American multinational technology company, Yahoo to be named Altaba

Yahoo CEO Marissa Mayer delivers her keynote address at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada in this January 7, 2014, file photo. (REUTERS)

Yahoo Inc said Monday that it would rename itself Altaba Inc and CEO Marissa Mayer will resign from the board after the settling of its negotiations with Verizon Communications Inc. 

Yahoo has an arrangement to sell its center web business, which incorporates its digital advertising, email and media resources, to Verizon for $4.83 billion.

The terms of that deal could be corrected - or the exchange may even be canceled - after Yahoo last year uncovered two separate data breaches; one including somewhere in the range of 500 million client accounts and the second including over a billion. 

Verizon officials have said that while they see a solid key fit with Yahoo, they are still investigating the data breaches.

Five other directors in Yahoo would have to step down after the closure of the deal with Verizon, Yahoo said in a regulatory filing on Monday. (bit.ly/2iXrbwn)

The remaining directors will govern Altaba, a holding company whose primary assets will be a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and 35.5 percent stake in Yahoo Japan.
The new company also named Eric Brandt chairman of the board, effective Jan. 9. - Reuters

Oil hits 18-month highs as markets eye output cuts

A flame rises from a chimney at Taq Taq oil field in Arbil, in Iraq's Kurdistan region, August 16, 2014. (REUTERS)

Oil prices hit 18-month highs on Tuesday, the first trading day of 2017, buoyed by hopes that a deal between OPEC and other big oil exporters to cut production, which kicked in on Sunday, will drain a global supply glut.

Benchmark Brent crude jumped more than 2 percent to a high of $58.37, up $1.55 a barrel and its highest since July 2015. By 1230 GMT, Brent had eased to $58.07, up $1.25.

U.S. light crude oil hit an 18-month high of $55.24, up $1.52 a barrel, also its highest since July 2015, before slipping to around $54.95.

Oil futures exchanges were closed on Monday for New Year public holidays.

Jan. 1 marked the official start of a deal agreed by the Organization of the Petroleum Exporting Countries and other exporters such as Russia to reduce output by almost 1.8 million barrels per day (bpd).

"First signals suggest the OPEC and non-OPEC production cuts are raising hopes that the global oil oversupply will diminish," said Hans van Cleef, senior energy economist at ABN AMRO Bank N.V. in Amsterdam.

Ric Spooner, chief market analyst at CMC Markets, agreed:

"Markets will be looking for anecdotal evidence for production cuts," he said. "The most likely scenario is OPEC and non-OPEC member countries will be committed to the deal, especially in early stages."

Investors will be watching OPEC very closely to see whether the group's members keep their promises to reduce production:

"If 2016 was the year of words, 2017 must be the year of actions," said Tamas Varga, senior oil analyst at London brokerage PVM Oil Associates.

Libya, one of two OPEC countries exempt from the output cuts, has increased its production to 685,000 bpd, from around 600,000 bpd in December, an official at the National Oil Corporation said on Sunday.

Elsewhere, non-OPEC Middle Eastern oil producer Oman told customers last week that it would cut its crude oil term allocation volumes by 5 percent in March.

Non-OPEC Russia's oil production in December remained unchanged at 11.21 million bpd, near a 30-year high, but it was preparing to cut output by 300,000 bpd in the first half of 2017 in its contribution to the accord.

Reuters contributed to this report.

Toshiba flags hit of 'billions of dollars' on U.S. nuclear acquisition

Pedestrians walk past a logo of Toshiba Corp outside an electronics retailer in Tokyo, Japan, June 25, 2015. (REUTERS)

Toshiba Corp said it may have to book several billion dollars in charges related to a U.S. nuclear power acquisition, a shock warning that sent its stock tumbling 12 percent and rekindled concerns about its accounting acumen.

The Japanese group said cost overruns at U.S. power projects handled by a nuclear construction business newly acquired from Chicago Bridge & Iron (CB&I) would be much greater than initially expected, potentially requiring a huge writedown.

