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Japan market rally fails to mask Nomura’s woes
  + stars: | 2023-08-01 | by ( ) www.reuters.com   time to read: +2 min
It also powered a near-fivefold increase in pre-tax earnings at the bank’s retail unit from the same period last year. Nomura’s own stock has also benefitted, though its 20% rise this year to a two-year high lags the broader market. And the rally did nothing to fix the abysmal underperformance at its mainstay wholesale division. Revenue at the unit that comprises the volatile investment banking and trading businesses fell 4% to 191 billion yen ($1.3 billion). They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Nomura, Morgan Stanley, Kentaro Okuda, Steve Cohen, Antony Currie, Oliver Taslic Organizations: Reuters, Revenue, Global, Twitter, Sequoia, Thomson Locations: SINGAPORE, India
London CNN —The United Kingdom government has been heavily criticized by Parliament’s Foreign Affairs Committee for underestimating the growth of Russia’s Wagner private mercenary group, despite it posing a major threat to the country’s interests. Wagner “essentially operate like a criminal mafia,” Kearns said in an interview with Sky News Wednesday. Barbara Debout/AFP/Getty Images/FILEIt also criticized the UK government for only beginning to seriously monitor the group after Russia launched its invasion of Ukraine. “It is deeply regrettable that it was not until early 2022 that the Government began to invest greater resource in understanding the Wagner Network, despite Wagner fighters having already conducted military operations in at least seven countries for almost a decade,” read the report. “The Government has not told us anything specific that it is doing to challenge the network’s influence and impunity outside of Ukraine,” the report said.
Persons: Russia’s Wagner, Wagner, , Alicia Kearns, Wagner “, ” Kearns, , Barbara Debout Organizations: London CNN, United, Parliament’s Foreign, , CNN, Sky News, Getty, Government, Wagner Network, European Union Locations: Africa, Europe, Russia, Ukraine, Sudan, Syria, Central African Republic, Libya, Mozambique, Mali, Bangui, AFP, , United States
Dow flags dismal second-half, Q2 profit tumbles
  + stars: | 2023-07-25 | by ( ) www.reuters.com   time to read: +1 min
July 25 (Reuters) - Dow (DOW.N) on Tuesday posted a 70% drop in second-quarter profit on lower product prices and weak sales volumes, while warning that the macroeconomic environment would remain challenging in the second half of the year after. Dow said it was expecting third-quarter net sales in the range of $10.25 billion to $10.75 billion, lower than Wall Street's expectations of $12.37 billion in net sales. Dow's net sales during the quarter fell to $11.4 billion from $15.7 billion, hinting at weak demand for its products that are used in everything from plastics and paints to building materials. Dow posted operating income of 75 cents per share, beating estimates by 5 cents, according to Refinitiv data, aided by its cost-saving efforts. Reporting by Sourasis Bose in Bengaluru; Editing by Savio D'Souza and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.
Persons: Dow, Sourasis Bose, Savio D'Souza, Anil D'Silva Organizations: Dow, Thomson Locations: United States, Europe, China, Bengaluru
Mugabe’s successor, Emmerson Mnangagwa, had promised sweeping political, economic and social reforms. Several opposition activists, journalists and human rights activists have been arrested over the last year, including Job Sikhala, a Parliament member and senior official with the CCC. Obey Shava, a prominent Zimbabwean human rights lawyer who has represented various opposition party supporters facing questionable charges, was violently attacked earlier this month. Human rights group Amnesty International called it a “brutal assault on civic space.”At the same time, government corruption remains a problem in Zimbabwe. Mnangagwa has blamed Western sanctions for the current economic crisis in Zimbabwe, where the annual inflation rate reached 175% in June.
