U.S. SEC to examine Rio Tinto whistleblower claims over Oyu Tolgoi


© Reuters.

(Reuters) – The U.S. Securities and Exchange Commission is examining claims from a whistleblower that Rio Tinto (AX:) was aware of problems at its underground mine extension project of Oyu Tolgoi in Mongolia months before the miner confirmed the project would face delays and higher costs, the Financial Times reported https://on.ft.com/3h4XQeb on Sunday.

The SEC is probing allegations made by Richard Bowley, a British national who worked for the company’s copper business in Mongolia between 2017 and 2019, the newspaper said, citing people with knowledge of the situation.

The U.S regulator has not yet decided to launch an investigation, the newspaper added.

In July, Rio Tinto said it cut estimated reserves at its underground copper mine extension of Oyu Tolgoi and confirmed it would face delays and higher costs after ground instability forced it to redesign the mine plan.

Oyu Tolgoi (OT) is Rio’s biggest copper growth project but has faced geological challenges.

The SEC was not immediately available for Reuters’ request for comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Stock futures lower despite fall in U.S. jobless claims


U.S. stock-index futures fell early Thursday, while investors sift through economic data including the weekly jobless benefit claims report, after the stock market posted one of its best daily gains in weeks on Wednesday.

How are equity indexes performing?

Futures for the Dow Jones Industrial Average
YM00,
-0.05%

YMU20,
-0.05%

were off 22 points, or 0.1%, at 29,069; those for the S&P 500 index
ES00,
-0.50%

ESU20,
-0.50%

were off 16.20 points at 3,563, a decline of 0.5%; Nasdaq-100 futures
NQ00,
-1.34%

NQU20,
-1.34%

were down 140.50 points, or 1.1%, at 12,271.

On Wednesday, Dow
DJIA,
+1.58%

surged 454.84 points, or 1.6%, ending at 29,100.50, or 1.5% away from its Feb. 12 closing high of 29,551.42. The S&P 500 index
SPX,
+1.53%

climbed 54.19 points, or 1.5%, to settle at a record 3,580.84, its 22nd record close this year. The Nasdaq Composite Index
COMP,
+0.97%

advanced 116.78 points to close at a record 12,056.44, a gain of 1%, and its 43rd record close of the year.

What’s driving the market?

After a day of records for the S&P 500 and the Nasdaq Composite and the rapid of approach of the Dow to its own record, investors watched U.S. weekly jobless benefits claims data on Thursday morning.

Total new applications for unemployment benefits in the latest weekly period ending in Aug. 30 fell 130,000 to a seasonally adjusted 881,000 or lower than the consensus estimate of 940,000. This comes after the Labor Department said it tweaked its seasonal adjustment method amid the COVID-19 pandemic.

In other data, a revised reading of U.S. second-quarter productivity rose 10.1%, while the trade deficit widened to $63.6 billion.

Read: ADP says private sector added a less-than-expected 428,000 new jobs in August

Investors will also be watching a reading on the purchasing managers index in services from IHS Markit at 9:45 a.m. ET, and a survey by the Institute of Supply Management on activity in the service sector at 10 a.m. ET.

Market participants have been contending with a nearly incessant climb higher, with the focus on remedies for COVID helping to partially buttress the recent run-up. That said, Wednesday’s climb for stocks came even as large-capitalization technology-related stocks staged a pullback that didn’t disrupt the upward momentum of the broader equity market. Tech-related names have led the rebound of the market from coronavirus-lows but some strategists spotted encouraging signs that other areas beyond tech-related names were starting to rise.

“The more broad based this becomes, the more it signals a turning of the tide as far as the economic outlook is concerned, at least among those on Wall Street,” wrote Craig Erlam, senior market analyst at Oanda, in a daily research note.

However, there are concerns that market has climbed too far and too fast and that optimism over a vaccine for coronavirus is misplaced. The Centers for Disease Control and Prevention urged states to speed up approval for vaccine distribution sites by Nov. 1, which is just days before the presidential election.

Meanwhile, doubts about traction for further fiscal stimulus from Washington lawmakers has continued to haunt investors. Investors have been betting on Republicans and Democrats striking a deal later this month to offer additional relief to American consumers and businesses, after talks stalled in August. On Tuesday, House Speaker Nancy Pelosi said Democrats and Republicans still have “serious differences,” following a brief phone call.

Separately, tensions flared up between Beijing and Washington as the Trump administration signaled plans to impose new restrictions on Chinese diplomats in the U.S., citing Beijing’s use of similar measures on American envoys. The Chinese embassy in Washington responded by accusing the U.S. of violating international conventions.

