Updated throughout the day
August 20
Stocks slumped Thursday following the rout the began in China, spread to Europe, and continued here. The Dow skittered down 2.06%, its lowest close since October. The S&P 500 dipped 2.11% and the Nasdaq fell 2.82% to 4,877.49 — it’s biggest one-day loss in more than a year. The hard won 5,000 level now feels like a distant memory for the tech-heavy index. Apple is now down 16% from the high it set in April. Two factors in the most recent rout: Plummeting oil prices (now just below $41/barrel) and the International Monetary Fund, which decided it wouldn’t include the yuan in its currency basket for at least another year. Also not helping: jobless claims rose more than expected in the past week.
Here is what else you need to know:
Airbnb eyes China. Hotel-competitor Airbnb has partnered with China Broadband Capital and Sequoia China to expand into the China tourism market. Airbnb has boomed in South Korea and Singapore, and wants to capitalize on the growth in Asia. The firm will work with local venture capitalists, and will be in search of a chief exec for the China business. Financial Times
Greek prime minister steps down. Alexis Tsipras is stepping down as prime minister of Greece and calling for a snap election September 20. Upon resignation Tsipras will be replaced by Vassiliki Thanou-Christophilou, president of the Greek supreme court, who will manage the transitional government. The Guardian
July home sales grow. Sales of previously-owned homes were up 2% to 5.59 million in July, according to the National Association of Realtors. The July growth is the fastest pace since February 2007 when home sales hit 5.79 million. Forbes
Nazi gold train found. Two people found what may be a Nazi gold train in Poland. The train, containing gold, gems, and guns, disappeared at the end of WWII when Soviet forces pushed toward Wroclaw, Poland. Rumors are swirling, and some say there could be up to 300 tons of gold on the train. BBC
National Front ousts former leader. Far-right French party the National Front expelled Jean-Marie Le Pen. Le Pen helped found the party, but was called in for a disciplinary meeting after repeating comments he made deemphasizing the Holocaust. Le Pen’s daughter Marine Le Pen helped oust him as she makes her own moves for the presidency. Wall Street Journal
No more sneaking in snacks to the theater. Regal theaters have begun checking bags of moviegoers. The procedure comes after patrons across the country have been injured in shootings. Regal runs about 570 theaters in the U.S. ABC
Update on Jimmy Carter: Former President Carter spoke Thursday about his cancer diagnosis, explaining he has four spots of melanoma that have spread to his brain. The 90-year-old Carter is starting radiation therapy Thursday afternoon, and says he is much more optimistic than he was after the initial diagnosis. CNN
Coke, Goldman buy into organic juice. Goldman Sachs and Coke are jumping on the over-priced-organic juice craze, investing in Suja. Suja Juice ranked second on Forbes’ 2015 most promising companies list, with its more than $9 a bottle cold-pressed juices. Forbes
North and South Korea are at it again. The two halves of a divided Korea have exchanged fire today over their heavily fortified border. The South Korean Defense Ministry says it detected a small rocket fired from the North toward the western province of Gyeonggi. The South Korean military responded by firing a few dozen shells at the area from which the projectile was fired. CNN.
September liftoff now unlikely. The Federal Reserve’s FOMC minutes reveal that Yellen et cie are still on the fence regarding a September rate hike, citing concerns over China’s current predicament as well as worries on inflation: “Some participants expressed the view that the incoming information had not yet provided grounds for reasonable confidence that inflation would move back to 2 percent over the medium term and that the inflation outlook thus might not soon meet one of the conditions established by the [Fed] for initiating a firming of policy.” NexChange / Federal Reserve
You won’t believe this:
Animals are back in the Thames. After once being so polluted it was called “biologically extinct,” the River Thames is now home to more than 2,000 animals. Seals, dolphins, and whales are all back, even swimming up near the finance district in Canary Wharf. BBC
Seymour Butts should run for president. A 15-year-old Iowan registered as a presidential candidate under the name Deez Nuts. (insert giggle here) Showing just how reliable polling is, Mr. Nuts reportedly has 9% support in North Carolina as an independent candidate. Nuts is also polling at 8% in Minnesota and 7% in Iowa. Other candidate this year include: Sydneys Voluptuous Buttocks and Limberbutt McCubbins. New York Magazine
Photo: SteFou