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Small business is big business in Canada. According to Statistics Canada, small businesses account for 97 per cent of businesses across the country. They contribute about 30 per cent of their respective province’s GDP and employ over 70 per cent of Canada’s total private workforce.

Despite playing such an integral role in this country’s economy, small business are the most susceptible to economic fluctuations – especially those tied to interest rate changes.

“Rate changes have an impact on small businesses because [small businesses] have [fewer] sources of cash and harder times getting money,” says Rudy Fischer, CPA, CMA and business consultant with RK Fischer and Associates.

“Anyone who relies on…any kind of funding will feel the impact of an interest rate increase, particularly if they have a lot of debt.”

StatsCan data released in June 2016 shows that just over half of the small to medium-sized enterprises (SMEs) in Canada sought external financing, with more than 80 per cent of start-ups using personal financing to fund their new businesses — that’s a lot of small businesses at mercy of interest rates.   

‘An interest-rate increase comes straight out of profits’

Manufacturers, construction companies and any businesses that  hold a large amount of inventory feel the sting of interest rate hikes the most, because these types of businesses have  upfront costs that can’t be recouped.

“The cost [of an interest rate increase] comes straight out of profits,” says Fischer. 

For example: a construction company buys all the materials for a project in advance, but gets paid for a job when it’s complete. They can’t charge a client more if interest rates change halfway through a build.

Luckily for us, interest rates in Canada are still at rock-bottom lows — with no increase in the forecast.

The same can’t be said for our US neighbours. In late September, US Federal Reserve chair Janet Yellen announced that a winter rate increase is coming.

Pierre Cléroux, chief economist for the Business Development Bank of Canada, says that a US interest rate increase itself will have little impact on small businesses in Canada, but the downward pressure it puts on our already-volatile Canadian dollar is another matter.

Higher interest rates in the US mean the Canadian dollar may fall, and that’s bad news for businesses that import from the US )and other countries that trade using the greenback), like wholesalers and retailers.

Low loonie highs

Clearly, a low dollar isn’t great for anyone who buys products or services from the US, but it’s good for those who sell to the south – like seafood exporters, car part makers, those who sell professional services and those in the tourist industry.  A low loonie makes it cheaper for other countries to buy our wares. Right now, about 11 per cent of SMEs in Canada export, which accounts for 25 per cent of all our exported goods and services.

A low dollar can also force Canadians to shop locally and encourage Canadian businesses to source local producers. Once shipping and exchange rates are factored into the cost of items from the US, they may be more expensive than products found right here at home.

Despite the unknowns, what-ifs and impacts  interest rate changes,  Cléroux says that now is a good time for small businesses in Canada.

Chinese billionaire club to embark on business tour of Canada – The Globe and Mail

Hungry for deals and an audience with Prime Minister Justin Trudeau, a group of Chinese tycoons is preparing for its first trip to Canada, only weeks after a pair of high-profile visits between leaders of the two countries.

The China Entrepreneur Club has been called the world’s most exclusive, its 50 members including billionaires who oversee companies that together amass nearly $600-billion (Canadian) in annual revenue.

On Saturday, the club will launch an eight-day tour that will bring several of its members into rooms with Canada’s political and business elite.

The visit comes as China seeks a new “golden” era with Canada, while its businesses conduct a global hunt for companies and assets.

Last year, Chinese firms invested $118-billion (U.S.) abroad, a tally that is expected to rise rapidly in coming years, amid a quest to procure global innovation that will create new questions about the degree to which countries like Canada are prepared to see high-tech assets fall into foreign hands.

“We want to lubricate the business environment,” said Maggie Cheng, the club’s secretary-general.

Previous visits have taken the club to the United States, Britain, Germany, Australia and elsewhere with a similar strategy: to arrange a series of face-to-face meetings, in hopes of easing suspicions and smoothing the way for future deals.

“Building trust means lowering the costs of trade,” Ms. Cheng said.

Canada is the eighth-largest destination for Chinese overseas spending, but Chinese businesses are eager for more, and the club will visit Montreal, Toronto, Ottawa and Vancouver.

The federal government, which has promised a doubling in trade with China by 2025, has been eager to work with the billionaires. Mr. Trudeau met with the club in Beijing in late August, and is expected to spend 90 minutes with it in Ottawa next Tuesday.