Persons: Robert Mugabe, Zimbabwe’s, Mugabe’s, Emmerson Mnangagwa, , , Joe Biden, ” Biden, Nelson Chamisa, Job Sikhala, Obey, Bill –, Bill, Al Jazee, Mugabe, Morgan Tsvangirai, Mnangagwa, Macky Sall, Felix Tshisekedi, Stephen Chan, ” Chan, Ruben Mbofana, , Mbofana, Leonard Koni, Kudakwashe Regimond Tagwirei, Emmerson Mnangagwa Jr, ” Koni Organizations: U.S . Congress, , ZANU, Citizens Coalition, Amnesty, Movement, Democratic, Mugabe, U.S, Congress, Zimbabwe Democracy, ., U.S . Treasury, Union, Reuters, SOAS University of London Locations: MUTARE, Zimbabwe, Mutare, Rhodesia, U.S, United Kingdom, Canada, Australia, Senegal
'Barbie' dominated at the box office, bringing in $155 million in its opening weekend in the US. Fury of the Gods (from Warner Bros.), with $58 million in domestic box office sales since it premiered on March 17. 3” have so far helped the film collect $359 million in box office sales domestically since it premiered on May 5. “The superhero movie is not the novelty that it used to be,” Shawn Robbins, chief analyst with Boxoffice Pro, said in an interview with CNN. 'Oppenheimer' raked in $80.5 million at the box office in its opening weekend in the US.
Persons: New York CNN —, Barbie, Oppenheimer, , , Greta Gerwig’s “ Barbie, Christopher Nolan’s “ Oppenheimer, Robert Oppenheimer, “ Barbie, “ Oppenheimer, ” Shawn Robbins, don’t, Robbins, “ It’s, we’ve, “ Barbie ”, ” Michael O’Leary, ‘ Barbie ’, ‘ Oppenheimer, Organizations: New, New York CNN, Yankee, Yankees, Kansas City Royals, Warner Bros, Pictures, Universal Studios, Warner Bros ., DC, “ Guardians, Boxoffice, CNN, US, Universal, , Galaxy, DC Comics, Marvel, mojo, , National Association of Theatre Owners Locations: New York, America, New York City, United States
Both Amazon and Alphabet will likely report their lowest-ever growth for the cloud computing business at 9.8% and 24.4%, respectively, according to analysts polled by Refinitiv. Meanwhile Microsoft Intelligent Cloud, home to Azure, is expected to grow at 13.7%, the slowest rate since 2017. The digital ad market recovery will also aid Alphabet, whose Google Search has so far avoided any meaningful market share loss to Microsoft's AI-powered Bing. Alphabet is expected to report 4.5% revenue growth in the April-June period, its best in three quarters. Microsoft and Alphabet will report quarterly results on July 25, Meta on July 26 and Amazon on Aug. 3.
Persons: Lucy Nicholson, Kingsley Crane, Rishi Jaluria, Jaluria, Bernstein, Yuvraj Malik, Aditya Soni, Shounak Dasgupta Organizations: Los Angeles , California U.S, REUTERS, Microsoft, Google, Refinitiv, RBC Capital, Facebook, Meta, BofA Global Research, Thomson Locations: Los Angeles , California, Bengaluru
But Saudi Arabia has weak privacy laws and a track record of persecuting dissidents. They are warning tech giants like Microsoft and Google that they could be forced to hand over private citizen data to Saudi hitmen. Data handed over a silver platterMarwa Fatafta, an analyst with digital rights group Access Now, described Saudi Arabia as a country with a "dismal" human rights record. "Have they really [Google and Microsoft] investigated how they plan to mitigate potential human rights abuses or privacy violations, building such infrastructure?" Countries such as Saudi Arabia, he said, often told companies that "if you want to operate in this country, you've got to keep the data in this country.
Persons: Prince Mohammed bin Salman's, Rewan Al, Haddad, umOfUs, FAYEZ NURELDINE, Fatima al, Salma al, Alan Woodward, you've, James Lynch, Fairsquare, Crown Prince Mohammed, James, Lynch, Prince Mohammed, it's, Woodward Organizations: Microsoft, Google, Service, Saudi, Human Rights Watch, New York Post, Getty, Twitter, Leeds University, University of Surrey, Crown Locations: Saudi Arabia, Wall, Silicon, Riyadh, Saudi, AFP
And when analysts adjust future earnings estimates higher, share prices often move higher as well. And as Sam Burns knows, capitalizing on shifting analyst expectations can be a profitable investing strategy. In an interview with Insider, Burns explained that he's created a system that tracks analysts' estimates heading into earnings season. Stocks in the top 10% of ESS rankings are roughly three times more likely to see higher analyst estimates in the next month than stocks in the bottom 10%. And with those higher estimates often comes higher price movements.
