Category: Business

A broad sell-off in technology companies pulled U.S. stocks sharply lower Monday, knocking more than 600 points off the Dow Jones Industrial Average.   The wave of selling snared big names, including Apple, Amazon and Goldman Sachs. Banks, consumer-focused companies, and media and communications stocks all took heavy losses. Crude oil prices fell, erasing early gains and extending a losing streak to 11 days.   The tech stock tumble came followed an analyst report that suggested Apple significantly cut back orders from one of its suppliers. That, in turn, weighed on chipmakers.   "With the news out of the Apple supplier this morning, you have the market overall questioning the growth trajectory as we look out to 2019," said Lindsey Bell, investment strategist at CFRA. "We continue to like tech…

Brazil's Congress is unlikely to pass pension reform legislation this year, far-right President-elect Jair Bolsonaro said on Monday, a blow to investor hopes that caused the country's currency to weaken in futures markets. Investors snapped up Brazilian assets in the wake of Bolsonaro's election victory last month, cheered by his party's stronger-than-expected showing in congressional races, which raised hopes he could make quick advances on fiscal reforms. Many economists say cuts to Brazil's social security system are essential to controlling a huge federal deficit and regaining Brazil's investment-grade rating. Last week, Bolsonaro said he would like to see some form of pension reform passed this year to make it easier to deal with the deficit after he takes office on Jan. 1. On Monday, however, he told reporters in Rio…

OPEC and allied oil-producing countries will likely need to cut crude supplies, perhaps by as much as 1 million barrels of oil a day, to rebalance the market after U.S. sanctions on Iran failed to cut Tehran's output, Saudi Arabia's energy minister said Monday. The comments from the minister, Khalid al-Falih, show the balancing act the U.S. allies face in dealing with President Donald Trump's actions related to the oil industry. Trump in recent weeks demanded the oil cartel increase production to drive down U.S. gasoline prices. "Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" he tweeted Monday. The U.S. has meanwhile allowed some of its allies — Greece, India, Italy, Japan, South Korea, Taiwan and Turkey —…

Japan's Prime Minister Shinzo Abe called Monday for a new public works spending program to stimulate the economy amid growing concerns about global risks.  The spending, which is expected in the first half of next fiscal year starting in April, will focus on strengthening infrastructure to withstand earthquakes and frequent flooding, according to a presentation made at the Council on Economic and Fiscal Policy (CEFP).  Some of Japan's top government advisers also called for stimulus to offset a decline in consumption expected after an increase in the nationwide sales tax in October next year.  The rush to approve public works spending and other measures to support consumption highlights growing concern among policymakers about the economy.  "The prime minister asked me to take firm measures to ensure that our economic recovery continues," Economy Minister Toshimitsu Motegi said…

A majority of OPEC and allied oil exporters support a cut in the global supply of crude, Oman Oil Minister Mohammed bin Hamad al-Rumhi said on Sunday. “Many of us share this view,” the minister said when asked about the need for a cut. Asked if it could amount to 500,000 or one million barrels per day, he replied: “I think it is unfair for me to throw numbers now.” He was speaking in Abu Dhabi where an oil market monitoring committee was held on Sunday, attended by top exporters Saudi Arabia and Russia. "We need a consensus," he said, indicating that non-OPEC Russia would need to approve any decision. Oman is also not a member of the Organization of the Petroleum Exporting Countries. Saudi Arabia is discussing a proposal…

The Belgium-based SWIFT financial messaging service will be disconnecting some Iranian banks this weekend, said SWIFT chief executive Gottfried Leibbrandt at an event in Paris on Friday. Earlier this week, SWIFT had already stated that it would be suspending some unspecified Iranian banks’ access to its messaging system in the interest of the stability and integrity of the global financial system. In a brief statement issued earlier this week, SWIFT had made no mention of U.S. sanctions coming back into effect on some Iranian financial institutions on Monday, as part of U.S. President Donald Trump’s effort to force Iran to curtail its nuclear, missile and regional activities. SWIFT’s statement on Nov. 5 said that suspending the Iranian banks access to the messaging system was a “regrettable” step but was “taken…

India-based motorcycle brand Royal Enfield expects sales in its new North American business to almost triple this year and is aiming to dominate the market for middleweight bikes into which Harley-Davidson Inc has just shifted in a bid to revive sales. Enfield, originally a classic UK brand but manufactured by India's Eicher Motors Ltd in southern India since the early 1970s, has thwarted Harley's efforts to make inroads in India, the world's biggest two-wheeler market with some 17 million in sales annually. Both companies are dwarfed in the lightweight categories by India's Hero Motor Corp, Japan's Honda and Bajaj Auto , and so far Enfield's presence outside India in the more specialized market in medium-sized and large cruisers has been minimal. Its arrival in North America three years ago signaled…

