The daily business briefing: August 3, 2016

(Image credit: KAREN BLEIER/AFP/Getty Images)

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1. Bitcoin sinks after theft from Hong Kong exchange
2. Auto sales cool after record 2015
3. Dow futures fall again after seven straight days of losses
4. China provinces see mixed economic growth
5. Fitbit shares rise on better-than-expected revenue

published 3 August 2016

1. Bitcoin sinks after theft from Hong Kong exchange

Bitcoin fell by 5.5 percent against the dollar in Tokyo on Wednesday after $65 million or more worth of the digital currency was stolen from the exchange platform Bitfinex in Hong Kong. The exchange halted bitcoin trading on Tuesday after discovering the security breach. "The bitcoin was stolen from users' segregated wallets," a Bitfinex executive told Reuters on Wednesday. The theft of 119,756 bitcoin is the second-biggest security breach ever for such an exchange.

Automakers' sales cooled in July, raising questions about the state of the industry after a record year in 2015. Automakers sold 1.52 million new cars and trucks, up just 0.7 percent from the previous month, Autodata Corp. reported on Tuesday. Ford's sales dropped by three percent, and General Motors' fell by 1.9 percent. Fiat Chrysler's sales increased by 1.5 percent. Some experts said that although sales are expected to hit another record this year, rising to 17.7 million from the 2015 record of 17.47 million, sales could drop by a third in the next few years. "Seven years of growth in auto sales is coming to an end,” said Sean McAlinden, chief economist for the Center for Automotive Research.

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U.S. stock futures edged lower ahead of the opening bell on Wednesday, as investors awaited service-sector data and employment data seen as an indicator of what to expect from Friday's federal July jobs report. The Dow Jones Industrial Average already has fallen for seven straight sessions — its longest losing streak in nearly a year — as soft economic data and falling oil prices steered investors away from stocks in favor of less risky investments.

The economy of China's rustbelt province of Liaoning contracted by one percent in the first half of 2016. The slowdown in the northeastern province's factories and coal industry came as economic activity picked up in 15 of the nation's 31 provinces in the first six months of the year. Three provinces, including inland Chongqing, maintained double-digit growth despite a national slowdown that has raised fears that the world's second largest economy was headed for a hard landing after years of soaring growth.

Fitbit on Tuesday reported quarterly earnings that beat analysts' expectations. The leading maker of wearable fitness tracking gadgets reported adjusted earnings of 12 cents per share, topping forecasts of 11 cents per share. Fitbit's revenue reached $586.5 million, up 46 percent from the same period last year and above the $578.5 million expected by analysts. Fitbit shares, which have fallen by 55 percent this year, jumped by seven percent after the report was released.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.