Good morning. Happy Friday.
The Asian/Pacific markets closed with a lean to the downside. China, Australia and Thailand did well while Japan, Hong Kong, South Korea, India, Malaysia, Indonesia and the Philippines were weak. Europe, Africa and the Middle East are currently doing well. The UK, Poland, Turkey, Germany, Finland, Hungary, Spain, Israel and Sweden are leading. Futures in the States point to a positive open for the cash market.
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The dollar is flat. Oil is down; copper is up. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Going public may be going out of style for now, with U.S. entertainment and talent agency Endeavor (EDR) becoming the latest to abandon its IPO, just hours before it was scheduled to price and list on the NYSE. A rocky debut from fitness company Peloton (NASDAQ:PTON) earlier Thursday shook sentiment, while WeWork (WE) shelved its IPO last week amid a plummeting valuation. The attitude appears to be rippling across industries, with shares of SmileDirectClub (NASDAQ:SDC), which started trading publicly earlier this month, falling 28% in their debut.
What’s happening?
The buying public appears to be saying that IPO prices are too high, even if the companies are centered around great concepts. For example, many of the firms going public are not profitable and are burning cash at a record clip, yet still boast impressive valuations. Some additionally feel that bankers are being more loyal to private investors than public buyers (JPMorgan was the lead underwriter for Peloton (PTON), SmileDirectClub (SDC) and WeWork (WE)). As a result, companies may try to stay private for longer or pursue direct listings.
ETFs get their own regulations
Since the first ETF launched in 1993, all ETFs have had to cram themselves into the framework of rules established in 1940 for mutual funds despite being a very different type of product. That’s now coming to an end, with the SEC adopting Rule 6c-11, which aims to simplify regulations governing ETFs and seeks to speed up the process of launching new funds while reducing associated costs. “The rule will level the playing field for ETF providers, allowing new participants to enter via a streamlined process,” said Elisabeth Kashner, FactSet’s director of ETF research.
Futures gain, chips in focus
U.S. stock index futures are ahead by 0.4%, recouping some of the losses caused by yesterday’s political turmoil. China’s top diplomat, Wang Yi, said Beijing was willing to buy more U.S. goods, adding trade negotiations would yield results if both sides “take more enthusiastic measures” to show goodwill and reduce “pessimistic language.” Also keep an eye on the chip sector following weak guidance from Micron Technology (NASDAQ:MU) late Thursday that caused the stock to slide 7% in after-hours trading.
Trouble for Beyond Meat shorts
Investors betting against Beyond Meat’s (NASDAQ:BYND) stock lost more than $80M in mark-to-market losses yesterday as the stock jumped 11% on an announcement that its plant-based burgers would be tested at McDonald’s (NYSE:MCD) in Canada. Short positions have now lost more than $730M in market-to-market losses, according to S3 Partners analyst Ihor Dusaniwsky. “BYND has been a major short sale target since its IPO and short sellers have already maxed out stock borrow availability in the stock.”
Calls for Marathon CEO ouster
Two large shareholders in Marathon Petroleum (NYSE:MPC) – Paul Foster and Jeff Stevens – are backing a proposal by Elliott Management to split the company into three units, but are taking things one step further by calling for CEO Gary Heminger to be replaced. Foster and Stevens served as chairman and chief executive, respectively, of Western Refining, which was acquired by Andeavor in 2017. Marathon then bought Andeavor for $23B last year and is now the second-largest independent U.S. refiner by market cap. MPC +0.3% premarket.
Self-valet
Tesla’s (NASDAQ:TSLA) version 10 software update includes Smart Summon, which lets customers with Full Self-Driving Capability or Enhanced Autopilot to summon their car as long as it’s within line of sight. As laws governing autonomous vehicle technology are still evolving in the U.S., Tesla cautions drivers using the function to “remain responsible for the car and monitor it and its surroundings at all times.” The latest update is likely to be welcomed by investors, which sent Tesla shares up 6% on Thursday as an email from Elon Musk stated the EV maker “has a shot” at delivering 100K cars in Q3.
