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☆ Disney shares sink nearly 9% after the company reports streaming subscriber losses
▼ + stars: | 2023-05-11 | by ( Noah Sheidlower | ) www.cnbc.com time to read: 1 min

The Disney+ logo is displayed on a TV screen in Paris, December 26, 2019. Disney shares fell nearly 9% Thursday after the company reported subscriber losses at Disney+ during the most recent quarter. The company, which posted profit and revenue for the period that were in line with Wall Street estimates, reported a loss of four million Disney+ subscribers. That downtick was offset by price increases, which led to a narrowing of operating losses at the streaming unit by $400 million for the fiscal second quarter. Still, Wall Street expected a gain of more than one million Disney+ subscribers, according to StreetAccount, and the surprise subscriber loss spooked the Street.

Hong Kong CNN —China’s state security authorities raided multiple offices of international advisory firm Capvision, state media reported Monday, part of a broader crackdown on the consulting industry as Beijing tightens control over what it considers sensitive information related to national security. The consultancy firm, which is headquartered in Shanghai and New York, adds to a growing list of global consulting companies that have been ensnared in Beijing’s widening crackdown on what it perceives as national security risks. In the report, Capvision was singled out as a “leading company” in the industry. According to state security police, he downloaded 5,000 documents from his state-owned company’s internal network. The authorities said he had provided clients with six pieces of information that were classified as state secrets, CCTV said.

☆ Tesla's price cuts and hikes explained: Why it seems like Elon Musk can't make up his mind on pricing
▼ + stars: | 2023-05-05 | by ( Nora Naughton | ) www.businessinsider.com time to read: +4 min

The latest price hikes could mean Tesla is done lathering on the discounts for now. Elon Musk is changing his mind about Tesla pricing – again. Recent hikes are a sign to investors that Musk is likely done price-slashing for now. Even with this hike, base Model Y prices are down 24% since January and base Model 3 prices are down 14% over the same period. "When you lease, you can really bypass a lot of the problems that come with pricing," Drury said.

The latest case in point: The Federal Deposit Insurance Corp (FDIC) chose JPMorgan Chase & Co (JPM.N) as the winning bidder in an auction to buy collapsed lender First Republic Bank on Monday. FDIC officials, however, say would-be buyers risk losing out if they allow the value of an acquisition target to deteriorate over time while waiting for an FDIC receivership. SWEETENERSU.S. bank mergers were already sluggish as interest rates rose and recession loomed, analysts at Raymond James wrote in an Apr. The first quarter was the quietest opening to a year for bank deals in a generation, they said. Market volatility stops bank buyers from pulling together enough money to cover writedowns on struggling assets, which would be triggered by a traditional acquisition, said David Sandler, co-head of financial services investment banking at Piper Sandler Companies (PIPR.N).

☆ Western Alliance denies ‘shameful’ report it’s the next bank for sale
▼ + stars: | 2023-05-04 | by ( Krystal Hur | ) edition.cnn.com time to read: +2 min

New York CNN —Western Alliance Bank denied reports that it’s exploring a sale or has hired an advisor to explore strategic options. Shares of the regional bank tumbled 36% Thursday, slightly paring back its losses after plunging over 50% at one point on reports that the company is the regional bank latest to explore a potential sale. The Financial Times, citing two anonymous sources, reported Thursday that the Arizona-based bank is exploring strategic options. “This story is absolutely false, there is no truth to this,” a Western Alliance spokesperson told CNN in an email. Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic option.

First Horizon and TD said in a statement they had mutually decided to end the deal because there was no clarity on when they would get regulatory approvals. TD will pay $200 million to First Horizon, in addition to a $25 million fee reimbursement. 2 lender came under pressure from some investors to scrap the purchase after the U.S. regional banking crisis. TD agreed to buy First Horizon in February last year to expand its presence in the United States. Average deposits at First Horizon fell 4% to $62.2 billion in the first quarter, compared to the end of last year.

If Congress fails to act, some legal experts say Democratic President Joe Biden has another option to avert a crisis: Invoke the 14th Amendment to the U.S. Constitution to ensure the United States can continue to pay its bills. Section Four of 14th Amendment, adopted after the 1861-1865 Civil War, states that the "validity of the public debt of the United States ... shall not be questioned." HOW WOULD MARKETS REACT IF BIDEN USES THE 14TH AMENDMENT? Administration officials and economists have warned that a default triggered by a debt-ceiling breach would roil the world financial system and plunge the United States into recession. That immediate catastrophe might be avoided if Biden invoked the 14th Amendment.

