China's factory activity shrinks for 4th month as trade woes deepen - CNBC

Workers assemble televisions on the production line of Tianle Group Co., Ltd on July 3, 2012 in Shengzhou of Zhejiang Province, China.

Feng Li | Getty Images

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy.

Persistent weakness in China's vast manufacturing sector could fuel expectations that Beijing needs to roll out stimulus more quickly, and more aggressively, to weather the biggest downturn in decades.

The Purchasing Managers' Index (PMI) fell to 49.5 in August, China's National Bureau of Statistics said on Saturday, versus 49.7 in July, below the 50-point mark that separates growth from contraction on a monthly basis.

A Reuters poll showed analysts expected the August PMI to stay unchanged from the previous month.

The official factory gauge showed growing trade frictions with the United States and cooling global demand continued to wreak havoc on China's exporters.

Export orders fell for the 15th straight month in August, although at a slower pace, with the sub-index picking up to 47.2 from July's 46.9.

Total new orders - from home and abroad - also continued to fall, indicating domestic demand remains soft, despite a flurry of growth-boosting measures over the past year.

"Frontloading of exports to the U.S. ahead of higher tariffs supported trade and overall activity growth, but this effect will likely fade in the next few months," said analysts at Goldman Sachs in a note.

Manufacturers in consumption-oriented industries such as the auto sector have been especially vulnerable. Carmakers such as Geely and Great Wall have slashed expectations for sales and profits.

The data showed activity at medium- and small-sized firms contracted, even as large manufacturers, many backed by the government, managed to expand in August.

Factories continued to shed jobs in August amid the uncertain business outlook. The employment sub-index dropped to 46.9, compared with 47.1 in July.

Escalations

August saw dramatic escalations in the bitter year-long Sino-U.S. trade row, with President Donald Trump announcing early in the month that he would impose new tariffs on Chinese goods from Sept. 1, and China letting its yuan currency sharply weaken days later.

After Beijing hit back with retaliatory tariffs, Trump said existing levies would also be raised in coming months. The combined moves now effectively cover all of China's exports to the United States.

Trump said late on Friday that trade teams from both sides continue to talk and will meet in September, but tariff increases on Chinese goods set to go into effect on Sunday will not be delayed.

The U.S. president had said earlier in the week that China wants to reach a deal "very badly", citing what he described as increasing economic pressure on Beijing and job losses.

But most analysts are highly doubtful of an end to the dispute any time soon, and some have recently cut growth forecasts for China in coming quarters.

The sudden deterioration in trade ties has prompted speculation over whether China needs to roll out more forceful measures to keep growth from sliding below 6% this year, the bottom end of its target range of around 6.0-6.5%.

Analysts widely expect Beijing will cut some of its major lending rates in September for the first time in four years to help stabilize growth.

But sources had told Reuters before the latest trade escalations that big benchmark rate cuts were considered a last resort, as policymakers worry that could fuel a further build-up in debt and squeeze bank's profit margins, heightening financial sector risks.

So far, Beijing has relied on a combination of fiscal stimulus and monetary easing to deal with the economic slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But analysts note infrastructure investment growth has remained subdued despite the earlier pump-priming measures, underlining the need for additional support.

Services growth

Growth in China's services sector activity picked up for the first time in five months in August, with the official numbers from a separate business survey rising to 53.8 from 53.7 in August.

Beijing has been relying on a strong services sector to cushion some of the economic impact from trade uncertainties and sluggish manufacturing activities.

However, despite the higher overall figure, activity in the property industry contracted, the statistics bureau said in a statement.

The services sector has been propped up by Chinese consumers' rising wages and robust spending power in recent years. However, the sector softened late last year amid a broader slowdown.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/31/chinas-factory-activity-shrinks-for-4th-month-as-trade-woes-deepen.html

2019-08-31 10:00:29Z
52780369419279

China's factory activity shrinks for 4th month as trade woes deepen - CNBC

Workers assemble televisions on the production line of Tianle Group Co., Ltd on July 3, 2012 in Shengzhou of Zhejiang Province, China.

Feng Li | Getty Images

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy.

Persistent weakness in China's vast manufacturing sector could fuel expectations that Beijing needs to roll out stimulus more quickly, and more aggressively, to weather the biggest downturn in decades.

The Purchasing Managers' Index (PMI) fell to 49.5 in August, China's National Bureau of Statistics said on Saturday, versus 49.7 in July, below the 50-point mark that separates growth from contraction on a monthly basis.

A Reuters poll showed analysts expected the August PMI to stay unchanged from the previous month.

The official factory gauge showed growing trade frictions with the United States and cooling global demand continued to wreak havoc on China's exporters.

Export orders fell for the 15th straight month in August, although at a slower pace, with the sub-index picking up to 47.2 from July's 46.9.

Total new orders - from home and abroad - also continued to fall, indicating domestic demand remains soft, despite a flurry of growth-boosting measures over the past year.

"Frontloading of exports to the U.S. ahead of higher tariffs supported trade and overall activity growth, but this effect will likely fade in the next few months," said analysts at Goldman Sachs in a note.

Manufacturers in consumption-oriented industries such as the auto sector have been especially vulnerable. Carmakers such as Geely and Great Wall have slashed expectations for sales and profits.

The data showed activity at medium- and small-sized firms contracted, even as large manufacturers, many backed by the government, managed to expand in August.

Factories continued to shed jobs in August amid the uncertain business outlook. The employment sub-index dropped to 46.9, compared with 47.1 in July.

Escalations

August saw dramatic escalations in the bitter year-long Sino-U.S. trade row, with President Donald Trump announcing early in the month that he would impose new tariffs on Chinese goods from Sept. 1, and China letting its yuan currency sharply weaken days later.

After Beijing hit back with retaliatory tariffs, Trump said existing levies would also be raised in coming months. The combined moves now effectively cover all of China's exports to the United States.

Trump said late on Friday that trade teams from both sides continue to talk and will meet in September, but tariff increases on Chinese goods set to go into effect on Sunday will not be delayed.

The U.S. president had said earlier in the week that China wants to reach a deal "very badly", citing what he described as increasing economic pressure on Beijing and job losses.

But most analysts are highly doubtful of an end to the dispute any time soon, and some have recently cut growth forecasts for China in coming quarters.

The sudden deterioration in trade ties has prompted speculation over whether China needs to roll out more forceful measures to keep growth from sliding below 6% this year, the bottom end of its target range of around 6.0-6.5%.

Analysts widely expect Beijing will cut some of its major lending rates in September for the first time in four years to help stabilize growth.

But sources had told Reuters before the latest trade escalations that big benchmark rate cuts were considered a last resort, as policymakers worry that could fuel a further build-up in debt and squeeze bank's profit margins, heightening financial sector risks.

So far, Beijing has relied on a combination of fiscal stimulus and monetary easing to deal with the economic slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But analysts note infrastructure investment growth has remained subdued despite the earlier pump-priming measures, underlining the need for additional support.

Services growth

Growth in China's services sector activity picked up for the first time in five months in August, with the official numbers from a separate business survey rising to 53.8 from 53.7 in August.