Some of the club’s most recognizable faces, including Alibaba founder Jack Ma, will not be there. The delegation will instead include leaders of companies involved in real estate, digital technology, tourism, railways, private equity and fashion.

They have scheduled time with Ontario Premier Kathleen Wynne and cabinet ministers in several provinces. They will also meet a raft of corporate leaders, including bank chieftains, tech entrepreneurs and Canada’s own reclusive rich, such as Ron Mannix and Jimmy Pattison.

Conspicuously absent from the agenda, however, are oil executives – or Alberta, once the destination for most of China’s billions. The CNOOC Ltd. takeover of Nexen still stands as one of the largest Chinese acquisitions of a foreign company.

The omission reflects how Chinese companies today are chasing new quarry, pursuing ideas and technology that they can use at home, rather than merely resources and property.

The changing priorities reflect a shift in China itself, where the central government is struggling to move away from rusting industry toward a more creative economy with a lighter environmental footprint.

“Chinese companies are in the midst of major transformation,” said Xu Jinghong, chairman of Tsinghua Holdings, the investment arm of Tsinghua University.

Mr. Xu, who is among those planning to visit Canada, said they “have a growing wish to enter the world, and their pace is growing faster.”

And, he added, “Canada is a good choice to co-operate with.”

But that shift also creates a set of potential problems for Canada, which, after struggling with the sale of oil assets to state-owned companies, will now increasingly have to determine whether it wants its brightest innovations to fall into Chinese hands.

Conservative foreign affairs critic Peter Kent called it a case of caveat venditor, urging the government to exercise caution. He recalled former prime minister Stephen Harper saying, “When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.”

One example of the new wave of investments is Tsinghua Holdings, a Chinese technology investor with nearly $7-billion (Canadian) in assets that has already established a beachhead in Canada and is moving to rapidly expand. Last year, Tsinghua-backed firms partnered with Simon Fraser University for a new China Canada Clean Tech Innovation Centre, whose goals include investing Chinese money in Canadian startups.

The centre has already picked up stakes in companies developing electric car charging technology, advanced materials, new kinds of batteries, wind turbines and advances in medical imaging and radiation scanning. It has made other investments in cultural industries, including the musical adaptation of a Chinese play.

Centre president William Li says it acts as a “golden bridge,” bringing Chinese money into the Vancouver tech scene, while also providing Canadian entrepreneurs with new paths into China’s vast market.

Mr. Li hopes to persuade Chinese investors to buy more than Canadian real estate. “If they have the opportunity to invest in a unicorn like Uber, they will be more happy than if they buy a house,” he said.

But in its ambition, the centre is already setting up clashes. It is looking to create a $100-million investment fund by the end of this year, 60 per cent of which it hopes will come from China. For the remainder, it is looking to Ottawa and Victoria, with the idea that governments can commit money that will help pry open wallets in China.

In British Columbia, however, local investors say none of the money from a planned provincial venture capital fund should go to Chinese interests. “That would be the wrong way to go,” said Wal van Lierop, president of Vancouver venture capital firm Chrysalix, citing fears that B.C. money would be put toward investments outside the province. “Venture capital from the B.C. government should not leak away to China,” he said.

Mr. van Lierop said Canada should “really embrace what China can offer” in money and market access. But he said, “Do you have to be careful in dealing with China? Yeah, you should.”

Fears of intellectual-property theft remain.

“We in the Official Opposition would urge prudence and caution in these upcoming talks with major Chinese investors,” Mr. Kent said.

“Prime Minister Trudeau must do due diligence on the investment history of the visiting billionaires … and ensure they are not fronts for Chinese state-owned enterprises. Also, there must be a deep background check on the human rights history of these gentlemen’s businesses.”

China also has a history of using foreign technology to buttress its authoritarian rule, including hardware used to censor the Internet and curb free speech.

Mr. Xu himself has publicly supported government management of the Internet. But asked whether Canadian companies should be wary of exporting savvy to China on human-rights grounds, he demurred. “That’s not something I can talk about,” he said. “I can only promise that any collaboration with Tsinghua Holdings will certainly be used in the marketplace.”

