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TALKING POINTS

Construction rose nearly 2 percent in September, with huge gain in the Northeast

Mark Humphrey/Associated Press

HOME BUILDING

Construction rose nearly 2 percent in September, with huge gain in the Northeast

US home construction rose a solid 1.9 percent in September after having fallen in the previous month, as home building continues as one of the bright spots of the economy. The increase last month pushed home construction to a seasonally adjusted annual rate of 1.42 million homes and apartments after a 6.7 percent drop in August, the Commerce Department reported Tuesday. Applications for building permits, a good barometer of future activity, rose an even stronger 5.2 percent to 1.55 million units. After a plunge in the spring due to pandemic-related lockdowns, housing has staged a solid rebound as demand for homes with more space has grown and mortgage-rates have stayed at ultra-low levels. Construction of single-family homes in September surged by 7.8 percent, offsetting a 14.7 percent drop in the smaller apartment sector. Single-family construction is now at its highest level since 2007. Construction was up in every region of the country except the Midwest which registered a 32.7 percent plunge. Construction surged 66.7 percent in the Northeast with smaller gains of 6.2 percent in the South and 1.4 percent in the West. — ASSOCIATED PRESS

ENTERTAINMENT

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AMC to sell millions of shares, warns they could be worthless if it files for bankruptcy

AMC, the world’s largest cinema chain, agreed to sell as many as 15 million shares of its stock while warning investors that it may need to file for bankruptcy, leaving its equity worthless. AMC, contending with a liquidity crisis that threatens its ability to remain a going concern, said the equity distribution plan might not be enough. With $417.9 million in cash on hand, the company still needs a material amount of new funding by the end of the year to stay in business, it said in a filing Tuesday. AMC and other movie-theater owners have been trapped in a tough situation since the coronavirus pandemic forced auditoriums to close in the spring. While many locations have reopened, capacity restrictions and audience skittishness have deeply hurt revenue. — BLOOMBERG NEWS

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AIRLINES

Cathay Pacific to cut 6,000 jobs

Cathay Pacific Airways will cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the deep damage caused by the coronavirus pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close on Wednesday, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including some 5,000 jobs in Hong Kong, according to the report. — BLOOMBERG NEWS

INTERNATIONAL

City of London looks to tech, outdoor gyms to replace finance workers working from home

The City of London wants tech startups and attractions like outdoor gyms to revive a financial hub devastated by staff working from home. The self-governing district released a five-year plan Tuesday that calls for renewal at a time when traditional ways of working are being upended by a pandemic. To make socially distanced commuting viable in a traditionally crowded place, it wants to permanently expand thoroughfares dedicated to walking and cycling and provide inexpensive space for creative company incubators and art hubs. The government has urged office staff to work from home for as long as six months after a renewed wave of infections. — BLOOMBERG NEWS

FINANCE

Two top commodities executives at Morgan Stanley leave after complinance breaches

The two most senior commodities executives at Morgan Stanley are leaving the bank after compliance breaches linked to the use of communications tools, according to two people familiar with the matter. Nancy King, global head of commodities, and Jay Rubenstein, head of commodities trading, are leaving, the people said, asking not to be named discussing internal matters. Morgan Stanley declined to comment. The bank is one of the biggest commodities dealers on Wall Street alongside Goldman Sachs, JPMorgan Chase & Co., and Citigroup. The veteran executives' departures come after the bank discovered the use of unauthorized electronic means of communication. It didn’t find any wrongdoing, but the use of those communication channels went against policy, the people said. — BLOOMBERG NEWS

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INTERNATIONAL

Sweden latest country to ban Huawei

Sweden has banned Huawei Technologies Co. and ZTE Corp. from gaining access to its fifth-generation wireless network, adding to the increasing number of European governments forcing local telecom companies to shift away from Chinese suppliers. The Swedish Post and Telecom Authority said in a statement Tuesday that the “influence of China’s one-party state over the country’s private sector brings with it strong incentives for privately owned companies to act in accordance with state goals and the communist party’s national strategies.” The United States has described Huawei as the “backbone” of surveillance efforts by the Chinese communist party, and is pressuring European governments to block the technology company from gaining access to 5G networks. The UK has already imposed an outright ban on Huawei’s 5G equipment, while German Chancellor Angela Merkel has so far hesitated to follow suit. — BLOOMBERG NEWS

INTERNATIONAL

EU’s first sale of social bonds a huge draw

The European Union’s first offering of social bonds drew orders of more than 233 billion euros ($275 billion), likely to be the biggest ever for any debt deal. The bloc’s 17 billion euros two-part sale was nearly 14 times subscribed. The order books easily topped the $120 billion of demand seen for CVS Health Corp.'s corporate offering in 2018 and Italy’s previous European sovereign record of 108 billion euros, according to data compiled by Bloomberg. The sale marks the arrival of a major new safe asset, with investors drawn to a AAA credit rating and the fastest-growing part of sustainable finance. The offering, also the EU’s first joint debt since the bloc agreed a landmark pandemic recovery deal, is aimed at providing funding for a job support program. — BLOOMBERG NEWS

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INTERNATIONAL

EU wants to ban ‘hamburger’ and ‘sausage’ in labeling faux meat

Consumers shopping for alternative meats could see veggie “discs” and “plant-based tubes” on European shelves under a proposal to stop plant-based food producers from using more traditional words on packaging. The European Parliament will this week vote on an amendment that would limit the use of words such as “hamburger” or “sausage” exclusively to labels for real meat. Another proposal calls for further restricting the use of terms like “creamy,” or “yoghurt-style” on dairy-free items. The vote highlights a clash in the food industry as meat and dairy alternatives gain in popularity. — BLOOMBERG NEWS

TECHNOLOGY

Adobe to add Illustrator app to iPads

Adobe Inc. is bringing its second iconic app to Apple Inc.'s iPad tablet after a challenging rollout for Photoshop, part of the software maker’s effort to hold on to artists and designers shifting to work on mobile devices. Illustrator, an app that lets users make graphics, logos, and other ground-up designs, is now generally available to iPad users, the San Jose, Calif.-based company said Tuesday in a statement. The app has been reimagined for the tablet, with a simpler interface but professional-level functionality, the software maker said. — BLOOMBERG NEWS

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