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☆ Werner CIO Looks to Outfit Company Trucks With AI-Enabled Tech
▼ + stars: | 2022-12-15 | by ( Belle Lin | ) www.wsj.com time to read: +4 min

Mr. Mahon was hired in 2020 to help the 66-year-old trucking and logistics company modernize its technology—much of it built on legacy systems. Nearly 50% of Werner’s systems, data and applications have already been moved to the cloud from its data centers, Mr. Mahon said. Newsletter Sign-up WSJ | CIO Journal The Morning Download delivers daily insights and news on business technology from the CIO Journal team. While Werner is putting its costs “under the microscope heading into next year,” Mr. Mahon said technology is still an area of investment given its priority for company executives. “They understand that if we want to get to that stated goal of $5 billion in the next few years, and beyond that, we have to improve and increase our spend in technology,” Mr. Mahon said.

☆ Home flipper profits are slumping at their fastest pace since the 2009 recession and the prognosis isn't any better for 2023
▼ + stars: | 2022-12-15 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +4 min

Last quarter saw the fastest drop in home flipping profits since the Great Recession. down for the Warm and sunny places like Honolulu saw the lowest returns and cities like Buffalo saw the highest. "The high end market has basically vaporized, there's nothing there, " Sharga said, repeating the words of a flipper he knows. Those flippers have healthy profit margins even if the overall dollar amounts aren't as high as with luxury homes, he said. Meanwhile, flippers in cities with harsh winters like Pittsburgh — where the typical flipper made a 116.9% profit — and Buffalo, New York, had the largest returns.

☆ Home flipping profits drop at the fastest pace in over a decade
▼ + stars: | 2022-12-15 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

It represents the smallest profit since the end of 2019 and the fastest quarterly drop since 2009. With that drop in gross profits, the return on investment fell to 25% from 30% in the previous quarter. With profits shrinking and higher mortgage rates hurting affordability for potential buyers, the share of home sales that were flips fell as well. Mortgage rates have come off their recent highs, but they are still more than twice what they were at the start of this year. Markets that showed the highest flip rates were Phoenix; Spartanburg, South Carolina; Atlanta and Gainesville in Georgia; and Winston-Salem, North Carolina.

French container line CMA CGM sees the ownership of cargo terminals at U.S. ports as the next step in its bid to extend its shipping business into greater inland logistics. “Port terminals are an essential piece of the supply-chain efficiency, being at the crossroads of sea and land operations,” said Christine Cabau Woehrel, CMA CGM Group’s executive vice president of operations and assets. CMA CGM earned $17.9 billion in net profits in 2021 and its earnings in the first three quarters of this year reached more than $20.4 billion. The purchases come as CMA CGM is spending billions to buy logistics operations and more recently launch an airfreight service. China’s Cosco Shipping Ports has expanded its terminal operations around the world in concert with expansion by state-owned Cosco Shipping Lines.

☆ Don't expect a wave of short sales and foreclosures during this housing downturn — homeowners have too much equity
▼ + stars: | 2022-12-14 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Today's market has tighter lending standards, more assistance programs, and historic levels of homeowner equity compared to downturns of the past. "Historically, normal foreclosure activity means about a single percent of loans are in foreclosure," he told Insider. These initiatives paired with high levels of home equity — roughly $29 trillion as of the second-quarter of the year, according to the Federal Reserve — are likely to prevent an upcoming wave of short sales and foreclosures, Sharga suggests. The spike in foreclosure activity between 2021 and 2022 stems from the expiration of temporary financial safety nets enacted through the CARES Act. But even with this prospect, Sharga suggests that a substantial uptick in foreclosures or short sales is unlikely as many recent homebuyers have positive equity in their homes.

☆ American Airlines Names New CFO as It Looks to Cut Debt
▼ + stars: | 2022-12-13 | by ( Kristin Broughton | ) www.wsj.com time to read: +3 min

American Airlines Group Inc. named a company veteran as its next finance chief as it reaps the benefits of an uptick in air travel and works to pay down debt. He succeeds Derek Kerr, who has held the CFO role at American since its 2013 merger with US Airways Group. During his 20-year tenure at American and airlines it absorbed, US Airways and America West, Mr. May has held senior-level roles in finance, regional operations and network planning. American is one of several airlines that cut back on flights this year amid widespread delays, staffing shortages and airport congestion. The company has said it plans to pay down about $15 billion of its total debt by the end of 2025.

