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Japan seen hiking sales tax to 10 percent in October, fourth-quarter GDP to contract: Reuters poll

FILE PHOTO: Girls wearing the yukata, or casual summer kimono, run as they cross the road at a shopping district in Tokyo
FILE PHOTO: Girls wearing the yukata, or casual summer kimono, run as they cross the road at a shopping district in Tokyo, Japan, July 20, 2018. REUTERS/Kim Kyung-Hoon/File Photo

April 12, 2019

By Kaori Kaneko

TOKYO (Reuters) – Japan will forge ahead with a planned sales tax hike to 10 percent in October, likely knocking the economy into contraction in the fourth quarter, a Reuters poll showed.

Tokyo has twice postponed raising the sales tax from 8 percent but Prime Minister Shinzo Abe has repeatedly said the hike will proceed this time.

To blunt its economic impact, the government has earmarked about 2 trillion yen ($18 billion) in spending.

Authorities say the move is needed to cover growing social welfare costs as the population rapidly ages.

Forty of 41 economists expect the levy will be raised as scheduled, according to the poll, which was conducted April 2-11.

“There are no reasons to postpone the tax hike at the moment,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

He pointed out the 2014 tax increase, from 5 percent to 8 percent, was larger and said the government’s proposed steps to cushion the blow are “significant.”

Still, there is speculation Abe may delay the hike a third time even if Japan isn’t hit by a major economic blow, as was the case in 2016, when he postponed it a second time.

At that time, Abe laid the groundwork for the delay at a Group of Seven summit, insisting fellow leaders shared a “strong sense of crisis” about the global economy. Other G7 leaders seemed to differ with Abe on this assessment, fueling commentary Abe was using the G7 summit to justify the delay.

Given that history, about half the economists — even those who predicted the hike will proceed — said there is a possibility Abe may decide postpone it again. Asked if it might be delayed even without an economic shock, 18 of 37 analysts said “yes,” while 19 answered “no.”

Asked if the government will need to compile an extra budget for this fiscal year started in April to shore up the economy, 22 of 38 analysts answered “no” and 16 said “yes.”

“The government has already adopted enough steps to soften pains from the tax hike, so there is no need to compile additional spending,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

BOJ OUTLOOK

Meanwhile, more than half of economists polled — 24 of 40 — said the Bank of Japan’s next step will be to start normalizing its super-loose monetary policy. But 16 economists projected the BOJ will ease further.

That compares with 29 and 10, respectively, in the March survey.

Many forecast the BOJ will likely retain its current monetary policy framework for at least the rest of the year.

“We expect the BOJ will escape the situation where it has to ease policy,” said Atsushi Takeda, chief economist at Itochu Research Institute. “But the central bank will keep its current pace of easing as there are no signs that inflation will reach the BOJ’s 2 percent target.”

But Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, says the BOJ will be forced to ease further.

“The United States is expected to worsen from around late 2019, which will drag down the global economy.”

The economists predicted Japan’s core consumer price index, which includes oil products but not fresh foods, will rise to 0.7 percent for fiscal 2019, which started April 1, and to 0.8 percent the next fiscal year.

They also forecast the economy contracted at an annualized rate of 0.2 percent last quarter amid weak foreign demand for Japanese products.

It will shrink again by an annualized rate of 2.0 percent in the October-December quarter due to the planned sales tax hike, the poll showed. Only one economist predicted growth that quarter.

But the economy is expected to muster modest growth of 0.5 percent this fiscal year and 0.6 percent for the next, little changed from last month’s poll.

(Reporting by Kaori Kaneko; polling by Khushboo Mittal; Editing by Malcolm Foster and Ross Finley)

Source: OANN

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Geraldo Rivera: Closing the southern border would be ‘enormously disruptive’

Fox News correspondent-at-large Geraldo Rivera warned Monday that President Donald Trump's threat to close the southern border would bring “even more chaos than we have now.”