Persons: Sam Burns, Burns, Ohsung Kwon, Kwon, he's, it's, Organizations: Mill, Research, Wall, Bank of America, Big Tech, Fed, Momentum
Prime Minister Rishi Sunak hopes to hold onto power by selling himself as the repairman for a broken Britain. But with inflation still high, debt ballooning and growth sputtering to a halt, economic woes may prove to be Mr. Sunak’s undoing. Mr. Sunak’s challenges could become more difficult on Wednesday when Britain’s inflation rate for June is announced, with analysts saying it could remain above 8 percent. That would put at risk one of the five targets Mr. Sunak set for his government: to halve the inflation rate by the end of 2023. Britain’s annual inflation rate is higher than that of its European neighbors and twice that of the United States.
Persons: Rishi Sunak, Sunak Organizations: Conservative Party Locations: Britain, , United States
They thought Trump was history. But a second term might be different. I’ll predict that anyone who thought the Trump presidency was disastrous — and polling shows that includes many Americans and most citizens of America’s allies — will find Trump 2.0 even more cataclysmic. Trump now has a strong operation in developing meticulous plans for a possible second term. Before the 2020 election, I wondered if Taiwan might survive a second Trump term.
Persons: Frida Ghitis, Joe Biden, Donald Trump, Trump, , , thrall, , Vladimir Putin —, Putin, Biden, Xi Jinping, Hong, Kim Jong Un, reelect Organizations: CNN, Washington Post, Politics, Republican, GOP, Trump, Department of Justice, Capitol, Congress, Republican Party, NATO, Twitter, Facebook, White, America Locations: Netherlands, Europe, South, Ukraine, Russia, Kyiv, Crimea, NATO, Taiwan, Beijing, China, Koreans, North Korean, South Koreans
China's youth unemployment rate hit a new high, and its GDP grew by 6.3% in the second quarter. Analysts polled by Reuters expected China's economy to have grown by 7.3%. After an initial spurt, China's economy is struggling to recover from three years of COVID-19 restrictions. Economists polled by Reuters expected China's GDP to grow by 7.3% during the second quarter of the year. China's economy grew 3% in 2022 and Beijing has set a 5% GDP growth target this year.
Persons: Vishnu Varathan, Varathan Organizations: Reuters, Service, Privacy, Mizuho Bank Locations: Wall, Silicon, China, Beijing
Wall Street's main stock indexes built on Wednesday's sharp gains after data showed that consumer prices rose modestly in June, registering the smallest annual increase in more than two years. Other data on Thursday showed that U.S. producer prices barely rose in June, U.S. jobless claims unexpectedly declined, and Chinese exports dropped. The dollar index slumped to its lowest level since April 2022 on Thursday, as the cooling U.S. inflation bolstered expectations the Fed will rates only once more in 2023, eroding the greenback's yield advantage over peers. The euro was up 0.86% to $1.122, and the Japanese yen strengthened 0.37% versus the greenback at 137.99 per dollar. Oil prices traded near the highest levels in two months on the soft U.S. dollar.
Persons: Yung, Yu Ma, Ma, Brent, Lawrence Delevingne, Huw Jones, Stella Qiu, Chizu Nomiyama, Andrew Heavens, Leslie Adler, Diane Craft Organizations: Treasury, Federal, Dow Jones, Nasdaq, Federal Reserve, Fed, Citigroup, Japan's Nikkei, Monetary Fund, BMO Wealth Management’s, Thomson Locations: Asia, Europe, CHINA, China, Pacific, Japan, Boston, London, Sydney
Interest rate futures showed markets have fully priced in another rate hike from the Federal Open Market Committee (FOMC) later this month, but expectations of any further increases have faded. The softer dollar helped gold prices advance to near one-month highs, while oil prices hovered above $80 a barrel. The MSCI All Country stock index (.MIWD00000PUS) was up 0.5% at 691 points, hitting a new high for the year. It is up 13.5% so far in 2023, though still not wiping out all of the near 20% loss in 2022. Brent crude futures rose 0.2% to $80.27 per barrel and U.S. West Texas Intermediate crude futures were slightly firmer at $75.80.