Beijing has been relying on a strong services sector to cushion some of the economic impact from trade uncertainties and sluggish manufacturing activities.

However, despite the higher overall figure, activity in the property industry contracted, the statistics bureau said in a statement.

The services sector has been propped up by Chinese consumers' rising wages and robust spending power in recent years. However, the sector softened late last year amid a broader slowdown.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/31/chinas-factory-activity-shrinks-for-4th-month-as-trade-woes-deepen.html

2019-08-31 09:55:02Z
52780369419279

China's factory activity shrinks for 4th month as trade woes deepen - CNBC

Workers assemble televisions on the production line of Tianle Group Co., Ltd on July 3, 2012 in Shengzhou of Zhejiang Province, China.

Feng Li | Getty Images

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy.

Persistent weakness in China's vast manufacturing sector could fuel expectations that Beijing needs to roll out stimulus more quickly, and more aggressively, to weather the biggest downturn in decades.

The Purchasing Managers' Index (PMI) fell to 49.5 in August, China's National Bureau of Statistics said on Saturday, versus 49.7 in July, below the 50-point mark that separates growth from contraction on a monthly basis.

A Reuters poll showed analysts expected the August PMI to stay unchanged from the previous month.

The official factory gauge showed growing trade frictions with the United States and cooling global demand continued to wreak havoc on China's exporters.

Export orders fell for the 15th straight month in August, although at a slower pace, with the sub-index picking up to 47.2 from July's 46.9.

Total new orders - from home and abroad - also continued to fall, indicating domestic demand remains soft, despite a flurry of growth-boosting measures over the past year.

"Frontloading of exports to the U.S. ahead of higher tariffs supported trade and overall activity growth, but this effect will likely fade in the next few months," said analysts at Goldman Sachs in a note.

Manufacturers in consumption-oriented industries such as the auto sector have been especially vulnerable. Carmakers such as Geely and Great Wall have slashed expectations for sales and profits.

The data showed activity at medium- and small-sized firms contracted, even as large manufacturers, many backed by the government, managed to expand in August.

Factories continued to shed jobs in August amid the uncertain business outlook. The employment sub-index dropped to 46.9, compared with 47.1 in July.

Escalations

August saw dramatic escalations in the bitter year-long Sino-U.S. trade row, with President Donald Trump announcing early in the month that he would impose new tariffs on Chinese goods from Sept. 1, and China letting its yuan currency sharply weaken days later.

After Beijing hit back with retaliatory tariffs, Trump said existing levies would also be raised in coming months. The combined moves now effectively cover all of China's exports to the United States.

Trump said late on Friday that trade teams from both sides continue to talk and will meet in September, but tariff increases on Chinese goods set to go into effect on Sunday will not be delayed.

The U.S. president had said earlier in the week that China wants to reach a deal "very badly", citing what he described as increasing economic pressure on Beijing and job losses.

But most analysts are highly doubtful of an end to the dispute any time soon, and some have recently cut growth forecasts for China in coming quarters.

The sudden deterioration in trade ties has prompted speculation over whether China needs to roll out more forceful measures to keep growth from sliding below 6% this year, the bottom end of its target range of around 6.0-6.5%.

Analysts widely expect Beijing will cut some of its major lending rates in September for the first time in four years to help stabilize growth.

But sources had told Reuters before the latest trade escalations that big benchmark rate cuts were considered a last resort, as policymakers worry that could fuel a further build-up in debt and squeeze bank's profit margins, heightening financial sector risks.

So far, Beijing has relied on a combination of fiscal stimulus and monetary easing to deal with the economic slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But analysts note infrastructure investment growth has remained subdued despite the earlier pump-priming measures, underlining the need for additional support.

Services growth

Growth in China's services sector activity picked up for the first time in five months in August, with the official numbers from a separate business survey rising to 53.8 from 53.7 in August.

Beijing has been relying on a strong services sector to cushion some of the economic impact from trade uncertainties and sluggish manufacturing activities.

However, despite the higher overall figure, activity in the property industry contracted, the statistics bureau said in a statement.

The services sector has been propped up by Chinese consumers' rising wages and robust spending power in recent years. However, the sector softened late last year amid a broader slowdown.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/31/chinas-factory-activity-shrinks-for-4th-month-as-trade-woes-deepen.html

2019-08-31 09:52:26Z
52780369388544

Tweeters Make Same Chilling Point About Jack Dorsey's Account Being Compromised - HuffPost

HuffPost is now part of the Oath family. We (Oath) and our partners need your consent to access your device, set cookies, and use your data, including your location, to understand your interests, provide relevant ads and measure their effectiveness. Oath will also provide relevant ads to you on our partners' products. Learn More

How Oath and our partners bring you better ad experiences

To give you a better overall experience, we want to provide relevant ads that are more useful to you. For example, when you search for a film, we use your search information and location to show the most relevant cinemas near you. We also use this information to show you ads for similar films you may like in the future. Like Oath, our partners may also show you ads that they think match your interests.

Learn more about how Oath collects and uses data and how our partners collect and use data.

Select 'OK' to allow Oath and our partners to use your data, or 'Manage options' to review our partners and your choices. Tip: Sign In to save these choices and avoid repeating this across devices. You can always update your preferences in the Privacy Centre.

Let's block ads! (Why?)

https://www.huffpost.com/entry/jack-dorsey-twitter-account-fears-trump_n_5d6a1e6fe4b01108044f6f7a

2019-08-31 07:46:00Z
52780368879424

GM, Lyft, Waymo want to be allowed to remove driver controls on autonomous cars - CNBC

Chrysler Pacifica hybrid minivan that's party of Waymo's fleet

Waymo

General Motors and Alphabet's Waymo are among the companies encouraging federal safety regulators to swiftly, yet safely, update laws to better accommodate the testing and approval of fully autonomous vehicles on U.S. public roadways, even those without driver controls.

The companies, considered by many to be the leaders in autonomous vehicles, were among roughly 90 organizations and individuals to submit public comments on a proposed regulation on changing rules for self-driving vehicles to the National Highway Traffic Safety Administration and Federal Motor Carrier Safety Administration.

Lyft, Volvo, Intel and Mercedes-Benz, New York City and nonprofit consumer advocacy organizations like the Center for Auto Safety all weighed in on new safety standards for self-driving vehicles before the public comment period closed Wednesday.

Notably absent from the comments was Tesla, which has been very public about their aspirations for testing and deploying autonomous vehicles. Tesla did not immediately respond for comment.

The comments will be taken into consideration as federal regulators rewrite the rules, NHTSA said in an emailed statement.

While many believe autonomous vehicles can save lives, some have been skeptical about allowing the vehicles on public roads — particularly following a fatal crash involving a self-driving Uber vehicle in March 2018 in Arizona.

Removing manual controls

Regulators are considering allowing vehicles without manual controls, including steering wheels and pedals, to operate on U.S. roadways. Current laws require such equipment, and companies have to request exemptions to launch such vehicles.

GM, which last year along with its Cruise autonomous vehicle subsidiary petitioned for such exemptions, and Lyft support creating separate requirements that meet the "intent" of the safety standards, not the physical equipment.