Who’s who in the entrepreneur club

Jiang Xipei

Chief executive officer of Far East Holding Group Co. Ltd., which built an empire on electrical cables, becoming China’s top manufacturer for 18 straight years. It has expanded into pharmaceuticals, the Internet of Things and smart cities. On the Hurun list of China’s richest, ranked No. 358 last year, worth $1.4-billion (U.S.).

Ma Weihua

President and CEO of China Merchants Bank from 1999 to 2013, a time when it expanded from a single location to 900, growing to 50,000 employees in China and listing it on the Shanghai and Hong Kong stock exchanges. China Merchants Bank is today among the world’s top 100, and Mr. Ma has been called one of China’s “most innovative bankers.”

Wang Chaoyong

Founding chairman and CEO of ChinaEquity Group Inc., a venture capital and private equity firm that has invested in Chinese success stories like Baidu, Sohu and Huayi Brothers, as well as international brands like Aston Martin. Its equity value exceeds $3-billion, and last year, Mr. Wang reached No. 793 on the Hurun China rich list, worth $750-million.

Wang Ruoxiong

Chairman of Tentimes Group. Co. Ltd., a property development firm that has been a leader in branding and green housing. No. 947 on last year’s Hurun China list, worth $630-million. A villa he owns has been named one of China’s top-10 luxury homes. In recent years, he has become an outspoken Christian executive. “I am merely a housekeeper of Jesus, assisting him in taking care of the company,” he told the BBC.

Feng Jun

Chairman of aigo Digital Technology Co Ltd. He got his start selling computer keyboards at a tiny profit, and built his company into a major manufacturer of digital cameras, USB flash drives and music players. Corporate revenues of nearly $400-million a year.

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Solar Brokers Canada Selects Sungevity as Solutions Provider in U.S. Expansion – Business Wire (press release)

OAKLAND, Calif. & TORONTO–(BUSINESS WIRE)–Sungevity, Inc., a technology-driven solutions provider offering high service levels and a broad range of options to residential and commercial solar energy customers, and Solar Brokers Canada, Canada’s largest solar energy reseller generating over 12 MW of business in 2015 throughout the Canadian market, today announced a partnership to market Sungevity Energy Systems to prospective residential customers in the Unites States. Enabled by Sungevity’s industry-leading software technology platform and actively commencing in October 2016, the partnership will cover the U.S. states in which Sungevity currently services residential customers, with an initial focus on California, the nation’s leading state in solar adoption. The deal between Sungevity and Solar Brokers Canada, which will operate as Solar Brokers America in the U.S., links two companies with similar partner-based business models, and who share a mutual focus on providing a high degree of customer service.

“We are excited to continue our rapid growth, and scale our presence in the American solar market,” said J.C. Awwad, Chief Executive Officer, Solar Brokers Canada. “We chose to partner with Sungevity primarily because our complimentary business models create synergy between our two companies. We are confident that this partnership will add value to the marketplace.”

“Our new partnership with Solar Brokers Canada is another proof point that we provide a highly attractive, efficient solution for businesses looking to scale their solar offering,” said Andrew Birch, Chief Executive Officer, Sungevity, Inc. “We are very pleased to join forces with them as they enter the U.S. solar marketplace.”

About Solar Brokers Canada

Solar Brokers Canada Corp. has established itself as an industry leader in the field of residential solar energy solutions in Canada. Having brokered over 12 MW of solar business in 2015, the firm has helped thousands of homeowners adopt solar. Through strategic alliances with top tier partners, Solar Brokers Canada’s focus on quality assurance and project management ensures a professional and industry-compliant installation – every time!

About Sungevity

Sungevity, Inc. is a technology-driven solutions provider, offering high service levels and a broad range of options to residential and commercial solar energy customers. Sungevity’s asset-light business model focuses on value-added in-house services for software platform development, project management and customer experience; this focus is enabled by a strong, scalable network of third-party providers for asset-intensive and/or lower margin provision of hardware, installation services and financing. Sungevity’s disruptive and competitive model delivers greater value directly to customers and, for stockholders, captures immediate financial value at the time of sale. For more information visit www.sungevity.com.

