Global shares slip to one-month low after U.S. manufacturing shock - Yahoo Finance

Employees of the Tokyo Stock Exchange work at the bourse in Tokyo

By Hideyuki Sano

TOKYO (Reuters) - Global shares fell to one-month lows on Wednesday after U.S. manufacturing activity tumbled to more than a decade low, sparking worries that the fallout from the U.S.-China trade war is spreading to the U.S. economy.

A slowdown in U.S. economic growth would remove one of the few remaining bright spots in the global economy and come just as Europe is seen as close to falling into recession.

MSCI's gauge of stocks across the globe <.MIWD00000PUS>, covering 49 markets, dipped 0.06% to a low last seen in early September, after shedding 0.83% in the previous session.

European shares are expected to drop, with European stock futures <STXEc1> <FDXc1> <FFIc1> trading down 0.2%-0.4%.

In Asia, MSCI's ex-Japan Asia-Pacific shares index <.MIAPJ0000PUS> dropped 0.6%, with Australian shares <.AXJO> falling 1.3% and South Korean shares shedding 1.5%. Japan's Nikkei <.N225> slid 0.4%. China markets are closed for a one-week holiday.

Hong Kong's Hang Seng index <.HSI> was down 0.3% after a market holiday the previous day. The index fell as much as 1.2% in early trade. On Tuesday, Hong Kong police shot a teenage protester, the first to be hit by live ammunition in almost four months of unrest in the Chinese-ruled city.

Data on Hong Kong September retail sales is due later on Wednesday.

"Nothing other than a terrible number is conceivable here," ING chief Asia-Pacific economist Rob Carnell said in a note, adding that he was watching Hong Kong events "with a growing sense of despair."

Adding to tensions in Asia, North Korea carried out at least one more projectile launch on Wednesday, a day after it announced it will hold working-level talks with the United States at the weekend.

On Wall Street, the S&P 500 <.SPX> lost 1.23% to hit four-week lows.

Selling was triggered after the Institute for Supply Management's (ISM) index of factory activity, one of the most closely-watched data on U.S. manufacturing, dropped 1.3 points to 47.8, the lowest level since June 2009.

A reading below 50 indicates contraction in the manufacturing sector. Markets had been expecting the index to rise back above 50.

(GRAPHIC: U.S. manufacturing - https://fingfx.thomsonreuters.com/gfx/mkt/12/6830/6761/191002i.png)

The data came after euro zone manufacturing data showed the sharpest contraction in almost seven years.

"In terms of the outlook on manufacturing, U.S-China trade talks planned next week is everything. If that goes well, we could well see a V-shaped recovery in the ISM data in coming months," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

"That means we can't just bet on a further decline in the U.S. economy now. On the whole I don't think we need to change our view that the U.S. economy remains relatively solid," he added.

The poor data lifted the Fed funds rate futures price sharply, with the November contract <FFX9> now pricing in about an 80% chance the U.S. Federal Reserve will cut interest rates on Oct. 30, compared to just over 50% before the data.

U.S. President Donald Trump once again lashed out at the Federal Reserve on Tuesday, saying the central bank has kept interest rates "too high" and that a strong dollar is hurting U.S. factories.

It is another question, however, whether the Fed will cut interest rates as hastily as Trump, and financial markets, want.

"We don't think the Fed will cut rates this month. The Fed will probably want to cut rates in December, looking at the strength of the economy around that time when new tariffs on China will set in," said Toshifumi Umezawa, strategist at Pictet Asset Management.

"Given divides in opinion among Fed policy makers, it will be difficult to come to the conclusion by this month," he added.

Just on Tuesday, Chicago Fed President Charles Evans said the Fed can keep rates for now and there is scope to raise rates slightly over the next few years if the economy continues to grow.

In the currency market, the U.S. dollar slipped from Tuesday's two-year high against a basket of currencies as the ISM survey shook the notion that the U.S. economy will withstand the trade war.

The yen rose to 107.85 yen per dollar <JPY=>, from Tuesday's low of 108.47.

The euro stood at $1.0933 <EUR=>, having bounced off a near 2 1/2-year low of $1.0879 hit on Tuesday.

The Australian dollar fetched $0.6713 <AUD=D4>, having hit a 10 1/2-year low of $0.6672 the previous day after the Reserve Bank of Australia cut interest rates and expressed concern about job growth.

Gold rose to $1,479.80 per ounce <XAU=> from a two-month low of $1,459.50 hit on Tuesday on the back of a robust U.S. dollar.