Saudis open door to tourists
A new visa program will launch Saturday in a bid to draw foreign companies to invest in the country’s tourism sector, with the goal of it contributing 10% of GDP within a decade. The decision is part of Crown Prince Mohammed bin Salman’s Vision 2030, an economic plan which aims to reduce the kingdom’s oil dependency. As part of the move, the country will relax strict dress codes for female visitors that previously required them to wear all-covering black robes, or abayas.
BoE strides towards rate cuts
Even if a no-deal Brexit is avoided, high levels of uncertainty would persist and act as a kind of “slow puncture” for the U.K. economy, Bank of England policymaker Michael Saunders declared, prompting the pound to drop 0.4% overnight. “In this case, it might well be appropriate to maintain a highly accommodative monetary policy stance for an extended period and perhaps to loosen policy at some stage, especially if global growth remains disappointing.” Interest rates at the BoE have been on hold at 0.75% since August 2018, when they were raised from 0.5%.
What else is happening…
Second-quarter U.S. GDP left at 2%.
WeWork (WE) halts all new lease agreements.
New York sues Dunkin’ (NASDAQ:DNKN) over hacking incidents.
Striking GM (NYSE:GM) employees get healthcare coverage back.
Las Vegas Sands (NYSE:LVS) will join the S&P 500.
Free stock trading service from Interactive Brokers (IEX:IBKR).
Delta (NYSE:DAL) eyes Alitalia stake despite deal with LATAM (NYSE:LTM).
Raytheon’s (NYSE:RTN) Patriot, Lockheed’s (NYSE:LMT) THAAD bolster Saudi defenses.
Thursday’s Key Earnings
Accenture (NYSE:ACN) +0.7% hiking dividend by 10%.
Conagra Brands (NYSE:CAG) +3.7% driven by Pinnacle acquisition.
Micron Technology (MU) -7% AH on weak NAND forecast.
Today’s Economic Calendar
8:30 Durable Goods
8:30 Personal Income and Outlays
8:30 Fed’s Quarles: “Macroprudential Regulation”
10:00 Consumer Sentiment
12:00 PM Fed’s Harker: Economic Outlook
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
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Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed. Hong Kong, India and Indonesia did well; China and Australia were weak. Europe, Africa and the Middle East are currently doing well. The UK, France, Germany, Russia, South Africa, Switzerland, the Netherlands, Italy, Portugal, Israel and the Czech Republic are posting solid gains. Futures in the States point towards a slight positive open for the cash market.
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VIDEO: How to Trade with MACD
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The dollar is down. Oil and copper are down. Gold is flat; silver is down. Bonds are up.
Stories/News from Seeking Alpha…
Facebook’s newest antitrust probe
The U.S. Department of Justice will investigate Facebook (NASDAQ:FB) for potential antitrust violations, according to Bloomberg. They will examine conduct separate from the ongoing FTC investigation. Facebook also faces probes from a group of state attorneys general and the House Judiciary Committee.
Peloton IPO could price at $29/share
Fitness startup Peloton (PTON) will price its IPO at the top end of its $26-29/share range, Reuters reports. The listing will offer 40M shares, which makes for a $1.2B raise and valuation of more than $8B.
GM and UAW nearing agreement
General Motors (NYSE:GM) and the United Auto Workers union are nearing a tentative agreement that could soon end the strike, according to CNBC. Talks between the two sides have intensified in the past couple of days, and UAW VP Terry Dittes told union members late yesterday that “all unsettled proposals are now at the Main Table and have been presented” to GM.
WeWork mulls selling three businesses
WeWork (WE) is considering selling the recently acquired businesses to help raise cash and cut costs after the IPO stumble, The Information reports. The businesses relate to office cleaning services, group meetings, and marketing services. Earlier this week, the publication reported that WeWork was looking to cut one-third of its workforce to reduce costs.
PG&E noteholders ready to invest $29.2B in reorg plan
A group of PG&E (NYSE:PCG) noteholders are prepared to put $29.2B into their reorganization plan for the company, according to a court filing. The plan would get them new debt and a controlling equity stake while providing for paying off insurers and victims of the 2017-2018 wildfires that bankrupted the company. It’s got support from the victims, but the company has its own plan.