Vietnam’s new carrier Bamboo Airways expects to finally get an aviation license next week and start flying within weeks, the chairman of its parent firm said on Thursday. The airline had to delay its maiden flight on Oct. 10 because it didn’t receive a license in time. “Prime Minister Nguyen Xuan Phuc has approved the proposal from the Ministry of Transport to issue the license to the airline,” Trinh Van Quyet, chairman of FLC Group, told Reuters by phone. “We will launch our first flight within 45 days after receiving the license,” Quyet said. “Receiving the license would allow Bamboo to start services.” Bamboo Airways would be Vietnam’s fifth airline after Vietnam Airlines, budget operator Jetstar Pacific Airlines, budget carrier Vietjet Aviation and Vietnam Air Services Co. Bamboo Airways signed…

Tesla said Thursday that its new board chair replacing Elon Musk will be Robyn Denholm of Australia’s Telstra.   The appointment to the full-time position takes effect immediately though Denholm will leave Telstra, Australia’s biggest telecoms company, after a six-month notice period. Denholm already is on Tesla’s board.   Musk agreed to vacate his post as board chairman as part of a settlement with U.S. regulators of a lawsuit alleging he duped investors with misleading statements about a proposed buyout of the company.   The settlement in late September with the Securities and Exchange Commission allowed Musk to remain CEO of Tesla but required him to relinquish his role as chairman for at least three years.   Apart from appointing a new chairman, Tesla was required to appoint two new…

Stocks rallied Wednesday as investors were relieved to see that the U.S. midterm elections went largely as they expected they would. Big-name technology and consumer and health care companies soared as the S&P 500 index closed at its highest level in four weeks. Democrats won control of the House of Representatives while Republicans kept a majority in the Senate, as most polls had suggested. It's not clear how the divided Congress will work with Republican President Donald Trump, but if the possibilities for compromise and big agenda items seem limited, Wall Street is fine with that because it means politics is that much less likely to crowd out the performance of the strong U.S. economy. "The market likes when what it expects to happen happens," said JJ Kinahan, chief markets…

Global stocks were higher Wednesday after the outcome of the U.S. midterm elections met investors' expectations. Despite Democratic gains in the U.S. House of Representatives, few anticipate reversals of President Donald Trump's tax cuts and the elimination of federal regulations. Democrats captured more than the 23 seats needed to regain control of the House and Republicans extended their lead in the Senate. Europe's FTSE 100 Index moved 1 percent higher, to 7,117, and Asia's Hang Seng Index climbed more than 3 percent, to 2,6147. In afternoon trading in the U.S., the Standard and Poor's 500 Index was nearly 1.5 percent higher, at 2,795, the Dow Jones Industrial Average gained more than 1.5 percent, to 2,629, and the NASDAQ 100 Index jumped more than 2.3 percent, to 7,150. ...

The Chinese government granted 18 trademarks to companies linked to President Donald Trump and his daughter Ivanka Trump over the last two months, Chinese public records show, raising concerns about conflicts of interest in the White House. In October, China's Trademark Office granted provisional approval for 16 trademarks to Ivanka Trump Marks LLC, bringing to 34 the total number of marks China has greenlighted this year, according to the office's online database. The new approvals cover Ivanka-branded fashion gear including sunglasses, handbags, shoes and jewelry, as well as beauty services and voting machines.   The approvals came three months after Ivanka Trump announced she was dissolving her namesake brand to focus on government work.   China also granted provisional approval for two "Trump" trademarks to DTTM Operations LLC, headquartered at…

This is part of "Ocean Shock," a Reuters series exploring climate change's impact on sea creatures and the people who depend on them. Creedence Clearwater Revival's "Fortunate Son" drifts from Karroll Tillett's workshop, a wooden shed about half a mile from where he was born. Tillett, known as "Frog" to everyone here, has lived most of his 75 years on the water, much of it chasing summer flounder. But the chasing got harder and harder, and now he spends his time making nets for other fishermen at his workshop, at the end of a dirt path next to his ex-wife's house. The house is on CB Daniels Sr. Road, one of several named after two of the fishing clans that have held sway for decades in this small coastal town.…

Key to Jair Bolsonaro's recent election victory was the support of Brazil's business community, which coalesced around him because he promised to overhaul Latin America's largest economy and address its worrying budget deficit. But the president-elect has been stingy with the details, and many wonder if he'll stick to his recent conversion to market-friendly reforms or if the dormant nationalist in him might reappear.   Even if he holds fast to the agenda set forth by his economic guru Paulo Guedes, a University of Chicago-trained economist and the man who convinced many investors to take a chance on Bolsonaro, the former army captain could face fierce opposition in Congress and from labor unions to what will be undoubtedly unpopular measures. His economic agenda will also have to compete for priority…