“I think there needs to be a summit right now between the president of the United States, the president of the Republic of Mexico, and of the affected Central American nations you have cited; Guatemala, El Salvador, Honduras," Rivera said on “Fox & Friends” Monday. "They have got to get them in the same room and say ‘listen, you have a responsibility to your own citizens. This is not the answer to your problems. You can’t send all of your problems to us.'"

Rivera added, “I just urge prudence when it comes to these harshest blows. Closing the border will affect so many innocent people, so many legitimate legal people that I don’t think it’s worth it.”

The president repeatedly threatened last week to take action at the border and claimed that Mexico wasn’t doing anything to help prevent “the flow of illegal immigrants to our Country.” He also accused multiple Central American nations of doing “nothing.”

“The Democrats are allowing a ridiculous asylum system and major loopholes to remain as a mainstay of our immigration system. Mexico is likewise doing NOTHING, a very bad combination for our Country. Homeland Security is being sooo very nice, but not for long!” the president tweeted on Monday.

Making good on a longstanding threat, President Trump moved over the weekend to cut direct aid to El Salvador, Guatemala and Honduras, whose citizens are fleeing north and overwhelming U.S. resources -- including as part of organized caravans that the White House has warned may eventually lead to the closure of the entire southern border with Mexico.

"Mexico is doing NOTHING to help stop the flow of illegal immigrants to our Country. They are all talk and no action. Likewise, Honduras, Guatemala and El Salvador have taken our money for years, and do Nothing. The Dems don’t care, such BAD laws. May close the Southern Border!" the president tweeted last Thursday.

The dramatic step to cut aid to Central American countries comes just days after Mexican Interior Secretary Olga Sanchez Cordero warned ominously that "the mother of all caravans" could be coming soon from the three nations.

Last December, the U.S. pledged more than $10 billion in aid to Central America and Mexico to help keep migrants stay put.

TRUMP CONDEMNS 'WEAK' US IMMIGRATION LAWS, REITERATES THREAT TO 'CLOSE THE BORDER'

“Right now we have a crisis at our southern border,” former Homeland Security Secretary Jeh Johnson said Saturday.

“According to the commissioner of CBP, there were 4,000 apprehensions in one day alone this past week and we are on pace for 100,000 apprehensions on our Southern border this month. That is by far a greater number than anything I saw on my watch in my three years as secretary of homeland security,” said Johnson, who worked in the Obama administration.

Rivera said Johnson “is right” and agreed that there is a crisis at the border. Rivera then described what he thinks should be done to address the situation.

“It’s easy to be compassionate and it’s easy to be outraged at these scenes,” Rivera said. “But the question is ‘what is the solution?’ The President now has said he’s going to take the draconian step of closing the border, the entire border including the ports of entry. That would be enormously disruptive on both sides of the border, businesses will suffer millions and millions of dollars in lost revenue, I think it would be even more chaos than we have now in terms of cutting off all aid to the affected countries in Central America.”

“I think the key to the border lies in the home countries of these desperate people, desperately poor people, we have to improve the conditions in their country so they don’t make this dangerous trek and flood over our borders, disrupting everything and upsetting everyone,” Rivera continued.

OCASIO-CORTEZ: WE REACTED TO 9/11, SO WHERE'S THE REACTION ON CLIMATE CHANGE? 

Rivera also responded to U.S. Rep. Alexandria Ocasio-Cortez’s appearance on MSNBC Friday, when she discussed the Green New Deal and the dire world she's convinced lies ahead for Americans if climate change is not addressed.

“So this issue is not just about our climate. First and foremost we need to save ourselves. Period. There will be no future for the Bronx. There will be no livable future for generations coming, for any part of this country in a way that is better than the lot that we have today if we don't address this issue urgently and on the scale of the problem,” said Ocasio-Cortez.

The freshman congresswoman also said Hurricane Maria and the devastation caused on Puerto Rico was a sign that climate change problems are “here,” invoking the Sept. 11, 2001, terror attacks and criticizing the government for the lack of response.

“You know that this is here. This is not something that's coming. ... On the events of September 11 2001, thousands of Americans died in one of the largest terrorist attack on U.S. soil. And our national response -- whether we agree with that or not -- our national response was to go to war in one, then eventually two countries. Three thousand Americans died in Puerto Rico in the aftermath of Hurricane Maria. Where’s our response?” Ocasio-Cortez said to loud applause.

