Friday Morning Reads

EU to discuss Brexit delay as Johnson seeks snap election

The European Union will discuss today the possibility of another delay to Brexit as Prime Minister Boris Johnson seeks a new general election to break the paralysis over the issue. The EU likely would choose between a three-month delay and a "two-tier" lag, but it is not yet clear when a decision might come. Johnson said in a letter to Labour leader Jeremy Corbyn he would give Parliament more time to approve his Brexit deal by Nov. 6 but Corbyn must back a December election, the PM's third attempt to try to force a snap vote.

Amazon sinks on Q3 profit miss, light holiday sales forecast

Amazon.com (NASDAQ:AMZN) fell 7% in after-hours trade following disappointing Q3 earnings and Q4 sales guidance that fell well short of Wall Street estimates. Q3 profit fell 26% from a year ago to $2.1B, or $4.23 per share, weighed down by the company's heavy investment into reducing shipping times for retail customers. Net sales beat expectations in rising nearly 24% to $70B, while AWS sales totaled $9B, slightly short of estimates of $9.2B. But Amazon expects revenues during Q4 - the holiday shopping season - of $80B-$86.5B, below consensus for $87.2B.
Go deeper: Senators want FTC probe into Amazon server security.

Final Lion Air crash report blames Boeing design, pilot error

A final report on the fatal crash of Lion Air 610 highlights 89 significant findings, laying blame largely on the design of Boeing's (NYSE:BA) 737 MAX aircraft and pilot mistakes. Certification failures by regulators also came to light, and the report recommends a redesign and better training. A major point of focus is the plane's MCAS flight control feature, designed to press a plane's nose down to prevent stalls.
Go deeper: Boeing's Q3 could have been worse, but cost-cutting culture front and center.

AB InBev belches flat Q3 core profit, reduced guidance

Anheuser-Busch InBev (NYSE:BUD) tumbled ~10% in European trade after reporting flat Q3 adjusted earnings, missing analyst expectations for 3% growth, amid a decline in beer shipments in China and the U.S. The world's largest brewer expects the weakness to continue into Q4, as it now forecasts "moderate" EBITDA growth for the year rather than its previous characterization of "strong." InBev says results also were weighed by higher raw material costs, adverse currency swings and weaker volumes in South Korea and Brazil.

Massachusetts hits Exxon with another climate change lawsuit

Exxon Mobil (NYSE:XOM) has been accused by the Massachusetts attorney general of allegedly hiding its early knowledge of climate change from the public and misleading investors about the future financial impact of global warming. The Massachusetts AG filed the lawsuit shortly after Exxon lost an attempt to delay the filing until after it is done defending itself in a trial that began earlier this week over similar allegations brought by the state of New York.
Go deeper: Exxon, New York lawyers square off in climate change trial.

Citi fills president role with Latin America chief Fraser

Citigroup (NYSE:C) has filled its vacant role of president with its Latin America chief Jane Fraser, a move that could put her in line to be the first female CEO of a major bank. Another potential Citi CEO, Stephen Bird, is departing his role leading Global Consumer Banking, and Fraser was named to succeed him in that role as well. Citi has been without a president since another heir apparent, Jamie Forese, retired earlier this year.

GM lands key approvals for union deal

Unionized workers at several General Motors (NYSE:GM) factories have voted in favor of the new labor contract struck last week by United Auto Workers and GM negotiators, according to The Wall Street Journal. Key approvals were obtained at key factories in Michigan and Ohio ahead of the final vote tally, which is expected to be announced Friday night. A simple majority is enough for the new contract to go into effect.

Tesla's new China-made cars only slightly cheaper than imports

Tesla (NASDAQ:TSLA) has started selling its China-made Model 3 with Autopilot driver assistance software priced from 355,800 yuan, or ~$50K, making it the company's cheapest model on sale in the country. But the vehicles will sell for only about 3% less than the most basic imported models, after the company decided to include the Autopilot function in each vehicle; variants without Autopilot will be phased out in China. The launch marks the first time a wholly foreign-controlled automaker has made a car in China.
Go deeper: Wall Street takes another hack at Tesla as shares surge.

Three top retailers pull 22-oz. J&J baby powder off shelves

Walmart (NYSE:WMT), CVS (NYSE:CVS) and Rite Aid (NYSE:RAD) are removing all 22-ounce bottles of Johnson & Johnson's (NYSE:JNJ) baby powder from their stores, following last week's recall of one lot of the product due to possible asbestos contamination. Analysts say other retailers including Amazon likely will remove the product in order to avoid liability. "It's not important at all in terms of the dollar figure... What it tells you is that retailers are being extra cautious with how they are dealing with J&J's voluntary recall," Jefferies healthcare analyst Jared Holz said.
Go deeper: J&J recalls lot of baby powder on trace levels of asbestos.

South Korea grounds nine Boeing planes with cracks

Nine Boeing (BA) 737 NG jets have been grounded by South Korea's transport ministry after inspections found structural cracks requiring repairs. Five of the grounded planes are operated by Korean Air Lines, which says it has 18 737 NGs in its fleet. The suspension follows an order from the U.S. Federal Aviation Administration earlier this month for aircraft operators to inspect older Boeing 737 NGs for structural cracks.

What else is happening...

Japan's trade minister resigns amid scandal.

UAW suspends Mack Trucks (OTCPK:VOLVY) strike after tentative deal.

Albemarle (NYSE:ALB) cuts 2019 guidance on lithium price weakness.