"GM/Cruise supports NHTSA establishing new definitions that apply only to ADS-DVs [autonomous vehicles] without manual controls," GM said. "It would allow NHTSA to clearly delineate, where necessary, the requirements that apply to ADS-DV versus those that apply to traditional vehicles."

Lyft, in its comments, agreed that a "separate vehicle classification" for autonomous vehicles with their own regulations would "remove regulatory barriers and modify [federal motor vehicle safety standards] that reference a human driver and/or assume some manual control element within the test procedure."

The Alliance of Automobile Manufacturers, which encompasses 12 automakers that represent about 70 percent of all car and light truck sales in the U.S., encouraged NHTSA to use "a parallel and phased approach" that focuses on vehicles with advanced driver-assist systems as well as autonomous vehicles with and without manual controls.

Safety concerns

While many companies supported changes, several safety advocates and consumer watchdog groups cautioned NHTSA on hastily changing regulations.

Consumer Reports, while acknowledging the potential long-term safety benefit of autonomous vehicles, encouraged NHTSA to focus resources on more near-term benefits.

"In short: for NHTSA to save lives and prevent injuries, there are more important subjects the agency should be focusing on than 'removing regulatory barriers,' especially given the robust pace of industry innovation in many areas today, " Consumer Reports said.

The Center for Auto Safety, a Washington-based consumer advocacy organization, said it remains "skeptical" about companies testing vehicles without manual controls, citing "there is no demonstrable evidence" that the vehicles "can safely operate on (and off) America's roads."

—CNBC's contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/30/gm-lyft-urge-regulators-to-remove-driver-controls-on-autonomous-cars.html

2019-08-30 11:36:11Z
CAIiEJfVQk78KciabBHNmXjlKU0qGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_d7gU

Elon Musk visits Gigafactory 3 site, receives support from Shanghai Party secretary - Teslarati

By Simon Alvarez

Posted on August 30, 2019

Recent images from China revealed that Tesla CEO Elon Musk had a busy day following his appearance at the opening segments of the 2019 World Artificial Intelligence Conference in Shanghai. Following his free-wheeling AI debate with Alibaba founder Jack Ma, Musk visited the Gigafactory 3 site in the Lingang industrial area, before meeting with Shanghai Party Secretary Li Qiang for a conversation about Tesla’s initiatives in China. 

Elon Musk’s visit to the Gigafactory 3 site appears to have been a welcome change of pace for the upcoming facility’s workers, who appeared to appreciate the presence of the Tesla CEO. The details of Musk’s visit to the Shanghai-based electric car production facility have not been shared by local news outlets yet, but social media reports from Shanghai stated that the Tesla CEO was extremely happy about the progress of Gigafactory 3’s construction. 

After his visit to the Gigafactory 3 complex, Musk met with Li Qiang, the secretary of the Shanghai Municipal Party Committee. During their conversation, the government official highlighted that Tesla and Gigafactory 3 are welcome additions to Shanghai, as they will bring new products and innovations to the city. Li also mentioned that Shanghai wants to build a highland for AI development in the future. 

Musk, for his part, proved equally optimistic and thankful for China’s support of Tesla. While speaking at the 2019 WAIC, Musk remarked that he is simply stunned about the quickness and efficiency of Gigafactory 3’s buildout. “Tesla’s China team has done an amazing job and I’m astounded that so much progress has been made for the Shanghai Gigafactory. It’s a good story for the world to see how much progress you can make in China. I really think China’s future looks very impressive,” he said. 

Following his busy Thursday, Musk appeared to have flown to China’s capital on Friday, as evidenced by pictures depicting the Tesla CEO having lunch at a famous Baozi (filled bun) restaurant in Beijing. Interestingly, the restaurant is very close to the Beijing office of the National Development and Reform Commission (发改委), which handles the country’s comprehensive economic projects, among others. 

Apart from Elon Musk’s appearance at the 2019 World AI Conference and his visit to the Gigafactory 3 complex, the Tesla CEO is also expected to launch The Boring Company’s China unit on this particular China trip. More details about this initiative will likely be shared from local news agencies, or in social media platforms, in the coming days. 

Elon Musk visits Gigafactory 3 site, receives support from Shanghai Party secretary

Let's block ads! (Why?)

https://www.teslarati.com/tesla-elon-musk-gigafactory-3-visit-meeting-party-secretary/

2019-08-30 10:00:23Z
52780368204521

ECB hawks are trying to downplay the chances of a huge stimulus package in September - CNBC

Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB).

Earlier in the summer, ECB President Mario Draghi said he was looking at further options to prop up the 19-member euro zone economy, outlining that one of the possibilities included a new program of asset purchases to stimulate lending and boost inflation.

Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a major bond-buying program, also known as QE, could come in the proceeding months if needed.

But just as investors gear up for the ECB's next meeting on September 12, two notably hawkish members of the euro zone's central bank have decided to inject some reality back into the debate.

"In my opinion, based on the current data, it is much too early for a huge package," executive board member Sabine Lautenschlaeger said in an interview with Market News this week which was published on the ECB's website Friday.

"I am still convinced that the Asset Purchase Programme (APP) is the ultima ratio, and it should only be used if you have a risk of deflation; and the risk of deflation is nowhere to be seen now."

Fellow ECB member and Dutch central bank chief Klaas Knot added his own words of caution. "If deflation risks come back on the agenda then I think the asset-purchase programme is the appropriate instrument to be activated, but there is no need for it in my reading of the inflation outlook right now," he told Bloomberg Thursday.

But there's only been a muted market response since these comments with European stocks posting gains on both Thursday and Friday. Analysts at Rabobank put this down to traders already being aware that there wasn't unanimity among the ECB's board members on QE.

They also highlighted in a research note that the reason the hawks "are stating their objections so vociferously is that they know that it is very likely that the APP will imminently be re-started."

If implemented, it would be the second time in its history that the central bank has announced a massive program to directly inject money into the euro zone economy.

Last week, Erik Nielsen, group chief economist at UniCredit, predicted QE would be launched in September and could between 300 billion and 400 billion euros ($333.07 and $444.10 billion) over a nine-month period.

The euro area is still struggling to deal with its low inflation levels and to grow at a significant rate. According to the central bank's latest forecasts, out in June, headline inflation is set to reach 1.3% in 2019 — the ECB's target is "below but close to 2%." In terms of growth, the central bank is expecting growth to reach 1.2% this year — having grown at a rate of 1.8% in 2018.

Silvia Dall'Angelo, senior economist at Hermes Investment Management, told CNBC via email last week that he wouldn't rule out an open-ended approach by the ECB.

"An ECB official recently made the case for a more forceful move, a bigger rather than smaller programme is likely, say 45 billion euros per month for a year," he said.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/30/european-central-bnak-hawks-try-to-downplay-the-chances-of-qe.html

2019-08-30 09:15:54Z
CAIiEO9CJ7Hx3LmlK1p0OWcr4T0qGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_d7gU

Five Years Ago Saturday, a Turning Point for Hong Kong and China - The New York Times

HONG KONG — In many places around the world, a single date marks seismic events considered turning points in recent history, like the Sept. 11 attacks in the United States or the Nov. 9 fall of the Berlin Wall for Europe. For post-colonial Hong Kong, the turning point fell on Aug. 31, 2014.