Italy pushing Delta toward bigger Alitalia stake
Italy’s government is pressing Delta Air Lines (NYSE:DAL) to take a stake in failed carrier Alitalia that could exceed 15%, vs. current plans for Delta to buy in at 10%, according to a newspaper report. But that’s one of a few factors up for debate in the current approach, among companies involved in the rescue. Delta could agree to the bigger stake if it sees more weight on the board or top management changes.
Ericsson makes $1.2B provision to settle SEC, DOJ probes
Ericsson (NASDAQ:ERIC) plans a provision of 12B Swedish kronor in Q3 for investigations by the SEC and Justice Dept. over compliance with the U.S. Foreign Corrupt Practices Act. It’s estimating $1B in combined monetary sanctions, along with costs to resolve the probes.
What else is happening…
WillScot (NASDAQ:WSC), Mobile Mini (NASDAQ:MINI) rise on report of buyout offer.
Chevron (NYSE:CVX) steers away from arbitration in Thai energy dispute.
Vaping trade association sues NY over flavored product ban.
Cactus II crude pipeline rates OK’d by FERC.
BAE Systems (OTCPK:BAESY) wins $2.7B U.S. defense contract.
Wednesday’s Key Earnings
KB Home (NYSE:KBH) -0.5% PM after Q3 revenue misses estimate.
Pier 1 Imports (NYSE:PIR) misses Q2 earnings consensus by a big margin.
AAR Corp (NYSE:AIR) beat on Q1 earnings; reaffirmed FY20 guidance.
H.B. Fuller Company (NYSE:FUL) Q3 earnings fall short of estimates.
Today’s Economic Calendar
8:30 GDP Q2
8:30 Initial Jobless Claims
8:30 International Trade in Goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 Corporate profits
9:30 Fed’s Kaplan Speech
10:00 Fed’s Bullard: “Banking and the Economy: A Forum for Minorities in Banking”
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
11:45 Fed’s Daly Speech
11:45 Fed’s Clarida Speech
1:00 PM Results of $32B, 7-Year Note Auction
2:00 PM Fed’s Kashkari Speech
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
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Good morning. Happy Wednesday.
The Asian/Pacific markets closed mostly down. China, Hong Kong, South Korea and India each dropped more than 1%. Europe, Africa and the Middle East are currently suffering big losses. Denmark, Poland, France, Germany, Greece, South Africa, Switzerland, Norway, Hungary, Spain, the Netherlands, Italy, Portugal, Austria, Sweden and the Czech Republic are down more than 1%. Futures in the States point towards a flat open for the cash market.
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VIDEO: How to Trade with MACD
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The dollar is up. Oil is flat; copper is down. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Equities turned lower yesterday after President Trump delivered a stinging rebuke of China’s trade practices, while Democrats in Congress launched a formal impeachment inquiry into the president’s dealings with Ukraine. “Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property,” Trump told the United Nations General Assembly. Dow and S&P 500 futures are now down by 0.4%, while the Nasdaq is off by 0.6%, on the prospect of impeachment hearings adding to the market uncertainty.
Reaction to impeachment proceedings?
The S&P 500 fell as much as 4.9% on October 8, 1998, the day the House voted to begin impeachment proceedings against President Clinton, before trimming losses to end the day down 1.2%. By the time Clinton was acquitted by the Senate in February 1999, the index was up 28%. Markets shrugged off an impeachment inquiry against President Nixon on February 6, 1974, but the S&P 500 fell around 30% until his resignation. There were other forces at play, however, including Nixon’s decision to suspend the gold standard and a recession following the oil shock of late 1973.
Brexit mess
Britain’s House of Commons reconvened this morning after the Supreme Court’s landmark ruling yesterday against Boris Johnson’s suspension of parliament. The prime minister is now left with little option but to agree on a new withdrawal package with the EU before an Oct. 17-18 summit in order to deliver on his signature pledge to take the U.K. out of the EU on Oct. 31. Other possibilities include a Brexit extension, an election, or a long battle toward a no-deal Brexit.