☆ Australia, Spooked by Inflation, Resumes Raising Interest Rates
▼ + stars: | 2023-05-02 | by ( James Glynn | ) www.wsj.com time to read: 1 min

A man ran past the Reserve Bank of Australia in Sydney on Tuesday. Photo: Rick Rycroft/Associated PressSYDNEY—The Reserve Bank of Australia surprised financial markets by raising interest rates a month after pausing to assess the impact of earlier tightening on the economy, illustrating how central banks are wary of declaring victory over inflation. The RBA lifted its official cash rate by a quarter of a percentage point to 3.85%, arguing that while inflation had already peaked it was still too high at 7% and could take a couple of years before it reaches the top end of a 2% to 3% target range.

☆ Futures slip ahead of Fed meet; U.S. debt ceiling jitters dent mood
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +3 min

The U.S. central bank is expected to deliver a 25 basis-point interest rate increase on Wednesday and then hold rates steady for the rest of 2023, according to economists in a Reuters poll. However, with inflation running well over the central bank's 2% target and a still-strong labor market mean chances of rate cuts seem less likely. Denting sentiment, Australia's central bank raised its cash rate by 25 basis points when traders were expecting an extended pause, citing too high inflation and warning of even higher rates. ET, Dow e-minis were down 72 points, or 0.21%, S&P 500 e-minis were down 7 points, or 0.17%, and Nasdaq 100 e-minis were down 1 points, or 0.01%. Educational services company Chegg (CHGG.N) slumped 44.7% on a downbeat second-quarter revenue forecast on increasing competition from ChatGPT.

Apparently they can in some parts of the world, such as Argentina and Turkey, where soaring prices and tumbling local currencies have forced people to seek refuge in digital coins. Trading volumes for spot bitcoin are highest during U.S. opening hours, with little change from 2022, Kaiko data showed. If dollar to crypto volumes are excluded, then the next most dominant currency is South Korea's won . Crypto trading volumes in South Korea are back to levels seen in first quarter and second quarters of 2022 after a weak fourth quarter in 2022, analysts at crypto investment firm Matrixport said. "This is in stark contrast to other crypto exchanges where bitcoin and Ethereum account for the majority of the volume."

The deal talks went down to the wire, according to two sources familiar with the situation. Four bidders, including JPMorgan, made it to the final rounds of the auction on Sunday night, one of the sources said. The final deal, announced around 3:30 a.m., cements Dimon's reputation as one of Wall Street's most powerful bankers. JPMorgan started a process internally, which looked at various options for First Republic, including an acquisition, according to a source familiar with the matter. The auction dragged out through the night as the FDIC's advisors examined each bid on its merits, a source familiar with the matter said.

☆ First Republic Is Sold: What to Know
▼ + stars: | 2023-05-01 | by ( Lora Kelley | ) www.nytimes.com time to read: +1 min

The federal government seized First Republic Bank and sold it JPMorgan Chase on Monday, ending the lender’s six-week-long free fall and reassuring depositors that their money is safe. Widely viewed as the most at-risk bank since Silicon Valley Bank and Signature Bank failed in March, First Republic lost $102 billion in deposits last quarter (more than half the $176 billion it held at the end of last year). Over that period, the bank also borrowed some $92 billion, mostly from government-backed lending groups and the Federal Reserve. First Republic Bank’s failure had much the same roots as the collapses of Silicon Valley Bank and Signature Bank — spooked depositors and investors pulling their money and selling their shares in droves. JPMorgan will “assume all of the deposits and substantially all of the assets of First Republic Bank,” the Federal Deposit Insurance Corporation said it an statement, adding that its insurance fund would have to pay out an estimated $13 billion to cover First Republic’s losses.

☆ US Chamber of Commerce warns of major increase in risks for businesses in China
▼ + stars: | 2023-05-01 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —The United States Chamber of Commerce has warned that rising scrutiny of American firms in China “dramatically increases” the uncertainties and risks of doing business in the country. “The services these firms provide are fundamental to establishing investor confidence in any market, including China,” the chamber said in a statement, without naming either company. Suzanne Clark, president and chief executive officer of the US Chamber of Commerce, speaking during an event in Ottawa, Canada, in April. The news came a month after Chinese authorities closed the Beijing offices of Mintz, detaining five of its local staff. The news about Bain has spooked the US business community in China, the American Chamber of Commerce in China told CNN last week.

