Online brokerage stocks dive after Schwab eliminates commissions

Associated Press


Online brokerage stocks dive after Schwab eliminates commissions

Shares of the biggest online brokerages plummeted Tuesday after market leader Charles Schwab Corp. announced plans to eliminate commissions for US stocks, exchange traded funds, and options. TD Ameritrade Holding Corp. took the biggest hit, tumbling 26 percent, the most since 1999. E*Trade Financial Corp. dropped 16 percent, the most in more than a decade. Shares of Interactive Brokers Group Inc. and Schwab both slid more than 9 percent. The move escalates a long-simmering price war as investors gravitate toward the cheapest products, with Interactive Brokers announcing just last week that it would provide free trades. Since the middle of last year, firms including Fidelity Investments, Vanguard Group, and JPMorgan Chase & Co. have eliminated fees and commissions on a range of offerings. — BLOOMBERG NEWS



Bullhorn acquires Erecruit

The Bullhorn acquisition machine has landed another catch – and this one is a short walk away. The Boston-based staffing software firm has acquired Erecruit, a provider of job applicant tracking and billing and payment services. The terms of the acquisition were not disclosed. Bullhorn, backed by Insight Venture Partners, bought Erecruit from Symphony Technology Group. Together, they employ about 1,150 people worldwide, including 950-plus at Bullhorn. About 40 people who work at Erecruit’s Otis Street office will relocate to Bullhorn’s Summer Street headquarters, where nearly 260 people work. — JON CHESTOECONOMY

Global trade to weaken to slowest rate since Great Recession

Global trade is forecast to weaken this year to the slowest pace since the depths of the Great Recession due to the US-China trade war. The World Trade Organization said Tuesday it expects volumes of traded goods to rise 1.2 percent this year, far below the 2.6 percent estimate it issued in April and the weakest since 2009. Next year’s growth was estimated to drop to 2.7 percent from 3.0 percent, but the organization warned that still depends on solving trade disputes. — ASSOCIATED PRESS


Incoming EU employment chief says there are no plans for minimum wage

The official set to become the European Union’s employment chief has no plan to create a minimum wage that would apply in every country of the 28-nation bloc. Laying out his priorities during a hearing by European lawmakers, Nicolas Schmit said Tuesday he will fight for the implementation of minimum standards aimed at tackling revenue disparities across the EU, but insisted minimum wages can’t be the same everywhere. — ASSOCIATED PRESS


Japan raises national sales tax to deal with aging population

Japan raised its national sales tax to 10 percent from 8 percent on Tuesday, risking short-term pain for the sake of the country’s future financial stability as it copes with a fast aging and shrinking population. Previous tax increases, a 2-point increase to 5 percent in 1997 and another to 8 percent in 2014, brought on recessions. Prime Minister Shinzo Abe twice delayed the move out of fears it might derail the tenuous expansion of the world’s third-largest economy. But he said this time it was unavoidable. — ASSOCIATED PRESS



BBC reverses punishment for anchor who criticized Trump

The BBC has reversed a decision finding one of its presenters in breach of editorial guidelines for comments critical of President Trump. The decision comes after protests supporting anchor Naga Munchetty, who was discussing Trump’s remark that four female American lawmakers should return to the ‘‘broken and crime infested places from which they came.’’ Co-presenter Dan Walker asked Munchetty’s opinion on a July 17 program, and she responded: ‘‘Every time I have been told, as a woman of color, to go back to where I came from, that was embedded in racism.’’ She later added that she was ‘‘absolutely furious a man in that position thinks it’s OK to skirt the lines by using language like that.’’ The BBC’s Executive Complaints Unit found she had gone too far. But the BBC’s director-general, Tony Hall, overturned the decision Monday. — ASSOCIATED PRESS


Chinese companies bought as much as 1m metric tons of US soybeans

Chinese companies bought as much as 1 million metric tons of US soybeans after the Xi Jinping administration issued more waivers from its retaliatory import tariffs, according to people familiar with the situation. Both state-owned and privately run firms purchased between 12 and 15 cargoes, said the people, who asked not to be identified because the information is private. The move may help lay the groundwork for a more conciliatory meeting between high-level officials next week in Washington, when they try to resolve the trade war between the nations. — BLOOMBERG NEWS



Coca-Cola to launch energy drink in the US in January

Coca-Cola Co. is pushing deeper into energy drinks in the United States — a bright spot for an industry that’s grappling with falling soda consumption. Coke, which earlier this year launched Coke Energy in several overseas markets including the United Kingdom and Germany, said it will bring the product to the United States in January. Its arrival will ramp up Coke’s competition with Monster Beverage Corp. Monster’s energy drink trails only Red Bull in a growing US market that was worth more than $12 billion last year, according to Bloomberg Intelligence. — BLOOMBERG NEWS


Sony cuts price of video game service in half

Sony Corp. cut the price of its PlayStation Now video game service in half, to $9.99 a month, a reflection of the increasing competition in online offerings. The industry leader in video games said Tuesday it’s also adding limited runs of top-selling titles to the service, such as Take-Two Interactive Software Inc.’s Grand Theft Auto V, and launching the first global marketing campaign to promote PlayStation Now. Microsoft Corp.’s Box Game Pass service also starts at $9.99 a month. Sony’s price cut takes effect immediately. — BLOOMBERG NEWS


Maker of Schwinn bikes to stop paying dividends, citing tariffs

Dorel Industries Inc., maker of Schwinn bicycles, will stop paying a dividend to shareholders, citing the impact of higher US-imposed tariffs after a review of its preliminary third quarter results. The maker of Cannondale and bicycles and other childrens’ products said the dividend announced on Aug. 2 will still be paid on Oct. 2. Some of Dorel’s bigger US customers have delayed this year’s Christmas deliveries to the start of the fourth quarter and that, together with the rise in the US dollar, has hurt Dorel’s sports and juvenile business units. — BLOOMBERG NEWS



Air France to offset carbon emissions for all domestic flights

The chief executive of Air France says the carrier will voluntarily offset all of its carbon dioxide emissions from domestic flights by next year. Anne Rigail told daily Le Parisien in an interview published Tuesday the French airline will invest ‘‘several million euros’’ in projects such as planting trees to soak up CO2 emitted by about 500 daily flights in France. Carbon dioxide is the most common man-made greenhouse gas, produced by the burning of fossil fuels such as gas and kerosene. The airline industry has come under pressure from climate change campaigners in recent years for its growing emissions which represent more than 2 percent of the global total. — ASSOCIATED PRESS


Johnson & Johnson reaches settlement in first federal opioids trial

Johnson & Johnson became the fourth drugmaker to avoid going to trial in the first federal opioids case, announcing Tuesday that it had reached a $20.4 million agreement to settle claims raised by two Ohio counties. The company, through its drug manufacturing division, Janssen Pharmaceuticals, made a fentanyl patch and two versions of an opioid tablet. The company has said that those products accounted for less than 1 percent of total opioid prescriptions written in the United States. Johnson & Johnson did not admit wrongdoing and said it was settling “to avoid the resource demands and uncertainty of a trial as it continues to seek meaningful progress in addressing the nation’s opioid crisis.” It agreed to give a combined $10 million to Cuyahoga and Summit counties, $5 million to cover the plaintiffs’ legal fees and expenses, and $5.4 in charitable contributions to opioid-related nonprofit programs in those counties. — NEW YORK TIMES