The weak U.S. data pushed oil prices to near one-month lows, although a surprise drop in U.S. crude inventories helped them to recoil in Asia.

Brent crude <LCOc1> futures rose 0.9% to $59.42 a barrel, after hitting a four-week low of $58.41 on Tuesday, while U.S. West Texas Intermediate (WTI) crude <CLc1> gained 1.4% to $54.36 per barrel after hitting a one-month low of $53.05.

(Reporting by Hideyuki Sano; additional reporting by Noah Sin in Hong Kong, editing by Richard Borsuk and Richard Pullin)

Let's block ads! (Why?)

https://finance.yahoo.com/news/global-shares-one-month-low-011014683.html

2019-10-02 06:00:00Z
CBMiSWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9nbG9iYWwtc2hhcmVzLW9uZS1tb250aC1sb3ctMDExMDE0NjgzLmh0bWzSAVFodHRwczovL2ZpbmFuY2UueWFob28uY29tL2FtcGh0bWwvbmV3cy9nbG9iYWwtc2hhcmVzLW9uZS1tb250aC1sb3ctMDExMDE0NjgzLmh0bWw

Ford expects to book Q3 impairment charges of up to $900 million on India fixed assets - MarketWatch

Ford Motor Co. F, +0.88% said Tuesday it expects to book an impairment charge of $800 million to $900 million related to fixed assets in its India Automotive operations. The charge is required based on held-for-sale impairment testing conducted in connection with the pending sale of assets to a joint venture in India that Ford is creating with Mahindra & Mahindra Ltd. 500520, +1.71%, the company said in a regulatory filing. The charge will not result in cash expenditures, said the filing. Ford said it still expects about $11 billion in potential EBIT (earnings before interest and taxes) charges for a global overhaul of its operations, with a negative cash effect of about $7 billion. Shares were not active premarket, but have gained 19.7% in 2019, while the S&P 500 SPX, +0.50% has gained 18.7%.

Let's block ads! (Why?)

https://www.marketwatch.com/story/ford-expects-to-book-q3-impairment-charges-of-up-to-900-million-on-india-fixed-assets-2019-10-01

2019-10-01 11:25:00Z
52780398609546

Credit Suisse COO Resigns Over Surveillance Scandal - The Wall Street Journal

The surveillance of a former employee triggered a scandal for Credit Suisse. Photo: Stephen Kelly/Bloomberg News

By

Jenny Strasburg and

Jenny Strasburg
The Wall Street Journal
• Biography
• @jennystrasburg
• jenny.strasburg@wsj.com

Margot Patrick

Margot Patrick
The Wall Street Journal
• Biography
• @margotpatrick
• margot.patrick@wsj.com

Updated Oct. 1, 2019 3:32 am ET

Credit Suisse Group AG Chief Operating Officer Pierre-Olivier Bouée resigned after an internal probe found he ordered the surveillance of the bank’s former wealth-management chief by private investigators without discussing it with Chief Executive Tidjane Thiam or other senior bank officials.

His decision set off a scandal that has enveloped the bank for the past two weeks, triggering an internal investigation at Credit Suisse and dealing Mr. Thiam one of the more unusual challenges he has faced at the bank.

The resignation of Mr. Bouée, part of Mr. Thiam’s inner circle of senior management, is effective immediately, the Swiss bank said Tuesday as it announced the findings of its probe.

“The board of directors considers that the mandate for the observation of Iqbal Khan was wrong and disproportionate and has resulted in severe reputational damage to the bank,” it said.

The internal investigation, carried out by Swiss law firm Homburger, found that the operating chief ordered the bank’s head of global security services to start the observation of Mr. Khan.

Related

• Consultant Linked to Surveillance of Former Credit Suisse Executive Reported Dead (Sept. 30)
• He Quit Credit Suisse. Then He Caught the Bank’s Spy. (Sept. 27)

The bank said Mr. Bouée made the surveillance decision alone, without discussing it with Mr. Thiam or other board members.

“The Homburger investigation did not identify any indication that the CEO had approved the observation of Iqbal Khan nor that he was aware of it prior to Sept. 18, 2019, after the observation had been aborted,” the bank said in a statement.

Questions about whether the botched surveillance would threaten Mr. Thiam’s position as CEO should be settled, Chairman Urs Rohner said Tuesday. He said the board was confident from the investigation that Mr. Thiam played no role in the embarrassing events, based on interviews and a review of private communications.

