Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser/Axios

The Chinese yuan was allowed to weaken past 7-to-1 against the dollar for the first time ever in offshore markets and the first time in more than 10 years in its onshore market.

What it means: The move is seen as a response to President Trump's threat on Thursday to add 10% tariffs to $300 billion of Chinese imports. Wall Street extended its multi-day sell-off after the news: the Dow is down more than 500 points, while the S&P 500 and the Nasdaq are off as much as 2% early on Monday. Meantime, the yield on the U.S. 10-year note fell to multi-year lows.

Why it matters: The People's Bank of China has aggressively defended the psychologically important 7 level as a matter of policy as the dollar has strengthened over the past 3 years.

  • Trump has long accused China of weakening its currency to make its exports cheaper and gain an unfair advantage in trade, though his administration has on multiple occasions declined to officially declare the country a currency manipulator.
  • Chinese officials had vowed not to weaken the currency as a matter of policy, but the accelerated nature of the move overnight certainly has the look of a coordinated and sanctioned maneuver.

What's happening: The PBOC issued a statement early Monday saying the currency had weakened under the influence of “protectionist measures and expectations of further tariffs against China.”

  • In addition to the weakening yuan, China’s state-run agricultural firms have stopped buying American farm goods, Bloomberg reports, "in a move that looks designed to inflame President Donald Trump. 
  • "China's policy on agricultural goods from the Midwest’s 'great patriots' has been one of Trump’s loudest talking points throughout the trade spat and the news could be painful for those politically sensitive states ahead of the 2020 election," Bloomberg notes.

What they're saying: "Gloves are off," WSJ's China policy reporter Lingling Wei said on Twitter. "China’s central bank doesn’t have the authority alone to let the yuan break 7. The move had to be signed off by the top leadership."

The big picture: Analysts expect Trump to hit back, and many have been speculating since last year that the U.S. could begin weakening the dollar as a matter of policy, igniting a currency war.

Go deeper: The world can't afford a trade war right now

Go deeper

Biden's reengineer-America moment

Illustration: Sarah Grillo/Axios

The Senate's bipartisan $1.2 trillion infrastructure bill and President Biden's $3.5 trillion spending package could live or die this week — and take Democrats' fortunes with them. But all the minute-by-minute political drama obscures how much America could change if even a fraction of it passes.

The big picture: Anything short of total failure could have a transformative impact on day-to-day life — from how we move around to our access to the internet, paid family leave and child care, health care and college.

Dan Primack, author of Pro Rata
45 mins ago - Economy & Business

Pandemic concerns change economic growth forecast

Illustration: Sarah Grillo/Axios

Business economists have tempered their 2021 growth expectations, cutting nearly a point off their annual GDP forecast since earlier this year, according to the NABE outlook survey released today.

Why it matters: This reflects increased concerns over the pandemic's impact on the economy, particularly due to the spread of Delta and other variants. Panelists said that a faster vaccine rollout could improve their outlooks.

Updated 2 hours ago - World

German election: Social Democrats narrowly beat Angela Merkel's bloc

SPD leader Olaf Scholz. Photo: Sean Gallup/Getty Images

BERLIN — The center-left Social Democratic Party (SDP) clinched a narrow victory in Germany's historic federal elections on Sunday, just four years after suffering its worst loss since World War II.

Why it matters: It's a stunning political comeback for the SPD, paving the way for its chancellor candidate Olaf Scholz to form a new governing coalition and lead Europe's largest economy into the post-Merkel era.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!