That was when a top Chinese government body announced a plan for limited democracy in Hong Kong. Beijing’s decision fell considerably short of what democracy protesters were demanding that summer, and it set off a two-month occupation of several Hong Kong neighborhoods that came to be known as the Umbrella Movement.

This year, demonstrators seized on that day — known simply as “the 8/31” — for what they hoped would be a huge march this Saturday, although an organized rally now seems unlikely.

The Hong Kong authorities have declined to grant the protesters a permit, raising the possibility of a repeat of recent clashes should the demonstration be held. The authorities rejected an appeal on Friday, and march organizers called off the demonstration after failing to win approval, although people are likely to protest in other ways.

Image

Democracy protesters in Hong Kong in October 2014 during the occupation that came to be known as the Umbrella Movement.CreditAdam Ferguson for The New York Times

What was the decision?

The Standing Committee of China’s rubber-stamp legislature, the National People’s Congress, approved a law five years ago on Saturday that would have allowed all adults who are permanent residents of Hong Kong to vote on who would be the next chief executive of the semiautonomous Chinese territory. But it came with a catch: Beijing would have tight control over who could run.

A 1,200-member electoral committee stacked with Beijing loyalists currently chooses the chief executive. The Aug. 31 decision would let that committee only choose the candidates, and then let the general public vote on those candidates. But opponents felt that meant Beijing would still be choosing their leader. And Beijing did indeed say that whoever won the vote of the general public would still have to be appointed to the job of chief executive by China’s national government.

The Standing Committee’s pronouncement did not become Hong Kong law because pro-democracy lawmakers in the Hong Kong legislature blocked approval of it in 2015. So the same 1,200-member election committee continues to choose the chief executive, with the system favoring pro-Beijing candidates. The committee selected Carrie Lam, the incumbent, in 2017, and she won with 777 votes of the 1,163 votes actually cast.

Image

Protesters in Hong Kong installed an “Umbrella Man” sculpture during a demonstration in October 2014.CreditAdam Ferguson for The New York Times

Why are the protesters upset about it?

Most democracy advocates in Hong Kong have long rejected the decision as worse than nothing at all. “The decision of Aug. 31 is totally unacceptable to the Hong Kong people,” said Bonnie Leung, the vice convener of one of the main protest groups, the Civil Human Rights Front, which had been organizing the Saturday demonstration. “The chief executive would have millions of votes, not a handful, but they would still be handpicked by Beijing.”

Mrs. Lam, now the chief executive of Hong Kong and previously the territory’s top civil servant, tried to find a compromise during the Umbrella Movement. Her compromise would have changed the composition of the nomination committee, notably by reducing the large number of seats reserved for farmers and fishermen. Farming and fishing now represent a tiny share of Hong Kong’s population and economy these days, but these are staunchly pro-Beijng sectors.

But Mrs. Lam’s compromise still would have left the nomination committee in charge of who could appear on the ballot. Democracy advocates rejected her suggestions.

Image

A scene in October 2014 from the Umbrella Movement protest. Most democracy advocates in Hong Kong have long rejected the 2014 Beijing decision as worse than nothing at all.CreditAdam Ferguson for The New York Times

Who likes the Aug. 31 decision?

A few centrists in Hong Kong and Western political scientists have suggested that adoption of the Aug. 31 decision five years ago might have helped the democratic cause and might still be a good option for the territory. They argue that even if two or three Beijing allies appeared on a ballot for a vote by all of the people of Hong Kong, those candidates would become less pro-Beijing during the campaign. They might compete with each other in promising more democracy, so as to win the most votes from the general public.

“If they want to win a popular election, they would have to adopt policies closer to the political center,” said David Zweig, a longtime political scientist at the Hong Kong University of Science and Technology.

The Aug. 31 decision gives Beijing final say on who becomes chief executive. After the general election, Beijing would decide whether to appoint the winner of the general election to become chief executive. If a candidate became too critical of Beijing during an election campaign, or promised too much, that candidate might not be appointed, said Lau Siu-kai, vice chairman of the Chinese Association of Hong Kong and Macau Studies, an elite, semiofficial advisory body set up by Beijing.

“Beijing will not allow any person who seems to place his accountability to the Hong Kong people above his accountability to Beijing,” Mr. Lau said.

Image

Protesters’ umbrellas outside the government complex in September 2014. Hong Kong has changed since then, with protesters now more willing to resort to violence.CreditLam Yik Fei for The New York Times

Does Beijing still back the decision?

The decision five years ago was a compromise in Beijing between moderates willing to tolerate some democracy in Hong Kong and hard-liners less willing to allow it. The compromise was aimed at going far enough in meeting Hong Kong democracy demands to head off a threatened occupation of the streets that autumn — a goal the compromise completely failed to achieve.

Hong Kong has changed since then, with protesters more willing to resort to violence. But Beijing has also changed since then. President Xi Jinping had been in office for less than two years at the time of the Standing Committee’s decision, and was still consolidating power.

In the years since, he has repealed a constitutional limit of two terms as president, allowing him to remain in office indefinitely. He has replaced almost all top military and security officials with people loyal to him. Human rights lawyers have been sentenced to long jail terms and much stricter controls have been placed on internet use in mainland China.

Democracy advocates still hope Beijing will make them a better offer. “I hope Beijing will understand if you make a concession, it is not a sign of weakness but a sign of a great power,” said Emily Lau, a pro-democracy lawmaker.

Some Beijing hard-liners on Hong Kong policy, however, have begun to question whether any concession to democracy advocates, like allowing general elections with Beijing controlling who is a candidate, is even needed anymore.

Lau Siu-kai said that because the Standing Committee has never repealed the decision, it remains on the books and in theory available to Hong Kong.

“It is still available, because it is the national law,” he said, while adding that, “I don’t see this as a possibility at all, that 8/31 would be accepted by the democrats.”

Let's block ads! (Why?)

https://www.nytimes.com/2019/08/30/world/asia/hong-kong-protests.html

2019-08-30 06:31:00Z
52780368287878

Dow jumps 300 points after China says it’s opposed to further escalation in trade war - The Washington Post

The Dow surged at the open Thursday. The S&P 500 and Nasdaq also trended upward, suggesting markets could break their four-week losing streak. (Andrew Kelly/Reuters)

August 29 at 10:03 AM

The Dow Jones industrial average jumped more than 300 points Thursday after Beijing said it wasn’t looking to escalate the U.S.-China trade war any further, just days after back-to-back retaliatory tariffs brought the conflict to a boiling point.

“China has ample means for retaliation, but we think the question that should be discussed now is about removing the 550 billion dollars of new tariffs to prevent escalation of the trade war. China has been lodging solemn representations to the U.S. side about this,” Gao Feng, a commerce ministry spokesman, told reporters Thursday. “The most important thing is to create the necessary conditions for continuing negotiations.”

