The daily business briefing: October 16, 2019

1. China slams House over Hong Kong bill

China harshly criticized the U.S. House of Representatives for passing a bill seeking to allow sanctions against anyone who harms Hong Kong's autonomy. China's state news agency Xinhua called the House vote "arrogant and dangerous." Foreign Ministry spokesman Geng Shuang said China would respond with strong measures, accusing the U.S. lawmakers of "sinister intentions to undermine Hong Kong's prosperity and stability and contain China's development." The Hong Kong Human Rights and Democracy Act, which the House approved unanimously on Tuesday, requires the U.S. to review annually Hong Kong's special trade status, which treats the semi-autonomous Chinese territory as a separate entity from mainland China. Hong Kong leader Carrie Lam had to deliver a key policy speech to lawmakers via video after protesters interrupted her.

The Washington Post The Guardian

2. MGM Resorts announces plan to sell Bellagio, Circus Circus

MGM Resorts International on Tuesday announced that it planned to sell its two Las Vegas resorts — Bellagio and Circus Circus — separately in deals worth about $5 billion. Blackstone Real Estate Income Trust will acquire the Bellagio for $4.25 billion in a sale-leaseback deal with MGM. An affiliate of Treasure Island owner Phil Ruffin will buy Circus Circus Las Vegas For $825 million. MGM plans to use the money from the deals to "build a fortress balance sheet," said CEO Jim Murren. The casino operator also plans to return some capital to shareholders. The deals are expected to close in the fourth quarter.

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Reuters

3. EU, Britain continue last-minute talks as Brexit deadline nears

European stocks struggled early Wednesday as European Union and U.K. negotiators continued last-ditch talks to prevent a disorderly no-deal Brexit ahead of an EU summit scheduled for Thursday and Friday. Despite reports of progress, the two sides remained at odds over a future trade deal, fair competition clauses, and how to handle the border between Northern Ireland, which is part of the U.K., and Ireland, an EU member. The two sides need to reach a proposed deal on Wednesday if it stands any chance of being approved by the EU and British Parliament before Oct. 19, when British Prime Minister Boris Johnson would be legally required to ask the EU to extend the current Oct. 31 Brexit deadline.

CNN CNBC

4. Earnings lift stocks but Brexit concerns dampen mood

U.S. stocks closed up sharply on Tuesday after several major companies, including J.P. Morgan Chase and UnitedHealth, started the earnings season off with better-than-expected quarterly reports. The Dow Jones Industrial Average gained 0.9 percent, while the S&P 500 and the Nasdaq rose by 1 percent and 1.2 percent, respectively. Through Tuesday morning, 29 of the 34 S&P 500 components reporting beat Wall Street's expectations, according to The Earnings Scout data. "The early reporters must not have gotten the memo from market bears stating that we are in an earnings recession," said Nick Raich, CEO of The Earnings Scout. U.S. stock index futures edged down early Wednesday as investors monitored Brexit negotiations ahead of a crucial two-day summit starting Thursday.

CNBC

5. Hong Kong protesters express anger at LeBron James over China remarks

The NBA's business ties with China continued to generate unwanted publicity for the basketball league on Tuesday, as Hong Kong protesters lashed out at Los Angeles Lakers star LeBron James for saying Houston Rockets general manager Daryl Morey "wasn't educated" and hurt people financially when he tweeted support for the semi-autonomous Chinese territory's pro-democracy demonstrations. Morey's tweet damaged relations between China and the NBA, prompting China's state television, CCTV, to cancel plans to broadcast exhibition games played in China last week. Several companies and state-run offices also severed ties with the NBA over the tweet and league Commissioner Adam Silver's response to it, in which he defended Morey's right to free speech.

ESPN