☆ Top cloud providers Amazon, Microsoft and Google face ongoing spending cuts by clients
▼ + stars: | 2023-04-30 | by ( Jordan Novet | ) www.cnbc.com time to read: +2 min

The result is slowing revenue growth at the cloud divisions run by Amazon , Microsoft and Google . AWS saw deceleration in the third and fourth quarters, and last quarter Microsoft finance chief Amy Hood spooked analysts with comments about a slowdown in December that she expected to persist. Amazon CEO Andy Jassy said "what we're seeing is enterprises continuing to be cautious in their spending in this uncertain time." At Google, cloud growth slowed to 28% from a year earlier in the first quarter from 32% in the prior period. WATCH: Ongoing deceleration in IT spending not reflected in tech earnings

☆ Pinterest, Snap tumble 18% as outlooks disappoint investors
▼ + stars: | 2023-04-28 | by ( Noel Randewich | ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/IllustrationApril 28 (Reuters) - Pinterest Inc (PINS.N) and Snap Inc's (SNAP.N) stocks tumbled about 18% each on Friday after the two social media companies' quarterly reports spooked investors worried about weak digital ad spending. It warned results in the next quarter could fall below Wall Street's targets. At least 12 analysts cut their price targets for Snap, while Pinterest saw at least seven price target cuts on its stock. Shares of Meta Platforms have surged 13% since Wednesday, when the owner of Facebook and Instagram forecast quarterly revenue well above analyst expectations. Also on Wednesday Google-owner Alphabet's quarterly results showed ad sales held up better than expected.

☆ Beijing’s Bain Raid, Espionage Law Are Self-Sabotage
▼ + stars: | 2023-04-28 | by ( Nathaniel Taplin | ) www.wsj.com time to read: 1 min

It’s Party time. Photo: Ng Han Guan/Associated PressChina’s economy is bouncing back quicker than expected. So, unfortunately, are the sort of heavy-handed policies that spooked investors during China’s last big expansion in 2021. On Wednesday China updated its counterespionage statute to cover all “documents, data, materials or items related to national security,” a considerably wider remit than the previous “state secrets and intelligence.” Recent weeks have also brought a raid of Bain & Co.’s Shanghai offices, the detention of Beijing staff at New York-based due diligence firm Mintz Group, and the arrest of a Japanese pharmaceuticals employee for alleged spying.

☆ First Republic teeters on the edge — again
▼ + stars: | 2023-04-28 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

New York CNN —First Republic Bank’s fate is looking grim. The bank’s stock has plummeted about 75% this week, after a disappointing first-quarter earnings report Monday revived Wall Street’s fears about a banking crisis and catalyzed an exodus out of First Republic stock. About two-thirds of First Republic’s deposits were uninsured with the FDIC when the banking turmoil took hold in March, lower than the 94% at Silicon Valley Bank. But at the end of 2022, First Republic had a whopping ratio of 111% for loans and long-term investments to deposits, according to S&P Global. Déjà vuFirst Republic’s fight for survival comes just over a month after Silicon Valley Bank’s collapse on March 10.

☆ European commercial real estate investment slumps to 11-year low in Q1 2023
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: 1 min

LONDON, April 27 (Reuters) - European commercial real estate investment fell to its lowest in 11 years in the first quarter of 2023, MSCI Real Assets said on Thursday, as investors spooked by higher interest rates and the economic outlook put acquisition plans on ice. The number of offices sold - Europe's largest real estate sector - fell to its lowest on record, while the volume of transactions slumped to a 13-year low of 10.8 billion euros ($11.94 billion). The UK kept its top spot as Europe's largest commercial real estate market, but Paris overtook London to become the region's most active investment destination, with the three largest European property deals of the first quarter all taking place in the French capital. ($1 = 0.9048 euros)Reporting by Elizabeth Howcroft, editing by Sinead CruiseOur Standards: The Thomson Reuters Trust Principles.