Which stocks are in focus?
  • Michaels Cos. Inc. shares
    MIK,
    -2.34%

    soared 6.7% in premarket trade, after the arts and crafts retailer blew past estimates for the second quarter as stores reopened after being closed during the pandemic.

  • Shares of Sanofi
    SNY,
    +1.06%

    gained 0.4% before the bell after the drugmaker and GlaxoSmithKline
    GSK,
    +2.41%

    said their COVID-19 vaccine candidate has entered a Phase 1/2 clinical trial.

  • Arconic Corp.
    ARNC,
    -0.74%

    said Thursday it restored the salaries and 401K match for all of its U.S. salaried employees, including executives on Sept. 1, after cutting them earlier this year to counter the impact of the coronavirus pandemic.

  • Shares of Designer Brands Inc.
    DBI,
    +6.03%

    plummeted 19% in premarket trading Thursday, after the parent of the DSW Designer Shoe Warehouse retail chain reported a wider-than-expected fiscal second quarter

  • Facebook
    FB,
    +2.39%

    slipped after announcing Thursday it will ban new political ads from running in the week before the Nov. 3 presidential election.

How are other markets trading?

The 10-year Treasury note yield
TMUBMUSD10Y,
0.646%

edged 0.3 basis point higher to 0.653%. Bond prices move inversely to yields.

The ICE U.S. dollar index
DXY,
+0.03%

, which tracks the performance of the greenback against its major rivals, was up 0.2%.

Gold futures
GCZ20,
-0.20%

were down 0.4% to trade at $1,936.80 an ounce, on the New York Mercantile Exchange. U.S. benchmark crude futures
CL.1,
-2.21%

fell 2.2% to a one-month low of $40.61 a barrel.

The Stoxx Europe 600 index
SXXP,
+0.67%

rose 0.4%, while the U.K.’s benchmark FTSE
UKX,
+1.11%

as up 0.5%. In Asia, Hong Kong’s Hang Seng index
HSI,
-0.44%

fell 0.5% and China’s CSI 300
000300,
-0.55%

closed 0.6% lower. The Nikkei
NIK,
+0.93%

rose 0.9%.



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Wall Street slips as jobless claims climb back to one million By Reuters


© Reuters. The front facade of the of the NYSE is seen in New York

By Medha Singh

(Reuters) – The S&P 500 and the Dow slipped further on Thursday after weekly jobless claims rose unexpectedly back above the 1 million mark last week, lending weight to the Federal Reserve’s view of a difficult road to economic recovery.

The benchmark index retreated from a record level a day earlier after minutes from the Fed’s latest policy meeting showed the labor market’s swift rebound in May and June had likely slowed and that policymakers would stick with aggressive stimulus measures for a much longer period.

The number of Americans filing for a new claim for unemployment benefits rose to 1.106 million in the week ended Aug. 15 after slipping below the 1 million level for the first time since the start of the pandemic, in the prior week.

A separate report from the Philadelphia Fed showed business conditions index fell more than expected to 17.2 points in August from 24.1 points in July.

“In the short term, if the jobless claim numbers come out worse than expected, I could see that pushing Congress to get another stimulus package going, maybe put more priority,” said Jeffrey Corliss, managing director and partner at Connecticut-based RDM Financial Group at Hightower Securities LLC.

“The Fed minutes brought a reality check that they’re seeing things out there (that) they’re concerned about.”

Economically sensitive financial and energy sectors posted the biggest declines among major S&P sectors. Real estate, technology and communications services outperformed.

Despite signs that parts of the economy were still far away from pre-pandemic levels, the benchmark S&P 500 index completed its fastest recovery from a bear market this week, joining the Nasdaq in scaling new peaks.

The Dow, however, is more than 6% below its February high.

Airline stocks took a hit, with the S&P 1500 airlines index dropping 2.4% after American Airlines (NASDAQ:) Group Inc revealed plans to suspend flights to 15 U.S. airports in October as travel demand remains low.

At 10:08 a.m. ET, the was down 78.78 points, or 0.28%, at 27,614.10 and the S&P 500 was down 3.68 points, or 0.11%, at 3,371.17. The was up 37.47 points, or 0.34%, at 11,183.93.

Nvidia (NASDAQ:) Corp slipped 0.2% after results from the data center business of the rising semiconductor industry star disappointed some investors.

Intel Corp (NASDAQ:) rose 2.2% after announcing a $10 billion share buyback plan.

L Brands Inc (NYSE:) rose 7% after reporting a surprise quarterly profit, boosted by strong demand for Bath & Body Works’ products as well as higher online sales of Victoria’s Secret lingerie.

