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Daily Scan: Stocks slide as OECD raises concerns about trade; VW gives diesel owners $500

By NexChange
Capital Markets


Updated throughout the day

November 9

Stocks fell Monday as the U.S. edges closer to December, and a potential interest rate rise. The Dow, Nasdaq, and S&P 500 all fell 1%. The Stoxx Europe 600 was down 1.1% for the day as well. Globally, investors were concerned about a report by the Organization for Economic Cooperation and Development that said trade flows had declined to levels usually associated with recessions. Overnight, China reported exports fell 6.9% and imports tumbled 18.8%. In the U.S., Caterpillar shares dropped 2.6%, and Nike lost 1%. Priceline, which gave a dour outlook in its quarterly earnings, tumbled 9.6%. Pharmaceutical maker Mallinckrodt found itself in the cross-hairs of short-seller Citron Research and plunged 17%.

Here's what else you need to know:

Volkswagen gives $500 to car owners. The car manufacturer is handing over those affected by the emissions cheating scandal. Owners aren't impressed with the $500 gift cards, which will cost VW $250 million. Owners will also get a $500 card to spend exclusively at VW or Audi dealerships, and free 24-hour roadside assistance for the next three years. CNN

Wall Street bonuses likely to fall for the first time since 2011. A report by Johnson Associates predicts debt traders will get slammed with a 10%-20% drop. Bankers who manage bond and stock raises should see their bonuses reduced by 5% to 15%. Still in line to get a raise -- equities traders and M&A bankers. Wall Street Journal (paywall)

U.S. and Israel leaders hold first post-Iran deal meeting.  Barack Obama and Benjamin Netanyahu met in Washington for the first time since relations deteriorated over Iran. Netanyahu told Obama that he is still committed to a two-state solution to the Israeli-Palestinian conflict, but that a Palestinian state would have to be demilitarized and recognize Israel as the homeland of the Jewish people. Reuters

Pimco wants Bill Gross's suit gone. The California firm told a court that Gross's civil suit is "legally groundless" and a "sad postscript" to Gross's career. Gross called foul on the firm he helped found, saying it violated his contract and forced him out. Wall Street Journal (paywall)

Virginia frat sues Rolling Stone. The University of Virginia's Phi Kappa Psi is suing the magazine for $25 million over the now-discredited article about a 2012 gang rape. The story, published in November 2014, alleged that the gang rape happened at the fraternity. Rolling Stone retracted the story in December. Reuters

Mizzou football players force university president to resign. University of Missouri President Tim Wolfe has been under fire for his lack of response to racism on campus. The school's football team announced over the weekend that it wouldn't play until Wolfe resigned, which he did Monday morning, effective immediately. Washington Post

Brevan Howard cuts 50 support staff. The European hedge fund has laid off 50 people globally in back and middle office positions. The firm suffered its first annual loss in 2014, and the fund was down 0.7% in September. Reuters

Match Group sets IPO. The online dating company, which includes the popular brands Tinder and OKCupid, says it will raise up to $536.7 million, selling 33.3 million shares at $12 to $14 each. The high end would make Match worth more than $3.4 billion. Wall Street Journal (paywall)

An Olympics without a Russia-U.S. rivalry just won't be the same. The World Anti-Doping Agency found that Russia's track-and-field athletes have participated in state-sponsored doping for years. The commission recommends that the Russian athletes be banned from the 2016 Olympics. Wall Street Journal (paywall)

China lifts ban on IPOs and markets celebrate. The Shanghai Composite finished the session up 1.58% and is now firmly in bull market territory while the Nikkei 225 – ignited by a weaker yen – capped the day up 1.96% to close at an 11-week high. The markets chose to shrug off news that China's exports slid 6.9% in October, much more than expected.

India’s Modi faces election defeat. Indian Prime Minister Narendra Modi’s party suffered a defeat in pivotal state elections, a political blow that could make it harder for his government to move ahead with its economic agenda. Wall Street Journal (paywall)

President Obama joins Facebook. Obama opened an account Monday, saying he wants to have "real conversations" with people. His first post was about climate change. CNN

Amazon opened a bookstore. Because it can. The Internet giant has driven other physical stores out of business, but it's decided to open Amazon Books in Seattle to allow shoppers to test Amazon devices, such as the Kindle, and shop. The store can also serve as a same-day delivery hub. Basically, Amazon is continuing its takeover of the world. Vox

You wouldn’t believe this:

JFK limo license plates sell for $100,000. The plates were on the car that President John F. Kennedy was riding in when he was shot in Dallas in November 1963. The plates, with number GG 300, had been expected to go for $40,000 at the Dallas auction. They were bought by an anonymous "high end Kennedy collector." BBC

Photo: spatz_2011 


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