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LOS ANGELES, July 19 (Reuters) - Streaming video pioneer Netflix (NFLX.O) disappointed Wall Street on Wednesday with second-quarter revenue that fell short of analyst estimates, sending shares tumbling nearly 9% in after-hours trading. Netflix has been looking for new ways to make money as streaming competition intensifies and it nears market saturation in the United States. Its nearly 6 million subscriber additions outpaced the 1.9 million that Wall Street expected. Quarterly revenue climbed 2.7% from a year earlier to $8.2 billion, shy of analyst forecasts of $8.3 billion. Netflix said its advertising tier remained a small part of its membership base and that current ad revenue is not material.

Persons: we’ve, Craig Huber, Huber, We've, Spencer Neumann, Jeffrey Wlodarczak, Ted Sarandos, Sarandos, Lisa Richwine, Dawn Chmielewski, Yuvraj Malik, Deepa Babington, Chris Reese Organizations: Netflix, Refinitiv, Huber Research Partners, Research, Thomson Locations: ANGELES, United States, Los Angeles, Bengaluru

☆ Netflix quarterly revenue falls short of forecasts, shares drop
▼ + stars: | 2023-07-19 | by ( Lisa Richwine | ) www.reuters.com time to read: +2 min

The company said it expected revenue growth to accelerate in the second half of the year. Netflix said it planned to kick-start revenue growth by "creating a steady drumbeat of must watch shows and movies; improving monetization; growing the enjoyment of our games; and investing to improve our service for members." The company reported diluted earnings-per-share of $3.29 for the second quarter, ahead of the $2.86 consensus forecast of analysts surveyed by Refinitiv. Its nearly 6 million subscriber additions outpaced the 1.9 million that Wall Street expected. Quarterly revenue climbed 2.7% from a year earlier to $8.2 billion, shy of analyst forecasts of $8.3 billion.

Persons: we’ve, Lisa Richwine, Deepa Babington Organizations: Netflix Inc, Netflix, Refinitiv, Thomson Locations: ANGELES, United States

☆ US opens special probe into fatal Tesla crash
▼ + stars: | 2023-07-18 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

[1/2] Tesla Model 3 vehicles are shown for sale at a Tesla facility in Long Beach, California, U.S., May 22, 2023. Since 2016, the U.S. auto safety regulator has opened more than three dozen Tesla special crash investigations in cases where systems such as Autopilot were suspected of being used, with 22 crash deaths reported through Tuesday. The Tesla driver suffered serious injuries and two other Tesla passengers suffered moderate injuries. A local California fire department said a Tesla struck one of its fire trucks and that the Tesla driver was pronounced dead at the scene. The other investigation in March involves a 2022 Tesla Model Y that struck and seriously injured a 17-year-old student who got off a school bus in North Carolina.

Persons: Mike Blake WASHINGTON, Tesla, David Shepardson, Doina Chiacu, Chizu Nomiyama, Deepa Babington Organizations: Tesla, REUTERS, Traffic Safety Administration, Subaru Impreza, Patrol, Subaru, California Highway Patrol, NHTSA, Thomson Locations: Long Beach , California, U.S, California, South Lake, Contra Costa County , California, North Carolina

☆ Global shares rise, dollar rebounds as Fed seen on target for rate hike
▼ + stars: | 2023-07-18 | by ( Herbert Lash | ) www.reuters.com time to read: +4 min

Retail sales increased 0.2% last month, the U.S. Commerce Department said, but core retail sales increased 0.6%, excluding automobiles, gasoline, building materials and food services. Headline data for May also was revised higher to show sales gaining 0.5% instead of 0.3% as previously reported. Asian stocks fell earlier in the session as markets caught up with growth data from Monday showing the post-pandemic bounce in China's economy was over. Besides the Fed, the European Central Bank and the Bank of Japan also hold policy meetings next week. Expectations that the Fed and the ECB will diverge on rate hikes have caused the dollar to weaken recently.