China is set to overtake France as the world's top tourist destination by 2030 as a growing middle class in Asia looks to spend more on travel, according to experts at market research group Euromonitor International.  In a report published Tuesday at an industry conference in London, Euromonitor said it was predicting that 1.4 billion trips would be taken in 2018, up 5 percent from last year. Stronger growth in many major economies means industry receipts will rise by an estimated 11 percent.  By 2030, international arrivals are expected to have risen by another billion, corresponding to around $2.6 trillion in receipts. China is expected to have overtaken France by then to become the world's No. 1 destination.  Much of the sustained boom in travel and tourism, which has outpaced…

Amazon isn’t commenting on reports that it plans to split its new headquarters between facilities in two cities rather than choosing just one. The New York Times, citing unnamed people familiar with the decision-making process, said the company is nearing deals to locate in Queens in New York City and in the Crystal City area of Arlington, Va., outside Washington, D.C. The Wall Street Journal, which also reported the plan to split the headquarters between two cities, says Dallas is still a possibility as well. Spokesman Adam Sedo said Amazon, which will also keep its original headquarters in Seattle, would not comment on “rumors and speculation.” Amazon’s decision to set up another headquarters set off an intense competition to win the company and its promise of 50,000 new jobs. Some…

Nigerian trade unions and the government agreed to a new minimum wage proposal on Tuesday, in an attempt to avert a planned nationwide strike following threats to shutdown Africa's biggest economy, a union official said. Unions, which have been discussing with the government a new minimum wage proposal, had planned to commence a strike on Tuesday. Nigerian Labor Congress (NLC) General Secretary Peter Ozo-Eson said a committee set up with the government was recommending 30,000 naira as the new monthly minimum wage, after a series of meetings, up from the current minimum of 18,000 naira. He said the proposal, which was negotiated by senior government officials including Labor Minister Chris Ngige, would be recommended to President Muhammadu Buhari on Tuesday. "Following ... the signing of the final report recommending 30,000…

When Han Siyuan first decided to apply for a job as a pilot cadet in 2008, she was up against 400 female classmates in China on tests measuring everything from their command of English to the length of their legs. Eventually, she became the only woman from her university that Shanghai-based Spring Airlines picked for training that year. She is now a captain for the Chinese budget carrier, but it has not become much easier for the women who have come after her. Han is one of just 713 women in China who, at the end of 2017, held a license to fly civilian aircraft, compared with 55,052 men. Of Spring Airlines' 800 pilots, only six are women. "I've gotten used to living in a man's world," she said. China's…

Foreign governments and businesses were hoping Chinese President Xi Jinping would use the opening of China’s first international import expo to make specific announcements about reforms for trade and investment.  But that did not happen, and some saw the measures Xi rolled out Monday as falling short of expectations.   “We were waiting today for President Xi to inform the world about the reform that will take place in the coming days, but what we wanted to hear, (such as) the complete steps on implementing the reform and a clear timetable did not appear,” said Carlo Diego D’Andrea, vice president and Shanghai Chapter chairman of the European Chamber of Commerce in China.   In his speech, President Xi said China would relax barriers to access in areas such as financial…

Chinese President Xi Jinping said Monday that China would take steps to widen access to its markets as he opened a huge trade fair amid criticism from other countries about China's economic and business practices. Xi said China would lower tariffs, take more action to punish violations of intellectual property rights, and work to boost domestic consumption of imported goods. Speaking at the trade expo in Shanghai, Xi pledged to "embrace the world" as China promotes the growing consumer market in the world's second-largest economy. He did not mention U.S. President Donald Trump by name, but alluded to Trump's "America first" economic policies by criticizing isolationism and citing a need to defend multilateral trade. ​The United States and China are locked in a battle over trade, with Trump complaining about…

When employees enter Saba — an Israeli restaurant started by award-winning chef Alon Shaya — they pass by the company’s mission statement, which emphasizes the importance of a safe and comfortable working environment. Only at the end does it really get around to food with the words: “Then, we will cook and serve and be happy.” “The team is number one and that is who we are as a company,” said Shaya, explaining the genesis of his and his wife’s new venture, Pomegranate Hospitality , which includes restaurants in New Orleans and Denver, and the environment he hopes to create for the company’s nearly 150 employees. Discussions about new restaurants generally revolve around the food. And at Saba the piping hot pita bread or the blue crab hummus is discussion-worthy.…

