Financial Markets and Economy
Hello Kitty, Farewell Rolex as Hong Kong Shoppers Go Downmarket (Bloomberg)
In Hong Kong, fancy purses are out, sneakers are in.
Walgreens is buying Rite Aid (Business Insider)
Walgreens Boots Alliance just announced plans to buy Rite Aid Corp. for $9 per share.
That values Rite Aid at $9.4 billion. The deal is valued at $17.2 billion, including debt.
That's a 48% premium to the closing price per share the day before the agreement was signed.
Earliest Tea Leaves Show China Economy Stabilizing in October (Bloomberg)
With a preliminary reading of the manufacturing industry scrapped this month by Markit Economics and Caixin Media, analysts must search a bit harder for the pulse of the worlds second-largest economy. Early signs suggest stabilization.
Dow transports take a beating (Market Watch)
The Dow Jones Transportation Average is taking a beating, and underperforming the rest of the stock market, as the index is pulled down by selloffs in its railroad components and disappointing results from JetBlue Airways and United Parcel Service.
Apple sold 48.05 million iPhones last quarter, slightly missing expectations (Business Insider)
Apple's Q3 earnings are out!
Running a Business Without a Bank (The Atlantic)
More than 3,300 people from 77 countries entered this year's photography competition run by the Consultative Group to Assist the Poor (CGAP), a World Bank initiative that advocates for more financial services in vulnerable communities. According to the group, there are nearly two billion people around the world who lack access to basic banking. Their annual photo competition aims to document the struggles and successes of those business owners outside the system.
Del Monte to expand avocado business after third-quarter results (Market Watch)
Fresh Del Monte Produce Inc. can thank our love for avocados for third-quarter results that exceeded analyst expectations.
Fresh Del Monte FDP, +6.74% a producer and distributor of fresh and fresh-cut fruits and vegetables among other food products, said avocados were a large area of growth for the company for the three months ending Sept. 25. The company sells Hass avocados from Mexico, Chile, Peru and California, according to its website, with product available all year.
Twitter Drops as Monthly Active Users Miss Estimates (Bloomberg)
Twitter Inc.’s turnaround isn’t going to be easy.
How a billionaire stock investor made his name at the worst possible time for markets (Business Insider)
The 1970s was a demoralizing era if you were an investor in US equities.
Media outlets were printing headlines proclaiming the "Death of Equities." Interest rates were so high investors could earn 10% on US Treasuries.
Natural gas prices aren’t done falling yet (Market Watch)
Natural-gas prices trade at levels not seen since 2012, but probably aren’t done falling yet.
Brazil Again Scraps 2015 Budget Target as Economy Slumps Further (Bloomberg)
Brazil’s government has given up on posting a budget surplus before interest payments this year as an economic contraction and dissent in Congress undermine its fiscal-austerity policies.
The US government is about to sell a bunch of its oil — and it might be a pretty dumb decision (Business Insider)
The US government owns a bunch of physical barrels of oil.
And as part of the tentative budget deal reached on Tuesday, the government will sell about 8% of this stockpile over the next decade.
GE Plans $200 Million 'Rocket City' Plants on Jet-Engine Surge (Bloomberg)
General Electric Co. plans to build two new factories in Alabama’s “Rocket City” to produce advanced materials for jet engines as the company prepares for a surge in aircraft output later this decade.
The twin plants will be placed in Huntsville, a city with a long history in aerospace manufacturing, and employ 300 people, GE said Tuesday. GE will invest $200 million alongside funding from the U.S. Air Force for the facilities making ceramic matrix composites, which can withstand the lava-like temperatures inside turbines.
Marvell’s stock rocked as accounting fears grow (Market Watch)
Marvell Technology’s stock tumbled toward a three-year low Tuesday as the resignation of the semiconductor company’s independent accountant stoked fears that accounting issues could get much worse than they already are.
The SEC is investigating some of IBM's accounting practices (Business Insider)
IBM disclosed in an SEC filing on Tuesday that regulators are looking into its accounting treatment of revenue received during transactions in the US, UK, and Ireland.
Following the disclosure, shares of the company were down as much as 3.5%.
SABMiller Said to Seek More Time for AB InBev to Finalize Offer (Bloomberg)
SABMiller Plc plans to ask U.K. regulators to again extend a deadline for Anheuser-Busch InBev NV to make a formal takeover offer as both sides want more time to shore up shareholder support and financing, according to people familiar with the negotiations.
Treasury yields decline on weak data ahead of Fed’s statement (Market Watch)
Treasury prices rose Tuesday, pushing yields lower, as weak U.S. economic data along with a drop in oil prices fueled demand for U.S. government debt—considered a haven asset.