Persons: Brendan McDermid, Morgan Stanley, Jimmy Chang, Chang, J.P, Morgan, Fiona Cincotta, DAX, Brent, Herbert Lash, Elizabeth Howcroft, Selina Li, Chizu Nomiyama, Jonathan Oatis, Deepa Babington Organizations: New York Stock Exchange, REUTERS, Bank, Federal, Bank of America, U.S . Commerce Department, Rockefeller, Dow Jones, Nasdaq, Deutsche Bank, Citigroup, Fed, European Central Bank, Bank of, ECB, U.S, West Texas, Thomson Locations: New York City, U.S, New York, Europe, China, Germany, Bank of Japan, London, Hong Kong

Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company last October. A similar lawsuit was filed last week in California federal court claiming Twitter owes ex-employees more than $500 million in severance. Woodfield also claims that Twitter targeted him to be laid off because he is an "older worker," though the complaint does not state his age. According to the lawsuit, Woodfield signed an agreement to arbitrate work-related legal disputes that requires Twitter to pay the initial fees to allow individual cases to proceed. But Woodfield claims Twitter has refused to pay the fee in his case, blocking it from going forward.

Persons: Chris Woodfield, Musk, Twitter, Woodfield, Daniel Wiessner, Alexia Garamfalvi, Deepa Babington Organizations: Twitter, Elon, Thomson Locations: Delaware, Seattle, California, Albany , New York

☆ European official: EU likely to keep missile sanctions on Iran
▼ + stars: | 2023-07-18 | by ( Arshad Mohammed | ) www.reuters.com time to read: +3 min

WASHINGTON, July 18 (Reuters) - A European official on Tuesday said he expected no difficulty persuading EU nations to maintain ballistic missile sanctions on Iran that are due to expire in October. The official, who spoke on condition of anonymity, also said he sees a window of opportunity by the end of 2023 to try to negotiate a de-escalatory nuclear deal with Iran. In June, sources told Reuters that European diplomats had informed Iran they planned to retain EU ballistic missile sanctions set to expire in October under the nuclear deal, a step they said could provoke Iranian retaliation. Keeping the EU sanctions would reflect Western efforts to prevent Iran from developing nuclear weapons and the means to deliver them despite the collapse of the 2015 deal, which then-U.S. President Donald Trump abandoned in 2018. Asked if Britain, France and Germany, which were parties to the 2015 deal, had convinced the rest of EU to keep the ballistic missile sanctions, the European official replied: "It's nearly agreed.

Persons: Donald Trump, It's, Joe Biden's, Arshad Mohammed, Paul Grant, Tim Ahmann, Deepa Babington Organizations: Reuters, EU, Thomson Locations: Iran, Washington, Tehran, U.S, Ukraine, Russia, United States, Britain, France, Germany, EU, China

☆ White House blasts RFK Jr for 'antisemitic conspiracy theories'
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +2 min

White House press secretary Karine Jean-Pierre joined a chorus of Democratic outrage at the comments from the 69-year-old son of Senator Robert F. Kennedy, a member of the Kennedy political dynasty who was assassinated while running for the Democratic presidential nomination in 1968. Robert F. Kennedy Jr. is a candidate for the Democratic presidential nomination in 2024, putting him directly in competition with Biden, who is seeking a second four-year term. Democratic presidential candidate Robert F. Kennedy Jr. waves to the audience after delivering a foreign policy speech at St. Anselm College in Manchester, New Hampshire, U.S., June 20, 2023. Every aspect of these comments reflect some of the most abhorrent antisemitic conspiracy theories throughout history and contributes to today's dangerous rise of antisemitism," Jean-Pierre said. The New York Post on Saturday published a video that appeared to show Kennedy speaking at a dinner in Manhattan.

Persons: Joe Biden's, Robert F, Kennedy Jr, Karine Jean, Pierre, Kennedy, Biden, Brian Snyder, COVID, Jean, Pierre said, Trevor Hunnicutt, Steve Holland, Heather Timmons, Deepa Babington Organizations: Democratic, Anselm College, REUTERS, The New York, Twitter, Thomson Locations: Manchester , New Hampshire, U.S, Manhattan

☆ Angelo Mozilo, Countrywide Financial's former CEO, dies at 84
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +1 min

July 17 (Reuters) - Angelo Mozilo, who propelled Countrywide Financial Corp into the largest U.S. mortgage lender before its crash in the 2008 financial crisis, has died, his family foundation said. Mozilo, 84, died of natural causes, the foundation said in a statement on Sunday. In 2006, when Mozilo was the chief of the mortgage lender Countrywide Financial, the firm originated $461 billion worth of loans -- close to $41 billion of which were subprime. Subprime loans were responsible for the global financial crisis. Mozilo had defended himself several times against accusations that he was a key architect of the 2007-2009 financial crisis.

