China's trade data for June offers few surprises

• David Scutt, Business Insider Australia

• 7h
• 471

2016A man rows a wood basin on a flooded street in Hefei, Anhui province, China, July 6, 2016. REUTERS

After an excruciating wait that lasted the entire Asian trading session, China’s trade data for June has offered few surprises.

It’s weak, continuing the trend seen over the past two years.

According to China’s General Administration of Customs, exports declined by 4.8% in the year to June in US dollar terms, below the 4.1% pace of May and expectations for a similar outcome on this occasion.

On the other side of the ledger, imports declined by 8.4% over the same period, again well below the 0.4% pace of May and forecasts for a steeper drop of 5.0%.

In terms of commodities, crude oil imports between January to June grew by 14.2% compared to the same period a year earlier. Elsewhere imports of iron ore, copper and coal grew by 9.1%, 22% and 8.2% respectively.

As a result, the trade surplus came in at $US48.11 billion, down fractionally on the $US49.98 billion level of May. Markets had been expecting a decline to $US 45.64 billion.

Following the release of the June report, a spokesperson from the customs administration stated that China’s trade situation will be “severe” this year. They also acknowledged that China’s economy is facing “increased downward pressure” with the UK Brexit vote and US interest rate expectations adding to economic uncertainties.

Business Insider Australia

Read the original article on Business Insider Australia. Copyright 2016. Follow Business Insider Australia on Twitter.

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STOCKS HIT ALL-TIME HIGHS: Here's what you need to know

• Elena Holodny
 

• 18h
• 2,969
 
• 2

REUTERS/Lucas Jackson

US stocks are at all-time highs with the Dow spiking above its previous closing and intraday peaks in early trading on Tuesday.

First, let's head to the scoreboard:

• Dow: 18,347.26 (+0.7%)
• S&P 500: 2,152.14 (+0.7%)
• Nasdaq: 5,022.82 (+0.7%)
• WTI crude oil: $46.77 (+4.5%)
• 10-year Treasury yield: 1.513 (+5.5%)

1. US stocks are at all-time highs ... The Dow Jones Industrial Average rose above its previous closing and intraday peaks in early trading on Tuesday — just one day after the S&P 500 closed at a record high. Indexes had previously approached all-time highs right ahead of the UK's vote to leave the EU, but then cratered amid investor uncertainty.

2. ... and here's what one strategist thinks is going on and what might happen next. In a note on Tuesday, Alan Ruskin, global head of G10 FX strategy at Deutsche Bank, identified six issues that investors had about the economy that seem to be correlated with the stock surge, including June's strong jobs report and the fact that the People's Bank of China's "stealth devaluation" of the yuan did not result in a crazy market shake-up. But in the same note, he wonders how long this can last. "Something has to give — either the risk rally is hopelessly misplaced or Fed rate expectations are," Ruskin said, reports Business Insider's Akin Oyedele.

3. Job openings unexpectedly fell in May. The latest Job Openings and Labor Turnover Survey showed that the number of job openings in the US fell to 5.5 million in May, down from a record 5.845 million openings in the previous month, which were revised higher in Tuesday's report. The quits and hires rates were unchanged from the previous month, at 2% and 3.5%, respectively.

4. Italy isn't the only European country with a "systemic banking crisis." Portugal's banks are loaded with debts and starved for capital. Moreover, the country has excessive public- and private-sector leverage, and the government's medium-term fiscal plan might not be enough to meet its targets. "This brings into question whether Portugal can address all of these issues without the help of another programme," a Barclays team led by Antonio Garcia Pascual wondered in a note to clients.

5. JPMorgan is giving 18,000 employees a raise because "wages for many Americans have gone nowhere for too long." The firm will be raising its minimum pay for 18,000 overtime-eligible US employees from $10.15 an hour to a range of $12 to $16.50 per hour, depending on market factors, over the next three years. "A pay increase is the right thing to do," CEO Jamie Dimon wrote in an op-ed in The New York Times on Tuesday. "Wages for many Americans have gone nowhere for too long."

6. Hard-drive maker Seagate said that it's firing 6,500 employees, and the stock rose 20%. Data-storage company Seagate announced its preliminary financial results for the fourth quarter and, in addition to higher than expected revenue guidance, the firm said that it was cutting 14% of its workforce. The move is a continuation of Seagate's plan to slim down the costs of its business and provide significant savings for the firm. It was the second round of announced layoffs in a few weeks.

Additionally:

Jamie Dimon wants to make America great again.

The Hague just threw out Beijing's "9-dash line" in the South China Sea ruling.

Hillary Clinton is reportedly vetting a retired 4-star admiral for vice president.

A bunch of ugly warning signs are bubbling up in Saudi Arabia.

Morgan Stanley with 16 stocks that should thrive no matter what.