Amazon launches streaming music service, but not in Canada – CBC.ca

Amazon has launched a streaming music service, but similar to its streaming video services it’s not available in Canada yet.

Starting today, Amazon Music Unlimited will be available to customers in the U.S., bringing its catalog of  ”tens of millions of songs” for $9.99 US a month. The price drops to $7.99 for people who are members of Amazon Prime, the company’s premium service that offers faster delivery times and a growing suite of perks.

Owners of an Amazon Echo smart speaker, meanwhile, can get the service for just $4 a month. Again, that offer doesn’t include Canadians, who are free to pay for Prime membership but don’t get the video and music streaming service that it has come to be synonymous with in the U.S.

Amazon did not reply to a request for comment from CBC News as to if and when the service might be available to Canadians. The company said in a press release it plans to roll out the service in the U.K., Germany and Austria later this year.

The launch comes amid a sea change in the music industry, the streaming side of which is growing quickly. According to data from U.S. ratings firm Nielsen, more than half of people who subscribe to a streaming service do so for an audio service such as Spotify or Rdio— not video, such as Netflix or CraveTV.

Digital downloading is down by almost a quarter, while streaming is up 59 per cent this year compared to last, Nielsen says.

Many streaming services offer similar catalogs of music, which means they are trying to differentiate themselves based on other things, such as ease of use and the ability to work on multiple devices.

“There is definitely room to grow the pie simply because more and more music consumers are choosing this way of accessing their music,” eMarketer analyst Paul Verna said.

When paired with Amazon’s virtual assistant service Alexa, an Echo speaker has voice control and gives the user the ability to search for songs or artists, or even play songs by saying a fragment of the lyrics.

Amazon is using services such as the new Music Unlimited business both as revenue generators but also as a way to get people to sign up for Prime, which might compel them to buy more online. “With Alexa and Echo, Amazon can create a loyal base of users (including its Prime members) who will spend more on its e-commerce website,” research firm Trefis said of the company in a recent note.

Despite the low price for Echo-only subscriptions, Amazon and the labels are likely betting that consumers will be motivated to upgrade so they can listen on more devices, said Ted Cohen, managing partner of TAG Strategic.

“At a certain point you’ll get frustrated and go, ‘Oh, what the heck,’” he said.

French activist Jose Bove allowed to stay in Canada – CanadianBusiness.com

MONTREAL – A member of the European Parliament who opposes the Canada-EU free-trade deal has been allowed to stay in Canada after being threatened with expulsion.

Just a few hours before being scheduled to board an Air France flight out of Montreal on Wednesday, Jose Bove found out about the reprieve from the Canada Border Services Agency.

“I’ve just had the customs supervisor on the phone and he told me ‘there’s been a bit of a U-turn in your file,’” Bove told reporters after a news conference.

Bove, who was to pay $200 for the document that will allow him to stay for seven days, will actually leave the country this Saturday.

“Maybe I will also thank the prime minister (Justin Trudeau), who seems to have understood it wasn’t a good idea to stop me from coming here,” Bove said jokingly.

Earlier, he told the news conference he wanted Trudeau to tell him why he was being kicked out of Canada.

“I feel like asking Mr. Trudeau: ‘What’s got into you? And why do you, someone who always wants to come across as the most open person on the North American continent, accept such a situation?’ It is pretty incongruous.

“Is it because the French prime minister, Mr. (Manuel) Valls, who supports the (EU-Canada) free-trade agreement, arrives in Ottawa today? Is it because you (Trudeau) will be in Europe next week to try to sell the deal?”

Bove was detained for several hours at Pierre Elliott Trudeau International Airport on Tuesday and was allowed to leave the airport on the condition he return Wednesday afternoon.

He says he was told he could not stay in the country because of convictions in France in 2001 and 2002 for incidents in 1999.

One of those incidents targeted a McDonald’s restaurant and the other involved genetically modified organisms.

Bove said he is sure he would have been put on the plane Tuesday night if Air France had another Paris-bound flight.

“If I’m here today (Wednesday)…it’s because there’s only one Air France plane a day going to Paris,” he said. “So thank you Air France for having only one plane.”