Persons: Angelo Mozilo, Mozilo, Conde Nast, Shubhendu Deshmukh, Nupur Anand, Franklin Paul, Deepa Babington Organizations: Countrywide Financial Corp, Countrywide Financial, Bank of America, Bloomberg, Thomson Locations: Bronx, United States, Bengaluru, New York

☆ US stocks rise on earnings outlook, global shares dip on China data
▼ + stars: | 2023-07-17 | by ( Herbert Lash | ) www.reuters.com time to read: +5 min

[1/2] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023. The tech-heavy Nasdaq led U.S. stocks higher, supported by megacap growth stocks including Apple, Nvidia and Tesla, ahead of quarterly results from industry heavyweights later this week. Second-quarter earnings are expected to decline 8.1%, according to Refinitiv data, down further than the 5.7% decline expected at the start of the month. Data on U.S. retail sales are expected to show a rise of 0.3% ex-autos, continuing the slower trend but solid enough to fit into the market's soft-landing theme. Futures are pricing in an additional 32 basis points of tightening this year, with the benchmark rate expected to peak at 5.40% in November.

Persons: Brendan McDermid, Morgan Stanley, Goldman, it's, Anthony Saglimbene, James Ragan, Brent, Herbert Lash, Karen Brettell, Amanda Cooper, Wayne Cole, Lincoln, Christina Fincher, Barbara Lewis, Deepa Babington Organizations: New York Stock Exchange, REUTERS, Wall, Nasdaq, Apple, Nvidia, Tesla, Tesla Inc, Bank of America Corp, Goldman Sachs Group Inc, Netflix Inc, Dow Jones, Fed, Treasury, Reuters Graphics Oil, Thomson Locations: New York City, U.S, China, Troy , Michigan, Davidson, Seattle, Europe, New York, London, Sydney

☆ Exclusive: Head of engineering for Trump’s Truth Social app resigns
▼ + stars: | 2023-07-17 | by ( Helen Coster | ) www.reuters.com time to read: +2 min

NEW YORK, July 17 (Reuters) - The head of engineering for the company that operates former U.S. President Donald Trump’s Truth Social app told Reuters on Monday he had resigned, in a blow for the venture. Gleason is the founder of Soapbox Technology, which provides open-source technology for “decentralized” social media platforms that operate on independently-run servers and provide an alternative to Twitter and Facebook. TMTG hired Gleason in January 2022 to adapt Soapbox’s technology for its own needs, eventually using it as the front-end technology - which users see and interact with - for the Truth Social app. Truth Social has struggled to show strong growth in the number of users since its February 2022 launch. Truth Social has an estimated 607,000 monthly users, according to data from Similarweb.

Persons: Donald Trump’s, Alex Gleason’s, Gleason, TMTG, Trump, DWAC, Helen Coster, Deepa Babington Organizations: YORK, Trump Media & Technology, Trump, U.S, Capitol, Twitter, Facebook, Social, Similarweb, Justice Department, Securities and Exchange Commission, Thomson

Potential buyers and sellers are also being deterred by the long wait for deal approvals by regulators, the experts said. The uncertainty over capital rules has created a "chilling effect" that could put a lid on mergers, while rising interest rates and a looming economic downturn could also damp activity, Adams said. That compares to $3.9 billion in bank deals for non-stressed institutions, the lowest seen over the first half of a year since 2010. "Instead of evaluating mergers based on competition and the needs of the community, political factors have become too important," she said. Regional banks will "have incentives to merge and reach larger scale since they will be subject to more regulatory scrutiny and capital,” Johnson said.