Backlash against vaping
Massachusetts is going further than New York and Michigan, which earlier this month banned the sale of flavored vaping products out of concern that those products appeal to teens. The state is imposing a four-month ban on sales of all vaping products amid a national health emergency that so far has been linked to nine deaths and has sickened at least 530 people. The period will give medical experts time to determine what aspect of vaping is causing the illnesses and to determine whether new regulations could allow for safer vaping products.
Bitcoin plunge
The world’s most popular cryptocurrency tumbled as much as 18% over the past session to $7,944.33, hitting its lowest level since mid-June. Reasons for the dip? $9,000 was seen as a “major support” level, while there was a sudden decline in the bitcoin (BTC-USD) network’s “hash rate,” a measure of the total computing power of bitcoin miners around the world. Investors also seemed to greet a new bitcoin derivative with a “lukewarm” reception after NYSE parent Intercontinental Exchange (NYSE:ICE) launched bitcoin futures contracts on Sunday night.
WeWork gets two new CEOs
The drama at WeWork (WE) may be coming to an end. Co-founder Adam Neumann has agreed to resign as CEO and give up majority voting control as SoftBank (OTCPK:SFTBY) and other shareholders turned on him over a plunge in the company’s estimated valuation. CFO Artie Minson and vice chairman Sebastian Gunningham will become co-chief executives, while Neumann will stay on the board as non-executive chairman. Although the delayed WeWork IPO is still unlikely to take place this year, it is a possibility.
Amazon Care
Building on previous healthcare efforts, a new pilot is being launched for Amazon (NASDAQ:AMZN) workers in the Seattle area, offering a virtual primary care clinic with an option to send nurses to employees’ homes. Amazon has already partnered with JPMorgan (NYSE:JPM) and Berkshire Hathaway (BRK.A, BRK.B) – on an effort called Haven – which explores how to move the needle on healthcare expenses for their combined 1.2M employees. In addition, the company has a pharmacy division under PillPack and an R&D group sometimes referred to as Grand Challenge or 1492.
Hardware event
Amazon (AMZN) is also staging an event in Seattle today to introduce its fall lineup of devices and expansion of the Alexa ecosystem. The tech giant has been tight-lipped about what it plans to announce, but reports suggest that it will show off a pair of Alexa-powered wireless earphones to compete with Apple’s (NASDAQ:AAPL) AirPods. Amazon is also likely to unveil a new Echo device with a woofer and higher-quality speakers, as well as new products in the Fire TV lineup.
High stakes
Saudi Arabia is considering doubling the stake to be offered in Aramco’s (ARMCO) much awaited IPO on the back of attacks on its oil infrastructure, WSJ reports. The Saudi Royal Court and its advisers have been debating an eventual float of as much as 10%, doubling the country’s longstanding public intention to list just 5%. At a hoped-for $2T valuation, a 10% float could yield $200B, eight times more than the $25B Alibaba (NYSE:BABA) raised in the biggest IPO in history five years ago.
What else is happening…
Ford (NYSE:F) makes plans for struggling India business.
CNN’s Zucker in pole position to run WarnerMedia (NYSE:T).
AT&T (T) doesn’t plan to sell DirecTV.
First global index for carbon credits.
U.S. crude supply rose 1.4M barrels last week – API.
Best Buy (NYSE:BBY) sets financial targets for 2025.
Tuesday’s Key Earnings
AutoZone (NYSE:AZO) -4.4% as profit missed estimates.
BlackBerry (NYSE:BB) -22.6% amid a stalling overhaul.
Nike (NYSE:NKE) +5.5% AH posting another strong quarter.
NIO (NYSE:NIO) -20.2% reporting major losses.
Today’s Economic Calendar
7:00 MBA Mortgage Applications
8:00 Fed’s Evans: Economic Outlook and Monetary Policy
10:00 New Home Sales
10:00 State Street Investor Confidence Index
10:00 Fed’s George “Facilitating Faster Payments in the U.S”
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $18B, 2-Year FRN Auction
1:00 PM Results of $41B, 5-Year Note Auction
7:00 PM Fed’s Kaplan Speech
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned up. Japan, China, South Korea and Thailand posted gains; Hong Kong and Indonesia were weak. Europe, Africa and the Middle East are currently mostly unchanged (other than a few markets). Poland, Turkey and Saudi Arabia are doing well; South Africa is weak. Futures in the States point towards a down open for the cash market.