Such a hit would be another slap in the face for a sprawling conglomerate hoping to recover from a $1.3 billion accounting scandal as well as a writedown of more than $2 billion for its nuclear business in the last financial year."This will come as an additional shock to Toshiba's institutional investors that may further undermine confidence in company management as well as significantly weakening its international nuclear credentials," said Tom O'Sullivan, founder of energy consultancy Mathyos Japan.

O'Sullivan noted the acquisition in December 2015 coincided with the finalizing of a record fine by Japanese regulators for accounting irregularities at Toshiba, indicating that corporate governance controls were extremely weak.

Toshiba Chief Executive Satoshi Tsunakawa, who only took the helm in June after his predecessor embarked on a series of restructuring steps to clean up Toshiba's books, said the conglomerate would look at some kind of strategy to boost capital.

"We would have needed to boost our capital base anyway because our shareholders' equity ratio is low," he told a news conference.

As of end-September, Toshiba had shareholders' equity of 363 billion yen, or just 7.5 percent of assets, which could fall close to zero if the company is forced to log significant losses.

Asked if Toshiba's liabilities would exceed its assets, Chief Financial Officer Masayoshi Hirata said the company had not yet completed its estimation of the charge.

It would finalize that by mid-February, he said, adding that the conglomerate would explain the situation to its main banks and seek their support. Toshiba's main lenders are Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group

Toshiba has positioned its nuclear and semiconductors businesses as key pillars of growth while seeking to scale down less profitable consumer electronics units such as personal computers and TVs.

But Toshiba could revise the positioning of its nuclear business if need be, said Tsunakawa, who has been credited with having shaped a medical equipment unit into a major earnings driver. The unit was sold to Canon Inc this year.

Tsunakawa added that asset sales or a potential listing of its cashcow flash memory chips division were options that could be considered.

DEAL OF DISCORD

The deal between CB&I and Toshiba's Westinghouse division has been fraught with disagreement since at least July.

Clashing over who should shoulder potential liabilities related to cost overruns and over calculations for working capital for the unit, CB&I sued Toshiba's Westinghouse division after Westinghouse said it was owed more than $2 billion.

Toshiba has not disclosed its financial advisers for the deal.

Shares in Toshiba, which remains on the Tokyo bourse's watchlist due to concerns about the firms' internal controls, finished 12 percent lower, giving it a market value of around $14.2 billion. The charges were flagged earlier in the day.

Prior to Tuesday, Toshiba had forecast a full-year net profit of about 145 billion yen this financial year, a turnaround from a loss of 460 billion yen, thanks to strong demand for flash memory chips from Chinese smartphone makers.

Masahiko Ishino, an analyst at Tokai Tokyo Research Center, said the focus may soon shift to whether Toshiba will divest some of its businesses if the latest loss wipes out its shareholders' equity.

"There will be a lot of companies that want to buy Toshiba's businesses," Ishino said. "It is possible that its NAND flash memory business would attract various buyout offers as there are few players in the market," he said.

Deutsche Bank agrees $7.2bn penalty with US regulators

Getty Image

Germany's Deutsche Bank says it has agreed a $7.2bn (£5.9bn) payment to US authorities over an investigation into mortgage-backed securities.

The sum, which needs final approval, is far lower than the $14bn the US had asked the bank to pay in September.

That looming fine had caused concerns that a failure of the bank could pose a risk to the global financial system.

Credit Suisse also announced a similar deal, while Barclays is now under investigation too.

The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.

Source: Digital Look - 23rd Dec 2016

Several banks in the US have been subject to investigations over allegations of giving mortgages to unqualified borrowers, then repackaging those loans as safe investments and selling the risk on to others. The inquiries related to deals done between 2005 and 2007.

Meanwhile, Credit Suisse has said it has agreed a $5.28bn deal to settle its own dispute with US authorities over mortgage-backed securities.

The Swiss bank will pay US authorities $2.48bn, and will also give consumers $2.8bn in compensation over the next five years.

At the same time, the US Department of Justice has said it is now also suing Barclays for alleged mortgage securities fraud.