Canadian businesses fear Belgium could derail Canada-EU trade deal – The Globe and Mail

A Canadian business group that has been a major proponent of a free trade agreement with Europe fears the accord could be derailed by Belgium at the 11th hour even though the continent’s most powerful leaders are calling it the “good” kind of trade deal.

EU trade ministers vote on Oct. 18 at the European Council on whether to approve the Canada-European Union deal. Belgium’s federal government favours the Comprehensive Economic and Trade Agreement, but needs the backing of the country’s three regions to give its formal approval. Lawmakers in the southern Walloon region say they oppose the pact because they fear a flood of farm imports.

“We remain optimistic about the vote on the 18th but is frustrating that not a week goes by without a member state raising some concern – sometimes seemingly out of nowhere – and the fear is that Europe is not seeing the forest for the trees,” said Jason Langrish, executive director of the Canada Europe Roundtable for Business.

Subscribers: Europe’s trade test: Can its leaders sell the Canada deal?

Globe editorial: It’s tough to win over a couple of dozen EU countries at a time

Other European Union member states, including Austria, Slovenia, Hungary and Romania, have signalled they are uncomfortable with or opposed to the existing Canada-EU deal.

“They are focusing on local interests and not recognizing that if they vote No, this could effectively kill the EU’s trade agenda,” Mr. Langrish, whose organization represents Canadian and European companies. He said he hopes deal-making behind the scenes will temper Belgian opposition.

“It appears there could be some horse trading going on to secure votes, but, yes, we are at the same time concerned, because we need [Belgium’s vote] for the agreement,” Mr. Langrish said.

The Canada-EU deal would eliminate duties on tens of thousands of products, covering more than 95 per cent of everything Canada now sells to Europe, and dismantle many non-tariff barriers to commerce. It would give Canada-based auto assemblers and beef and pork producers significant access to EU markets.

Expert opinion is divided on whether a country such as Belgium will thwart the vote. The European Council’s decisions are usually made by consensus. A Canadian official speaking on background on Tuesday suggested countries could abstain rather than disrupt a consensus.

A spokeswoman for the European Union’s delegation in Canada confirmed on Tuesday the decision will be made on a consensus basis.

The Canadian government is dispatching an envoy to the Walloon region to speak to local government leaders this week. David Lametti, parliamentary secretary to the Minister of International Trade, already in Europe to promote CETA, is journeying to southern Belgium to meet with regional representatives. He met with legislators from Walloon’s parliament in Canada last weekend.

Brussels and Ottawa have long expected to clinch the CETA deal this month. Prime Minister Justin Trudeau is expected to travel to Europe at the end of October to sign it. The three-step approval starts with the EU Council, and continues with a vote by the 751-member European Parliament by late 2016 or early 2017.

Once it passes the EU Parliament, a 2017 implementation date would be set and the agreement would go into effect on what is called a provisional basis. Each country would have to ratify the deal, and the 10 per cent or so of it that is under national purview in each member would come into force after each state issues its own approval.

Asked if it is confident the deal is on track, International Trade Minister Chrystia Freeland’s office said: “Canada is working hard with its European partners so CETA can be signed in October and implemented next year.” It pointed out that Ms. Freeland has been in Europe to talk up the agreement and has twice been to Belgium for meetings with national leaders. The minister also recently visited Austrian Chancellor Christian Kern.

France’s Prime Minister, Manuel Valls, arrives in Canada on Wednesday for meetings with Mr. Trudeau that will include talks on CETA. He expressed optimism, but offered no guarantees.

In an interview with The Globe and Mail, he said France will work to have the deal signed on schedule, along with the EU’s other largest nation, Germany, and the European Commission in Brussels. “Listen, if France and Germany provide the drive, with the European Commission – [European Commission President] Jean-Claude Juncker said it himself again, in the name of the commission – the impetus, in my opinion, will be strong and convincing,” he said.

After Brexit, and a backlash against a planned trade pact between the EU and the United States, France’s government is highlighting the agreement with Canada as a balanced package Europeans can accept.

“We can say there are good agreements – Canada. And there are others that are bad, so we cannot sign those ones,” Mr. Valls said. “But when they are good, when they are useful to both parties, we must move forward.”