Persons: Eren Osman, Arbuthnot Latham, Osman, Stocks, Premier Li Qiang, Bonds, Huw Jones, Stella Qiu, Lincoln, Kim Coghill, William Maclean, Chizu Organizations: PPI, Federal Reserve, Treasury, Federal, Market, Arbuthnot Latham & Co, Japan's Nikkei, Premier, Brent, . West Texas, Thomson Locations: Asia, Europe, U.S, CHINA, China, Pacific, Japan, Hong Kong
The event was billed as a conversation about the future of AI and came on a day that Musk launched his own new AI company, xAI. "I think a maximally curious AI, one that is just trying to sort of understand the universe is, I think, going to be pro-humanity," Musk said. He said the idea that a "digital superintelligence" could supplant the Chinese Communist Party itself seemed to resonate. Musk even said he believes the Chinese government would be open to collaborating on an international framework around AI regulation. Musk acknowledged he has "some vested interest in China" but ultimately believes "China is underrated" and that "the people of China are really awesome."
Persons: Elon Musk, Porte, Musk, Ro Khanna, Mike Gallagher, Gallagher, Xi Jinping, China's, Janet Yellen, John Kerry, he's Organizations: SpaceX, Tesla, Twitter, Viva Technology, Porte de, Chesnot, U.S, House Armed Services Committee, Chinese Communist Party, xAI, Motion, Communist Party, CCP, optimist, Netflix, CNBC, YouTube Locations: Paris, France, China, Taiwan, United States, West
Unlike past tech booms that have touched San Francisco, the generative AI craze brings fewer jobs, because AI firms excel at staying lean and automating work. "I think we should curb our optimism that San Francisco commercial real estate will bounce back because of AI," said Silicon Valley investor Jeremiah Owyang. Eleven of the country's top 20 AI companies are in San Francisco and have raised $15.7 billion collectively between 2008 and 2023. That amount is just 2.3% of the estimated 150,000 daily workers that downtown San Francisco lost during the pandemic. Reporting by Anna Tong in San Francisco; Editing by Sayantani Ghosh, Anna Driver and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
Persons: Carlos Barria, San, Jeremiah Owyang, Erin Price, Wright, OpenAI, Matt Schlicht, Mike Grabowski, Grabowski, Owyang, Lee Edwards, Daron Acemoglu, Anna Tong, Sayantani Ghosh, Anna Driver, Matthew Lewis Organizations: Intelligence, REUTERS, FRANCISCO, Reuters, Francisco, San Francisco Mayor London Breed's, San, Microsoft, Octane, Google, Nordstrom, Massachusetts Institute of Technology, Thomson Locations: San Francisco, California, U.S, Valley, NFX, Dubai
Billionaires and CEOs have dumped $9 billion in stock this year. Many of those sales have been concentrated in the tech sector amid Wall Street's frenzy over AI. Executives have cashed in on the rally as the S&P 500 recovers from a dismal 2022 performance. Meanwhile, AirBnB co-founder Joe Gebbia sold off $893 million of his company's stock during the first half. Oracle CEO Safra Catz also trimmed her holdings of the company, selling $470 million worth of the company's stock.
Persons: Walton, AirBnB, Joe Gebbia, Larry Ellison, Safra Catz, Salesforce's Marc Benioff, Stephane Bancel, Josh Harris Organizations: Service, CNBC, Walmart, Sam's, Oracle, Moderna, Apollo, Vanda Research Locations: Wall, Silicon
REUTERS/Kevin Lamarque/File PhotoNEW YORK, July 11 (Reuters) - Wall Street banks are expected to report higher profits for the second quarter as rising interest payments offset a downturn in dealmaking. Results for investment banking behemoths will also weaken, with EPS forecast to drop almost 59% at Goldman Sachs (GS.N). That offsets the doldrums in investment banking, where revenues have been depressed by rising interest rates and economic uncertainty. Reuters GraphicsBanking executives have also lowered expectations for the second quarter after mergers, acquisitions and debt offerings plunged in recent months. "We see higher credit risk ahead for lower to middle class families with higher credit card debt that cannot keep pace with higher living costs," Leon added.