Persons: ”, Timothy Adams, Adams, Michael Barr, “, Meg Tahyar, Davis Polk, Janet Yellen, Tim Johnson, ” Johnson, Tatiana Bautzer, Saeed Azhar, Nupur Anand, Pete Schroeder, Lananh Nguyen, Deepa Babington Organizations: YORK, Institute of International Finance, Global, Federal, Treasury, Dominion Bank, First, KPMG, Thomson Locations: U.S, Canada's Toronto

Analysts at Citigroup and JPMorgan both lowered their recommendations on AT&T shares in recent days. The shares hit a low of $13.68 in Monday's session, the lowest since March 1993. "We have not seen, nor have regulators identified, evidence that legacy lead-sheathed telecom cables are a leading cause of lead exposure or the cause of a public health issue,” a U.S. Telecoms spokesperson said in a statement. Shares of Verizon were also down on Monday, falling 5.5% to $32.14, a nearly 13-year low. Reporting by Chibuike Oguh in New York; Editing by Lance Tupper and Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

Persons: Michael Rollins, Rollins, ”, Philip Cusick, Michael Hodel, Chibuike Oguh, Lance Tupper, Deepa Babington Organizations: YORK, T Inc, U.S, Verizon, Citigroup, JPMorgan, U.S ., Citi, U.S . Telecom, Morningstar, Thomson Locations: U.S, New York

☆ Telecoms contractor QualTek emerges from bankruptcy
▼ + stars: | 2023-07-14 | by ( ) www.reuters.com time to read: +1 min

July 14 (Reuters) - Telecommunications and power contractor QualTek Services said on Friday that it has emerged from bankruptcy after it reduced its debt by about $307 million through a restructuring deal. QualTek filed for bankruptcy in May this year armed with a restructuring agreement to cut its debt and provide $40 million of new loans to fund its post-bankruptcy operations. The telecom company will operate as a privately-held company under the ownership of its lenders and management. The company will be led by the existing management team alongside a newly-formed board. Reporting by Lavanya Ahire in Bengaluru, editing by Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

Persons: QualTek, Lavanya, Deepa Babington Organizations: Telecommunications, QualTek Services, Federal Reserve, Thomson Locations: U.S, Bengaluru

It also wants JPMorgan to pay damages to compensate Epstein's victims, pay punitive damages, separate its business and compliance functions, and hire a compliance consultant. The bank also called the U.S. Virgin Islands' arguments for damages "misdirected" and "not well founded." Friday's filing marks the first time the U.S. Virgin Islands has put a dollar figure on its lawsuit. In the U.S. Virgin Islands case, JPMorgan has sought to shift blame. The case is U.S. Virgin Islands v. JPMorgan Chase Bank NA, U.S. District Court, Southern District of New York, No.

Persons: JPMorgan Chase, Jeffrey Epstein's, Epstein, Ariel Smith, Prince Andrew, Ehud Barak, Ghislaine Maxwell, Cecile de Jongh, Jes Staley, Staley, Jonathan Stempel, Nupur Anand, Luc Cohen, Jonathan Oatis, Deepa Babington Organizations: YORK, U.S . Virgin, JPMorgan, Virgin Islands, U.S . Virgin Islands, Deutsche Bank, U.S ., Barclays, Virgin, JPMorgan Chase Bank NA, U.S, Court, Southern District of, Thomson Locations: U.S, Manhattan, U.S . Virgin Islands, British, Southern District, Southern District of New York, New York

☆ Colombian children who survived five weeks in jungle released from hospital
▼ + stars: | 2023-07-14 | by ( ) www.reuters.com time to read: +1 min

BOGOTA, July 14 (Reuters) - Four Colombian Indigenous children who survived a plane crash in the country's Amazon region and lived for more than five weeks in the jungle have been released from hospital after a 34-day stay, the government said on Friday. The children, aged 1 through 13, survived the May 1 crash that killed their mother and two other adults and were found last month. The Indigenous children's knowledge of the jungle, as well as the eldest sister's courage, have been credited by officials with saving their lives. "They have recovered size and weight, really they are very well," Astrid Caceres, the director of the country's child welfare institute, told journalists. Both the father of the two youngest children and their mother's family have told media they want custody.

