The daily business briefing: September 30, 2019

1. Forever 21 files for bankruptcy protection

Budget fashion chain Forever 21 filed for bankruptcy protection on Sunday. The privately held company said it would close up to 178 of its more than 500 U.S. stores. Decisions on which stores will close are ongoing "pending the outcome of continued conversations with landlords," the company said in a statement. Forever 21 has a total of about 800 stores worldwide. It plans to close most of its locations in Asia and Europe while remaining open in Mexico and Latin America. Forever 21 became popular with teen shoppers but struggled due to the speed of its expansion, shifting consumer tastes, and the same online competition that has forced a rising number of retailers to seek bankruptcy protection recently, or shut down completely.

The Associated Press

2. China manufacturing data beats expectations

China on Monday released an official manufacturing-activity indicator that came in higher than expected despite the U.S.-China trade war, but still showed slight contraction in September. The official Purchasing Managers' Index (PMI) was 49.8 for the month, above the 49.5 level forecast by analysts polled by Reuters. A PMI above 50 means expansion. Anything below indicates contraction. A private gauge of factory activity, the Caixin/Markit Manufacturing Purchasing Managers' Index, also beat expectations, showing expansion with a rise to 51.4 in September from 50.4 in August, marking two straight months of expansion. Economists surveyed by Reuters had predicted 50.2. The official PMI survey focuses on large and state-owned businesses, while the Caixin monitors a blend of small- and medium-sized companies.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

CNBC Reuters

3. China confirms top trade negotiator will lead October delegation

China's top trade negotiator, Vice Premier Liu He, will travel to Washington to lead Beijing's delegation in upcoming high-level talks on ending the U.S.-China trade war, Chinese Vice Commerce Minister Wang Shouwen said on Sunday. Beijing hopes the two countries can resolve their trade war "with a calm and rational attitude," Wang said. China did not specify the dates of the trip, but said it would start after the Oct. 7 National Day holiday. The Trump administration imposed the first tariffs in the dispute last year and demanded concessions from Beijing, which responded in what became a series of tit-for-tat tariffs that have threatened global economic growth.

The Associated Press

4. U.S. stock futures rise after closing last week with losses

U.S. stock index futures rose early Monday, rebounding from Friday's losses after positive economic news from China. Futures for the Dow Jones Industrial Average and the S&P 500 were up by 0.3 percent, while those of the Nasdaq gained 0.4 percent. Wall Street closed last week with losses after reports that President Trump was considering limiting U.S. investment in China, possibly by delisting Chinese companies from U.S. stock exchanges. China warned that would have "significant repercussions for the Chinese and U.S. economies, as well as their companies, in the future." The two sides are preparing for a fresh round of high-level talks starting Oct. 10 aimed at ending their trade war.

CNBC Investor's Business Daily

5. Abominable leads weekend box office in debut

Abominable led the weekend domestic box office, bringing in $20.9 million in North America in its debut. The PG animated adventure from Universal and DreamWorks benefited from a lack of other new movies focusing on families and scored the best 2019 opening so far for an original animated picture. "We saw a great opportunity for not just an opening weekend, but a strong corridor going forward," said Jim Orr, Universal's president of domestic distribution. "With this particular weekend, kids have been back in school for some time and routines have settled down." Seven Universal films have now taken the top spot at the domestic box office so far this year.

Variety