The daily business briefing: September 4, 2019

1. Walmart cuts ammo sales, tells shoppers not to openly carry guns

Walmart on Tuesday said it would ask customers not to carry guns in its stores, and cut back on its ammunition sales following a mass shooting at an El Paso, Texas, Walmart that left more than 20 people dead. The company said that once its current inventory is gone it will stop selling handgun and short-barrel rifle ammunition, some of which can be used in assault-style rifles that have been used in many recent mass shootings. Walmart also plans to end handgun sales in Alaska, the only state where it still sells pistols. "It's clear to us that the status quo is unacceptable," Walmart CEO Doug McMillon told employees in a memo. The National Rifle Association accused Walmart of caving to "anti-gun elites." Grocery chain Kroger also asked customers not to carry firearms openly in its stores.

CNN CNBC

2. Hong Kong stocks rise as Lam says she's withdrawing extradition bill

Hong Kong stocks jumped by more than 4 percent on Wednesday following news that the city's leader would withdraw a controversial extradition bill that sparked weeks of protests. Hong Kong's chief executive, Carrie Lam, told lawmakers she would withdraw the proposal. Protesters have said the bill would have deprived criminal suspects their rights under Hong Kong's separate justice system by allowing their extradition to mainland China for trial. Withdrawal of the legislation is one of the protesters' five key demands. The news came a day after Lam denied reports that she had asked to resign to end the political crisis only to have Beijing reject the request.

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CNBC

3. Michigan becomes 1st state to ban flavored e-cigarettes

Michigan on Wednesday will become the first state to ban flavored e-cigarettes. The ban covers menthol and sweet, fruity flavors critics say e-cigarette companies have used to get young people hooked on nicotine. Gov. Gretchen Whitmer (D) said the move was necessary to protect young people from the potentially harmful effects of vaping, which the state health department has classified as a public health emergency. "My number one priority is keeping our kids safe and protecting the health of the people of Michigan," Whitmer said. The ban will last six months, with the possibility of renewal, while state officials develop a permanent ban.

The Washington Post

4. Report: Purdue Pharma headed into bankruptcy if settlement talks fail

OxyContin maker Purdue Pharma is preparing to seek bankruptcy protection if it can't reach a broad settlement of lawsuits over its role in the opioid epidemic, Reuters reported Tuesday, citing three people familiar with the matter. The company in August offered $10 billion to $12 billion to get states and local governments to end their lawsuits, but some states apparently were not satisfied with the proposed settlement. Purdue lawyers reportedly have been telling state and local government lawyers for weeks that if it doesn't have a settlement in place soon it would have to file for a so-called free-fall bankruptcy filing, which lacks an agreement on reorganization.

Reuters

5. Stock futures rebound after Tuesday's losses

U.S. stock index futures rose sharply early Wednesday, rebounding from Tuesday's plunge. Futures for the Dow Jones Industrial Average and the S&P 500 were up by 0.7 percent or more, while those of the Nasdaq jumped by 1 percent. The gains came after the release of the Caixin/Markit Services Purchasing Managers' Index showing that China's services sector had expanded in August at its fastest rate since May despite signs of economic trouble fueled by the U.S.-China trade war. The Dow and the Nasdaq fell by 1.1 percent on Tuesday and the S&P 500 lost 0.7 percent after the U.S. and China imposed the latest round of tariffs on each other's goods, and data showed the first contraction in U.S. manufacturing activity since 2016.

CNBC MarketWatch