No evidence was found suggesting that Mr. Khan tried to poach employees or clients, it said. The bank’s head of global security services also resigned.

Mr. Bouée will be replaced as operating chief by James Walker, who has held several roles at the bank including finance chief of its U.S. subsidiaries.

Mr. Khan has joined Swiss bank UBS Group AG, where he is scheduled to start work Tuesday. Mr. Khan negotiated the unusually short so-called gardening leave with Mr. Rohner, also without the involvement of Mr. Thiam, The Wall Street Journal reported previously, citing people familiar with the matter.

Newsletter Sign-up

On Sept. 17 in Zurich, Mr. Khan spotted an investigator following him and went to take photos of the investigator and his car, according to people familiar with the events. Mr. Khan filed a complaint with police, and Zurich prosecutors last week said “temporary arrests” had been made as part of the resulting probe. Prosecutors said they opened a criminal investigation into possible assault and threat based on Mr. Khan’s complaint.

A consultant who helped the bank hire investigators to trail Mr. Khan died in an apparent suicide last week, a lawyer in Switzerland said Monday.

Credit Suisse directors confirmed his death and expressed their condolences at a press conference Tuesday.

Despite the bank’s shares losing about half their value since Mr. Thiam took over in 2015, big shareholders have largely welcomed his restructuring moves. He quickly ramped up Credit Suisse’s focus on selling investment and trading products to ultrawealthy clients. He promoted Mr. Khan, hired in 2013 as the finance chief of the wealth management arm, to run the bulk of that business internationally.

The relationship between Messrs. Thiam and Khan deteriorated noticeably over time, people who know them said. The Journal and other outlets reported in recent days about tensions between the two men, especially in the past year, stoked in part by Mr. Khan’s rising ambitions.

They flared close to home, too: In a tony neighborhood overlooking Lake Zurich, Mr. Khan and his family redeveloped a house next to Mr. Thiam’s. The two exchanged heated words at a party in January this year at Mr. Thiam’s house, after Mr. Khan raised concerns with Mr. Thiam’s girlfriend about trees on the Thiam property, according to people familiar with the matter.

Mr. Khan later had conversations with rival banks, including smaller rival Julius Baer Group Ltd., about leaving Credit Suisse for another job, stoking perceptions inside Credit Suisse that he wanted more power or could be looking to leave, people familiar with the matter said.

Credit Suisse on July 1 said Mr. Khan would leave the bank to pursue his career elsewhere. In a statement, Mr. Thiam wished him well. In late August, UBS named him co-head of wealth management.

Investigo, a small Zurich detective firm, in a statement provided to Credit Suisse and Swiss authorities last week said the firm’s mandate was to follow Mr. Khan at a distance and take pictures of people he met with.

—Pietro Lombardi contributed to this article.

Write to Jenny Strasburg at jenny.strasburg@wsj.com and Margot Patrick at margot.patrick@wsj.com

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Let's block ads! (Why?)

https://www.wsj.com/articles/credit-suisse-coo-resigns-over-surveillance-scandal-11569908569

2019-10-01 05:42:00Z
52780396584842

Credit Suisse clears CEO in spying probe, COO Bouee to go - CNBC

A Swiss flag flies over a sign of Swiss bank Credit Suisse on May 8, 2014 in Bern.

FABRICE COFFRINI | AFP | Getty Images

Credit Suisse on Tuesday cleared Chief Executive Tidjane Thiam in an internal investigation into the botched surveillance of the bank's former wealth management head Iqbal Khan in a probe that cost Thiam's right-hand man his job.

Chief Operating Officer Pierre-Olivier Bouee resigned after the investigation by the Homburger law firm found he alone initiated observation of Khan, who abruptly left in July and later joined arch-rival UBS.

"The Board of Directors considers that the mandate for the observation of Iqbal Khan was wrong and disproportionate and has resulted in severe reputational damage to the bank," Switzerland's second-biggest bank said in a statement.

"The Homburger investigation did not identify any indication that the CEO had approved the observation of Iqbal Khan nor that he was aware of it prior to September 18, 2019, after the observation had been aborted," the bank said.

Two big shareholders had said they wanted Tidjane, architect of a sweeping three-year revamp at the bank he joined in 2015, to stay unless it was shown he broke the law.

Credit Suisse launched the enquiry to find out the circumstances that led to a confrontation in Zurich on Sept. 17 between Khan and private detectives that Credit Suisse had hired to tail him. 

