Online holiday shopping is poised to beat in-store sales for the first time ever — and it's terrible news for retailers like Sears and Macy's

• Kate Taylor
 

• 1h
• 1,650

People are increasingly shopping online, avoiding holiday shopping crowds. Gunnar Rathbun/AP

• People say they plan to spend more money online than in stores this holiday shopping season. 
• This is the first year in Deloitte's annual survey that shoppers have predicted their online purchases will exceed what they buy in-store.
• While some retailers are thriving with the rise of e-commerce, traditional brick-and-mortar retailers like Macy's and Sears are struggling to keep up. 

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For the first year, Americans are expected to spend more money online than in stores this holiday season. 

Shoppers plan to spend 51% of their holiday shopping budget online, compared to 42% in stores, according to Deloitte's survey of more than 4,000 Americans.

This is the first year that online sales are expected to exceed in-store sales. Last year, respondents told Deloitte that they expected to spend 47% of their budget in stores and 47% online. In every year prior to 2016, expectations for in-store shopping exceeded online sales predictions. 

Black Friday at Macy's Kim Bhasin / Business Insider

Deloitte's survey looks at shoppers' entire "holiday budget." However, similar trends are expected to play out over Black Friday weekend, the unofficial kickoff of the most important period of the year for many retailers. 

According to National Retail Federation data, 99 million people said they shopped in stores on Thanksgiving weekend last year — a drop of three million from the year before. Meanwhile, 108 million people shopped online on Thanksgiving weekend in 2016 — a five million increase from the year before. 

The rise of online holiday shopping is a boon for e-commerce companies like Amazon, as well as for retailers that have built out their online business, like Walmart and Target. However, for traditional brick-and-mortar retailers like Macy's, Sears, and other department stores, the rise of e-commerce has significantly cut into sales. 

The internet is the No. 1 place that customers expect to shop, with 55% of respondents saying that it is the most likely place they will shop this year in Deloitte's survey. Meanwhile, only 28% of people said that department stores would be their top place to shop — a 4% drop from last year. 

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Xi Jinping is officially China's most powerful leader since Mao

• Tara Francis Chan
 

• 9h
• 4,568

Chinese President Xi Jinping taking a vote Tuesday at the closing session of the 19th National Congress of the Communist Party of China at the Great Hall of the People in Beijing. REUTERS/Jason Lee

• The name of President Xi Jinping has been written into China's constitution.
• This makes Xi the country's most powerful leader since Mao Zedong.
• The change was supported by 2,300 Communist Party members at the close of the party's congress on Tuesday.

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President Xi Jinping has become China's most powerful leader since Mao Zedong.

Xi's name was added to China's constitution on Tuesday, the first time a living leader's name had been added since Mao ruled from 1935 until his death in 1976.

The political ideologies of China's presidents have usually been added to the country's constitution, but only Mao and Xi have been named in the title of those theories.

The amendment, called "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era," was approved by all 2,300 delegates attending the congress. Xi is now considered the most important party leader alive — above former presidents and his eventual successor.

This departure from tradition indicates immense party support for Xi and his strict leadership style; that support could be crucial as Xi eyes a potential third term as president, which would also break with the two-term tradition. The biggest indicator for Xi's 2022 plans could emerge Wednesday, when the party's new senior leadership is announced.

If Xi does not give a nod to a young and experienced successor under 60 years of age, or ignores unofficial retirement-age rules, it may indicate the Chinese president will seek a third term in the next five years.

The Chinese constitution stipulates that a president can serve only two five-year terms. Xi, however, could rally party support to stay for a third term or continue leading from his other role of party secretary-general — which actually outranks the president. Both options are more likely with Xi's strong party support. Another option is to revive the title of party chairman, a label that has not been used since Mao held it.

During the congress' closing session, party leaders referred to Xi as the country's "core" leader, a term first used to describe Mao.

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Merrill Lynch fined £34.5 million for failing to report transactions

• Camilla Hodgson
 

• 9h
• 874

Flickr

• The Financial Conduct Authority fined Merrill Lynch £34.5 million ($45.5 million) for failing to report transactions.
• The bank failed to report over 68 million exchange traded derivative transactions between 2014 and 2016.
• The reporting requirement was a key reform following the 2008 financial crisis.

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LONDON – The Financial Conduct Authority (FCA) fined American bank Merrill Lynch £34.5 million ($45.5 million) for failing to report transactions.

The FCA said the bank had failed to report 68.5 million exchange-traded derivative transactions between February 2014 and February 2016. This is the first time a firm has been fined for failing to report details of such trading.

"It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly," said Mark Steward, FCA executive director of enforcement and market oversight, in a statement.

"There needs to be a line in the sand. We will continue to take appropriate action against any firm that fails to meet requirements," he said.

After the financial crisis, authorities made it a requirement for firms to report exchange traded derivative transactions, as part of a key reform to improve transparency and minimise possible risks in financial systems.

Merrill Lynch agreed to settle at an early stage in the FCA's investigation, for which is received a 30% reduction in the overall fine. Without this discount, the fine would have been £49.3 million.

In 2015, the bank was fined £13.3 million by the FCA for incorrectly reporting over 35 million transactions and failing to report another 121,000, between 2007 and 2014.

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