The ministry also confirmed that discussions for a face-to-face meeting in September were ongoing. Chinese negotiators had been expected to travel to the U.S. for those talks, but last week’s pandemonium raised doubts. Now, investors are hopeful that progress might be imminent, even if details are scant, said Ed Yardeni, president of Yardeni research.

“China saying that negotiations are continuing over trade talks is bullish for investors,” Yardeni said. “Investors just want this issue resolved. The Chinese have said this before, but it beats the alternative of having China say they are not interested in pursuing any further talks.”

Last Friday, Beijing introduced retaliatory tariffs on $75 billion in goods and said it would reinstate levies on auto products, prompting President Trump to raise the rates of existing and planned tariffs on Chinese goods and demanding that American business completely cut ties with China

The exchange renewed fears the standoff would tip the U.S. into recession and of a wider global slowdown, sending U.S. markets into a tailspin. The Dow Jones industrial average sank more than 600 points, or nearly 2.4 percent, while the Standard & Poor’s 500 fell 2.6 percent and Nasdaq composite erased 3 percent. But two days after the carnage, Trump painted a far rosier trade picture during the Group of Seven summit in France, saying there had been two “very good” calls with China.

Feng did not confirm Trump’s claim that China had called the U.S. over the weekend in pursuit of a deal.

On Thursday, Dow was up more than 300 points, or 1.2 percent, within minutes of the opening bell and China-exposed heavyweights like Apple and Caterpillar were climbing. The S&P 500 and Nasdaq also were trending upward, 1.2 and 1.4 percent respectively, putting the U.S. markets on track to break their four-week losing streak.

“China’s stated preference for a negotiated solution rather than reciprocating the latest tariff increases is being taken as a meaningful de-escalation,” Brendan Walsh, an analyst with Markets Policy Partners, wrote in a note to investors Thursday. “Investors’ overriding concern is that Beijing walks away from the negotiation due to overuse of pressure tactics by the White House. Next month’s Chinese trade delegation to Washington is being seen by market participants as a potentially pivotal event.”

Recession fears have spiked in recent weeks as a raft of warning signals have surfaced in the U.S. economy. The nation’s manufacturing sector has contracted for the first time in a decade, and sales of U.S. exports have decreased at the fastest pace since 2009. For the first time since the run-up to the Great Recession, the yields — or returns — on short-term U.S. bonds eclipsed those of long-term bonds. The phenomenon, known as an inverted yield curve, has preceded every recession since 1955 and signals investors are piling into safer assets.

On Thursday, the U.S. Commerce Department said the U.S. economic growth had slowed more in the second quarter than previously thought. Gross domestic product grew at an annualized rate of 2 percent, the department said, revised down from an estimate of 2.1 percent last month.

“Consumers bought more nondurable goods and spent more on services, but exports were a touch weaker and spending by state & local governments added less than the first GDP estimate a month ago,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in note to investors Thursday. “The economy is still on cruise control and growing a steady 2.0% in the second quarter as the trade wind skies continue to darken.”

Just as the trade war takes its toll on the U.S. economy, the conflict’s effects are also rippling across the globe. China’s economic growth has slowed to its lowest rate in 27 years, as factory output declines and unemployment rises, and central bank leaders in Europe, Asia and Australia have cut interest rates in recent weeks, citing the need for economic stimulus.

Let's block ads! (Why?)

https://www.washingtonpost.com/business/2019/08/29/stock-futures-rise-sharply-after-china-says-its-opposed-further-escalation-trade-war/

2019-08-29 13:39:24Z
52780367458186

Best Buy shares fall after second-quarter sales miss and looming tariffs on core products weigh on stock - CNBC

Best Buy shares fell 6.5% after its second-quarter revenue and same-store sales growth missed analysts' expectations and upcoming tariffs on the company's core products weigh on the stock. 

Investors were pessimistic Thursday morning, focusing on both the sales miss and a narrower estimate for same-store sales, driven by disappointing sales in Canada. However, the company did report earnings that beat expectations by 9 cents and raised its earnings forecast for the fiscal year.

Here's how the company did, compared with what Wall Street was expecting, according to Refinitiv consensus estimates:

• Adjusted earnings per share: $1.08, vs. 99 cents estimated
• Revenue: $9.54 billion, vs. $9.56 billion estimated
• Same-store sales: up 1.6%, vs. 2.1% increase estimated

"For the second quarter, we are reporting comparable sales growth of 1.6% on top of a very strong 6.2% last year," said Barry. "We also delivered improved profitability driven by gross profit rate expansion and continued disciplined expense management, demonstrating the culture we have built around driving cost reductions and efficiencies to help fund investments."

Sales at Best Buy stores open for at least 12 months grew 1.6%, lower than analyst expectations of a 2.1% increase.

In the quarter ended Aug. 3, Best Buy reported net income of $238 million, or 89 cents a share, compared with $244 million, or 86 cents a share, a year earlier. Excluding restructuring costs and other one-time items, Best Buy earned $1.08 a share, topping analysts' estimates from Refinitiv.

Revenue rose to $9.54 billion from $9.38 billion a year ago, but was slightly below estimates of $9.56 billion.

Best Buy raised its earnings forecast for the fiscal year to a range of $5.60 to $5.75 per share from a previous estimate of between $5.45 to $5.60 per share. Both numbers are after excluding one-time items.

However, sales at stores open at least a year are expected to rise 0.7% to 1.7% this year. Previously, it estimated 0.5% to 2.5% same-store sales growth. Analysts were anticipating a 2% increase.

Domestic same-store sales grew 1.9% and revenue increased 2.1% to $8.82 billion. The company saw a domestic online revenue rise 17.3% to $1.42 billion because of higher average order values and increased traffic. Its domestic online revenue represented 16.1% of sales compared with 14% last year.

Internationally, same-store sales fell 1.9%, while revenue dropped 3.4% to $715 million. The company said the decline was driven primarily by sales in Canada.

Best Buy said repurchased $230 million in stock during the quarter. Prior to Thursday's selloff, Best Buy shares were up 30% since the start of the year, bringing its market cap to about $18.4 billion.

"I think that the challenges with Best Buy are many of the same challenges that are overall facing the retail industry. There are certainly the issues related to tariffs, but you can't overlook all of the other challenges the company has as well," said Sucharita Kodali, an analyst at Forrester on CNBC's "Squawk Box " Thursday.

She said one of the pressures the company is facing is commodification of their core products, including electronics.

"When you see the strength in numbers from retailers like Walmart and Target, their consumer electronic sections are bolstering that and that is absolutely going to naturally adversely affect Best Buy. You have the continued growth of Amazon, where electronics are a significant part of what consumers buy on that site. "

The company also said its same-store sales growth was fueled by strength in appliances and headphones, while gaming and home theater sales declined.

"What Best Buy has leaned into and what their strength was in this quarter was in categories like appliances, which are not well-suited to the e-commerce landscape, you have services, you have accessories which are high-margin things like headphones so those are definitely things that have helped and supported Best Buy," said Kodali.

"But the question is how much more can they lean into things like services and installations, and is there more headroom there? I would argue that those are sectors that can be somewhat challenged," she said. 