It alleged that from 2005 to 2007, Barclays "repeatedly misrepresented the characteristics of the loans backing securities they sold to investors throughout the world, who incurred billions of dollars in losses".

China's Alibaba back on US counterfeits blacklist

Chinese e-commerce giant Alibaba is back on the US's "notorious markets" list over counterfeit goods sales.

Alibaba was taken off the list four years ago, but US authorities say the firm's online platform Taobao is used to sell "high levels" of fake goods.

The company has rejected the allegations, insisting it polices its market place better than in the past.

The firm also suggested the "current political climate" in the US might be why they are back on the list.

US President-elect Donald Trump had, during his campaign, repeatedly accused Chinese firms of stealing intellectual property.

Alibaba Group President Michael Evans said he was "disappointed" by the decision and questioned whether it was "based on actual facts or was influenced by the current political climate."

The Chinese online retailer and its market place Taobao have long been accused of being a platform for counterfeit goods.

Taobao said earlier this year it had tightened controls on its sale of luxury goods, requiring sellers to show proof of authenticity.

Alibaba was suspended from the International Anti-Counterfeiting Coalition in May  (Getty Image)

In May though, Alibaba was suspended from the International Anti Counterfeiting Coalition (IACC) watchdog over piracy concerns.

More than 250 members, including Gucci America and Michael Kors, had threatened they would leave the IACC in protest at Alibaba's membership.

Alibaba - by far China's biggest online retailer - floated on the New York Stock Exchange in September 2014 and broke records by raising $25bn.

Wall Street set to open flat as Fed decision looms

A trader wears a hat referencing the proximity of Dow Jones Industrial Average to 20,000 as he works on floor of the New York Stock Exchange (NYSE) shortly before the close of trading in New York, U.S., December 13, 2016. REUTERS

Wall Street looked set to open little changed on Wednesday, a day after all three major indexes hit record highs, as investors refrained from making large bets ahead of the outcome of the U.S. Federal Reserve meeting where the central bank is widely expected to raise interest rates.

The Fed is tipped to lift rates 25 basis points to 0.50-0.75 percent. The announcement is due at 2 p.m. ET (1900 GMT), followed by Chair Janet Yellen's news conference 30 minutes later.

Market participants will be paying close attention to Yellen's tone and new forecasts, seeking clues on policymakers' thinking on how President-elect Donald Trump's policies will impact growth and inflation.

However, concerns over a strengthening dollar continue with the dollar index .DXY, which measures the greenback against a basket of six major currencies, hitting 14-year peaks last month.

"Markets are acting like a zombie today ahead of the Fed decision," said Naeem Aslam, chief market analyst at Think Markets.

"It is not that they are not expecting a rate hike from the Fed, it is the element of the unknown which Yellen would deliver in her statement."

Dow e-minis 1YMc1 were down 14 points, or 0.07 percent, with 4,844 contracts changing hands at 8:32 a.m. ET (1332 GMT). S&P 500 e-minis ESc1 were down 2 points, or 0.09 percent, with 111,060 contracts traded. Nasdaq 100 e-minis NQc1 were down 0.5 points, or 0.01 percent, on volume of 6,870 contracts.

U.S. stocks racked up new all-time highs on Tuesday and the Dow Jones industrial average ended fewer than 100 points away from the 20,000 mark as a post-election rally showed no signs of fatigue.

The Dow has climbed about 9 percent since the Nov. 8 election, with gains fueled by expectations that Trump will reduce taxes and regulation and stimulate the economy.

"I don't think the Dow is an indicator of anything because it's such a small sample and the way in which the index is constructed," said Patrick Kaser, portfolio manager at Brandywine Global.

"But that said, right now we've been in a month of bullishness and optimism and so the mood will swing to skepticism as we wait for actual policies to come out."

Meanwhile, U.S. retail sales barely rose in November as households cut back on purchases of motor vehicles. The Commerce Department said retail sales edged up 0.1 percent. Economists had forecast overall retail sales increasing 0.3 percent.

Shares of Nordson (NDSN.O) were up 7.9 percent at $112.78 in premarket trading, a day after the industrial materials maker's fourth-quarter results beat expectations.