☆ Cutting Costs, Not Jobs, Is Focus for Many CFOs Facing Slowdown
▼ + stars: | 2022-12-12 | by ( Kristin Broughton | ) www.wsj.com time to read: +6 min

At the same time, many employers are looking for workers, with job openings well above the number of job seekers. That leaves some finance chiefs scouting for savings that don’t involve job cuts, or that supplement layoffs, advisers and analysts said. Other ways to cut costs include exiting leases, reducing the number of suppliers, automating tasks, trimming software spending and finding less expensive components, advisers said. Many companies over the past year have raised prices to keep up with escalating input costs, in addition to trimming expenses. Still, the company’s restaurant-level profit margin during the quarter ended Oct. 2 fell to 16.2% from 20.1% a year earlier.

☆ Apple is going to keep cozying up to the Chinese government, no matter how much it says it's investing in America, India, and other countries
▼ + stars: | 2022-12-12 | by ( Emilia David | Asia Martin | ) www.businessinsider.com time to read: +6 min

Apple, which enjoys about 50% market share in the US and many other countries, still has room to run in China. Apple willing to play ball with China's governmentWhile pursuing the Chinese consumer, Apple has made concessions to the Chinese government. But in China, it offloaded iCloud servers to a Chinese state-owned company to comply with Chinese regulations. Popal said Huawei was the first Chinese brand to shake off the perception that Chinese phones were cheap. But with hundreds of millions of potential customers left to convert to iPhone users in China, Apple will absorb the hits.

☆ Nissan Grapples With Currency Volatility, Even as Weak Yen Boosts Earnings
▼ + stars: | 2022-12-06 | by ( Nina Trentmann | Nissan Chief Financial Officer Stephen Ma | ) www.wsj.com time to read: +6 min

For Nissan Motor Co. finance chief Stephen Ma, the weak yen has been both a boon and a bane. “The current weakness of the yen has given us short-term benefits, which is good,” Mr. Ma said. Mr. Ma said he is working to repay debt and increase the auto maker’s profitability while managing issues such as currency volatility, semiconductor shortages and pricing. “We have some stickiness in terms of pricing power,” Mr. Ma said. Nissan has had “common sense, commercial-based” discussions with Renault, according to Mr. Ma.

☆ Winners and Losers of Advertising During an Economic Downturn
▼ + stars: | 2022-12-05 | by ( Lauren Johnson | ) www.businessinsider.com time to read: +4 min

Executives from three of the largest ad agencies — Magna Global, GroupM, and Zenith — spoke at UBS' Global TMT Conference about how the ad industry will shake out next year. Kate Scott-Dawkins, global director of business intelligence at GroupM, said that retail media was the fastest-growing area within digital advertising this year. It upped its retail media forecast to $110 billion this year, up from $100 billion in September. Streaming TV is also starting to compensate for dips in linear TV ad spending. TV advertising will dip because it lacks annual commitments from advertisers, causing ad prices to come down to pre-covid levels.

☆ Another OPEC? Indonesia wants to create a cartel for battery metals
▼ + stars: | 2022-12-05 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

The nickel market is also structured very differently than the market for crude oil, with private firms rather than national companies running the show. The country now accounts for more than 38% of global refined nickel supply, according to data from market intelligence firm CRU Group. People who track the nickel market are skeptical such an arrangement is workable. But other countries that have direct access to battery metals and other important minerals also want a say. “The metals market and its importance to the energy transition is something we’re all waking up to and adapting to how it’s going to work in practice,” Bronze said.

☆ Euro zone likely heading into mild recession - PMI
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +2 min

LONDON, Dec 5 (Reuters) - Euro zone business activity declined for a fifth month in November, suggesting the economy was sliding into a mild recession as consumers cut spending amid surging inflation, a survey showed. S&P Global's final composite Purchasing Managers' Index (PMI) for the euro zone, seen as a good guide to economic health, nudged up to 47.8 in November from October's 23-month low of 47.3, matching a preliminary estimate. "A fifth consecutive monthly falling output signalled by the PMI adds to the likelihood that the euro zone is sliding into recession," said Chris Williamson, chief business economist at S&P Global Market Intelligence. Still, the input and output prices index both fell suggesting inflationary pressures may have already peaked, likely welcome news to policymakers at the European Central Bank. The output prices index was a 3-month low of 62.3.

☆ Four Ways to Save Money on Home Insurance as Rates Rise
▼ + stars: | 2022-12-02 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

Homeowners had to shell out more money for mortgage payments, routine maintenance and heating costs this year as quickening inflation and rising interest rates strained monthly budgets. One more bigger bill to add to that list: home insurance. Home insurance premium rates rose 9.3% from Jan. 1, 2021, through Nov. 25 on average nationwide, according to S&P Global Market Intelligence data. The Insurance Information Institute, an industry trade group, also known as Triple-I, said premiums are likely to rise further in 2023.