"Neither the Homburger investigation nor the observation of Iqbal Khan identified any evidence that Iqbal Khan had attempted to poach employees or clients away from Credit Suisse, contrary to his contractual obligations," it said.

Let's block ads! (Why?)

https://www.cnbc.com/2019/10/01/credit-suisse-clears-ceo-in-spying-probe-coo-bouee-to-go.html

2019-10-01 05:34:11Z
52780396584842

Mega mall owners mull investing in Forever 21 after bankruptcy - Fox Business

FOX Business’ Susan Li reports on Forever 21 filing for chapter 11 bankruptcy.

Two mall titans may invest in the bankrupt teen retailer Forever 21.

Continue Reading Below

The retailer filed for bankruptcy protection on Sunday morning and recently tried to cut a deal in which its two largest landlords, Brookfield Property and Simon Property, would take an ownership stake, according to the New York Post.

The reason, is Forever 21 uses a lot of mall space with its 541 stores. The nationwide closure of 178 locations would leave big holes at shopping malls.

Negotiations between the retailer, Brookfield, and Simon are considered dead for now as they reached an impasse over the weekend.

Reps for Simon, Brookfield and Forever 21 didn’t respond to requests for comment by The Post.

Forever 21 is planning to close 350 of its 800 stores worldwide, including most of its operations in Asia and Europe, according to court documents.

CLICK HERE TO READ MORE ON FOX BUSINESS

Three years ago, Simon and mall operators GGP,  which is now owned by Simon, rescued teen chain Aeropostale out of bankruptcy rather than face 740 stores going dark.

Let's block ads! (Why?)

https://www.foxbusiness.com/retail/mega-mall-owners-mull-investing-in-forever-21-after-bankruptcy

2019-10-01 05:32:27Z
52780397317380

Volkswagen: Germany's first mass lawsuit begins - BBC News

Germany's first mass lawsuit begins as 450,000 owners of diesel Volkswagen cars take on the company.

They argue they are owed compensation for being sold cars based on misleading emissions data.

The scandal has already cost VW €30bn (£26.6bn).

It has faced class action claims in the US and Australia, but this is the first time Germans could pursue group claims since the law was changed last year.

This trial will settle points of law and the claimants will later be able to file follow-up claims for compensation if they are successful.

The trial, at Braunschweig Higher Regional Court, about 20 miles from VW's Wolfsburg head office, is likely to last years, however.

Part of VW's settlements so far include a deal to buy back 500,000 cars in the US, where it has agreed to pay more than $25bn (£20bn).

In Australia the company will pay 127 million Australian dollars (£70m) to compensate owners, paying them A$1,400 apiece.

Last week it emerged that three current and former Volkswagen executives were charged with market manipulation in connection with the diesel emissions scandal.

Chief executive Herbert Diess, chairman Hans Dieter Pötsch and ex-boss Martin Winterkorn, did not inform investors early enough about the financial fallout, German prosecutors allege.

In 2015, the firm admitted using illegal software to cheat on emissions tests. VW said it was confident those allegations would prove groundless.

This may be a landmark lawsuit - and in terms of the sheer number of claimants, it's certainly attention grabbing. But it may not be the biggest concern for Volkswagen right now.

Unless there is a settlement, the legal process is likely to take take years - VW expects it to take at least four. Even if they win, car owners will have to go back to court to get compensation.

Meanwhile, VW's chairman and chief executive are both fighting criminal charges for alleged market manipulation linked to the diesel scandal.

Volkswagen itself is facing the possibility of hefty fines from the EU, after being accused of colluding with other manufacturers to delay the introduction of emissions control technology.

It's safe to say its lawyers are already keeping pretty busy at the moment. And in the meantime, the company is trying to turn itself into a leader in the market for electric cars.

Against that background, the group lawsuit may seem for the moment like just another irritation.

Let's block ads! (Why?)

https://www.bbc.com/news/business-49878247

2019-09-30 10:16:57Z
52780397174892

Asian shares mostly flat, Japan hurt by Sino-U.S. tensions - Investing.com

By Hideyuki Sano and Vidya Ranganathan

TOKYO/SINGAPORE (Reuters) - Asian stock markets, including China's, were little changed on Monday, shrugging off news that the U.S. administration is considering delisting Chinese companies from U.S. stock exchanges.

MSCI's broadest index of Asia-Pacific shares outside Japan () was flat, while China's Shanghai stock index () slipped 0.1%, barely responding to any of the concerns around the latest Sino-U.S. tensions that caused the Nasdaq index () to fall more than 1% on Friday.

