodities forecaster said on Friday.