General Motors (GM.N) fell 3.6 percent to $36 and Ford (F.N) declined 1.8 percent to $12.54 following a report that China will soon slap a penalty on an unnamed U.S. automaker for monopolistic behavior.

Hertz Global (HTZ.N) dropped 4.3 percent to $24.05 after the car rental company said on Tuesday it would replace its chief executive and reduce its board size.

Tech giants Apple (AAPL.O), Amazon (AMZN.O), Alphabet (GOOGL.O), Microsoft (MSFT.O), and Facebook (FB.O) were up between 0.2 and 0.5 percent. Top executives at these companies were scheduled to meet with Trump at his New York headquarters.

Saudi Arabia tells oil buyers of cuts after OPEC deal, PIRA says

A gas flame is seen in the desert near the Khurais oilfield, Saudi Arabia June 23, 2008. (REUTERS)

Saudi Arabia is informing its customers of cuts to their January crude oil supplies to comply with the latest OPEC agreement, according to a PIRA note late on Thursday.

The note adds that cuts will be to varying degrees, but is likely to be larger to North America due to lower margins.

Last week, members of the Organization of the Petroleum Exporting Countries agreed to scale back output, its first cut since 2008.

Trump Taps WWE Co-Founder Linda McMahon as Small Business Head

President-elect Donald Trump has chosen Linda McMahon, World Wrestling Entertainment’s (WWE) cofounder and former CEO, to head the Small Business Administration in his Cabinet, his transition team announced Wednesday.

“Our small businesses are the largest source of job creation in our country,” McMahon said in a statement. “I am honored to join the incredibly impressive economic team that President-elect Trump has assembled to ensure that we promote our country’s small businesses and help them grow and thrive.”

As administrator, McMahon will spearhead the federal government’s efforts to work with small businesses and entrepreneurs across all 50 states. The 68-year-old executive was a major Trump donor during the 2016 presidential campaign.

Along with her husband Vince, McMahon founded WWE in 1980 and gradually built the wrestling company into a publicly-traded, $1 billion brand. McMahon left the company in 2009 to enter politics, running unsuccessfully for a U.S. Senate seat in Connecticut in 2010 and 2012.

"Linda has a tremendous background and is widely recognized as one of the country’s top female executives advising businesses around the globe,” Trump said in a statement. “She helped grow WWE from a modest 13-person operation to a publicly traded global enterprise with more than 800 employees in offices worldwide. Linda is going to be a phenomenal leader and champion for small businesses and unleash America's entrepreneurial spirit all across the country." 

Steve Chabot (R-OH), chairman of the House Small Business Committee, applauded McMahon’s nomination in a statement.

“Linda McMahon is an excellent choice by President-elect Trump to lead the SBA as administrator. I look forward to working with her and the new administration to roll back burdensome regulations and increase access to capital for America’s 28 million small businesses. Our Committee will work with the new administrator to advance meaningful reforms that will make the SBA more efficient and customer-friendly for small businesses,” Chabot said.

Britain fines Pfizer record $107 million for huge drug price hike

The Pfizer logo is seen at their world headquarters in New York April 28, 2014. (REUTERS)

Britain's competition watchdog has fined Pfizer a record 84.2 million pounds ($107 million) for its role in ramping up the cost of an epilepsy drug by as much as 2,600 percent.

The Competition and Markets Authority (CMA) also fined Flynn Pharma 5.2 million pounds for overcharging for phenytoin sodium capsules, following a dramatic price hike in 2012.

The CMA's ruling comes amid a growing debate on both sides of the Atlantic about the ethics of price hikes for old off-patent medicines that are only made by a few firms and where there is little competition.

U.S. drugmaker Turing Pharmaceuticals, led at the time by hedge fund manager Martin Shkreli, caused outrage last year by raising the U.S. price of Daraprim, an old anti-infective drug, by more than 5,000 percent to $750 a pill.

In the case of phenytoin sodium capsules, the UK price charged for 100 mg packs of the drug jumped from 2.83 pounds to 67.50 in 2012, before reducing to 54.00 from May 2014.