European shares were seen struggling when they open for trading. Pan-European Euro Stoxx 50 futures () were down 0.11%, German DAX futures () down 0.08% and futures () 0.16% lower.

Risk assets took a hit in U.S. trade on Friday following news the Trump administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from U.S. stock exchanges.

The report knocked Chinese shares listed on U.S. exchanges, with Alibaba Group Holding (N:) falling 5.15% and JD.com (O:) 5.95% on Friday.

Worries such an escalation would hurt Japan the most weighed on the Nikkei (), which shed 0.9%. U.S. stock futures () gained 0.35%, paring most of Friday's 0.53% fall in the index.

Trading in Chinese markets was quiet ahead of a long break. Chinese share markets will trade only on Monday this week ahead of the country's National Day holiday, which runs until Oct. 7.

There were mixed signals from China's manufacturing surveys on Monday, which showed sustained weakness in exports and surprising improvement in domestic consumption indicators, and a Chinese central bank statement briefly hinting at plans for more stimulative policies.

China's yuan was little moved at 7.1260 yuan per dollar, while the rallied a bit from Friday's three-week low of 7.1520.

The delisting of Chinese companies from U.S. stock exchanges was part of a broader effort to limit U.S. investment in Chinese companies, two sources briefed on the matter told Reuters.

A U.S. Treasury official said the United States does not currently plan to stop Chinese companies from listing on U.S. exchanges, Bloomberg reported on Saturday.

"While China runs a current account surplus and is a net creditor nation, Chinese companies are net debtors and rely on foreign capital," Koji Fukaya, president of Office Fukaya Consulting.

"Washington seems to be trying to limit Chinese companies' activities by putting pressure on their funding," he said.

Still, with trade talks between the United States and China expected to be held Oct. 10-11, many market players are hoping such drastic measures on capital markets will be avoided.

"At this point, markets will have to wait and see. Of course we need to be guarded against more crazy headlines, but this week could be a bit calmer given holidays in China. Economic data will likely be the main driver for markets," said Kyosuke Suzuki, director of forex at Societe Generale (PA:).

U.S. data on Friday showed consumer spending barely rose in August and business investment remained weak, suggesting the American economy was losing momentum as the trade dispute drags on.

Industrial output in Japan and South Korea, released Monday morning, dropped more than expected, underscoring the headwinds from the trade war.

Investors are also keeping a wary eye on U.S. politics.

U.S. House Speaker Nancy Pelosi said public opinion is now on the side of an impeachment inquiry against Trump following the release of new information about his conversations with Ukrainian President Volodymyr Zelenskiy.

Major currencies were little changed, with the yen trading slightly firmer at 107.75 yen .

The euro hovered around $1.0932 (), having sunk to a 28-month low of $1.0904 on Friday as concerns about tepid growth in Europe weighed on the common currency.

Sterling traded at $1.23 , not far from Friday's low of $1.2270, its lowest since Sept. 9.

Boris Johnson said on Sunday he would not quit as Britain's prime minister even if he fails to secure a deal to leave the European Union, insisting only his Conservative government can deliver Brexit on Oct. 31.

Oil prices dipped but stayed off last week's lows.

Saudi Arabia's crown prince warned in an interview with CBS program "60 Minutes" aired on Sunday that crude prices could spike to "unimaginably high numbers" if the world does not come together to deter Iran.

But Crown Prince Mohammed bin Salman said he would prefer a political solution to a military one, adding the Sept. 14 attacks on the kingdom's oil facilities were an act of war by Iran.

Brent crude () futures fell 0.36% to $61.64 a barrel while U.S. West Texas Intermediate (WTI) crude () fell 0.14% to $55.83 per barrel.

(This story corrects headline and first paragraph to Asia shares 'mostly flat' (not 'edge lower') and in 2nd paragraph the MSCI Asia-ex-Japan index to flat (not down 0.55%)

Let's block ads! (Why?)

https://www.investing.com/news/stock-market-news/asian-shares-mostly-flat-japan-hurt-by-sinous-tensions-1988652

2019-09-30 06:35:00Z
CBMib2h0dHBzOi8vd3d3LmludmVzdGluZy5jb20vbmV3cy9zdG9jay1tYXJrZXQtbmV3cy9hc2lhbi1zaGFyZXMtbW9zdGx5LWZsYXQtamFwYW4taHVydC1ieS1zaW5vdXMtdGVuc2lvbnMtMTk4ODY1MtIBAA