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The dollar is flat. Oil and copper are down. Gold and silver are down. Bonds are flat.
Stories/News from Seeking Alpha…
Europe’s top court declared today that Google (GOOG, GOOGL) does not have to remove links to sensitive personal data worldwide, five years after a “right to be forgotten” ruling forced it to delete links to personal information on request. The case tested Europe’s right to extend its laws beyond its borders and pitted privacy rights against free speech. Another ruling saw Starbucks (NASDAQ:SBUX) win an appeal against an EU demand to pay up to €30M in back taxes to the Netherlands, while Fiat Chrysler (NYSE:FCAU) lost its appeal to pay back a similar amount of levies to Luxembourg. The outcomes could signal how the same judges will decide a related €13B case against Apple (NASDAQ:AAPL).
Suspension of parliament unlawful
Prime Minister Boris Johnson acted unlawfully when he suspended Parliament this month for five weeks, according to the British Supreme court, opening the door to new challenges to his Brexit strategy. Sterling rose nearly 0.4% on the back of the decision to trade at $1.2478. The President of the Supreme Court, Brenda Hale, said there was no justification for the government taking such extreme action, but that it was for parliament to decide what to do next.
Trade clarity?
U.S. stock index futures are ahead by 0.3% after Treasury Secretary Steven Mnuchin confirmed U.S.-China trade talks will resume next month. The cancellation of a planned trip by Chinese trade negotiators to U.S. farming regions, and accompanying uncertainty, helped send shares lower on Friday and kept prices steady on Monday. More optimism? Chinese importers further said they would buy about 10 boatloads of U.S. soybeans – around 600,000 tonnes – to be shipped from Pacific Northwest ports from October through December.
The post-Ma era
Alibaba (NYSE:BABA) has scored approval for the proposed restructuring of its relationship with payments affiliate Ant Financial, more than 18 months after the deal’s debut. Alibaba will exchange its profit sharing arrangement – which entitled it to 37.5% of Ant’s pre-tax profits – for a 33% stake in the group, which was valued at $150B following a funding round in June 2018. “We expect (the transaction) to see greater synergy coming from the whole Alibaba economy,” said CFO Maggie Wu. Ant Financial is also acquiring assets overseas via deals in India and Thailand, en route to a potential IPO.
Netflix negativity
Flirting with new record highs back in June, Netflix (NASDAQ:NFLX) entered negative territory for the year on Monday, erasing all of its 46% gain for the year at its peak. What happened? Netflix was hit by a rare loss in U.S. subscribers and a large miss on international subscriber adds in the second quarter, while its most popular show The Office was stripped from its platform by NBC (NASDAQ:CMCSA). Even bigger is increased competition in the streaming wars, with upcoming offerings from Apple (AAPL), Disney (NYSE:DIS), WarnerMedia (NYSE:T) and NBC.
Mac Pro stays in Texas
Reversing plans to shift assembly of its new Mac Pro to China, Apple (AAPL) is keeping production of the computer in Texas. It follows the Trump administration’s decision last week to grant tariff exemptions on 10 items Apple imports from China, including components like power supplies and logic boards. “We thank the administration for their support enabling this opportunity,” CEO Tim Cook said in a statement.
737 MAX crisis
Each country will make “its own decision” on when the Boeing (NYSE:BA) 737 MAX returns to service, according to FAA Administrator Steve Dickson, who has not yet set a timeline on when to allow the jets back in U.S. skies. The planes have been grounded worldwide since mid-March after two crashes within five months of each other killed 346 people. On Monday, Boeing also announced that it will pay $144,500 to each of the victims’ families from a $50M financial assistance fund.
Wild ride for Overstock
Shares of Overstock.com (NASDAQ:OSTK) slumped 25% on Monday after the company announced the resignation of another key executive, CFO Greg Iverson, and cut its earnings guidance. Losses since Sept. 12 now total more than 50% amid increased volatility following the departure of CEO Patrick Byrne late last month. The stock, which peaked in early 2018 at about $86 a share, is now trading below its May 2002 IPO price of $13 and is at its lowest mark since late June, according to FactSet.