In Europe, the political left of Germany and Austria have expressed opposition to investor-state mechanisms that allow companies to sue governments – in particular, raising fears of an agreement that would allow U.S. firms to fight national regulations for the environment or other areas before arbitrators.

Mr. Valls noted that Canada accepted the idea of establishing a public court to handle such matters, and argued that such commitments respond to the concerns expressed in places like Germany and Austria. He also noted Canada agreed to recognize France’s agricultural geographic indicators – the regional labels applied to products like cheese or wine that can only be used by goods from that area – but the United States did not.

With a report from Reuters

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The stock market’s ugly Tuesday nosedive can be explained in one chart – MarketWatch

Brace for impact. U.S. stocks tumbled Tuesday and threatening to book their worst loss in October.

What’s behind the sharp drop in equities?

Was it the lackluster earnings by Alcoa Inc. AA, -11.42% to unofficially kick off the start of earnings season for the third quarter? Or was it a retreat in oil trading CLX6, +0.65% amid lingering concerns about crude producers’ ability to solidify a plan to limit oil production?

While those factors may have contributed to the recent slide, the chart below suggests that the most compelling factor weighing on equities, and for that matter oil, was the steep run-up in the dollar.

Check out: The stock market’s nosedive can be explained in one chart

The ICE U.S. Dollar Index DXY, -0.11% —a gauge of the buck against a basket of six currencies—was up 0.8% in recent trade to 97.6860 on Tuesday. That is the highest level for the gauge in more than 7 months, according to FactSet data. The dollar indicator is up 2.3% so far this month, putting it on track for its best monthly gain since May.

However, the extended rise in the greenback may prove a headwind for major multinational companies that export products overseas, making their products more expensive to buyers using other monetary units. Technology companies, in particular, tend to draw the vast majority of their revenue overseas. Revenues in other currencies can be worth less when converted back into dollars.

As the following chart shows, a strong dollar recently has coincided with the S&P 500 index trading lower.

Source: FactSet

A surging dollar has weighed on stocks.

Expectations that the Federal Reserve might lift interest rates in December, has been at the heart of the recent gains for the buck, as other major global economies wrestle with anemic growth. Higher interest rates also can make currencies, like the dollar, more attractive to currency traders. However a strengthening buck can weigh on commodities priced in the currency and equities.

The S&P 500 index SPX, -1.24%  closed off 1.2% at 2,136, with all of its 11 sectors settling deeply in negative territory, the Dow Jones Industrial Average DJIA, -1.09%  was finished down 1.1% at 18,128, while the Nasdaq Composite Index COMP, -1.54% wrapped up down 1.5% at 5,246, as biotech stocks saw their worst tumble. The iShares Nasdaq Biotechnology ETF IBB, -3.84% sank 3.8% on Tuesday, markings its worst daily loss since June 24, the day after markets were roiled following the U.K.’s surprising vote to secede from the European Union.

Read: MarketWatch’s Market Snapshot

Over the long term, however, the dollar strength has tended to be bullish for stocks because it typically signals that the market is chugging along. A prolonged slump for European and Asian economies may complicate that view.

Yet Another Stock Market Speed Bump Divides Some Top Traders … – Bloomberg

The latest proposal to slow down the U.S. stock market has divided some of the fastest traders.

The Chicago Stock Exchange wants to delay certain kinds of trading, arguing it would make the market fairer by blunting advantages of some speedy traders. Hudson River Trading LLC urged regulators to reject the plan, saying in a letter dated Thursday that it would unfairly boost a subset of traders.

“CHX is proposing to implement a feature that allows it to pick winners and losers,” Adam Nunes, head of business development at New York-based Hudson River, wrote in the letter. “It has no reasonable justification for why it is attempting to discriminate among its market participants, and CHX’s commercial interests should not allow it to unfairly discriminate among its members or to put an undue burden on competition among competing exchanges or among its members.”

In opposing the speed bump, Hudson River split from competitor Virtu Financial Inc., an early cheerleader for CHX’s proposal. The divergence has echoes of a recent controversy over IEX Group Inc., which just opened the Investors Exchange that features a 350-microsecond speed bump on orders. IEX’s approval process generated huge amounts of scorn from critics and praise from supporters. Hudson River opposed IEX applying a speed bump to its exchange, while Virtu said the delay had “no impact” on its own trading strategies.

