| By Charles Riley • Monday, November 11 | | | | Greetings. It's Monday. In today's newsletter: A sharp escalation of violence in Hong Kong unnerves investors, how to pick your streaming service(s) and what a shopping bonanza says about China's economy.
US stock futures point lower after the major indexes closed out last week with small gains. Markets in Europe opened mixed, but in Asia were markedly lower.
▸ Forwarded this newsletter? Want global markets news and analysis from CNN Business reporters every morning? You can sign up here. | | | What's happening now in markets: MARKET DATA AS OF 5:30 AM ET | | MARKET FLASH Stocks skid as Hong Kong erupts in violence
Investors dumped Hong Kong stocks after demonstrators targeted public transportation in Asia's top financial hub and police shot a protester, a daylight escalation of violence that comes after five months of unrest.
The Hang Seng Index dropped more than 2.6% on Monday, its worst single-day percentage decline since the beginning of August. The city's real estate stocks were hit particularly hard, with big property developers like Swire Pacific, Wharf Real Estate, Sun Hung Kai Properties and New World Development all dropping more than 4%.
Why investors are worried: Widespread protests blocked roadways and several subway lines experienced delays. A police officer shot a 21-year-old protester. Elsewhere in the city, a man who confronted a group of protesters was set on fire.
More trouble ahead: The disruption caused by months of pro-democracy protests have slammed luxury retailers, property developers and the tourism industry and plunged Hong Kong into its first recession in a decade. Yet there's no sign that protesters or government officials in Hong Kong or Beijing are preparing to back down. | |
Plus, the latest on trade: Monday was the first opportunity that markets in Asia had to respond to comments from US President Donald Trump, who said Friday in the United States that he has yet to agree to rolling back tariffs.
That undercut a statement from China's Commerce Ministry that indicated a willingness to make such a concession as part of the first phase of a trade deal between the two countries.
"They'd like to have a rollback," Trump said. "I haven't agreed to anything. China would like to get somewhat of a rollback, not a complete rollback because they know I won't do it." A day earlier, a spokesman for China's Ministry of Commerce told reporters that US and Chinese negotiators had discussed rolling back tariffs, saying that could happen even before a "phase one" trade deal is signed.
Despite Trump's remarks, Wall Street ended last week at record highs. | | VOICES On blaming billionaires "You know, most people are good, not all of them. You should vilify Nazis, but you shouldn't vilify people who worked hard to accomplish things."
JPMORGAN CEO JAMIE DIMON TO 60 MINUTES
Read more from CNN Business. | | STREAMING WARS How to pick the best streaming service Some of the biggest companies in tech and media are waging an all-out war in the streaming market. The prize: Your time and your money. Apple, CBS, Comcast, Disney and CNN's parent WarnerMedia are all trying to compete with Netflix and Amazon — two powerful companies that have transformed the entertainment industry. The insurgents and the incumbents alike are poaching top-tier talent, spending billions of dollars and making flashy, celebratory announcements about exclusive content deals to lure as many subscribers to their service as possible.
How to choose: This can be difficult for consumers to navigate. Which service has the best children's program? Which one is best for classic films? Where can I watch "Friends?" How much will this all cost me?
Fear not — CNN Business is here to help. We've created a guide that breaks down your options by price as well as content. You can access it by clicking here. | | UP NEXT
Tencent Music reports earnings after the closing bell.
Coming tomorrow: Disney+ launches; German economic sentiment; Earnings from CBS, Overstock, Tyson Foods and Tilray.
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WHAT WE'RE READING AND WATCHING
▸ WeWork was wrestling with the SEC just before it scrapped IPO (WSJ)
▸ Iran says it has discovered a huge new oil field (CNN Business)
▸ When CEOs date employees, it can get messy fast (CNN Business)
▸ Credit Suisse makes change to executive board (Reuters)
▸ British Steel may be getting a rescue from China (FT)
▸ Greggs bucks gloomy UK retail trend with profit upgrade (Reuters) | | | OKAY, SO... What a huge shopping day says about China's economy
China's annual Singles Day online shopping bonanza has brought in a record $31 billion in sales for Alibaba.
The country's biggest e-commerce company topped last year's record in 16 1/2 hours. While the event regularly racks up bigger sales than Black Friday and Cyber Monday combined, total spending across the industry will take a while to tabulate.
A recent survey from Oliver Wyman found that buyers are expecting to spend nearly 10% more on Singles Day this year compared to 2018. That could be a sign of weakening growth, though. Last year, Alibaba reported a 27% uptick in Singles Day revenue.
"Singles Day is being held up as a bellwether of Chinese consumers' willingness to spend in the face of a domestic slowdown," wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a note Monday. But "deeply discounting prices always brings consumers out to play, no matter how bad the economy might be," he added. | | | | |
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