Second-largest IPO of 2019
AB InBev (NYSE:BUD) is raising about $5B in a Hong Kong IPO of the brewer’s Asia-Pacific unit after pricing it at the bottom of a marketed range. Even so, the IPO will be the second biggest global offering this year, trailing only Uber’s (NYSE:UBER) $8.1B flotation, and will give Budweiser Brewing APAC a market cap of more than $45B, making it one of the world’s largest listed brewers. The proceeds will help AB InBev cut its $100B-plus debt accumulated after the purchase of rival SABMiller in 2016.
Juul under criminal investigation
Federal prosecutors in California are conducting a criminal probe into e-cigarette maker Juul (JUUL), in which tobacco giant Altria (NYSE:MO) owns a 35% stake, WSJ reports. Regulators have criticized Juul for fueling a teen vaping “epidemic,” while lawmakers have urged the FDA to pull most e-cigarettes off the market. It follows an outbreak of a deadly lung disease linked to vaping that has sickened at least 530 people and killed eight.
What else is happening…
General Motors (NYSE:GM) furloughs more workers as strike continues.
New era… Honda (NYSE:HMC) goes all electric in Europe.
Lockheed (NYSE:LMT) wins NASA contract worth as much as $4.6B.
PayPal (NASDAQ:PYPL) audited for money laundering Down Under.
Fitness-tracking Alexa (NASDAQ:AMZN) earbuds and larger Echo.
Facebook (NASDAQ:FB) buying brain-computer startup for $1B.
Today’s Economic Calendar
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
1:00 PM Results of $40B, 2-Year Note Auction
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed mostly down. India did well, but China, Hong Kong, Thailand and Singapore were weak. Europe, Africa and the Middle East are currently mostly down. Poland, France, Germany, Greece, Russia, South Africa, Finland, Austria, Hungary, Spain, Italy, Belgium, Sweden and the Czech Republic are down 1% or more. Futures in the States point towards a flat open for the cash market.
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VIDEO: How To Plan Gap Ups
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The dollar is up. Oil and copper are down. Gold and silver are up. Bonds are up.
Stories/News from Seeking Alpha…
Factory activity in Germany is slowing to levels last seen during the global financial crisis as the country’s manufacturing PMI tumbled to 41.4 in September, from 43.5 the previous month. “The numbers are simply awful. All the uncertainty around trade wars, the outlook for the car industry and Brexit are paralyzing order books,” said IHS Markit’s principal economist Phil Smith. On its current trajectory, the German economy might not see any growth before the end of 2019, meaning a recession is around the corner. Benchmark 10-year German bund yields slipped 3 bps to -0.55% on the news, while the euro fell 0.4% to $1.0974.
Trade clarity needed
The Shanghai Composite started the week down 1%, while Wall Street futures didn’t register much movement, as Chinese trade officials cut short their trip to the U.S. on Friday, but described the discussions as “constructive.” Things are more gloomy in Europe, with Germany’s DAX off 1.4%, as manufacturing activity data deepened investors’ fears about a coming recession. Meanwhile, Mideast tensions saw WTI crude futures rise nearly 1% overnight to $58.66/bbl after the Pentagon deployed additional troops to the Gulf to strengthen Saudi air and missile defenses.
Repo madness extended to Oct. 10
The New York Federal Reserve will offer up to $75B a day in repurchase agreements over the next three weeks in an effort to prevent a spike in short-term interest rates. In addition, it will offer three 14-day “repo” operations of at least $30B each. Banks have struggled in recent days to find the cash needed to meet reserve requirements, though Fed Chair Jerome Powell last week downplayed concerns, saying it was not a sign of problems in the wider economy or a concern for monetary policy.
World’s oldest travel firm goes bust
Britain’s Thomas Cook (OTCPK:TCKGY) collapsed overnight, stranding hundreds of thousands of vacationers around the globe and sparking the largest peacetime repatriation effort in British history. What happened? Crippled by its £1.7B of debt, the company – which dates back to 1841 – has been hit by online competition, a changing travel market, higher fuel prices and uncertainty surrounding Brexit. The news also sent rival travel operator TUI (OTCPK:TUIFY) shares up nearly 8% in London, while low-cost carrier easyJet rose 5%.