As a result, annual spending on the capsules by Britain's National Health Service rose from 2 million pounds in 2012 to about 50 million in 2013. The CMA said UK prices were many times higher than elsewhere in Europe.

Pfizer used to market the medicine under the brand name Epanutin but sold the rights to Flynn, a privately owned British company, in September 2012.

It was then debranded, meaning that it was no longer subject to price regulation, and the price soared.

"The companies deliberately exploited the opportunity offered by debranding to hike up the price for a drug which is relied upon by many thousands of patients," Philip Marsden, chairman of the CMA's case decision group, said on Wednesday.

"This is the highest fine the CMA has imposed and it sends out a clear message to the sector that we are determined to crack down on such behavior."

The previous highest fine of 58.5 million pounds was handed to British Airways (ICAG.L) in 2012 for colluding with rival Virgin Atlantic [VA.UL] on fuel surcharges. That was imposed by the CMA's predecessor, the Office of Fair Trading.

Pfizer said it planned to appeal all aspects of the verdict.

The U.S. drugmaker said the medicine had been loss-making and it was therefore forced to consider whether it could continue supplying it. Pfizer added that the price set by Flynn was actually 25 to 40 percent less than the cost of an equivalent tablet form from another supplier.

Flynn's chief executive David Fakes said punishing his company, which also plans to appeal, for selling phenytoin capsules for less than phenytoin tablets "beggars belief".

The CMA also ordered both to reduce their prices, a move that lawyers said could trigger claims for redress from customers who had been over-charged.

In February it fined GlaxoSmithKline (GSK.L) 37.6 million pounds for striking deals to delay the launch of cheap generic copies of its former blockbuster antidepressant Seroxat.

The watchdog has four other ongoing investigations into the pharmaceutical sector.

Reuters

Trump slams Boeing deal for new Air Force One

President-elect Donald Trump blasted Boeing on Tuesday for alleged cost overruns on a new fleet of Air Force One planes and called for the government to cancel the contract, saying the project price tag is "out of control." 

The president-elect took aim at Boeing's Air Force One work in a Tuesday morning tweet, and reiterated his concerns to reporters minutes later at Trump Tower. 

The government has contracted with Boeing to build two or more new 747 planes, which would replace the current aging Reagan-era aircraft and go into service around 2024. That means Trump wouldn't fly on the new planes, which carry U.S. presidents around the globe, unless he pursued and won a second term. But the Air Force has pressed for a faster schedule, saying the current planes are becoming too expensive to repair and keep in good flying shape.

The contract for the planes was projected at about $3 billion, but costs have been reported to be rising. The Air Force had previously earmarked $1.65 billion for two new jets, but hadn’t detailed costs beyond that. Boeing was the sole builder to bid on the planes, The Wall Street Journal reported.

“The plane is totally out of control,” Trump told reporters later Tuesday inside Trump Tower. “It’s going to be over $4 billion for Air Force One program and I think it’s ridiculous. I think Boeing is doing a little bit of a number. We want Boeing to make a lot of money, but not that much money.”

In a statement Tuesday, Boeing downplayed any payments it’s received, seemingly citing a January contract worth about $26 million and a July contract worth about $127 million as its only commitments on the Air Force One project.

“We are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States,” the aircraft giant said. “We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer.”

Tuesday was not Trump’s first interaction with Boeing. Trump tweeted in January 2013 that he had bought stock in the corporation and called it a “Great company!” Trump’s personal aircraft, often called “Trump Force One,” is a Boeing 757.

Trump’s personal financial disclosure, filed in May, shows $50,000-$100,000 worth of stock in Boeing, though spokesman Jason Miller told reporters on a Tuesday conference call that Trump sold all of his stocks in June.

Miller said the details of any cancellation would be handled once Trump was inaugurated but the Tuesday tweet “really speaks to the president-elect’s focus on keeping costs down across the board.”