Persons: Astrid Caceres, Caceres, Carlos Vargas, Julia Symmes Cobb, Deepa Babington Organizations: Thomson Locations: BOGOTA, Colombian

Disney wants Judge Margaret Schreiber in Orlando to dismiss a lawsuit filed in May by the Central Florida Tourism Oversight District, which controls development around the company's theme parks. The lawsuit seeks to void "backroom deals" favorable to Disney that the district alleges were struck with a prior district board and in violation of state law. Lawmakers also retroactively invalidated agreements that Disney reached with the prior board on the eve of it being brought under DeSantis's control. Such a ruling would allow the company to focus on its federal case, which claims DeSantis violated the company's constitutional right to free speech. "If Disney's contracts are void, nearly all of Disney's claims in the federal case disappear," the district said in a court filing.

Persons: Octavio Jones, Ron DeSantis, Margaret Schreiber, DeSantis, Disney, Lawmakers, Tom Hals, Deepa Babington Organizations: Walt Disney, REUTERS, Walt, Co, Walt Disney Co, Disney, Central, Republican, Improvement, Thomson Locations: Orlando , Florida, U.S, WILMINGTON , Delaware, Florida, Orlando, Central Florida, Wilmington , Delaware

☆ Wall St ends up, extends recent gains on cooling US inflation
▼ + stars: | 2023-07-13 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +4 min

Wednesday's CPI report showed U.S. consumer prices registered their smallest annual increase in more than two years. The reports have helped to support the view the Federal Reserve will stop hiking rates after an expected 25 basis points rate increase later this month. Technology-related shares provided the most support to the S&P 500, and an index of tech-focused shares including megacaps (.NYFANG) gained 2.7% and registered a record high close. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 7, 2023. The S&P 500 posted 51 new 52-week highs and one new low; the Nasdaq Composite recorded 135 new highs and 39 new lows.

Persons: Mona Mahajan, Edward Jones, Brendan McDermid, JPMorgan Chase, Alan Lancz, Alan B, Bard, Caroline Valetkevitch, Johann M Cherian, Sinead Carew, Shashwat Chauhan, Saumyadeb Chakrabarty, Maju Samuel, Deepa Babington Organizations: Dow, Nasdaq, Federal Reserve, PPI, . Technology, Dow Jones, Nvidia, New York Stock Exchange, REUTERS, JPMorgan, Lancz, Associates Inc, Air Lines, PepsiCo, Google, Inc, U.S, NYSE, Thomson Locations: U.S, Philadelphia, New York City, Toledo , Ohio, Europe, Brazil, Bengaluru, New York

☆ Wall St ends up, extends recent gains after producer prices data
▼ + stars: | 2023-07-13 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Wednesday's CPI report showed U.S. consumer prices registered their smallest annual increase in more than two years. The reports have helped to support the view the Federal Reserve will stop hiking rates after an expected 25 basis points rate increase later this month. "PPI is another confirmation this week that inflation continues to trend in the right direction even as we see better overall labor market and consumer data. According to preliminary data, the S&P 500 (.SPX) gained 37.73 points, or 0.84%, to end at 4,509.89 points, while the Nasdaq Composite (.IXIC) gained 219.35 points, or 1.58%, to 14,138.31. Delta Air Lines (DAL.N) shares gained after it lifted its full-year profit outlook following stronger-than-expected second-quarter earnings on a relentless post-pandemic travel boom.

Persons: Mona Mahajan, Edward Jones, JPMorgan Chase, Alan Lancz, Alan B, Bard, Caroline Valetkevitch, Johann M Cherian, Sinead Carew, Shashwat Chauhan, Saumyadeb Chakrabarty, Maju Samuel, Deepa Babington Organizations: Delta Air Lines, Federal Reserve, PPI, Nasdaq, Dow Jones, Nvidia, JPMorgan, Lancz, Associates Inc, Air Lines, PepsiCo, Google, Inc, Thomson Locations: Philadelphia, Toledo , Ohio, Europe, Brazil, Bengaluru, New York