☆ Morningstar's chief U.S. market strategist shares his outlook for the economy and ways to play the market turbulence ahead
▼ + stars: | 2023-04-27 | by ( Samantha Subin | ) www.cnbc.com time to read: +6 min

But even in a turbulent environment, there are value opportunities for investors who look carefully, according to Dave Sekera, Morningstar's chief U.S. market strategist. "We think the stock market is undervalued," Sekera told CNBC during an interview at the Morningstar Investment Conference in Chicago. "However, I'd say at this point, the easy returns have already been made thus far this year, and I do see a rough road ahead for the next couple of quarters for the stock market in general." For regional bank stocks, Morningstar expects earnings to slowly decline through 2023. Today, Morningstar views many of those names, in areas such as energy, healthcare and consumer defensives, as fully valued.

☆ Euro near one-year peak as U.S. economic risks weigh on dollar
▼ + stars: | 2023-04-27 | by ( ) www.cnbc.com time to read: +3 min

The euro hovered near a one-year high versus the dollar on Thursday, as Europe's resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession. Europe's single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year. IG analyst Tony Sycamore also sees risks skewed to the downside for the euro against the dollar. Aussie dollar traders are more confident that the Reserve Bank of Australia will keep rates unchanged for a second meeting next week after some softness in consumer inflation data on Wednesday. Bitcoin firmed to around $29,060, following a day when it jumped as high as $30,022, only to then slide as low as $27,242.

☆ Euro near one-year peak as US economic risks weigh on dollar
▼ + stars: | 2023-04-27 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

TOKYO, April 27 (Reuters) - The euro hovered near a one-year high versus the dollar on Thursday, as Europe's resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession. Europe's single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year. IG analyst Tony Sycamore also sees risks skewed to the downside for the euro against the dollar. IG's Sycamore says the initial strength was driven by U.S. banking concerns, but the market was "apparently spooked by a large sell order." Provided bitcoin can remain above $25,000, Sycamore expects the token to test this month's high at $31,035.

The revision is likely to heighten concerns of foreign individuals, such as academic researchers or journalists, and businesses about visiting or operating in China. “Something like a local government budget you could broadly define as relating to national security, or even food security,” he said. “Researchers definitely need to be careful.”China says its laws related to national security and espionage are meant to safeguard the country. “Even with this amendment we still don’t understand what kind of document constitutes a national security issue,” he added. Chinese authorities did not offer details about both cases, including the reason for the crackdown, but analysts say the move is likely to further spook foreign businesses operating in China.

☆ Biden’s Early Announcement Isn’t a Sign of Confidence
▼ + stars: | 2023-04-26 | by ( Jason L. Riley | ) www.wsj.com time to read: 1 min

Potomac Watch: Democrats belatedly admit Dianne Feinstein is too old to serve. Images: AP Composite: Mark KellyPresident Biden isn’t afraid of running against Donald Trump next year, but fellow Democrats appear to have spooked him into announcing his re-election bid ahead of schedule. Mr. Biden initially intended to hold off on a formal announcement until late spring or early summer. Why draw media attention away from Mr. Trump’s legal problems or from his public feuding with Florida Gov. When your political opponents are fighting with one another, it’s better not to interfere.

☆ Factbox: US banks hit by deposit flight as clients seek higher returns
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: 1 min

[1/2] The company logo for financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/File PhotoApril 17 (Reuters) - The closure of two U.S. regional banks in March shook investor confidence in the banking industry and drove spooked customers to seek refuge in "too-big-to-fail" institutions or money market funds for higher yields. First Republic Bank (FRC.N) said on Monday deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet. Total deposits at Wall Street's biggest lenders:Overview of deposits at other prominent financial firms:Source: Company statementsCompiled by Mehnaz Yasmin in Bengaluru; Edited by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Mark Zuckerberg grilled by angry employees who asked why executives received large bonuses during a year of layoffs and business turmoil
▼ + stars: | 2023-04-24 | by ( Kali Hays | ) www.businessinsider.com time to read: +5 min

He was grilled on pay for execs who received huge bonuses amid relatively poor business performance. Mark Zuckerberg last week took questions from angry employees who asked why executives at Meta seem to face no meaningful consequences for the decisions they've made which have led to thousands of layoffs, and counting. Zuckerberg also argued that Meta's performance overall negatively impacted the executives, meaning a reduction to their bonus was "baked in." According to Meta's proxy statement for 2022, each member of the C-suite received a bonus based on an individual performance multiplier. While an 85% multiplier would have shown they met expectations, all of the executives received a multiplier of either 125% or 165%, showing they are considered to have far exceeded what was expected of them.

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