☆ With Debt Coming Due, Investment-Grade Companies Are Paying Up, Too
▼ + stars: | 2022-12-01 | by ( Nina Trentmann | ) www.wsj.com time to read: +7 min

What’s more, volatile markets have resulted in fewer opportunities for companies to sell their debt. Investment-grade U.S. companies have between $550 billion and $750 billion coming due per year from 2023 through 2027, according to Goldman Sachs Group Inc., with about $59 billion left to pay off or refinance in 2022. Of the $615.54 billion, $504.31 billion were new issuances, compared to $111.23 billion in refinancings, Dealogic said. But investor demand for bonds has been stronger in recent days, leading Amazon.com Inc. and others with near-term debt coming due to the market. Among the businesses that recently took out bond debt at a higher cost is retail giant Walmart Inc.

☆ Asia's factory activity shrinks as China lockdown impact widens
▼ + stars: | 2022-12-01 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Amid the pandemic curbs, China's factory activity shrank in November, a private survey showed on Thursday. The figure followed downbeat data in an official survey on Wednesday that showed manufacturing activity had hit a seven-month low in November. South Korea's factory activity shrank for a fifth straight month in November but the downturn moderated slightly, possibly suggesting the worst was over for businesses. Lockdowns in China have hit production at a factory there that is the biggest producer of Apple Inc (AAPL.O) iPhones. Vietnam's PMI fell to 47.4 in November from 50.6 in October, while that for Indonesia slid to 50.3 from 51.8, the private surveys showed.

[1/2] The logo of Swiss bank Credit Suisse is seen in Zurich, Switzerland October 26, 2022. Credit Suisse declined to comment on the market moves. Credit Suisse rights for its 2.24 billion Swiss francs ($2.4 billion) share issue were down 8%, having reversed initial gains. Credit Suisse bonds also weakened, with additional tier 1 dollar bonds down over 4 cents and many sinking below the levels seen during a sell off in the bank's shares and bonds in early October, Tradeweb data showed. Battered by a series of scandals and mounting losses, Credit Suisse last month embarked on a turnaround plan.

☆ S&P Global plans to sell engineering solutions business
▼ + stars: | 2022-11-30 | by ( Shadia Nasralla | ) www.reuters.com time to read: +1 min

Nov 30 (Reuters) - S&P Global Inc (SPGI.N) plans to sell its engineering solutions business and has confidentially engaged with several prospective buyers, the market intelligence and ratings agency said on Wednesday. The decision to sell the unit follows S&P Global's $44 billion acquisition of data firm IHS Markit earlier this year. The engineering solutions division serves more than 6,000 customers globally. S&P Global reported a 37% rise in revenue in the third quarter due to the inclusion of IHS Markit's businesses. The engineering solutions unit accounted for 3.3% of its parent's total revenue during the quarter.

☆ Credit Suisse stocks drop to fresh record lows, bonds suffer
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +1 min

Nov 30 (Reuters) - Credit Suisse stocks sunk to fresh record lows on Wednesday and the cost of insuring its debt soared to a new peak amid little sign that investors' concerns over the outlook for the Swiss lender were fading. Credit Suisse (CSGN.S) shares were down more than 1% in their ninth straight session in the red with the stock having lost 66% since the start of the year. Credit Suisse rights for its 2.24-billion-francs cash call were up 1% though that comes after suffering a 30% tumble on Tuesday. The cost of insuring exposure to its debt scaling a record high of 409 basis points (bps), up 2 bps from Tuesday's close, according to S&P Global Market Intelligence. Credit Suisse credit default swaps had started the year at 57 bps.

☆ Credit Suisse shares hit record low as subscription rights dumped
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: 1 min

MILAN, Nov 29 (Reuters) - Shares in Credit Suisse (CSGN.S) tumbled to a fresh lifetime low below 3 Swiss francs on Tuesday as investors dumped rights to subscribe to new shares in the loss-making lender. By 0937 GMT, Credit Suisse shares fell 3.3% to 2.912 Swiss francs as the subscription rights tumbled 22% to 0.112 on the second day of trading on the Swiss bourse. The capital increase, which was approved by investors on Wednesday last week, is intended to fund the embattled bank's turnaround plan, an attempt to recover from the biggest crisis in its 166-year history. Credit Suisse's five-year default swaps, a form of insurance for bondholders, blew out to a new record high of 403 basis points, according to data from S&P Market Intelligence. Reporting by Danilo Masoni; Editing by Amanda CooperOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse rights sell-off spells worst year for its shares
▼ + stars: | 2022-11-29 | by ( Danilo Masoni | ) www.reuters.com time to read: +3 min

Shares in Credit Suisse (CSGN.S) fell 3.1% to 2.915 francs by 1451 GMT, their lowest level on record according to Refinitiv data, as the rights tumbled as much as 29.9% to as low as 0.101 on their second day of trading in Zurich. That took losses for Credit Suisse shares in 2022 to more than 65%, further shrinking its market value to 12 billion francs and firmly setting the stock for its biggest yearly drop. "The problem now for Credit Suisse is to plug the outflows of staff and client assets: the damage is done and there will be an impact for sure," said Angelo Meda, head of equities and portfolio manager at Banor SIM in Milan. Credit Suisse declined to comment. snapshotThe offering, which is guaranteed by a group of banks, will raise as much as 2.24 billion Swiss francs ($2.3 billion) and follows a 1.76 billion-franc share placement where Saudi National Bank took a 9.9% shareholding in Credit Suisse.