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/29/best-buy-reports-fiscal-q2-2019-earnings.html

2019-08-29 12:20:32Z
CAIiEMkUE23w14HUgKEf28QTG0gqGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_5ngY

UPDATE 1-Best Buy's annual sales outlook misses estimates as tariffs loom - Yahoo Finance

(Adds details from earnings release, shares)

Aug 29 (Reuters) - Best Buy Co Inc forecast annual same-store sales below analysts' estimates on Thursday, citing new U.S. tariffs set to be imposed on Chinese imports, such as phones, video game consoles and other electronics.

Best Buy's shares, which have lost about 10% of their value so far this month, fell 5.4% to $65.30 in pre-market trade as consumer electronics retailer also flagged concerns over uncertainty related consumer buying behavior in the second half of the year.

The company narrowed its full-year same-store sales forecast to a rise of 0.7% to 1.7%, from 0.5% to 2.5%. Analysts had expected a 2% increase.

President Donald Trump last week said U.S. tariffs on $250 billion worth of Chinese imports would rise to 30% from the current 25% beginning Oct. 1.

While Best Buy has said those tariffs only affect about 7% of it's cost of goods sold, a planned 15% levy on a further $300 billion worth of Chinese goods, would hit most of Best Buy's best selling products, such as cell phones and laptops.

Trump announced the increase to 15% from 10% last Friday, with the first tranche on over $125 billion of targeted goods including smart watches, Bluetooth headphones and flat panel TVs, set to go into effect on Sept. 1.

Tariffs on the remainder of the $300 billion list that includes cellphones, laptops, toys and clothing will kick in on Dec. 15, according to the U.S. Trade Representative's Office.

Best Buy's overall same-store sales rose 1.6% in the second quarter ended Aug. 3, missing analysts estimates of a 2.15% increase, according to IBES data from Refinitiv.

Revenue rose to $9.54 billion from $9.38 billion, a touch below expectations of $9.56 billion.

Excluding one-time items, the company earned $1.08 per share in the second quarter, beating analysts' estimates of 99 cents per share.

(Reporting by Uday Sampath in Bengaluru Editing by Tomasz Janowski)

Let's block ads! (Why?)

https://finance.yahoo.com/news/1-best-buys-annual-sales-114132325.html

2019-08-29 11:41:00Z
CBMiRmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy8xLWJlc3QtYnV5cy1hbm51YWwtc2FsZXMtMTE0MTMyMzI1Lmh0bWzSAU5odHRwczovL2ZpbmFuY2UueWFob28uY29tL2FtcGh0bWwvbmV3cy8xLWJlc3QtYnV5cy1hbm51YWwtc2FsZXMtMTE0MTMyMzI1Lmh0bWw

Six Flags will debut a high-flying ride, Catwoman Whip, next season - STLtoday.com

[unable to retrieve full-text content]

1. Six Flags will debut a high-flying ride, Catwoman Whip, next season  STLtoday.com
2. Creep follows woman from Six Flags, poses as federal agent  New York Post
3. Six Flags 2020 New Ride Announcements  Theme Park Insider
4. New water slide coming to Six Flags Darien Lake  WKBW-TV
5. Six Flags Great Adventure to unveil Jersey Devil Coaster in 2020  WPVI-TV
6. View full coverage on Google News

https://www.stltoday.com/entertainment/arts-and-theatre/hotlist/six-flags-will-debut-a-high-flying-ride-catwoman-whip/article_70898f49-e7c0-5bf0-b505-31c3606c03b4.html

2019-08-29 10:45:00Z
52780367375402

Dow futures jump more than 200 points after 'calm' trade comments from China - CNBC

U.S. stock index futures turned positive Thursday after China said it wished to resolve its protracted trade dispute with the world's largest economy with a "calm " attitude.

At around 7:10 a.m. ET, Dow Jones Industrial Average futures rose 263 points, indicating a gain of more than 274 points at the open. Futures on the S&P 500 and Nasdaq 100 were both higher, reversing earlier losses.

When asked about its ongoing trade war with the U.S., China's commerce ministry reportedly said Thursday that it was opposed to escalating trade tensions. The comments appeared to soothe investor concerns at a time when many are worried about the possibility of a global recession.

Trade bellwethers Boeing and Caterpillar rose at least 1% each in the premarket. Micron Technology gained 2%.

On Wednesday, the rate on the benchmark 30-year Treasury bond sank to an all-time low, while the U.S. yield curve inverted even further.

The closely-watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points in the previous session. The move extended losses from earlier in the week, when the spread registered its lowest level since 2007.

A 10-year rate below the 2-year yield is viewed by fixed income traders as an important recession prognosticator, marking an unusual phenomenon as bondholders receive better compensation in the short term.

On the data front, the latest weekly jobless claims, a second reading of second-quarter GDP (gross domestic product) and advance economic indicators for July are all scheduled to be released at 8:30 a.m.

Pending home sales for July will follow slightly later in the session.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/29/stock-market-wall-street-in-focus-amid-recession-fears.html

2019-08-29 09:47:20Z
52780366603007

Jack Ma, once proponent of 12-hour work days, now foresees 12-hour workweeks - The Washington Post

Aly Song Reuters Alibaba executive chairman Jack Ma, left, with Tesla chief executive officer Elon Musk in Shanghai on Thursday.

BEIJING — Jack Ma, the Chinese tech billionaire known for arguing in favor of a 12-hour work day, sees a future in which people will have to work only 12 hours a week.

The founder of e-commerce behemoth Alibaba said Thursday that technological advancements would enable people to live longer and work far fewer hours.

“Every technology revolution, people start to worry. In the last 200 years we have worried [that] new technology is going to take away all the jobs,” he said in a discussion in Shanghai on Thursday with Elon Musk, Tesla’s billionaire founder. Tesla is building an electric-vehicle factory in the city, and the two were on the stage at the World Artificial Intelligence Conference there. 

Ma has previously courted controversy with his endorsement of the “996” work practices prevalent in China’s tech industry, under which employees are expected to work 9 a.m. to 9 p.m., six days a week.

In remarks earlier this year, Ma said that the opportunity to work such hours was a “blessing” and that without this kind of working culture, China’s economy was “very likely to lose vitality and impetus.”

Another tech titan went further, declaring that the 996 culture was for slackers. Richard Liu, chief executive of rival e-commerce company JD.com, said he works “8116+8” — or 8 a.m. to 11 p.m. Monday to Saturday, then a mere eight hours on Sunday.

But speaking with Musk on Thursday, Ma said that in the future, people would be able to enjoy a much shorter workweek.

 “In the next 20 to 30 years, human beings will live much longer. Life science technology is going to make people live probably 100 or 120 years,” he said. “That may not be a good thing because you get your grandfather’s grandfather still working hard.”

But it didn’t matter, he said, as the world wouldn't need a lot of jobs.

 “I think people should work three days a week, four hours a day,” he said, citing previous technological leaps like the Industrial Revolution and the use of electricity as improving work-life balance. 

“The power of electricity is that we make people more time, so you can go to the karaoke in the evening, you can go to dancing parties in the evening,” he said in English.