Facing a blizzard of trade complaints, China is throwing an "open for business'' import fair hosted by President Xi Jinping to rebrand itself as a welcoming market and positive global force.  More than 3,000 companies from 130 countries selling everything from Egyptian dates to factory machinery are attending the China International Import Expo, opening Monday in the commercial hub of Shanghai. Its VIP guest list includes prime ministers and other leaders from Russia, Pakistan and Vietnam.  The United States, fighting a tariff war with Beijing, has no plans to send a high-level envoy.  Xi's government is emphasizing the promise of China's growing consumer market to help defuse complaints Beijing abuses the global trading system by reneging on promises to open its industries.  "This says, look, we're not a global parasite that is creating…

A hungry American economy powered by a strong U.S. dollar saw record imports in September, driving the U.S. trade deficit to its highest level in seven months, the government reported Friday.  And amid President Donald Trump's trade war with Beijing, the U.S. trade deficit with China swelled again, as crucial soybean exports — a sore spot for Republicans in next week's midterm elections — continued to suffer.  With rising wages and low unemployment, Americans purchased more foreign-made telecommunications equipment, computers, mobile phones, aircraft engines, clothing and toys, the Commerce Department said.  The U.S. trade deficit posted its fourth straight monthly increase, rising 1.3 percent to a seasonally adjusted $54 billion, significantly overshooting analyst forecasts, as imports hit $266.6 billion, the highest level ever recorded. Exports also rose to $212.6 billion. …

U.S. employers added a stellar 250,000 jobs last month and boosted average pay by the most in nearly a decade in an effort to attract and keep workers.   The Labor Department's monthly jobs report, the last major economic data before the Nov. 6 election, also shows the unemployment rate remained at a five-decade low of 3.7 percent.   The influx of new job-seekers lifted the proportion of Americans with jobs to the highest level since January 2009.   Consumers are the most confident they have been in 18 years and are spending freely and propelling brisk economic growth. The U.S. economy is in its 10th year of expansion, the second-longest such period on record, and October marks the 100th straight month of hiring, a record streak.     ...

Washington ratcheted up pressure on Venezuela's leftist President Nicolas Maduro on Thursday with new measures aimed at disrupting the South American country's gold exports, U.S. national security adviser John Bolton said. Bolton promised a tough stance by the Trump administration toward "dictators and despots near our shores" and singled out Venezuela, Cuba and Nicaragua in a speech in Miami, which is home to large numbers of migrants from Cuba and Venezuela. He spoke days before U.S. elections next week that include close races for a Senate seat and the governorship in Florida. His remarks were likely to be well received by those Cuban-Americans and other Hispanics in Florida who favor stronger U.S. pressure on Cuba's Communist government and other leftist governments in Latin America. In his prepared remarks for the…

U.S. stocks rose on Thursday, as robust earnings reports supported a third day of recovery from a bruising selloff in October, but a drop in Apple's shares ahead of results kept technology stocks under pressure. Chemicals producer DowDuPont Inc rose 6.6 percent after quarterly profit topped estimates and the company announced a $3 billion share buyback. NXP Semiconductors climbed 8.6 percent after the chipmaker topped profit and revenue estimates, while American International Group Inc gained 4.7 percent after the insurer posted a smaller-than-quarterly loss. Markets also got a lift after U.S. President Donald Trump said in a tweet he had a "very good" talk with Chinese President Xi Jinping on trade and North Korea and that the two planned to meet at the upcoming G-20 summit. The rebound comes after…

U.S. President Donald Trump has not "set in stone" any decisions on escalating tariffs on Chinese goods and may withdraw some duties if there are promising policy discussions with China, White House economic adviser Larry Kudlow said on Wednesday. Kudlow said on CNBC that the meeting agenda between Trump and Chinese President Xi Jinping at the end of November in Buenos Aires has not yet been worked out, but "we may have a very good meeting in Argentina with President Xi.” Asked about whether Trump would proceed with tariffs if the meeting fails to ease trade tensions, Kudlow said: "I would say nothing is set in stone right now. By the way, the president on one of the cable shows, did say - it didn’t get picked up - that…

President Donald Trump's proposal to replace an Obama-era policy to fight climate change with a weaker plan allowing states to write their own rules on emissions from coal-fired power plants was criticized by coastal states, but applauded by coal interests on Wednesday. Under the proposed Affordable Clean Energy plan that acting Environmental Protection Agency (EPA) chief Andrew Wheeler issued in August, the federal government would set carbon emission guidelines, but states would have the leeway to set less stringent standards on coal plants, taking into account the age and upgrade costs of facilities. The heads of environmental and energy agencies from 14 mostly coastal states, including California, New York and North Carolina, told the EPA in joint comments on the Trump plan that it would result in minimal reductions of…