Persons: Kevin Lamarque, Goldman Sachs, Morgan Stanley's, David Konrad, Keefe, Goldman, Stephen Biggar, Wells, Morgan Stanley, Betsy Graseck, Kenneth Leon, Leon, Konrad, Nupur Anand, Saeed Azhar, Niket, Lananh Nguyen, Marguerita Choy, Andrea Ricci Organizations: Bank of America, REUTERS, JPMorgan, . Bank of America's, Citigroup, Universal, Argus Research, JPMorgan Chase, Reuters Graphics Banking, Federal Reserve, CFRA Research, Investors, Thomson Locations: Washington, Wells, Refinitiv, Wells Fargo, U.S, New York, Bengaluru
Researchers explain how both employees and companies can benefit from a hybrid work model. What's more, these data points have leveled off in the last few months, Bloom told Insider. Bloom's paper concluded that hybrid work had a "flat or even slightly positive" impact on productivity and improved employee recruitment and retention. Remote work could rise in the years ahead as technology improvesPer Bloom's most recent estimates, 60% of Americans work fully in-person, 30% work in-person between one and four days per week, and 10% work fully remotely. But Harvard's Choudhury said there's one reason a recession wouldn't crush the remote work movement.
Persons: Nick Bloom, Bloom, Choudhury, Harvard's Choudhury Organizations: Service, Stanford, Harvard Business School Locations: Wall, Silicon
LONDON, July 9 (Reuters) - Unseeded Russian Roman Safiullin reached his maiden Grand Slam quarter-final when he secured a shock 3-6 6-3 6-1 6-3 win over Denis Shapovalov at Wimbledon on Sunday. After the match was all square, Shapovalov committed two more double faults in a dismal start to the third set as Safiullin broke and then held to love for a 2-0 lead. Minutes later, Safiullin had a 4-1 double-break after yet another double fault from Shapovalov, the seventh of 11. He was quickly put out of his misery by the Russian, who broke and then closed out the victory on serve. Safiullin becomes just the 12th man to reach the quarter-finals on his Wimbledon main-draw debut, adding to the likes of Bjorn Borg, John McEnroe and Nick Kyrgios.
Persons: Safiullin, Denis Shapovalov, Shapovalov, I'm, Denis, Bjorn Borg, John McEnroe, Nick Kyrgios, It's, I've, Daniel Galan, Aadi Nair, Clare Fallon Organizations: Wimbledon, ATP, Christian, Thomson Locations: Russian, Shapovalov, Colombia, Bengaluru
Dutch news organizations reported that Mr. Rutte had called for limiting the entrance for children of war refugees who were already in the Netherlands and for making families wait at least two years before they could be reunited. Mr. Rutte denied those reports, according to the Dutch broadcaster NOS. But arguments about migration policy continued to split the Dutch government, which already has tougher immigration policies than some other E.U. “One of the values that are important with the proposals is that children grow up with their parents,” a statement by the Christian Union party said. Last year, Dutch aid agencies struggled to help hundreds of asylum seekers who were living in a makeshift camp outside an overcrowded reception center, in what aid workers described as dismal conditions.
Persons: Rutte, Organizations: NOS, Christian Union Locations: Netherlands, Dutch
Most tech and growth megacaps, whose valuations come under pressure when borrowing costs rise, fell in early premarket trading, with Alphabet (GOOGL.O) and Tesla (TSLA.O) down 0.7% each. Meta Platforms (META.O) rose 1.8% after attracting millions of users within hours of launching Threads on Wednesday. After a dismal 2022, big growth and technology stocks have seen outsized gains in 2023, with the Nasdaq Composite (.IXIC) clocking its best first-half in 40 years. ET, Dow e-minis were down 139 points, or 0.4%, S&P 500 e-minis were down 19 points, or 0.42%, and Nasdaq 100 e-minis were down 69.25 points, or 0.45%. Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.
