Top 5 Things to Know in the Market on Tuesday - Investing.com

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Investing.com -- The specter of deflation in China rears its ugly head, and the manufacturing slowdown shows no sign of ending in Japan and Europe. Plus there's trouble in IPO world, as WeWork's deal comes under pressure. Here are the top 5 things you need to know in financial markets on Tuesday, 10th September.

1. Gloomy data, China noises

The risk of China exporting deflation to the rest of the world is on the rise. Figures released overnight showed fell at their fastest rate in three years in August, underlining the problems faced by a manufacturing sector largely dependent on access to the U.S. market.

Also, Japan said that fell by 37% on the year, the lowest since 2009, in another reflection of how the prevailing uncertainty around trade and Brexit is hammering business investment. and data for July, released earlier, also fell short of forecasts.

At 10 AM ET, the Bureau of Labor Statistics will release its job opening survey for July, which will add some incremental insight into a labor market that appeared to be running out of workers in the government’s official report for August last week.

2. Stocks set to open lower

Wall Street is set for a lower opening after the largely gloomy data from Asia and Europe reminded markets that the global slowdown is still very much a thing.

By 6 AM ET (1000 GMT), were down 39 points or 0.1%, while were down 0.2%. were also down 0.2%, against a backdrop of increasing U.S. regulatory scrutiny of Google (NASDAQ:) and Facebook (NASDAQ:).

However, haven assets aren’t faring any better. Both bonds and gold are selling off slightly, after explosive rallies in recent weeks. The was at 2.11%, while lost ground for a fourth straight day to $1,502.65 an ounce.

Citigroup (NYSE:) and other financials will be in focus later after the company said on Monday it expected a drop in trading income in the third quarter.

3. WeWork IPO under threat; Aramco’s moves forward

One of the year’s biggest IPOs may be about to be pulled. The We Company, parent of loss-making office space provider WeWork, is under pressure from Softbank, its biggest external backer, to postpone an initial public offering that was supposed to take place this month.

Reports have indicated that marketing for the IPO was supposed to start this week, but have been snagged by valuation and governance concerns.

However, another much-hyped offering looks a big step closer after Saudi Aramco’s chief executive Amin Nasser told a conference that banks to lead the offering will be chosen “soon.” The bad news for U.S. investors is that Aramco, the world’s most profitable company, is due to be listed only in Riyadh to start with, followed by a foreign listing – most likely in Tokyo – at an unspecified later date.

Read More: Will Oil Markets Finally Be On The Side Of The New Saudi Minister?

4. Boris thwarted, again

The British consolidated recent gains after the U.K. House of Commons thwarted Prime Minister Boris Johnson’s plans to hold a general election before the country’s scheduled departure from the EU on Oct. 31.

The defeat – Johnson’s sixth in parliament in little more than a week – further reduces the chance of a disorderly Brexit in the fall, although popular discontent at the arcane maneuvering in parliament still means that Johnson could emerge the winner from an election when it is finally held.

Analysts at JPMorgan (NYSE:) told clients in a note that: "The only options we regard as ultimately viable are for the Prime Minister to present a deal to the Commons and secure approval for it, resign and let someone else make the extension request as PM, or back away from his stated position. At this point, our view is that resignation is the most likely of these three."

The opposition-led bill requiring Johnson to ask the EU for an extension to the Brexit deadline if he can't secure a transitional deal entered into law on Monday. Data released earlier showed the U.K. holding up surprisingly well, suggesting that the U.K. will avoid entering recession in the third quarter.

5. PG&E proposes reorganization plan

California-based utility Pacific Gas & Electric (NYSE:) presented a plan to settle billions of dollars in wildfire-related claims and exit bankruptcy next year and escape its creditors.

The preliminary proposal envisages raising billions in debt and equity to cover fire damages and emerge from bankruptcy court by June 2020, according to The Wall Street Journal. But PG&E’s liabilities from years of fires are still uncertain and the company hasn’t decided on exactly how it will raise the money, the WSJ, citing papers filed with the relevant court.

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2019-09-10 10:23:00Z
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Jack Ma: Alibaba begins new era as founder departs - BBC News

Alibaba chairman Jack Ma is due to step down from the e-commerce giant on Tuesday, marking the end of an era for the firm.

He co-founded Alibaba in 1999 and it has become one of the world's biggest internet firms.

Mr Ma's success and colourful style has made him one of China's most recognisable businessmen.

Daniel Zhang, currently Alibaba's chief executive, will replace him as executive chairman.