The yield on the 10-year Treasury TMUBMUSD10Y, +0.13% dropped 3.2 basis points to 2.026%, according to Tradeweb. One basis point is equal to one hundredth of a percentage point.
Coach is fixing the mistakes that undermined its business (Business Insider)
Coach made a classic mistake.
Looking to exploit its popularity, the company fell into a trap that's snagged many high-flying retail brands: It expanded fast, opened outlet stores, and started to offer discounts to keep customers coming back.
Parched Australia Risks Shrinking Growth, Turning Up Heat on RBA (Bloomberg)
Australias monetary policy debate, like its weather, is heating up.
Gold ends with a slight loss ahead of Fed decision (Market Watch)
Gold futures finished with a slight loss on Tuesday, but stuck close to $1,165 an ounce as investors mulled the outcome of the Federal Reserve’s monetary policy meeting and upcoming economic reports, which include U.S. gross domestic product.
JetBlue just had a great quarter, but its stock is getting hammered (Business Insider)
JetBlue just reported stellar third-quarter earnings and yet its stock has tumbled more than 7% this morning.
The New York-based boutique airline reported a third-quarter profit of $198 million, which is more than double the $79 million it made during the same period last year.
Economic Takeaways of U.S. Durable Goods Orders, Confidence (Bloomberg)
What you need to know about Tuesday’s U.S. economic data:
Markets Dip Slightly as Investors Look to the Fed (NY Times)
Stocks slipped Tuesday afternoon after several U.S. companies delivered disappointing results and forecasts. Energy companies fell more than the rest of the market as the price of crude oil hit two-month lows.
Ferrari's earliest investors are losing money (Business Insider)
Ferrari shares slipped below their initial public offering price on Tuesday.
Brazil's Stock Swings Near Eight-Month High as Petrobras Tumbles (Bloomberg)
Brazils stock swings are near the widest level since February amid concern that political turmoil will derail the recovery of Latin Americas largest economy. The Ibovespa fell.
Politics
Conservatives are in revolt over the Republican budget 'betrayal' (Business Insider)
Conservatives moved quickly to revolt over a blockbuster budget deal reached among congressional leaders and the White House early Tuesday morning, calling it a "betrayal" days before US House of Representatives Speaker John Boehner (R-Ohio) is set to leave Congress.
"This budget deal is a betrayal of all the fiscally conservative promises Republicans made in the last election. It is emblematic of why working-class Americans are angry with congressional Republicans," said prominent right-leaning economist Stephen Moore, in a statement released by the conservative group FreedomWorks.
U.S. Steps Up China Rivalry in Asia Shipping Lane With Patrol (Bloomberg)
The moment the U.S. Navy sailed a warship into waters claimed by China in the South China Sea it gave President Xi Jinping a pretext to accelerate his country’s military presence in the disputed waterway, further placing the vital shipping lane at the heart of U.S.-China rivalry in the Pacific.
Technology
Finally, Earphones You Can Wear Post-Playlist (PSFK)
The Dipper Audio necklace is a fashionable neckpiece that turns into earphones in an instant. Through its unique form factor, the fashion/tech accessory lets women carry around their earphones with ease plus a lot of style.
Why Video-Game Franchises Never Die (Bloomberg)
At least some of the people who lined up at GameStop locations Monday night to buy the new Halo game the moment it came out were younger than Halo itself. Microsoft’s most popular gaming franchise turns 14 this year. And while the game released on Tuesday is called Halo 5, it is really the thirteenth version of Halo to have been published. Microsoft holds this as an example of the enduring appeal of the Halo story. It’s also a reminder of how much major game companies rely on seemingly endless versions of a few popular franchises.
Health and Life Sciences
These brain rhythms let us process music (Futurity)
Researchers have figured out how brain rhythms help process music.
The study, which appears in the Proceedings of the National Academy of Sciences, points to a newfound role the brain’s cortical oscillations play in the detection of musical sequences. The findings also suggest musical training can enhance the functional role of brain rhythms.
Major causes of death are claiming fewer lives (CNN)
Death is a certainty in life, but premature death has become less of a certainty in the United States, according to a new study.
Life on the Home Planet
Climate change will bring deadly heat to Middle East (CNN)
Climate change could ultimately make parts of the Middle East too hot for human beings to survive, according to studies published in Nature Climate Change.
Rising Seas Pose Growing Flood Threat (Scientific American)
The Atlantic will sneak up to one of its highest points tomorrow as celestial influences create king tides along the East Coast, three years after similar tides and rising seas added to the huge wall of water that crashed onto the coastline during Superstorm Sandy.
