Morning Brief: Tesla shares fall 5% in pre-market trading after Musk abandons buyout

Monday, August 27, 2018

What to watch today

In the week ahead, the economics calendar will bring investors a couple of key reports, notably the second estimate of second quarter GDP. This number is expected to show the economy grew at a pace of 4% in the second quarter, a slight downgrade from the initial estimate that pegged growth at 4.1%. Additionally, investors will get key data on inflation in the form of “core” PCE, the Fed’s preferred inflation measure, which is expected to show prices rose 2.3% over the prior year in July. The final reading on consumer confidence in August from the University of Michigan will also be released on Friday morning.

Monday comes with the Dallas Fed’s manufacturing activity index report for August.

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Top news

REUTERS/Lucy Nicholson

Tesla shares fall 5% after Musk abandons buyout: Trading in Tesla shares (TSLA) in Germany on Monday pointed to a 5% drop when U.S. markets open as investors reacted to Chief Executive Elon Musk’s decision to abandon plans to take the luxury electric-car maker private. [Reuters]

3 key Trump fixers are now potential foes: While the American public had heard of President Trump’s former attorney Michael Cohen before he pleaded guilty this week to eight criminal charges related to tax evasion and federal campaign finance violations, most people are not familiar with David Pecker or Allen Weisselberg. Now all three are in a position to provide personal information related to Trump to federal authorities. Here’s a look at how each of these men fit into the inner world of Trump. [Yahoo Finance]

Warren Buffett agrees to back India’s Paytm: Berkshire Hathaway Inc. (BRK-A, BRK-B) has agreed to buy a stake in the company behind Paytm, India’s biggest digital payments brand, in Warren Buffett’s first foray into the country’s startups, people familiar with the matter said. [Bloomberg]

Mexico, U.S. closing in on NAFTA deal: U.S. and Mexican trade negotiators are close to squaring away bilateral differences on the North American Free Trade Agreement and will resume talks on Monday morning, Mexican Economy Minister Ildefonso Guajardo said on Sunday. The Mexico-U.S. discussions have focused on crafting new rules for the automotive industry. [Reuters]

Facebook bans top Myanmar military official, others: Facebook said on Monday it was removing certain Myanmar military officials from the social media website and an Instagram account to prevent the spread of “hate and misinformation” after reviewing the content. [Reuters]

For more of the latest news, go to Yahoo Finance

In this Oct. 11, 2008, file photo, Republican presidential candidate Sen. John McCain, R-Ariz., speaks at a rally in Davenport, Iowa. Arizona Sen. McCain, the war hero who became the GOP’s standard-bearer in the 2008 election, has died. He was 81. His office says McCain died Saturday, Aug. 25, 2018. He had battled brain cancer. (AP Photo/Gerald Herbert, File)

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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.