Declining issues outnumbered advancers for a 3.33-to-1 ratio on the NYSE and for a 3.10-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 16 new highs and 13 new lows.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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European stocks slip ahead of U.S. jobless claims data as stimulus doubts mount


European stocks failed to get off the ground on Thursday but the U.S. decision not to raise tariffs on EU products, including Airbus aircraft, may have prevented a selloff.


pascal rossignol/Reuters

European stocks edged lower on Thursday, as trade disputes were thrown back into the spotlight and investors awaited U.S. jobless claims data.

The pan-European Stoxx 600
SXXP,
-0.24%

slipped 0.3% in early trading, while the German DAX
DAX,
-0.07%

was 0.1% lower and the French CAC
PX1,
-0.11%

was 0.2% down.

The FTSE 100
UKX,
-0.93%
,
which surged 2% on Wednesday despite the U.K. economy’s record plunge in the second quarter, was 1% down. U.S. stock futures
YM00,
-0.03%

ES00,
-0.04%

NQ00,
-0.03%

also pointed lower after yesterday’s Wall Street rally.

Read: Why the S&P 500 is knocking on the door of its first record close in 6 months

After solid gains in yesterday’s session, markets were seemingly taking a pause ahead of the U.S. jobless claims data set to be released later on Thursday. The deadlock over another round of U.S. stimulus also weighed on sentiment, as President Donald Trump said a deal is “not going to happen.”

With the U.S.-China tensions bubbling in the background and officials from both countries due to meet on Saturday to review their trade deal, the U.S. turned its attention to Europe.

The Office of the U.S. Trade Representative said tariffs on European Union products, including whiskey and Airbus
AIR,
-1.44%

aircraft, will remain unchanged, despite efforts by the plane maker to comply with a World Trade Organization decision over state aid.

The U.S. raised tariffs on €7.5 billion of EU products last year as retaliation for subsidies provided to Airbus. American officials had also threatened to raise tariffs or add new products this summer. Spreadex analyst Connor Campbell said the fact it “failed to escalate the situation with fresh tariffs on vodka, gin and beer” prevented a market selloff.

Stocks in focus

Tui
TUI,
-4.35%

shares fell 4%, after the travel operator swung to a €1.4 billion loss in the third quarter as the coronavirus pandemic continued to hit the company. The hotel, airline and cruise operator said dividend payments and share buybacks will be restricted to the term of the €1.2 billion stabilization package announced on Wednesday with the German government.

Carlsberg
CARL.A,
-1.43%

stock slipped 4.8%, as the Danish brewer said it expected operating profit to fall 10% to 15% this year. It also warned demand would remain under pressure in China in the second half and that European sales wouldn’t return to normal this year.



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Facebook, Twitter remove Trump posts for making ‘false claims’ about coronavirus


President Donald Trump answers a question during a press conference in the White House on Wednesday.


AFP/Getty Images

Facebook Inc. and Twitter Inc. on Wednesday removed posts by President Donald Trump that violated their coronavirus misinformation policies.

The identical posts were a video clip from a Fox News interview with Trump about reopening schools, in which he wrongly claimed children are “virtually immune” to COVID-19.

While children appear to be generally less affected by the coronavirus, they are not “virtually immune,” and a number have died. The state of California, for example, has recorded more than 48,000 cases of COVID-19 in patients 17 and younger.

A Facebook
FB,
-0.28%

spokesperson said in an email: “This video includes false claims that a group of people is immune from COVID-19 which is a violation of our policies around harmful COVID misinformation.” 

However, that message was not included on Facebook’s site. The post was replaced by a message reading “This content isn’t available right now,” which does not explain why it was removed or that its content was inaccurate.

It was the first time Facebook has taken down a Trump post for violating its coronavirus rules. In June, Facebook took down Trump campaign ads that included a Nazi symbol, and in March took down Trump campaign ads that were misleading about the census.

Trump’s official campaign account — which Trump retweeted — posted the same video on Twitter, which has been more active than Facebook at taking down presidential posts that violate guidelines. It was up for at least five hours before being taken down, with a note reading: “This Tweet violated the Twitter Rules.”

A Twitter
TWTR,
+1.21%

spokesperson confirmed the tweet was removed for being in violation of the company’s rules on COVID-19 misinformation. Twitter added that the Trump campaign’s official account will be blocked from posting again until the video is removed.

Trump has harshly criticized social-media companies for fact-checking and removing his posts, and in July the Trump administration asked the FCC to reinterpret a 1996 law that gives broad latitude to how tech companies police content on their sites.





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