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Disobedience (Video)

Disobedience

2016 

The future of the planet is under attack. In just the past few years, we've witnessed unprecedented waves of brutal storms, massive oil spills engulfing our oceans and sea life, and the hottest temperatures ever recorded in human history. Climate change is real, and it's up to the will of the people to reverse its adverse effects. This is the argument that drivesDisobedience, a persuasive and handsomely produced documentary from the activist organization 350.org.

The film makes this thesis known from its earliest frames as it places a critical eye on the actions undertaken at this year's United Nations Climate Change Summit in Paris. While each world leader seemed satisfied by the outcomes of their conference, the film contends that their final agreement does little to change the tide of global warming in the years to come. Believing that the call for real and lasting change cannot be answered by impotent politicians, the film showcases a diverse group of activists throughout the globe who have taken the fight into their own hands.

Lidy Nacpil, a spokesperson for the Philippine Movement for Climate Justice, works to galvanize a citizen force against a proposed coal plant in Batangas. The plant would produce over 7 million metric tons of CO2 emissions every year, and therefore poses a severe environmental threat. The country knows from experience how the voice of its people can inspire wide sweeping change. In 1986, urgent protests led to the ousting of dictator Ferdinand Marcos. A growing community of like-minded citizens hope to spark the same level of passion and outcry against the region's blossoming fossil fuel industries.

In Canada, a rapidly expanding pipeline is gradually polluting the purity of the ocean water and other natural resources. Area residents refuse to take a payout from big corporations in exchange for their complacency. They choose to fight.

In one profile after another, Disobedience introduces us to inspiring groups of people who are advocating for a better way of life for their families, their communities and their planet. In the process, scientists and scholars educate viewers on the role of civil disobedience in affecting reform, the economic impact of environmental catastrophe, and the myriad of social issues which are worsening in the midst of climate change.

One of the most dangerous leaders in the world is now in a very tight spot

• Linette Lopez
 
•   

• 1h
• 5,681
 
• 4

Philippine President Rodrigo Duterte. Thomson Reuters

One of the most dangerous leaders in the world, Philippine President Rodrigo Duterte, is in an incredibly tight spot.

On Tuesday, an international tribunal in The Hague determined that China has unequivocally been violating the sovereignty of its neighbor nations with its self-proclaimed "nine-dash line" in the South China Sea.

The tribunal came together after the former Philippine government filed an arbitration request in 2013 to stop China from chasing its vessels and fisherman out of the contested waters.

China responded to the ruling by saying that it simply does not care and would continue to do whatever it wants in the waters and on the uninhabited islands in them — islands that China has been militarizing for years.

"Chinese President Xi Jinping said China will not accept any proposition or action based on the decision Tuesday by the South China Sea arbitral tribunal," state media outlet Xinhua News reported.

"Xi said the South China Sea Islands have been China's territory since ancient times. China's territorial sovereignty and maritime interests in South China Sea, in any circumstances, will not be affected by the award."

So now Duterte has an incredibly precarious situation on his hands just weeks after taking office. He's a nationalist known for violent rhetoric against drug dealers and journalists, and he's one of the last leaders in the world anyone needs backed into a corner.

On the South China Sea issue, Duterte's rhetoric has been as erratic as it has been bombastic. At one point on the campaign trail, he said that he would ride a Jet Ski to the disputed Spratly Islands and plant the Philippine flag there.

But he's also expressed a desire to work with China, even telling the US — its ally — that the country "will be charting a course of our own," according to a Reuters report last month. "It will not be dependent on America. And it will be a line that is not intended to please anybody but the Filipino interest."

Chinese Defense Ministry

The South China Sea is already a delicate geopolitical issue in which Brunei, Vietnam, Malaysia, and Taiwan have joined the Philippines in accusing China of aggressive action.

It's also a key waterway for global trade.

According to Robert Kaplangeopolitical analyst and author of "Asia's Cauldron: The South China Sea and the End of a Stable Pacific," "more than half of the world's annual merchant fleet tonnage passes through these choke points, and a third of all maritime traffic worldwide."

The Chinese can't lose face, and Duterte isn't the type to back down from a fight. This is going to have to be handled very delicately.

SEE ALSO: The Hague just threw out Beijing's '9-dash line' in the South China Sea ruling

Hard drive maker Seagate is firing 6,500 employees and the stock is soaring

• Bob Bryan
 

• 17h
• 2,223
 
• 1
 

Amazon

Data storage company Seagate announced its preliminary financial results for the fourth quarter and in addition to higher than expected revenue guidance, the firm said it was cutting 14% of its workforce.

The move is a continuation of Seagate's plan to slim down the costs of its business and provide significant savings for the firm.

This is the second round of announced layoffs in a few weeks, as the firm said it was laying off 1,600 emloyees on June 29.