☆ No respite for Credit Suisse as investors dump rights in $2.3 bln cash call
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +1 min

MILAN, Nov 29 (Reuters) - Shares in Credit Suisse (CSGN.S) tumbled to another lifetime low below 3 Swiss francs on Tuesday as investors dumped rights to subscribe to new shares in the loss-making lender. By 1036 GMT, Credit Suisse shares fell 2.6% to 2.93 francs as the rights tumbled as much as 27% to as low as 0.105 on their second day of trading on the Swiss exchange. The offering, which is guaranteed by a group of banks, will raise as much as 2.24 billion Swiss francs ($2.3 billion) and follows a 1.76 billion-franc share placement where Saudi National Bank took a 9.9% shareholding in Credit Suisse. Shareholders in Switzerland's second-biggest bank have the right to purchase two new shares at 2.52 francs each for every 7 rights they hold by December 8. ($1 = 0.9502 Swiss francs)($1 = 0.9502 Swiss francs)Reporting by Danilo Masoni; Editing by Amanda CooperOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse bonds, stock fall as bank turnaround worries investors
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +2 min

Nov 28 (Reuters) - Credit Suisse bonds fell and the cost of insuring its debt against default rose on Monday as the Swiss bank struggled to win over rattled investors following an exodus of client cash and with more litigation on the horizon. The bank had also revealed in an official filing for a capital hike that the U.S. Federal Reserve had said it intended to pursue an investigation of Credit Suisse over collapsed U.S. investment firm Archegos. Credit Suisse CDS opened the year at 57 bps. The Federal Reserve announcement suggests the bank could face additional fines related to its connection to Archegos, whose collapse rocked Wall Street as its highly leveraged stock bets went sour. Credit Suisse's 4 billion franc capital raising is designed to help put the bank back back on track following the biggest crisis in its 166-year history.

☆ Credit Suisse bonds slide, CDS rise
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: 1 min

Nov 28 (Reuters) - Credit Suisse bonds fell and the cost of insuring exposure to its debt rose on Monday following reports of fresh troubles at the Swiss lender. Five-year credit default swaps widened 4 basis points (bps) from Friday's close to 349 bps, the highest since at least early October, according to data from S&P Global Market Intelligence. Bonds also came under pressure, with the additional tier 1 dollar-denominated issues down as much as 1.7 cent, hitting the lowest level since mid-October. The head of Credit Suisse's Swiss unit said on Sunday that "some customers have withdrawn some of their money, but very few have actually closed their accounts." Reporting by Chiara Elisei, editing by Karin StroheckerOur Standards: The Thomson Reuters Trust Principles.

After weeks of passing up early Black Friday deals from Walmart, Target and Amazon, Uribe is on the hunt for a Nintendo Switch and video games for her daughter, Tupperware for her kitchen and a vacuum cleaner. Checking off items from the holiday list is "just cheaper" on Black Friday, plus, "it's our favorite day of the year, so we just wait," Uribe said. Uribe joins millions of shoppers who waited for what they hope might be the deepest discounts of the holiday season on Black Friday, despite an industry-wide push by retailers to get shoppers to buy holiday items starting in October. The waiting game by shoppers has forced retailers to offer steep discounts on items, which may pinch profit margins in the fourth quarter. Americans, especially from low-income households, are expected to pull back on their holiday shopping this year as inflation and higher energy prices pinch their spending power.

☆ Japan Nov factory activity shrinks at quickest pace in 2 years
▼ + stars: | 2022-11-24 | by ( Cynthia Kim | Jihoon Lee | ) www.reuters.com time to read: +2 min

TOKYO, Nov 24 (Reuters) - Japan's manufacturing activity contracted at the fastest pace in two years in November as demand worsened due to strong inflationary pressures, a business survey showed on Thursday. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 49.4 in November from a final reading of 50.7 in the previous month. Output contracted at the quickest pace in 26 months, falling for the fifth consecutive month, the survey results showed. Activity in the services sector stagnated even as new business inflows grew for a third straight month, the data showed. The au Jibun Bank Flash Services PMI Index came in at a seasonally adjusted 50.0 in November, down from the previous month's 53.2 final, the survey showed.

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