☆ Strike at Canada's Pacific ports ends with tentative, 4-year deal
▼ + stars: | 2023-07-13 | by ( Chris Helgren | ) www.reuters.com time to read: +3 min

[1/5] Union members with the International Longshore and Warehouse Union Canada (ILWU) remove strike signs from a picket line outside the despatch hall in Vancouver, British Columbia, Canada July 13, 2023. REUTERS/Chris HelgrenVANCOUVER, British Columbia, July 13 (Reuters) - Dock workers at ports along Canada's Pacific coast and their employers accepted a tentative wage deal on Thursday, ending a 13-day strike that disrupted trade at the country's busiest ports and risked worsening inflation. "The British Columbia Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union (ILWU) Canada are pleased to advise that the parties have reached a tentative agreement on a new 4-year deal," the BCMEA said in a statement. The union had made demands including wage increases and expansion of their jurisdiction to regular maintenance work on terminals. He offered terms drafted by a federal mediator and gave the union and employers 24 hours to decide if they were satisfied.

Persons: Chris Helgren, of Prince Rupert, Seamus O'Regan, Omar Alghabra, O'Regan, Ismail Shakil, Steve Scherer, Deepa Babington, Alexandra Hudson Organizations: Warehouse Union, REUTERS, British Columbia Maritime Employers Association, Bank of Canada, Labour, Port, Canadian Federation of Independent Business, Canadian Manufacturers, Alexandra Hudson Our, Thomson, & ' $ Locations: Vancouver , British Columbia, Canada, Chris Helgren VANCOUVER, British Columbia, British, Port of Vancouver, of, Vancouver, Ottawa

The U.S. Securities and Exchange Commission (SEC) had accused Ripple Labs and its current and former chief executives of selling unregistered securities when conducting a $1.3 billion offering for XRP, which was created in 2012. Shares in Coinbase, which is also embroiled in litigation with the SEC over its trading of crypto tokens, surged 24.5% on Thursday following the decision, finishing at $107. Coinbase said it would allow trading of the XRP token again on its platform in line with the court ruling. Bitcoin , the world's largest cryptocurrency, was last up 4.1% at 31,584 while Ethereum , the world's second-largest cryptocurrency, rose 6.43% to $1,993.3. Reporting by Chibuike Oguh in New York; editing by Michelle Price and Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

Persons: Coinbase, We've, Analisa, Torres, Paul Grewal, Chibuike Oguh, Michelle Price, Deepa Babington Organizations: YORK, Coinbase Global Inc, Ripple Labs, U.S . Securities, Exchange Commission, SEC, Labs, Inc, Marathon Digital Holdings Inc, Microstrategy Inc, Mining Corp, Twitter, Thomson Locations: U.S, Coinbase, New York

☆ In rare UN appearance, North Korea defends missile launch
▼ + stars: | 2023-07-13 | by ( Michelle Nichols | ) www.reuters.com time to read: +4 min

[1/3] Hwasong-18 intercontinental ballistic missile is launched from an undisclosed location in North Korea in this image released by North Korea's Korean Central News Agency on July 13, 2023. The 15-member Security Council met after North Korea said it tested on Wednesday its latest Hwasong-18 ICBM, adding the weapon is the core of its nuclear strike force. "We categorically reject and condemn the convening of the Security Council briefing by the United States and its followers," North Korea's U.N. North Korea last spoke at a council meeting on its nuclear and ballistic missile programs in December 2017, diplomats said. North Korea - formally known as the Democratic People's Republic of Korea (DPRK) - has been under U.N. sanctions for its missile and nuclear programs since 2006.

