Saks owner Hudson's Bay to go private

The owner of Saks is being taken private by a group of its shareholders. File/AP

Boeing shares extend slide after downgrades

NEW YORK — Boeing's stock extended its slide following revelations about internal concern over a flight system tied to two deadly crashes of its 737 Max jetliner.

Shares of the planemaker fell $12.94, or 3.8%, to close at $331.06 after dropping 6.8% Friday.

Credit Suisse and UBS downgraded their ratings on Boeing's stock on Monday. Analysts cited Friday's disclosures that a senior Boeing pilot struggled while testing a new flight-control system called MCAS that has been implicated in both crashes.

The disclosure could complicate Boeing's ability to return the Max to service by shattering the trust between regulators and the company, Credit Suisse analysts said. They added that news coverage of the test pilot's messages could further undermine public confidence and hurt long-term demand for the plane.

Boeing said Sunday that that it understands and regrets the concern raised by the test pilot's comments. 

Boeing was a Wall Street outlier Monday, when technology companies and banks helped power stocks broadly higher. The rally came as investors found fresh reason for optimism as the U.S. and China continue negotiations aimed at resolving their costly trade war. China's top negotiator said over the weekend that "substantial progress" was being made in its talks with the U.S. Tensions over trade between Washington and Beijing have cooled recently.

Parent of Saks to go private

NEW YORK — Hudson's Bay, the owner of Saks Fifth Avenue, is being taken private by a group of its shareholders that will try to revive the department store chain.

The company said Monday that its common shares will be purchased for $7.86 per share in cash, in a deal valued at more than $1.4 billion. The shareholder group, which includes Hudson's Bay executive chairman Richard Baker, initially proposed in June a buyout offer of $7.21 per share. The shareholder group owns 57 percent of the company.

The deal is expected to be completed later this year or early next year

In August, Hudson's Bay agreed to sell Lord & Taylor to rental clothing company Le Tote. Under that agreement, Hudson's Bay and a subsidiary will own the stores and Le Tore will operate from them. And earlier this month it completed the sale of its European real estate and retail joint ventures.

Sesame St. Place coming to Calif.

ORLANDO, Fla. — Officials with SeaWorld Entertainment and Sesame Workshop say they are opening the country's second Sesame Place park in San Diego in 2021. The first Sesame Place opened almost 40 years ago outside Philadelphia.

Monday's announcement is part of an expanding partnership between the two brands.

SeaWorld's Orlando park opened a Sesame Street section earlier this year.

The announcement continues a pivot by Orlando-based SeaWorld away from live animal shows. SeaWorld announced the end of its orca breeding program in March 2016, after years of pressure from animal rights advocates and shifting public opinion about orcas being held in captivity.

Japan exports fall again in Sept.

TOKYO — Japan's exports fell for a 10th straight month in September as trade tensions between the U.S. and China hit demand for machinery and other manufacturing mainstays, the government said Monday.

The Finance Ministry said the trade deficit in September totaled $1.1 billion, a third consecutive month of red ink.

Exports fell 5.2% from the same month in 2018, with slower shipments of machinery, vehicles and auto parts. Imports dropped 1.5%.

Japan's exports to the U.S. dropped nearly 8% from a year earlier, as exports of vehicles sank 16 percent. Imports from the U.S. declined 12 percent. The trade surplus with America fell 3.5 percent to $5.2 billion.

But there were signs of improvement in demand for semiconductors, suggesting a slump in the sector may be bottoming out, economists said.

Export volumes stabilized somewhat, while the value of exports fell due to weaker prices.

"The risk that exports will shrink drastically has subsided, but it is expected that time will be needed before exports can recover considerably," said Harumi Taguchi, an economist with IHS Markit.

The tariff war between the U.S. and China has taken a toll across the region, hurting manufacturers within extended supply chains. Meanwhile, a dispute between Japan and South Korea over exports of certain high-tech goods has added to uncertainty.

Exxon trial focused on climate change

NEW YORK — New York's attorney general is accusing Exxon Mobil of lying to investors about how profitable the company will remain as governments impose stricter regulations to combat global warming.

The lawsuit, which is set to go to trial Tuesday, claims the Texas energy giant kept two sets of books to make the company appear more valuable to investors.

Exxon denied the allegations, calling them politically motivated, and said the company looks forward to being exonerated in court.

At stake is how much value investors will still see in oil and gas companies once the impact of climate change — and the stepped-up efforts to curb it — become more apparent.

Wire reports