Trump may have some precedent if he ultimately decides to nix the Boeing deal. President Obama in 2009 canceled the program to replace Marine One when the cost of the 28-helicopter fleet ballooned from $6.1 billion to $13 billion.

Trump recently appointed ex-Boeing chairman, president and CEO Jim McNerney to chair a board of executive advisers on economic, regulatory and labor matters. McNerney retired as Boeing chair in March 2016.

But haggling over the bill may be about more than money.

In September, Boeing said China was set to buy $1 trillion worth of its planes during the next 20 years. China would become “the first trillion dollar aviation market” after Boeing delivered nearly 7,000 planes, the company said in a statement at the time.

Trump has been a frequent critic of China. The president-elect accepted a controversial call from the Taiwanese government last week, possibly jeopardizing longstanding U.S. policy towards China. On Sunday, he also tweeted extensively about companies that sought to leave the U.S., and singled out China for “making it hard for our companies to compete.”

The double-decker 747-8 is the only four-engine commercial jet made by Boeing, Reuters reported. It entered service in 1970 and underwent an overhaul in 2012.

Fox News and The Associated Press contributed to this report.

Trump: Softbank to invest $50B in U.S., create 50,000 jobs

Telecommunications giant Softbank Group plans to invest $50 billion into the U.S. economy, and add 50,000 jobs, president-elect Donald Trump announced in New York Tuesday.

Trump made the announcement over Twitter after meeting with Softbank CEO Masayoshi Son at Trump Tower. It is unclear whether the Japanese company, which has a majority stake in Sprint, might make its investment in the form of a merger or acquisition.

"We will invest in new companies," Son said during an impromptu press conference in the lobby of Trump Tower.

Softbank isn't a household word in the U.S., but its holdings are vast.

Son, who became a billionaire through investments in Japan and China, is in the midst of raising a $100 billion investment fund. But he's had mixed results in the U.S. since Softbank bought a controlling interest in Sprint for $21.6 billion, and lost ground to telecom rivals such as T-Mobile.

Sprint shares rose sharply 4.5%, to $8.42, in mid-afternoon trading Tuesday.

Softbank also plunked down $32 billion this year to acquire ARM Holdings, a U.K.-based chip designer.

Masa (SoftBank) of Japan has agreed to invest $50 billion in the U.S. toward businesses and 50,000 new jobs....

— Donald J. Trump (@realDonaldTrump) December 6, 2016

Masa said he would never do this had we (Trump) not won the election!

— Donald J. Trump (@realDonaldTrump) December 6, 2016

Goldman sends Dow to record high, techs lift S&P, Nasdaq

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 2, 2016. REUTERS

Wall Street rose on Monday, with financials and technology stocks powering Dow to a new intraday high and boosting the S&P and the Nasdaq.

The Dow has been enjoying a record-setting rally, largely driven by bank and industrial stocks, which are expected to benefit the most from higher spending on infrastructure and simpler regulations under a Donald Trump administration.

The index has risen 5 percent since the Nov. 8 vote, while the S&P financial index .SPSY has surged 14.3 percent.

Goldman Sachs (GS.N) rose 2.2 percent to $228.32, its highest in nine years, after HSBC initiated coverage with a "buy" rating and a $250 price target.

Eight of the 11 S&P sectors were higher, with financials' 1.3 percent rise leading the gainers, followed by a 1.05 percent gain in technology .SPLRCT.

Health insurers Aetna (AET.N) and Humana (HUM.N) were down more than 3 percent, dragging down the healthcare index .SPXHC after Justice Department attorneys argued to a judge that Aetna's acquisition of Humana violated antitrust law for its Medicare and Obamacare exchange businesses.

Defensive sectors, utilities .SPLRCU and real estate .SPLRCR, were the other laggards.

"Over the last few months, we had this increasingly pessimistic outlook on the stock market and the economy," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.

"Trump has been sort of a wake-up call for some complacent investors to take a look and see that inflation was moving higher and the economy is improving."

New York Federal Reserve President William Dudley told CNBC that downside risks to the economy had reduced, while his Chicago counterpart Charles Evans said the U.S. economy was entering a period of rising interest rates.

