OECD slashes growth forecasts; Heineken rejects SABMiller; Lew warns China on anti-monopoly probes
Stocks are adding to last week’s losses after disappointing industrial production data out of the U.S. and China. Investors also continue to weigh the possibility that the Federal Reserve may signal it will raise interest rates sooner than expected at its two day meeting, which kicks off tomorrow.
The Organization for Economic Cooperation and Development cut its growth forecasts for the U.S. and other advanced economies amid rising geopolitical concerns and deflation risks in the eurozone.
The OECD now projects that the U.S. economy will grow 2.1% this year instead of 2.6%.
Apple (AAPL) shares are in the spotlight this morning after the tech company revealed that pre-orders for its new iPhone 6 and iPhone 6 Plus hit a record. Apple said pre-orders topped more than 4 million in just 24 hours. The company said that strong demand is outstripping pre-order supply, which means customers may have to wait three to four weeks to get their hands on the new iPhones. The iPhone 6 and iPhone 6 Plus will go on sale in U.S stores on Sept. 19th.
Related: Yum brands bets on fast casual, Vietnamese
Yum brands (YUM), the company behind Pizza Hut and KFC is now experimenting with a new type of fast casual restaurant. The chain opened the Vietnamese style Banh Shop in Texas over the weekend. The so-called fast casual chains like Chipotle (CMG) and Panera Bread (PNRA) have been growing in recent years and are particularly popular with Millennials.
“Yum brands, as an organization, has to think about ‘Where’s the next growth opportunity?’ And they are looking at banh mi and different kinds of the new Mexican-style fast casual as an opportunity and a possibility,” said Yahoo Finance Editor-in-Chief Aaron Task. “And why not? They should be experimenting with different types of formats."
Yum Brands is set to introduce a second Banh shop in the Dallas area next month.
Heineken is saying "nee" to SAB Millers takeover offer. The Dutch brewer is still majority-owned by its founding family - the Heineken's - and they want to keep the brewer independent in the midst of consolidation.
"I would be surprised if Heinken is still independent by the end of this year," said Task.
Meanwhile, the Wall Street Journal reported that the world's biggest beer company, AB InBev, is looking for financing to buy SABMiller.
Tensions between the U.S. and China are growing. The Wall Street Journal reports that Treasury Secretary Jack Lew has sent a letter to his Chinese counterpart warning that continuing probes that unfairly target foreign companies could have serious implications on U.S.-China relations.