“I’m filled with admiration and respect for her (Ocasio-Cortez). I love her exuberance, her youthful exuberance. I love that she talks truth to power. But I covered 9/11. 9/11 changed all of our lives for the worse,” said Rivera in response.

“Hundreds of thousands of lives were affected in a very negative way, people with these diseases and so forth from 9/11. You cannot compare an act of nature, however exuberant your rhetoric, to an intentional mass murder of the American people.”

Rivera then went on to call the circumstances surrounding Hurricane Maria “a fiasco, not so much of the federal aid but of the criminally corrupt local utility that allowed those power poles to rot and hired the worst people.”

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Rivera added, “And so for the congresswoman...we love that she’s a great role model, she is my home girl from the Bronx, three of my grandchildren live in her district. I cannot say enough about how fresh the breeze she has brought. But in this case, her exuberance has gone a step too far. It is insulting to the victims of this terrible mass murder that happened in downtown Manhattan, and in Washington and the field in Pennsylvania. For shame. Let’s control the rhetoric. You are much more effective when your facts match your eloquence,” Rivera said.

The Associated Press contributed to this report.

Source: Fox News Politics

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Deadly Polar Vortex Killed Off Some Insect Species

The polar vortex that dropped subzero temperatures, wind chills and snow on the Midwest and East Coast reportedly did in some bug species.

The bitter cold snap — blamed for at least 21 human deaths — may prove deadly for some harmful, invasive insect species, AccuWeather reported

“While most insects will be equipped to survive a short period of very cold weather, like the recent polar vortex, it’s likely some will die from this extreme weather event,” Brittany Campbell, entomologist with the National Pest Management Association, told the weather news site.

A Virginia Tech research experiment estimated the polar vortex may have killed as much as 95 percent of stink bugs that hadn't found shelter, the entomology association stated in a briefing. Other invasive species in the Northeast, such as the emerald ash borer and southern pine beetle, also aren’t likely to have survived.

"Also, even if adult pests freeze, they may have already laid eggs which will hatch when the weather warms," the organization noted.

Big-city cockroaches and bed bugs probably fared just fine, Campbell told AccuWeather.

“It’s difficult to determine the species that would be most impacted, considering many of the insects in northern regions are equipped to handle freezing temperatures,” she said.

Source: NewsMax America

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FedEx misses earnings estimates, cuts full-year EPS forecast again

FILE PHOTO: Traders work at the post that trades FedEx on the floor of the New York Stock Exchange
FILE PHOTO: Traders work at the post that trades FedEx on the floor of the New York Stock Exchange April 7, 2015. REUTERS/Brendan McDermid

March 19, 2019

(Reuters) – Package delivery company FedEx Corp missed analysts’ estimates for quarterly profit and cut its full-year earnings per share forecast for the second time, citing weaker global trade growth, sending its shares down 5 percent on Tuesday.

The Memphis, Tennessee-based company cut its fiscal 2019 adjusted earnings per share forecast to a range of $15.10 to $15.90, from $15.50 to $16.60 previously.

FedEx, which is seen as a bellwether for the global economy, in December slashed its full-year profit forecast, blaming weak growth in Europe and a cooling Chinese economy due to an ongoing trade war with the United States.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue…,” Chief Financial Officer Alan Graf said in a statement.

The company’s adjusted net income fell to $797 million, or $3.03 per diluted share, in the third quarter ended Feb. 28, from $1.02 billion, or $3.72 per share, a year earlier.

Total revenue rose nearly 3 percent to about $17 billion.

Analysts on average had expected earnings of $3.11 per share and revenue of $17.67 billion, according to IBES data from Refinitiv.