HBO wins big at Emmys
Following a historic tie in 2018, HBO held off Netflix (NASDAQ:NFLX) in this year’s Emmy race, taking home 34 trophies including best drama series for the final season of Game of Thrones. Netflix in turn scored 27 awards, while Amazon Prime Video (NASDAQ:AMZN) finished the night with an overall tally of 15. HBO’s new bragging rights is welcome news for parent AT&T (NYSE:T), a telecom and media conglomerate that is under pressure from activist investor Elliott Management to improve its business.
Helping bitcoin go mainstream
The owner of the NYSE, Intercontinental Exchange (NYSE:ICE), launched its long-delayed market for bitcoin futures Sunday evening, challenging its longtime rival, CME Group (NASDAQ:CME), which introduced its own bitcoin futures in December 2017. Trading began just after 8 p.m. ET, with the first trade recorded at $10,115.00, in line with the price of bitcoin. The new futures are part of a venture called Bakkt, whose ultimate goal is to make cryptos sufficiently transparent and regulated for individuals to use in retail purchases.
SoftBank turns against WeWork CEO
It’s morphing into one of corporate America’s most high-profile boardroom dramas. Several We Company (WE) directors are deliberating how to replace Adam Neumann as CEO after the business postponed its IPO last week, following pushback from prospective investors. That was a blow for major shareholder SoftBank (OTCPK:SFTBY), which was hoping the WeWork IPO would bolster profits as it seeks to woo investors for its second $108B Vision Fund. Neumann could become We’s non-executive chairman, or interim CEO until a permanent replacement is found.
Defending Musk pay package
Tesla’s (NASDAQ:TSLA) board of directors must stand trial to defend CEO Elon Musk’s multibillion dollar pay package, according to a ruling from a Delaware judge, after a shareholder suit alleged corporate waste and unjust enrichment. Tesla valued the package at $2.6B on its 2018 proxy statement, but if its market value ballooned, as the plan predicted, those stock awards could be worth nearly $56B. The company – which has yet to post an annual profit – did not meet any of its performance milestones last year, so Musk received no compensation.
Disney walked away from Twitter
In his new memoir, The Ride of a Lifetime, Disney (NYSE:DIS) CEO Bob Iger reveals he had considered buying Twitter (NYSE:TWTR), calling it a “compelling” way to reach consumers. The deal never went through, however, and Disney instead purchased a majority stake in sports streaming site BAMTech. “The troubles were greater than I wanted to take on, greater than I thought it was responsible for us to take on,” he told the NYT. “There were Disney brand issues, the whole impact of technology on society. The nastiness is extraordinary.”
U.N. climate summit
Almost 90 big companies in sectors ranging from food and cement to telecom and healthcare are pledging to slash their greenhouse gas emissions ahead of a United Nations summit taking place today. Some firms in the We Mean Business coalition have even agreed to slash their carbon emissions to net zero by 2050, including Nestle (OTCPK:NSRGY), Saint-Gobain (OTCPK:CODYY) and L’Oreal (OTCPK:LRLCY). Others, like Nokia (NYSE:NOK), Danone (OTCQX:DANOY) and AstraZeneca (NYSE:AZN), have aligned their operations to the 2015 Paris Agreement, with a goal of limiting the increase in average global temperatures to 1.5 degrees Celsius.
What else is happening…
U.S. sanctions Iran’s central bank.
China sends state officials to companies including Alibaba (NYSE:BABA).
Apple (NASDAQ:AAPL) scores 10 exemptions from Chinese tariffs.
PG&E (NYSE:PCG) may cut power to 124K customers.
Congo to deploy J&J’s (NYSE:JNJ) Ebola vaccine.
Viacom (NASDAQ:VIA) wins exclusive cable rights to Seinfeld.
Indonesia to fault design flaw in 737 MAX (NYSE:BA) crash.
Today’s Economic Calendar
8:30 Chicago Fed National Activity Index
9:45 PMI Composite Flash
9:50 Fed’s Williams Speech
1:00 PM Fed’s Bullard: U.S. Monetary and Economic Policy
2:30 PM Fed’s Daly Speech