Persons: Janet Yellen's, judge's, Bansari Mayur Kamdar, Johann M, Vinay Dwivedi Organizations: Exxon, Dow, Nasdaq, Wall, Meta, Twitter, Victoria, Interactive Investor, Investors, Institute for Supply, Dow e, Qualcomm, Intel, Treasury, Exxon Mobil, JetBlue Airways, American Airlines, Spirit Airlines, Coty, Thomson Locations: Beijing, Washington, China, U.S, Bengaluru
The adtech company held panel sessions and meetings at the "MediaMath Penthouse." But behind the scenes, MediaMath CEO Neil Nguyen had barely been sleeping, according to three people familiar with the matter. "We collectively believed as a company, board, and advisors that we had a deal in hand," the statement continued. When advertisers or agencies buy ads through a platform like MediaMath, the adtech company must pay publishers immediately for their ad space. But the adtech company must wait — often 90 days or more — to be paid by the advertiser or agency.
Persons: MediaMath, Goldman Sachs, MediaMath execs, Neil Nguyen, Nguyen, Olivier Anrigo, Xandr, Joe Zawadzki, Ernest Hemingway, Searchlight wasn't, Neil, Houlihan Lokey, Zeta, Viant, Chris Vanderhook, Tim Vanderhook, Frederick M, Brown, MGI, Lionel Hahn, Remco Westermann, Gary Hershorn, MGI's, Westermann, they'll, Zawadzki, he'd Organizations: Cannes Lions, Cannes, Goldman, Searchlight Capital, Carlton Hotel, Google, IBM, Bain Capital —, Aperiam, Searchlight, Silicon, Zeta Global, Media, Games Invest, Verve, MGI's Verve Group, Getty, Verve Group, Trade, World Trade, Trade Center Locations: France, Cannes, hobnobbing, Delaware, Japan, Manhattan, New York City, MediaMath, AperiamVentures
Levi Strauss on Thursday drastically cut its profit outlook for the year after the apparel retailer reported a steep drop off in wholesale revenues and soft sales in the U.S., its largest market. During the quarter, Levi reported adjusted earnings of 4 cents per share. It now expects adjusted earnings per share of $1.10 to $1.20, compared to a previous range of $1.30 to $1.40. The retailer now expects sales to grow between 1.5% to 2.5% compared to a prior range of 1.5% to 3%. "Just in light of the recent performance, and the current macro headwinds, and just the consumer dynamics in this market."
Persons: Levi Strauss, jean, Levi, Harmit Singh, we're, Chip Bergh Organizations: Refinitiv, CNBC Locations: U.S, China
China's youth unemployment rate hit a record high of 20.8% in May. On June 13, the Radii media outlet tweeted a photo collage of some of these graduating students donning black or purple graduation gowns in various poses. While this particular pose is trending this year, this graduation season's posts were often accompanied by other happier pictures of the graduating students. It also isn't the first time graduates in China have taken unusual graduation photos, according to posts seen by Insider on Xiaohongshu. These trending poses of despondence come as China's youth unemployment rate hit a record high of 20.8% in May, according to official statistics.
Persons: , despondence, Nomura, Brenda Lu, Lu Organizations: Service, CNBC, Washington Post Locations: China
Maggie Harrison’s War on Wine
  + stars: | 2023-07-04 | by ( Alex Halberstadt | ) www.nytimes.com   time to read: +4 min
But the friend kept calling, and eventually she relented, flew to Portland and drove to a hillside in Amity. In 2019, she began offering an annual seminar for wine professionals that she named Beauty School. In her pursuit of maximally beautiful wines, Harrison has devised possibly the world’s most laborious way of making them. This blending period is when Harrison’s wines find their identities. “Though they can be punishingly difficult,” Ready told me, “those blending sessions are about trusting yourself, believing in the process and letting go of the desire to second guess.”Punishingly difficult seems to be Harrison’s thing.
Persons: Harrison, Lillian, ” Harrison, , Vladimir Nabokov’s, Mimi Adams, Nate Ready, Adams, , ” Adams, Maggie Organizations: Beauty Locations: Willamette, Oregon, Ventura, Portland, Amity, Hood River, California
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