(Reporting by Lisa Baertlein in Los Angeles and Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

Source: OANN

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Exclusive: Loeb’s Third Point building stake to pressure Sony – sources

FILE PHOTO: Loeb, founder of Third Point LLC, participates in a panel discussion during the Skybridge Alternatives Conference in Las Vegas
FILE PHOTO: Daniel S. Loeb, founder of Third Point LLC, participates in a panel discussion during the Skybridge Alternatives (SALT) Conference in Las Vegas, Nevada May 9, 2012. REUTERS/Steve Marcus/File Photo

April 8, 2019

By Svea Herbst-Bayliss and Liana B. Baker

(Reuters) – Daniel Loeb’s hedge fund Third Point LLC is building a stake in Sony Corp to push for changes, the second time in six years it has targeted the Japanese electronics maker, people familiar with the matter said on Monday.

Once a market leader in consumer electronics, Sony is now in the midst of a turnaround effort spearheaded by Kenichiro Yoshida, its chief executive who formerly served at its chief financial officer.

The maker of the iconic Walkman and Trinitron TV fell behind the likes of Apple Inc in innovation after the release of the iPod in 2001 and the iPhone in 2007. Sony over the past decade has reinvented itself as an entertainment company with stable revenue from music content and its video game platform.

Investors are now searching for its next source of growth as Sony’s gaming business shows signs of slowing, with its popular PlayStation 4 (PS4) console nearing the end of its cycle.

Third Point’s amassed stake in Sony thus far could not be learned. The hedge fund, which has about $14.5 billion in assets under management, is raising a dedicated investment vehicle, targeting between $500 million and $1 billion in capital, so it can buy more Sony shares, the sources said.

Third Point wants Sony to explore options for some of its business units, including its movie studio, which the hedge fund believes has attracted takeover interest from the likes of Amazon.com Inc and Netflix Inc, the sources said. The hedge fund also wants clarity on how the semiconductor and insurance divisions fit in with the rest of the company.

The sources asked not to be identified because the matter is confidential. Sony and Third Point declined to comment.

Sony reported lower-than-expected profit in February, dragged down by its previously thriving gaming business, even as a one-off gain related to its acquisition of music publisher EMI pushed the quarterly result to a record high.

Third Point last exited a stake in Sony in 2014 with a roughly 20 percent gain after spending a year and a half pushing for Sony to spin off its entertainment division, writing in a letter to investors that the division “remains poorly managed.”

Later Loeb changed his tune, praising the company for cutting costs at the entertainment division and having made management changes.

(Reporting by Svea Herbst-Bayliss in Boston and Liana B. Baker in New York; Editing by Meredith Mazzilli)

Source: OANN

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Tlaib Calls on Dems to Probe Trump For Impeachable Offenses

Despite the Mueller report summary stating that there was not enough evidence to indict President Donald Trump on collusion with Russia in the 2016 election campaign, Rep. Rashida Tlaib has sent a letter to her Democratic colleagues requesting that they sign a resolution urging the House Judiciary Committee to probe if Trump has committed any impeachable offenses, National Review reported on Tuesday.

The Michigan representative, who previously broke with Democratic leadership in calling for an inquiry specifically aimed at finding out if Trump committed “high crimes and misdemeanors” and vowed to “impeach the mother****r” in her election night speech, said in her letter sent Monday that special counsel Robert Mueller did not adequately explore the possibility of impeachable offenses.

In the letter, obtained by Business Insider, Tlaib wrote that “The actions of President Trump before he was officially sworn in… is currently being investigated by the Southern District of New York and much of it is part of the completed report by... Mueller. However, the most dangerous threat to our democracy is President Trump’s actions since taking the oath of office.”

She then went on to argue that an additional impeachment-focused investigation is needed, because the ongoing Congressional probes looking into Trump’s personal financial history and his family business operations are insufficient.

Tlaib specifically mentioned three areas that should be explored: whether the president’s ongoing ties to his family businesses violates the foreign emoluments clause; whether his hush money payment reimbursements to Michael Cohen violate federal election law; and whether the president obstructed justice by firing former FBI director James Comey.

House Speaker Nancy Pelosi has dismissed the possibility of impeachment without bipartisan support as an divisive move that would prove counter-productive for Democrats in 2020.