The company is now valued at $480bn (£389bn) and Mr Ma is China's richest man, with a net worth of $38.6bn according to Forbes.

He is also the first founder among a generation of prominent Chinese internet entrepreneurs to step down from his company.

"I think it will be very hard to replace somebody like Jack Ma," said Rebecca Fannin, author of a book on China's technology titans.

"He is one of a kind. He is the Steve Jobs of China."

Who is Jack Ma?

Born to a poor family in the eastern Chinese city of Hangzhou, Mr Ma began his career as an teacher.

He bought his first computer at the age of 33 and was surprised when no Chinese beers turned up in his first online search for "beer".

With no background in computing, Mr Ma co-founded Alibaba in his apartment, having convinced a group of friends to invest in his online marketplace.

It was not the first time he had tried to get a start-up off the ground.

"Alibaba was his third attempt at a company, he had two trials before," said Duncan Clark who has written a book about Mr Ma and is also chairman of investment consultancy BDA China.

"He saw the promise of the internet quite early on, but it took a while for him to have a vehicle."

• Jack Ma defends 12-hour working day stance
• Why is Jack Ma a Communist Party member?

Over the years, Alibaba has grown from an online marketplace into an e-commerce giant with interests ranging from financial services to artificial intelligence.

It was originally set up as a trading platform for businesses, before expanding into consumer e-commerce in 2003 and later launching digital payment platform Alipay.

Lacking a background in technology and with no particular strength in finance, Mr Clark said charisma and strategic vision have been Mr Ma's biggest assets.

"His charm is a big part of his leadership, his ability to convince people whether it's customers, employees or critically shareholders."

The author first met Mr Ma two decades ago and the entrepreneur spoke of making Alibaba one of the top 10 internet companies in the world within a decade.

"[It was] a sort of impossible ambition in a way but somehow he made people believe it," Mr Clark said.

Mr Ma did turn his firm into an international heavyweight and its listing in New York set a record as the world's biggest public stock offering.

Earlier this year, he argued in favour of the "996 system" where workers are expected to work 12 hour days, and a six-day week - a hotly debated topic in Chinese media.

The flamboyant businessman is also known for enjoying the limelight and featured at an Alibaba event in 2017 wearing a Michael Jackson-themed outfit.

What's next for Mr Ma?

The 55-year-old is expected to focus on philanthropy and education after he steps down.

Mr Clark said he has gradually brought technology and finance experts into Alibaba and more recently, Mr Ma has been "consciously edging himself out".

Those moves are expected to ensure a more seamless transition for Alibaba to a future without its co-founder.

Quiet, unassuming and known to shy away from the spotlight, Mr Zhang is nothing like his predecessor.

Inside Alibaba Mr Zhang is reportedly known as Xiaoyaozi, the name of a character in a Chinese martial arts novel. It means the "unfettered one"- someone who stays out of battles but is great at training others.

That reputation will come in handy as he steers Alibaba through arguably some of its most challenging times. The Chinese market, where it makes two thirds of its revenue, is slowing down.

At the same time, attempts to expand internationally have struggled.

US scrutiny of Chinese firms is blocking its growth in the West. In parts of South East Asia and India, analysts say understanding how to work in local markets and with local people is proving to be a challenge for the Chinese company.

Then there's the delayed multi-billion dollar public offering in Hong Kong, reportedly due to pro-democracy protests there.

Yet Mr Zhang's greatest challenge may be living up to the image of Mr Ma himself, a man who enjoyed the respect and affection of his staff as well as the international community.

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https://www.bbc.com/news/business-49644025

2019-09-10 07:28:11Z
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Last time Saudi Arabia asked its oil minister to do the impossible was 1986 - Financial Post

Huawei drops lawsuit against U.S. over seized equipment: court filing - TODAYonline

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1. Huawei drops lawsuit against U.S. over seized equipment: court filing  TODAYonline
2. U.S. charges Chinese professor in latest shot at Huawei  The Globe and Mail
3. U.S. fraud charges against Chinese professor seen as latest shot at Huawei  Global News
4. Will Trump Sell Out the U.S. on Huawei?  The Wall Street Journal
5. Huawei drops lawsuit against US over seized equipment: Court filing  The Straits Times
6. View full coverage on Google News

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September 10, 2019 at 09:26AM

Shopify buys warehouse robotics company 6 River Systems for $450-million - The Globe and Mail

BC Ferries to offer beer and wine on buffet between Vancouver and Victoria - Global News