“I think that because of artificial intelligence, people will have more time to enjoy being human beings. I don’t think we’ll need a lot of jobs,” Ma told Musk. “The jobs we need are [ones to] make people happier. People experience life, enjoy [being] human beings.”

[ In a workaholic China, the stressed-out find a refuge with monks and Sanskrit ]

China’s netizens were unimpressed.

“Ma has said previously that 996 was a blessing. How can he say now that people can work three days a week, four hours a day, and go to karaoke or dance parties in the evening,” asked one person using the nickname “Be a friend with time daily” on Weibo, the Chinese version of Twitter.

“Previously he talked in Chinese about 996. That’s for us. This time, he said ‘three days a week, four hours a day’ in English. That’s for foreigners.”

Another, using the name “Soda water,” used a Chinese saying that means two things don’t fit together: “Musk will find that this dialogue is like putting a donkey’s lips on a horse’s mouth.”

Liu Yang contributed to this article.

Read more

A year into the trade war, China learns to ride out Trump’s turbulence

Trump retaliates in trade war by demanding companies cut ties with China

Today’s coverage from Post correspondents around the world

Like Washington Post World on Facebook and stay updated on foreign news

Let's block ads! (Why?)

https://www.washingtonpost.com/world/asia_pacific/jack-ma-proponent-of-12-hour-work-days-foresees-12-hour-workweeks/2019/08/29/fd081370-ca2a-11e9-9615-8f1a32962e04_story.html

2019-08-29 09:26:31Z
52780367324828

Jack Ma: AI could enable a 12-hour work week - Axios

Alibaba Group Chairman Jack Ma and Tesla CEO Elon Musk at the World Artificial Intelligence Conference in Shanghai, China, Thursday. Photo: VCG/VCG via Getty Images

Alibaba Group Chairman Jack Ma told the World Artificial Intelligence Conference in Shanghai Thursday that artificial intelligence should enable people to work 4 hours a day, 3 days a week, Bloomberg reports.

Why it matters: It's a remarkable demonstration of Ma's faith in AI, given he's known for endorsing the Chinese tech sector's standard "996" schedule, which consists of a 72-hour workweek: 9 a.m. to 9 p.m., six days a week.

The big picture: Ma appeared onstage at the event with Tesla CEO Elon Musk, with whom he had a disagreement on whether humans can be outsmarted by computers.

Go deeper: America's work-life balance isn't so great

Let's block ads! (Why?)

https://www.axios.com/jack-ma-ai-could-enable-a-12-hour-work-week-783ab4db-0455-4711-8ef3-55e0c00cbfdc.html

2019-08-29 08:30:00Z
52780367324828

US futures turn higher after 'calm' trade comments from China - CNBC

U.S. stock index futures turned positive Thursday morning, after China said it wished to resolve its protracted trade dispute with the world's largest economy with a "calm" attitude.

At around 04:00 a.m. ET, Dow futures rose 184 points, indicating a positive open of more than 197 points. Futures on the S&P and Nasdaq were both slightly higher, reversing earlier losses.

When asked about its ongoing trade war with the U.S., China's commerce ministry reportedly said Thursday that it was opposed to escalating trade tensions.

The comments appeared to soothe investor concerns at a time when many are worried about the possibility of a global recession.

On Wednesday, the rate on the benchmark 30-year Treasury bond sank to an all-time low, while the U.S. yield curve inverted even further.

The closely-watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points in the previous session. The move extended losses from earlier in the week, when the spread registered its lowest level since 2007.

A 10-year rate below the 2-year yield is viewed by fixed income traders as an important recession prognosticator, marking an unusual phenomenon as bondholders receive better compensation in the short term.

U.S. bond yields hovered marginally above record lows on Thursday morning.

Data, earnings

On the data front, the latest weekly jobless claims, a second reading of second-quarter GDP (gross domestic product) and advance economic indicators for July are all scheduled to be released at 8:30 a.m.

Pending home sales for July will follow slightly later in the session.

In corporate news, Toronto-Dominion Bank, Best Buy and Dollar General are among some of the companies expected to report earnings before the opening bell.

Dell, Marvell Tech and Workday are scheduled to release their latest quarterly results after market close.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/29/stock-market-wall-street-in-focus-amid-recession-fears.html

2019-08-29 06:22:35Z
52780366603007

Marriott eliminating tiny toiletries, shampoo bottles by 2020 to reduce waste - WABC-TV

It could be lights out for tiny toiletries.

Marriott International, the world's largest hotel chain, said Wednesday it will eliminate small plastic bottles of shampoo, conditioner and bath gel from its hotel rooms worldwide by December 2020. They'll be replaced with larger bottles or wall-mounted dispensers, depending on the hotel.

The move follows a similar announcement last month by IHG, which owns Holiday Inn, Kimpton and other brands. IHG said it will eliminate about 200 million tiny bottles each year by 2021. Last year, Walt Disney Co. said it would replace small plastic shampoo bottles at its resorts and on its cruise ships. Many smaller companies, like the five Soneva Resorts in Thailand and the Maldives, have also ditched plastic bottles.

Marriott has more than 7,000 hotels in 131 countries under 30 brands, ranging from SpringHill Suites and Residence Inn to Sheraton and Ritz-Carlton. It says it will be eliminating about 500 million small bottles each year, or 1.7 million pounds of plastic.

Marriott has wanted to get rid of small bottles for years, President and CEO Arne Sorenson said. There are just too many of them, he said, and they're difficult to recycle because of the time it takes to clean them out.

But it took a lot of work to design tamper-resistant large bottles and get suppliers on board. High-end hotels, in particular, needed to have bottles that still felt luxurious, he said.

"There were a lot of technical features to this that we had to get right," he said.

Rival Hyatt Hotels Corp. is going through a similar process now. The company says it's been testing amenity dispensers in some rooms for the last year.

Bethesda, Maryland-based Marriott started replacing small bottles early last year at some North American brands, including Courtyard and Fairfield hotels. About 1,000 of those now feature larger bottles or pump dispensers that are hooked to the shower wall.

Denise Naguib, Marriott's vice president of sustainability and supplier diversity, said Marriott got a positive response from guest surveys. Many were relieved because the larger bottles let them use as much or as little shampoo as they want.

"More and more people have a general consciousness of it," she said. "They don't want to be leaving half-empty bottles."

Naguib said most Marriott hotels will eliminate small bottles by July 1, 2020. Luxury brands will get rid of them by the end of 2020. Lower-priced brands will have dispensers or bottles that are tethered to the shower wall. Luxury brands will have untethered bottles. The bottles hold the equivalent of 10 to 12 small bottles, and all are tamper resistant.

The larger bottles will still be plastic, and Marriott still plans to replace them - not just refill them - when they run low. But Naguib said the larger bottles are easier to recycle than smaller ones.

Environmental groups are applauding the moves.

"Plastic pollution is an urgent global crisis and the time is now to think 'reusable' instead of 'disposable,'" said Dianna Cohen, co-founder and CEO of the Berkeley, California-based Plastic Pollution Coalition.