"In addition to the Company’s restructuring actions announced June 29, 2016, the Company announced today an additional restructuring plan for continued consolidation of its global footprint across Asia, EMEA and the Americas," said Seagate in a release accompanying the announcement.

"The plan includes reducing the Company’s global headcount by approximately 6,500 employees, or 14% of its global headcount by the end of fiscal year 2017. The total pretax charges for the plan will be approximately $164 million in fiscal year 2017."

Additionally, revenue for the firm is projected to come in at $2.65 billion for the fourth quarter, higher than both Seagate's original projection of $2.3 billion and Wall Street analysts' expectations of $2.34 billion.

The firm also expects its gross margin to be 25.8%, higher than the original projection of 23%.

"The difference in the Company’s revenue from its forecast was driven primarily by better than expected demand for the Company’s HDD product portfolio," said the release.

"The difference in the Company’s gross margin from its forecast was driven by better than expected demand for the Company’s enterprise HDD portfolio and cost containment execution."

Seagate said it expects to ship 37 million of its hard drives for the fourth quarter.

As of 4:33 p.m. ET, the has jumped up $2.79, roughly a 11.3% leap, at $26.81 per share.

Google Finance

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Alcoa beats earnings expectations, shares jump

• Akin Oyedele
 

• 2h
• 1,845
 
• 1
 

Reuters/Jason Reed

Earnings season is off to a good start.

Aluminum giant Alcoa on Monday reported second-quarter earnings and revenues that declined year-on-year but beat analysts' expectations after the closing bell.

Total alumina production and shipments were down in the second quarter from a year ago.

These were a drag on the company's bottom line, although they were offset by gains in other industries such as aerospace. 

The company reported $0.15 in adjusted earnings per share (EPS) and revenues of $5.30 billion. 

Analysts were expecting a year-over-year drop in profits and revenues. Their median estimate was for adjusted EPS of $0.09, according to Bloomberg, down from 19 cents a year ago. Revenues were forecast at $5.27 billion, down from $5.90 billion a year ago.

Alcoa shares climbed by nearly 4% in premarket trading on Tuesday. 

"In the face of a transforming aerospace market, we moved quickly to bring our costs down while capturing new opportunities," said Alcoa CEO Klaus Kleinfeld in the earnings statement.

Alcoa sees global aerospace market deliveries growing this year in a range of 0% to 3%, followed by "double-digit growth" in 2017. It projects a global aluminum deficit of 775,000 metric tons, as 5% demand outweighs 2.5% supply.

Investors were looking out for updates on the company's split into two public companiesannounced last September, although no meaningful news was announced. Alcoa noted that it filed an initial registration statement with the Securities and Exchange Commission on June 29. 

Alcoa plans to create the Upstream Company, to retain the name Alcoa, focused on extracting from the ground, and Value-Add Company, or Arconic, which would focus on downstream operations that turn the raw material into consumer-friendly products.

As usual, Alcoa unofficially kicked off the busiest reporting season on Wall Street. The big banks including JP Morgan and Citigroup will report results later this week. 

Here's a chart showing the pop in Alcoa shares:Google

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Report: SEC is investigating Tesla for possible violation of securities law

• Benjamin Zhang
 

• 17h
• 24,686
 
• 31
 

Elon Musk. Scott Olson/Getty Images

The US Securities and Exchange Commission is investigating Tesla for a possible securities-law violation, according to the Wall Street Journal.

The inquiry — at its early stages — is in connection to Tesla's failure to disclose a fatal crash involving one of the company's Autopilot-equipped cars to investors, the newspaper said, citing a person familiar with the matter.

"Tesla has not received any communication from the SEC regarding this issue," a company representative told Business Insider on Monday.

The company has been criticized for not telling investors of the death of a Tesla Model S driver.

Tesla knew of the death, which occurred on May 7, before it raised $2 billion in a stock sale on May 18.

News of the fatal crash became public only at the end of June after the National Highway Traffic Safety Administration's Office of Defects Investigation indicated that it is looking into the performance of Tesla's automated-driving system that was in use at the time of the crash.

Since last week, Tesla and CEO Elon Musk have been defending the lack of disclosure, saying that it is not "material nonpublic information."

Under SEC rules, companies are required to disclose to shareholders any material nonpublic information it passes along to other entities. Regulation Fair Disclosure, however, is mostly targeted at information made available to some shareholders, investors, or individuals with an ability to profit off of this information before the broader markets know.

The SEC declined to comment.

In the wake of the Tesla crash, the National Transportation Safety Board announced last week that it is probing the incident to see if there are any systemic issues with the automated driving systems on the road today.

Shares of Tesla fell less than 2% in after-hours trading after rising 3.7% during the regular trading session.

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