The daily business briefing: July 30, 2019
Capital One says 100 million customers were affected by data breach, the U.S. and China resume trade talks, and more


1. 100 million customers affected by Capital One data breach
Capital One announced Monday that a hacker had accessed more than 100 million credit card applications and accounts. The breach exposed personal data, including the Social Security numbers of 140,000 people. The FBI arrested a woman from the Seattle area, Paige A. Thompson, and charged her with computer fraud and abuse. Capital One said the hack could cost the company up to $150 million in the near term. The data breach was one of the largest ever for the financial services industry. An arrest came quicker than usual, thanks partly to online boasts attributed to Thompson under the name "erratic." In one post, "erratic" said, "I've basically strapped myself with a bomb vest, [expletive] dropping capitol ones dox and admitting it."
2. U.S., China resume trade talks
The U.S. and China on Tuesday start a new round of trade negotiations, two months after talks on ending the tariff war between the world's two biggest economies broke down. U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are scheduled to meet Tuesday and Wednesday with a Chinese delegation headed by Vice Premier Liu He in Shanghai. Expectations are low, as China is resisting U.S. demands for Beijing to stop forcing U.S. companies to hand over technology in exchange for access to Chinese markets, while the Trump administration is balking at China's insistence that any deal immediately lift all new U.S. tariffs. "The same issues that caused the talks to break down are still there," said Julian Evans-Pritchard of Capital Economics.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. British pound falls on rising talk of no-deal Brexit
The British pound dropped by 1.1 percent against the dollar to a 28-month low on Monday as the government of new Prime Minister Boris Johnson stepped up its vow to lead the country out of the European Union with or without a Brexit deal. Sterling dropped Monday to $1.2242, the lowest since it hit $1.2049 in January 2017, and then dropped another 0.5 percent early Tuesday. Johnson has said his predecessor Theresa May's withdrawal agreement is "dead" without the removal of the so-called Irish backstop intended to prevent the establishment of a hard border between Northern Ireland and Ireland. A key Johnson aide has said the government is "working on the assumption" that the U.K. will leave the trading bloc without a divorce deal.
4. Stock futures point to lower open ahead of Fed meeting
U.S. stock index futures fell early Tuesday ahead of the start of a two-day Federal Reserve meeting expected to end with the central bank's first interest rate cut in a decade. Futures for the Dow Jones Industrial Average and the S&P 500 were down by 0.4 percent and 0.5 percent, respectively, and those of the Nasdaq fell by 0.7 percent. The three main U.S. indexes deepened earlier losses after President Trump tweeted fresh criticism of China just as new trade talks were set to begin. Investors also will be monitoring fresh incoming economic data, and another flurry of corporate earnings reports. Mastercard and Under Armour report before the bell, with Apple and Mondelez posting results after trading closes.
5. Huawei reports sales growth despite U.S. blacklisting
Chinese tech giant Huawei said Tuesday that its January-to-June sales grew by 24 percent over the same period last year, despite the Trump administration's attempt to blacklist the company over concerns its products could be used to spy for Beijing. "Neither production nor shipment has been interrupted, not for one single day," said Liang Hua, chair of Huawei's board. "No matter how many difficulties we might face, we remain confident in the company's future development." Still, the U.S. pressure took a toll. Huawei said its smartphone sales outside China fell sharply after the Trump administration limited the company's access to U.S. technology in May. Huawei expects to face ongoing challenges for the rest of the year, Liang said.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
How will the next pope change the Catholic Church?
Talking Points Conclaves can be unpredictable
By Joel Mathis, The Week US
-
Conspiracy theorists circle again following RFK file release
The Explainer Both RFK and his brother, President John F. Kennedy, have been the subjects of conspiracies
By Justin Klawans, The Week US
-
7 equestrian activities for when you feel like horsin' around
The Week Recommends These graceful animals make any experience better
By Catherine Garcia, The Week US
-
Why Russia removed the Taliban's terrorist designation
The Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
By Justin Klawans, The Week US
-
Inside the Israel-Turkey geopolitical dance across Syria
THE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
By Rafi Schwartz, The Week US
-
'Like a sound from hell': Serbia and sonic weapons
The Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
By Abby Wilson
-
The arrest of the Philippines' former president leaves the country's drug war in disarray
In the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
By Justin Klawans, The Week US
-
Ukrainian election: who could replace Zelenskyy?
The Explainer Donald Trump's 'dictator' jibe raises pressure on Ukraine to the polls while the country is under martial law
By Sorcha Bradley, The Week UK
-
Why Serbian protesters set off smoke bombs in parliament
THE EXPLAINER Ongoing anti-corruption protests erupted into full view this week as Serbian protesters threw the country's legislature into chaos
By Rafi Schwartz, The Week US
-
Who is the Hat Man? 'Shadow people' and sleep paralysis
In Depth 'Sleep demons' have plagued our dreams throughout the centuries, but the explanation could be medical
By The Week Staff
-
Why Assad fell so fast
The Explainer The newly liberated Syria is in an incredibly precarious position, but it's too soon to succumb to defeatist gloom
By The Week UK