There’s a crucial difference in the Chicago market’s plan to delay its own market: while IEX slows down all traders, the CHX delay will only apply to traders that “take” liquidity — in other words, only traders attempting to buy or sell against a quote posted on the market.

That selective trait is a problem, Hudson River argued, because it favors trading firms that want to post quotes on the venue. Meanwhile, the firm said, it would make it harder for traders to understand the fair prices of securities, and get in the way of efficient pricing of exchange-traded funds and futures.

Virtu was the first to publicly endorse CHX’s idea, saying that it would encourage market players to post larger orders at better prices on the exchange, because it would scupper “speed arbitrageurs” that race from East Coast exchanges to Chicago to “pick off” quotes.

The Chicago Stock Exchange is one of the smallest U.S. stock exchanges, handling less than 1 percent of nationwide volume, according to data compiled by Bloomberg. It’s also a takeover target. Chongqing Casin Enterprise Group, a China-based firm, is trying to buy it.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE

How the Dow Jones industrial average fared on Tuesday

Stocks closed broadly lower Tuesday, more than erasing the previous day’s gain.

A batch of disappointing company earnings reports sparked the sell-off. Health care companies led the retreat. Materials and technology companies also fell. Energy stocks slumped as crude oil prices declined.

On Tuesday:

The Dow Jones industrial average fell 200.38 points, or 1.1 per cent, to 18,128.66.

The Standard & Poor’s 500 index lost 26.93 points, or 1.2 per cent, to 2,136.73.

The Nasdaq composite dropped 81.89 points, or 1.5 per cent, to 5,246.79.

For the week:

The Dow is down 111.83 points, or 0.6 per cent.

The S&P 500 is down 17.01 points, or 0.8 per cent.

The Nasdaq is down 45.62 points, or 0.9 per cent.

For the year:

The Dow is up 703.63 points, or 4.0 per cent.

The S&P 500 is up 92.79 points, or 4.5 per cent.

The Nasdaq is up 239.38 points, or 4.8 per cent.

Business Highlights


Samsung stops making Galaxy Note 7s as fresh problems emerge

SEOUL, South Korea (AP) — Samsung Electronics said Tuesday that it is discontinuing production of Galaxy Note 7 smartphones permanently, a day after stopping global sales of the ill-fated devices.

The South Korean company said in a regulatory filing that it decided to stop manufacturing Note 7s for the sake of consumer safety.

Samsung is struggling to regain consumer trust after a first round of recalls that prompted criticism both for the faulty devices and for the company’s handling of the problem.


Cash is piling up faster than Warren Buffett can invest it

OMAHA, Neb. (AP) — Warren Buffett has the kind of money problem most people would envy: a growing mountain of cash.

Nearly $73 billion piled up at Berkshire Hathaway by mid-summer, more than Buffett’s conglomerate has ever held before. And the total continues growing every day Buffett doesn’t make a major investment.

Buffett’s options include buying entire businesses, picking up a few million shares of stock or investing more in companies Berkshire already owns.

So far, Buffett appears to be mostly sitting on the cash since January, when Berkshire completed its biggest acquisition in its history, a $32.36 billion deal for aviation parts maker Precision Castparts.


OPEC output rises, complicating cartel’s price-boosting plan

PARIS (AP) — Oil production from OPEC nations hit a record last month, according to an international energy group, highlighting the cartel’s challenge in trimming output to drive up prices.

The International Energy Agency said Tuesday that production from the Organization of the Petroleum Exporting Countries hit a record high in September of 33.64 million barrels a day.

Last month, OPEC agreed to reduce daily output to between 32.5 million and 33 million barrels. The price of crude has gained about 15 per cent since that proclamation.


US stock indexes head sharply lower; oil falls

A batch of disappointing company earnings news helped put investors in a selling mood Tuesday, pulling U.S. stocks sharply lower.

Health care companies led the broad market slide, which more than wiped out gains from the day before. Materials, utilities and technology stocks were among the big decliners. Energy stocks also closed lower as crude oil prices declined.