At 10:59 a.m. ET (1559 GMT), the Dow Jones Industrial Average .DJI was up 91.58 points, or 0.48 percent, at 19,262. The index had hit a high of 19,274.85.

The S&P 500 .SPX was up 15.66 points, or 0.71 percent, at 2,207.61 and the Nasdaq Composite .IXIC was up 60.28 points, or 1.15 percent, at 5,315.93.

Shares of Chesapeake Energy (CHK.N) were the top percentage gainers on the S&P, rising 4.9 percent to $7.57 after the U.S. natural gas producer said it would sell a part of its acreage in the Haynesville Shale area for $450 million to a private company.

FairPoint (FRP.O) shares jumped 12 percent after Consolidated Communications (CNSL.O) said it would buy the broadband service provider in an all-stock deal valued at $1.5 billion, including debt. Shares of Consolidated were off 4.4 percent.

Advancing issues outnumbered decliners on the NYSE by 2,024 to 799. On the Nasdaq, 2,159 issues rose and 523 fell.

The S&P 500 index showed 41 new 52-week highs and one new lows, while the Nasdaq recorded 154 new highs and eight new lows.

Reuters

After Carrier deal, Trump vows tax of 35 percent for US business going overseas

President-elect Donald Trump said Sunday that he’ll slap a 35 percent tax on U.S. companies that move jobs or operations to other countries -- days after announcing a controversial deal with Carrier to keep roughly 1,100 manufacturing jobs in the United States.

Trump, a prolific tweeter with about 15 million followers, needed six posts, each limited to 140 characters, to get out his message.

“The U.S. is going to substantially reduce taxes and regulations on businesses,” Trump tweeted. “But any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. without retribution or consequence, is WRONG!

“There will be a tax on our soon to be strong border of 35% for these companies ... Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS.”

The string of tweets follow Trump’s announcement last week that he had reached a deal with the Carrier furnace and air-conditioning manufacturer to keep the jobs in Indiana, instead of moving them to Mexico where labor costs are significantly less expensive.

Trump made vowing to keep Carrier in the country and returning other good-paying manufacturing jobs to the economically challenged Midwest a major part of his successful presidential campaign.

But the Carrier deal -- which purportedly includes $6 million in tax incentives and $1 million in job-training grants over 10 years -- has been criticized by liberals and conservatives alike.

Among them are self-described socialist and 2016 Democratic presidential candidate Bernie Sanders and 2008 GOP vice-presidential nominee Sarah Palin, who suggest the deal was an example of “crony capitalism.”

Vice President-elect Mike Pence, who remains governor of Indiana until next month, defended Trump’s effort on Carrier on NBC’s “Meet the Press."

“We were heartbroken when we heard Carrier was pulling up stakes,” said Pence, who acknowledges he couldn’t broker the deal. “The only reason Carrier is staying in the United States is because Donald Trump was elected president.”

Nike set to release new self-lacing shoes

The world of self-lacing Nike sneakers depicted by Marty McFly in "Back to the Future II" is finally a reality.

The new Nike HyperAdapt 1.0 sneakers, which tighten around your feet by themselves, are set to go on sale at Nike's two retail shops in New York City.

However, you may need to sell the DeLorean to afford them. The futuristic kicks retail for $720.

Here's the rundown: The sneakers are battery-powered and tighten to fit your foot when you stand and your heel hits the back.

They can be loosened or tightened by pressing small buttons, and they make a cool sound while doing so, just like the ones Marty McFly pulled on in the hit 1989 sequel.

An LED in the heel lights up when the shoes are tightening and also to signal that the battery is low.

And you'll also need to add the sneaks to the list of household gadgets that require charging, like your phone and your tablet.

The battery that enables the shoes to tighten takes three hours to fully charge, and each charge lasts for two weeks.

The shoes come in two styles, black/white-blue lagoon and metallic silver/black-white.

The new Nikes are the latest prescient moment predicted by "Back to the Future II," which also showed the Cubs ending their 100-plus-year World Series title drought, though the movie was off by a year.

TODAY.com