Persons: Kim Song, Jeffrey DeLaurentis, NATO DeLaurentis, Washington, China's U.N, Zhang Jun, Zhang, Michelle Nichols, Mark Porter, Deepa Babington Organizations: North, Korean Central News Agency, KCNA, REUTERS UNITED NATIONS, Security, Democratic People's, U.S, United Nations, NATO, DPRK, Thomson Locations: North Korea, United States, U.N, Korea, Democratic People's Republic of Korea, DPRK, Pyongyang, Russia, China, Britain, France, South Korea, Washington, Beijing, Moscow, emboldening North Korea, CHINA, U.S, NATO, China's

Consumer goods makers say the price hikes are necessary, and that they have taken a hit to margins over the past two years. Some companies such as Clorox (CLX.N) have even begun to ease off the hikes to protect sales volumes as input costs fall. "In the U.S. in particular, these pressures are more acute than in Europe," Janus Henderson portfolio manager Luke Newman told Reuters. U.S. consumer strength has begun weakening, "and that's bad news for the consumer companies," Barclays analyst Iain Simpson said. Still, cost inflation has chipped away at margins, which have broadly fallen 2-4 percentage points over the past two years for the consumer goods industry.

Persons: Janus Henderson, Luke Newman, Newman, Richard Marwood, Robert Klaber, Parnassus, Iain Simpson, Alvarez, Marsal, David Chavern, Stephanie Niven, Niven, Irene Jensen, Jensen, Thomas Joekel, Richa Naidu, Jessica DiNapoli, Matt Scuffham, Deepa Babington Organizations: U.S, Consumer, Reuters, Royal London Asset Management, Investments, Biden, Barclays, Procter, Gamble, Consumer Brands Association, Sustainable Equity Fund, Norges Bank Investment Management, Unilever, Reckitt, Investment, Thomson Locations: Ukraine, U.S, Europe, San Francisco, United States

☆ AI explosion merits regulation to rein in threats, experts say
▼ + stars: | 2023-07-12 | by ( Sheila Dang | ) www.reuters.com time to read: +3 min

We need to do the proper basic maintenance and we need regulation." Regulation is already being prepared in several countries to tackle issues around AI. The European Union's proposed AI Act, for example, would classify AI applications into different risk levels, banning uses considered "unacceptable" and subjecting "high-risk" applications to rigorous assessments. Developing ever-more powerful AI will also risk eliminating jobs to a point where it may be impossible for humans to simply learn new skills and enter other industries. "It seems like the most obvious thing in the world not to put AI into nuclear command and control," he said.

Persons: Michelai Graham, Richard Sonnenblick, Seth Dobrin, Read, Ian Swanson, Dobrin, Anthony Aguirre, –, Sheila Dang, Deepa Babington Organizations: Artificial Intelligence, Protect, Regulators, AI Institute, Life Institute, Thomson Locations: Plainview, Austin, AUSTIN, United States

July 12 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Figures on Tuesday showed surprisingly strong bank lending in June, helped by central bank efforts to support an economy that has struggled to rebound from pandemic restrictions as expected. On a macro level, the U.S. dollar's weakness continues to help fuel the optimism across Asian markets. New Zealand's central bank is expected to keep its cash rate - already at a 14-year high and the highest in the developed world - at 5.50% on Wednesday and leave it there for the rest of the year. But with inflation running well above target, rates markets are leaning toward one more 25 basis point hike by year end.

Persons: Jamie McGeever, Goldman Sachs, Foxconn, Deepa Babington Organizations: Reserve Bank of New, Global, Thomson, Reuters Locations: Asia, U.S, China, Japan, New, Zealand, India

One unit ran a "hackathon," or collaborative engineering event, of so-called generative AI, technology that produces text, images or other new content based on past data. The division, Verafin, was exploring how to imbue such AI into its product for fighting financial crime, he said, adding the technology could create investigative reports. Still, despite using other forms of AI for years, Nasdaq's latest work remains experimental; no code has been published yet drafted by AI, Peterson said. Nasdaq has accessed a preview of Amazon's answer to the generative AI race, namely Amazon Bedrock, a pick-your-preferred technology approach that includes Claude AI from the startup Anthropic. On the longer-term horizon for Nasdaq is integrating the Thoma Bravo-owned software firm Adenza, subject to closure of the $10.5 billion-deal Nasdaq announced last month.

Persons: AUSTIN, Brad Peterson, Verafin, Peterson, We're, Nasdaq's, OpenAI, Claude AI, Thoma, Jeffrey Dastin, Kenneth Li, Deepa Babington Organizations: Nasdaq, Computer, Amazon Web Services, Microsoft, Thoma Bravo, Thomson Locations: Austin

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