Several companies, including Alcoa, reported quarterly results that fell short of Wall Street’s expectations. While investors will get to size up earnings from many more companies in coming weeks, the downbeat start to the third-quarter earnings season weighed on the market.


Consumer watchdog structure ruled unconstitutional

WASHINGTON (AP) — The U.S. consumer watchdog agency, enmeshed in partisan politics since its creation after the financial crisis, now has had its structure ruled unconstitutional because it gives too much power to a single agency director.

A federal appeals court ruled Tuesday that the way the Consumer Financial Protection Bureau is organized violates the Constitution’s separation of powers by limiting the president’s ability to remove the director who heads the agency.

The ruling came from a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit. It will not affect the CFPB’s operations, but the president’s power over the director would be expanded.


Electronics retailer hhgregg to close for Thanksgiving

NEW YORK (AP) — Consumer electronics chain hhgregg Inc. has become the latest retailer to take a stand against Thanksgiving shopping and plans to close its doors for the holiday.

The Indianapolis-based chain with 220 stores in 19 states says it’s important for its associates to be home with their families on Thanksgiving. But the retailer also says it makes good business sense too as it’s not getting a huge spike for that day. It noted that its online site will continue to offer lots of deals on Thanksgiving. It will re-open at 7 a.m. on the Friday after the turkey feast.


Alcoa’s 3Q performance misses analysts’ expectations

NEW YORK (AP) — Alcoa, which is posting its last quarterly earnings report before its split, announced softer-than-expected third-quarter results, stung partly by lower alumina prices.

The company also lowered revenue forecasts for some segments of Arconic, which will become the new company.

Alcoa Inc. has been on a long quest to shrink its aluminum-smelting business, which has been hurt by stubbornly low prices. The company is splitting that segment off and creating a new public company to make and sell specialty lightweight products for aerospace, autos and other industries.


McDonald’s: Ronald McDonald keeping a lower profile

NEW YORK (AP) — McDonald’s says Ronald McDonald is keeping a low profile with reports of creepy clown sightings on the rise.

McDonald’s Corp. said Tuesday that it is being “thoughtful in respect to Ronald McDonald’s participation in community events” as a result of the “current climate around clown sightings in communities.” The company did not provide any other details about how often its red-haired mascot makes appearances, and how that will change.

The burger chain’s decision comes after a rash of pranks around the country that have involved eerie clown sightings. The reports have forced police in some areas to respond.


Comcast fined $2.3M to end probe into mischarging customers

NEW YORK (AP) — Government regulators are fining Comcast $2.3 million, saying the cable giant has charged customers for stuff they never ordered, like premium channels or extra cable boxes.

The Federal Communications Commission said the Philadelphia company must clearly ask customers before charging them for new services or equipment and make it easier for customers to fight charges they think are wrong.

Comcast said Tuesday that it’s been working to improve customer service and that the problems uncovered by the FCC stemmed from “isolated errors or customer confusion” rather than intentionally mischarging its 22 million cable-TV subscribers.


St. Jude warns of battery defect in some heart devices

WASHINGTON (AP) — Medical device maker St. Jude Medical is warning doctors and patients about a rare battery defect in some of its implantable heart devices that can cause them to fail much earlier than expected.

The company said Tuesday that two deaths have been linked to the problem and 10 more patients fainted because the devices stopped working.

St. Jude said the batteries should be replaced immediately after patients receive an electronic, vibrating alert from the device. Normally patients have up to three months to have batteries replaced. But the company said a small subset of its heart-shocking defibrillators can fail within 24 hours of the alert.


The Dow Jones industrial average fell 200.38 points, or 1.1 per cent, to 18,128.66. The Standard & Poor’s 500 index lost 26.93 points, or 1.2 per cent, to 2,136.73. The Nasdaq composite index slid 81.89 points, or 1.5 per cent, to 5,246.79.

Benchmark U.S. crude oil lost 56 cents, or 1.1 per cent, to close at $50.79 a barrel in New York. Brent, the international standard, slid 73 cents, or 1.4 per cent, to close at $52.41 a barrel in London. In other energy trading, wholesale gasoline fell a penny to $1.48 a gallon. Heating oil slipped 2 cents to $1.59 a gallon. Natural gas shed 4 cents to $3.24 per 1,000 cubic feet.

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