After months of internal discussion, BC Ferries has decided to add beer and wine to the Pacific Buffet menu on a trial basis, starting in late October.An internal memo leaked in April suggested the company wanted to launch the pilot this summer to capture the busy season. The pilot includes only three vessels on the Tsawwassen – Swartz Bay route.“Many of our customers have said they would like to have a glass of wine or beer with their meal while sailing with us,” Executive Director of Catering and Terminal Operations Melanie Lucia said.“We look for ways to enhance the customer experience and are pleased to now offer these beverages in the Pacific Buffet.”WATCH: Some concerns about liquor on BC Ferries


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September 10, 2019 at 12:37AM

Canadian passengers scramble after British Airways cancels flights due to strike - CTV News

The Associated Press
Published Monday, September 9, 2019 2:52AM EDT
Last Updated Monday, September 9, 2019 3:48PM EDT

LONDON -- Canadian travel agencies are scrambling to help passengers whose British Airways flights have been cancelled on Monday and Tuesday after a pilots strike grounded the global carrier.

The airline says more than a dozen flights between Canada and London are slated to be cancelled over the two days, affecting about 3,500 passengers based on the size of the scheduled aircraft.

Toronto's Pearson International Airport is most impacted with four flights each day. One arrival and one departure are cancelled over the two days in Montreal, Vancouver and Calgary.

"Customers were sent email notifications if they have been affected," British Airways said in an advisory to travel agents.

Passengers can receive refunds or rebook for later flights. They may also be able to rebook on partner airlines such as American Airlines, Finnair and Aer Lingus, if seats are available.

Toronto travel agency TTI Travel says some customers have called to inquire but there doesn't appear to be any alarm.

"We've been looking at flights and trying to re-accommodate them and make some decisions around how we support them and what those options are," said TTI vice-president Lucy Lavigna.

Air Canada says it has added larger aircraft on the route between Toronto and London-Heathrow to accommodate increased demand it has seen in recent days.

"Last night we operated one flight on the route (we have four flights daily) with a 400-seat, Boeing 777 instead of the scheduled 298-seat Boeing 787-9, and will do the same tonight," said spokesman Peter Fitzpatrick by email.

"That makes for a total of about 400 extra seats in the market. We continue to monitor the situation, but there are no plans for additional capacity at this time, in part because our aircraft are already committed under the existing schedule."

WestJet Airlines said it's "business as usual" for the Calgary-based airline.

British Airways cancelled almost all its flights for 48 hours, affecting as many as 195,000 travellers, due to a strike by pilots over pay.

The U.K.'s flagship carrier said in a statement Monday that it had "no way of predicting how many (pilots) would come to work or which aircraft they are qualified to fly."

As a result, it said it had "no option but to cancel nearly 100 per cent" of its flights for the duration of the strike.

"We have supplemented our fleet by using aircraft and crew from other airlines (wet-leasing) and working with our partner airlines to schedule larger aircraft to take the maximum number of customers," said the trade support website that details customer guidelines.

British Airways operates up to 850 flights a day. London's sprawling Heathrow Airport was most affected by the work stoppage as it is the airline's hub and is used for many of the company's long-haul international flights.

The departure area at Heathrow Terminal 5 was almost empty, with only a handful of BA flights set to leave on Monday.

There were no queues at any of the check-in desks or security gates and only a handful of people waiting on benches. The terminal is typically quite busy.

British Airways said it stands ready to return to talks with the pilots' union, Balpa, and that it has offered all affected customers full refunds or the option to rebook. The airline had been preparing for weeks for the strike, giving travellers advanced notice.

"We understand the frustration and disruption Balpa's strike action has caused our customers," it said.

"After many months of trying to resolve the pay dispute, we are extremely sorry that it has come to this."

British Airways says it has offered pilots an 11.5 per cent pay raise over three years but the union says its members want a bigger share of the company's profits.

The union accuses British Airways of making big profits at the expense of workers who made sacrifices during hard times. British Airways' parent company, IAG, made a net profit of 2.9 billion euros (US$3.2 billion) last year.

Union leader Brian Strutton said pilots are determined to be heard.

"They've previously taken big pay cuts to help the company through hard times. Now BA is making billions of pounds of profit, its pilots have made a fair, reasonable and affordable claim for pay and benefits."

A further strike is penciled in for Sept. 27.

-- With files from The Canadian Press

There is Industrial Action planned by the pilots’ union, BALPA on 9 and 10 September 2019. We apologise for the significant impact this will have on our flights. If your flight is cancelled, please don’t go to the airport. For the latest info, visit https://t.co/rPEgyOeVyh.

— British Airways (@British_Airways) September 7, 2019

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September 10, 2019 at 02:48AM