Source: NewsMax Politics

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Wells Fargo’s quarterly profit rises 16 percent

FILE PHOTO: A Wells Fargo ATM machine is shown in Los Angeles, California
FILE PHOTO: A Wells Fargo ATM machine is shown in Los Angeles, California, U.S. October 19, 2018. REUTERS/Mike Blake/File Photo

April 12, 2019

(Reuters) – Wells Fargo & Co. reported a 16.4 percent increase in quarterly profit on Friday, as the lender continued to reap the benefits of its aggressive cost-cutting plans.

Net income applicable to common stock rose to $5.51 billion, or $1.20 per share, in the first quarter ended March 31, from $4.73 billion, or 96 cents per share, a year earlier. https://reut.rs/2P8a214

Analysts had expected a profit of $1.09 per share, according to IBES data from Refinitiv, but it was not immediately clear if the numbers were comparable.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila)

Source: OANN

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FILE PHOTO: Customers shop in a Sainsbury's store in Redhill
FILE PHOTO: Customers shop in a Sainsbury’s store in Redhill, Britain, March 27, 2018. REUTERS/Peter Nicholls/File Photo

April 26, 2019

By James Davey

LONDON (Reuters) – With Sainsbury’s dream of creating Britain’s biggest supermarket group in tatters, its chastened CEO Mike Coupe needs to reassure investors he has the plan to arrest a sales decline when he presents annual results next week.

Britain’s competition regulator blocked Sainsbury’s 7.3 billion pound ($9.4 billion) takeover of Walmart’s Asda on Thursday, saying the deal would increase prices. Sainsbury’s shares fell 5 percent and are down 22 percent over the last three months.

For Sainsbury’s fourth quarter to March 9 analysts are on average forecasting a 1.6 percent fall in like-for-like sales, which would follow 1.1 percent decline over the Christmas period.

Monthly industry data from researcher Kantar has also shown Sainsbury’s as the weakest performer of the big four grocers this year and this month it lost its status as Britain’s No. 2 supermarket group by market share to Asda.

While Sainsbury’s has struggled, market leader Tesco has gained momentum, this month reporting a 34 percent jump in full year profit.

Prohibition of the deal was a major blow to Coupe, its architect and Sainsbury’s boss since 2014.

Martin Scicluna became Sainsbury’s chairman last month and when bedded-in may decide that if the group needs a major shake-up it is best carried out by a new leader.

Much will depend on the attitude of 22 percent shareholder the Qatar Investment Authority, which has so far declined to comment, as well as Coupe’s own appetite to continue after 15 years at the group.

THE RIGHT STRATEGY?

Coupe said on Thursday he was confident Sainsbury’s was pursuing the right strategy.

That was a clear indication that Wednesday’s results statement will not include radical changes to the group’s plans, such as a big margin reset — sacrificing profit to drive sales.

However, sources connected to Sainsbury’s said Coupe would likely acknowledge that more needs to be done on prices, so the supermarket business can better compete with its big four rivals – Tesco, Asda and No. 4 Morrisons – as well as German-owned discounters Aldi and Lidl.

Coupe’s strategy is based on differentiating Sainsbury’s food offer, growing its general merchandise, clothing business and bank, while investing in convenience and online channels.

Some analysts believe major change is needed.

HSBC analyst David McCarthy reckons Sainsbury’s needs a margin reset, should allocate more space for core lines and needs to drive better store standards. He said Sainsbury’s might consider closing down space in some of its larger stores and reducing its non-food offer.

For the full 2018-19 year analysts are on average forecasting a pretax profit of 626 million pounds, up from 589 million pounds in 2017-18 – a second straight year of profit growth. A full year dividend of 10.5 pence per share is forecast versus 10.2 pence last time.

Bank and lawyer fees related to the proposed combination with Asda were 17 million pounds in the first half and have reportedly jumped to around 50 million pounds.