Soon, hotels may not have a choice. Lawmakers in California are considering banning hotels from using small shampoo bottles in 2023, while the European Union is banning a wide range of single-use plastic items, like cutlery and plates, by 2021.

Sorenson said he expects some complaints, like Marriott heard last year when it banned plastic straws and stirrers. Many people like collecting hotel shampoo bottles, he said. His own mother used to have a drawer full of soap she took from hotels.

"Human nature is what it is and we resist change," he said. "But people understand that this is so much better."

Copyright © 2019 by The Associated Press. All Rights Reserved.

Let's block ads! (Why?)

https://abc7ny.com/travel/marriott-eliminating-tiny-toiletries-by-2020/5498043/

2019-08-29 02:44:14Z
CBMiT2h0dHBzOi8vYWJjN255LmNvbS90cmF2ZWwvbWFycmlvdHQtZWxpbWluYXRpbmctdGlueS10b2lsZXRyaWVzLWJ5LTIwMjAvNTQ5ODA0My_SAVNodHRwczovL2FiYzdueS5jb20vYW1wL3RyYXZlbC9tYXJyaW90dC1lbGltaW5hdGluZy10aW55LXRvaWxldHJpZXMtYnktMjAyMC81NDk4MDQzLw

Why record low bond yields could keep heading lower as market fears 'disaster scenario' - CNBC

Traders signal offers in the Ten-Year Treasury Note Options pit at the Chicago Board of Trade.

Scott Olson | Getty Images

Bond yields are heading south, and there appears to be no stopping them for now.

The benchmark 10-year Treasury note yield, which influences everything from business loans to home mortgages, has been hugging three-year lows and was at 1.45% Wednesday. That's below the 2-year yield of 1.5%, and the move has been signaling recession.

The 30-year Treasury bond yield fell to an all-time low 1.91% Wednesday as yields around the world, which move opposite price, slid to multi-year or record lows. U.S. rates followed a global move lower, with the Japanese 10-year yield falling to a new negative three-year low and the German 10-year bund yield sliding to its own record, minus-0.72%.

"This is one big trade," said Gregory Faranello, head of U.S. rates at Amerivet Securities. "The momentum and trends that are in place right now are pretty steadfast. There's nothing glaring to me that will change the dynamics right now. We're in the latter stages of the summer months. Liquidity is definitely an issue. When you look at it globally right now, it encompasses a lot of different, diverse things. Today we have the headline from the U.K.; you have this ongoing trade war, and this global yield structure just continues to unfold."

Strategists said the bond market has been caught between a number of forces and is now a vortex sucking in investors who have to buy yield, which keep getting lower as bond prices move higher. In the past several days, investors have begun to believe that there's a very good chance the trade wars between the U.S. and China could continue for a very long time, and possibly until after the presidential election.

Fear factors

The global economy is slowing, and increasingly there are warning signs that make it appear Europe could enter a recession. China's slowdown has sent a chill across emerging market economies, which have seen a decline in exports.

Then there is political uncertainty, which got even murkier in the U.K. on Wednesday, after Prime Minister Boris Johnson pushed back the reopening of Parliament until mid-October, limiting the amount of debate time and increasing the chances of a no-deal Brexit. Sterling fell and the 10-year gilt yield dropped to its lowest level in three years.

"The disaster scenario is if yields fall dramatically from here," said Michael Schumacher, director rates at Wells Fargo. "Hypothetically, if the trade situation intensifies, if maybe Hong Kong goes badly and Brexit seems like it results in a hard exit ... then what you probably get is a massive rally again in Treasurys."

"Anyone who is handing you a hard forecast in that scenario is throwing darts," he said. After the 10-year yield broke through the psychologically important 1.50% level Tuesday, Schumacher said investors are looking for the next target on the benchmark note at the record low it reached in the weeks after the U.K. voted for Brexit, or to leave the European Union.

"People seem to be fixated on 1.35%," he said.

For investors, he said a good place to hide might be in very short-term Treasurys. For instance, the 1-month Treasury bill was yielding 2.06%, well above other securities. "Why be a hero?" he said.

Many strategists do not expect U.S. bonds to follow the rest of the world into negative yields, but they concede it could happen. The other side of the falling yield story is that bond yields could quickly snap higher, if for instance there was significant progress in the trade situation. But strategists are skeptical that will happen any time soon.

"Clearly, the trade war is such a big piece of this and it remains so incredibly unpredictable. Most people feel like it's elevated to such an extent that it's highly unlikely to get anywhere," said Ralph Axel, rates strategist at Bank of America Merrill Lynch. He said people are wondering why China would sign a long-term deal with President Donald Trump ahead of the election.

Sinkhole of global yields

Another major factor driving yields lower is the fact that more than $16 trillion in bonds around the world now have negative yields, and the U.S. Treasury market has been a magnet for investors looking for yield, as well as safety.

Axel said he has a 1.25% target on the 10-year, and he also expects the 30-year yield to be at that level by the second quarter of next year.

Faranello said yields move lower because buying forces in more buyers as investors look to lock in yield. The question is will the consumer, who has been holding up the U.S. economy, begin to react to what's scaring markets.

"If you're a U.S. consumer, you see volatility in markets. You don't understand it. They see negative interest rates. You see the inverted yield curve, which consumers don't understand, and there's talk of recession," Faranello said. "This could be self-fulfilling at some point, and the Fed has to keep an eye on it."

Data in the next week could be important since it includes the monthly employment report next Friday and also ISM manufacutring and PMI, two indicators that have been signaling a slowdown in manufacturing

"The yield curve is telling us essentially that we're looking at zero percent GDP growth next year. That's what the front end of the curve would imply. The question is will the yield curve win out or will policy makers be able to support the data enough," Faranello said. "I have no idea how it's going to play out, but there's very incredible fear and focus on a recession."

Central banks behind the curve

Central banks around the world have been driving rates down as their economies slow, and the worry is that they are in a race to the bottom as they defend their currencies. Another worry is they don't have the ammunition they once had before the financial crisis since so many embarked on extraordinary easing efforts or already have super low rates. They also failed in the decade since the financial crisis to do much to spark inflation.

The Fed is widely expected to cut rates by a quarter point when it meets on Sept. 17 and 18.

"I think the Fed needs to go 50 [basis points]. The Fed, I think, has to change the tone globally. Heading into September, they need to hit it. They need to hit it 50. They need to change the tone and psychology of the market. Right now, we're in a vice," Faranello said.

Even before the Fed meets, the European Central Bank is meeting on Sept. 12, and it is expected to take action, including its already negative rate and possibly announcing asset purchases.

"We'll see what the ECB does. They have a lot of bad choices," Faranello said. "They're probably going to do several different things but the market is not convinced they have much power to turn the economy around now, and you're going to have to start thinking about fiscal boosts, but that's a sticky process when you have a [political] union. The big issue is central banks globally are just out of bullets, just at the same time tings are moving south...You feel like the central bank puts are less powerful.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/28/bond-yields-still-heading-lower-as-market-fears-disaster-scenario.html

2019-08-28 18:39:36Z
52780366603007