(Reporting by James Davey; Editing by Keith Weir)

Source: OANN

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FILE PHOTO: FILE PHOTO: A Canadian dollar coin commonly known as the
FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto, Ontario, Canada, January 23, 2015. REUTERS/Mark Blinch/File Photo/File Photo

April 26, 2019

OTTAWA (Reuters) – Canada posted a budget surplus in the first 11 months of the 2018/19 fiscal year compared to a deficit the year earlier as revenues increased mostly on higher tax incomes, the finance department said on Friday.

The surplus for April-February was C$3.1 billion, compared to a deficit of C$6 billion in the same 2017/18 period. Revenues climbed by 8.5 percent, mainly due to higher tax receipts, while program expenses rose by 4.8 percent.

The surplus for February was C$4.3 billion compared with C$2.8 billion in February 2018. Revenues jumped by 12.2 percent while program expenses posted a more modest 6.9 percent gain.

Last month, the Liberals unveiled their new budget, projecting a C$14.9 billion deficit in 2018/19, with the deficit rising to C$19.8 billion in fiscal 2019/20.

(Reporting by Julie Gordon in Ottawa; Editing by Chizu Nomiyama)

Source: OANN

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President Trump said Friday he would beat Joe Biden “easily” in the 2020 presidential election, suggesting the former vice president could not have enough “energy” to hold the post—taking an apparent swipe at his age.

The president, departing the White House, was asked about Biden’s entrance into the Democratic primary field. Biden announced his presidential bid early Thursday morning, marking his third attempt at the White House.

JOE BIDEN OFFICIALLY LAUNCHES 2020 PRESIDENTIAL BID

“I think we’d beat him easily,” Trump told reporters Friday.

Trump, 72, said he feels “young” and is ready for 2020, and another term for his administration.

“I feel like a young man. I am a young, vibrant man,” Trump said. “I look at Joe, I don’t know about him.”

The president’s comments seemingly were a shot at the age of Biden, who is 76.

BIDEN ENTERS WHITE HOUSE RACE WITHOUT OBAMA’S ENDORSEMENT

“I would never say anyone’s too old,” Trump said. “I know they’re all making me look very young both in terms of age and in terms of energy.”

Biden became the 20th candidate to join the crowded Democratic primary field Thursday. But Biden is not the oldest in the pack. Sen. Bernie Sanders, I-Vt., is 77 and Sen. Elizabeth Warren, D-Mass., is 69.

Should Trump be re-elected, he would be 74 on Jan. 20, 2021—Inauguration Day. Should the presidency go to one of the elder Democrats in the field—Biden would be 78; Sanders would be 79; and Warren would be 71.

Meanwhile, in a wide-ranging interview on “Hannity” Thursday night, Trump dismissed Biden’s candidacy, nicknaming him “Sleepy Joe,” and saying he’s “not the brightest bulb.” Trump also said that while the former vice president has name recognition, he won’t “be able to do the job.”

Source: Fox News Politics

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Venezuela's Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas
Venezuela’s Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas, Venezuela April 8, 2019. REUTERS/Manaure Quintero

April 26, 2019

WASHINGTON (Reuters) – The U.S. Treasury Department on Friday imposed sanctions on Venezuela’s foreign minister and a Venezuelan judge, according to a statement on the department’s website.

Foreign Minister Jorge Arreaza and a judge, Carol Padilla, were targeted over the ongoing crisis in Venezuela, the Treasury Department said, the latest in a list of officials blacklisted by U.S. authorities for their role in President Nicolas Maduro’s government.

(Reporting by Susan Heavey, Makini Brice and Lesley Wroughton; Editing by Chizu Nomiyama)

Source: OANN

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Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of
Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of “Avengers: Endgame” in Los Angeles, California, U.S., April 25, 2019. REUTERS/Mike Blake

April 26, 2019

LOS ANGELES (Reuters) – Marvel Studios superhero spectacle “Avengers: Endgame” hauled in a record $60 million at U.S. and Canadian box offices during its Thursday night debut, distributor Walt Disney Co said.

Global ticket sales for the film about Iron Man, Hulk and other popular characters reached $305 million for the first two days, Disney said.

(Reporting by Lisa Richwine; Editing by Chizu Nomiyama)

Source: OANN

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