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☆ CNN CEO Chris Licht is facing an increasingly angry newsroom as more layoffs loom, plans are murky, and staff have lost confidence after 'horrible programming decisions'
▼ + stars: | 2022-11-04 | by ( Claire Atkinson | ) www.businessinsider.com time to read: +9 min

CNN CEO Chris Licht has been faulted by the newsroom for too many changes and not enough communication. Chris Licht needs a hit. "People are starting to believe there is no plan," said one executive familiar with the workings of CNN. "Is Chris Licht going to be there for them and push back on government officials? Many on the ad sales team that was formerly dedicated to CNN have either been pink-slipped or joined the broader ad sales group under WBD ad honcho Jon Steinlauf.

☆ Lenovo Delivers a Surprise Profit Boost
▼ + stars: | 2022-11-03 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

The personal-computer pandemic boom is logging off. But the world’s largest PC maker has managed to deliver surprising profit growth from its service businesses. China’s Lenovo on Thursday reported a 4% increase from a year earlier in its operating profit for the quarter ending in September—despite a 4% slide in revenue. Both numbers exceeded analysts’ forecasts according to S&P Global Market Intelligence. Analysts’ consensus estimate was a 9% operating-income decline.

☆ Rising Rates Boost Companies’ Focus on Working Capital Management
▼ + stars: | 2022-11-03 | by ( Nina Trentmann | Kristin Broughton | ) www.wsj.com time to read: +5 min

Higher interest rates are putting more pressure on companies to free up cash from their operations, a cheaper option than relying on credit. PREVIEWRising financing costs are one of several factors pushing companies to improve how they manage working capital, alongside high inventory levels and persistent inflation. “The only difference now is that with your cost of capital being higher, sometimes the economics change, but we’re always looking at working capital,” he said. “Working capital management comes more in focus,” Mr. Fracassa said, as it costs more for companies to draw on their revolving lines of credit with today’s higher rates. “It was kind of the unique rebuild period for working capital,” Mr. Wells said.

☆ Rising Rates Boosts Companies’ Focus on Working Capital Management
▼ + stars: | 2022-11-03 | by ( Nina Trentmann | Kristin Broughton | ) www.wsj.com time to read: +6 min

☆ Euro zone factory downturn deepened in Oct as demand slumped
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 2 (Reuters) - The decline in euro zone manufacturing activity was sharper than initially estimated last month, indicating that the sector is in recession, as the cost of living crisis put a big dent in demand, a survey showed on Wednesday. S&P Global's final manufacturing Purchasing Managers' Index (PMI) fell to a 29-month low of 46.4 in October from September's 48.4, below a preliminary reading of 46.6 and further below the 50 mark separating growth from contraction. "The euro zone goods-producing sector moved into a deeper decline at the start of the fourth quarter. The PMI surveys are now clearly signalling that the manufacturing economy is in a recession," said Joe Hayes, senior economist at S&P Global Market Intelligence. The new orders index slumped to 37.9 last month from 41.3 in September, despite a slight easing in still elevated inflationary pressures.

☆ The Weak Yen Means a Strong Sony—for Now
▼ + stars: | 2022-11-01 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

For Sony, the weak yen flattered what would otherwise have been disappointing results in the latest quarter. The weak yen has lifted Sony ’s earnings. The Japanese technology giant on Tuesday reported a 16% year-over-year increase in revenue for the quarter ending in September, while operating income grew 8%. Sony’s sales fell short of analysts’ estimates but its operating profit was better than expected. Sony raised its operating profit forecast for the fiscal year ending in March, after adjusting it down just three months earlier.

☆ Asia's factory output weakens on global slowdown, China COVID curbs
▼ + stars: | 2022-11-01 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

The private sector survey was in line with an official PMI survey released on Monday that showed China's factory activity unexpectedly fell in October. Japan's au Jibun Bank Japan Manufacturing PMI fell to 50.7 in October from September's 50.8 final, marking the weakest growth since January last year. South Korea's factory activity shrank for a fourth month in October as orders for exports fell for an eighth month, the PMI showed. That followed data that showed South Korea's exports fell the most in 26 months with shipments to China, its largest market, extending declines. Factory activity in Indonesia expanded at a slower pace in October with the PMI standing at 51.8, down from 53.7 in September.

☆ Japan Oct factory growth hits 21-month low as China conditions worsen -PMI
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +1 min

The au Jibun Bank Japan Manufacturing Purchasing Managers' Index fell to a seasonally adjusted 50.7 in October from September's 50.8 final. "The latest survey data signalled that Japan's manufacturing sector lost further momentum in October," said Laura Denman, economist at S&P Global Market Intelligence, which compiles the survey. "Sluggish markets and weaker demand conditions, on both a domestic and international level, became a recurring trend," she said, adding that worsening conditions in China and South Korea hurt Japan's exports last month. Output and overall new orders both contracted for the fourth straight month, the survey results showed. Business expectations jumped to a nine-month high despite prolonged pressure from high input costs, according to the survey.

☆ Mexico's factories grow for 2nd month in a row; inflation bites again
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +2 min

The seasonally adjusted S&P Global Mexico Manufacturing Purchasing Managers' Index (MXPMIM=ECI) remained unchanged at 50.3 in October, from the same level in September. Mexico's factories shrank for more than 2-1/2 years starting in March 2020 due to the economic fallout of the COVID-19 pandemic. Survey data for October showed that output slipped as inflationary pressures, cash flow problems and material shortages dampened client demand. De Lima noted that input scarcity, the war in Ukraine, energy price volatility and transportation difficulties pushed up cost inflation in October. "But worries over insolvency risks and unrelenting inflationary pressures dampened confidence," De Lima added.

Summary Energy prices continue to drive inflationBut "core" inflation accelerates as wellSome fear interest rate hikes could make slowdown worseBRUSSELS, Oct 31 (Reuters) - Euro zone inflation surged more than expected in October, data showed on Monday, fuelling expectations that the European Central Bank will press on with big interest rate hikes despite economic growth slowing. Some economists saw that continued growth as creating space for the central bank to keep taking strong inflation-fighting steps. The growth is important because many economists believe the ECB would not want to keep raising rates during an expected euro zone recession, heralded by the growth slow-down in the July-September compared with the 0.8% quarterly and 4.3% year-on-year growth in the April-June period. The surging inflation and slowing growth are mainly the result of Russia's invasion of Ukraine and the subsequent disruption of Russian gas deliveries to Europe. That has driven up energy prices and broader inflation, triggered rate rises and lead to a slowing of economic activity and falling confidence.

It isn’t clear yet who will succeed Mr. Segal as CFO. Twitter and Mr. Musk on Friday didn’t respond to requests for comment. Mr. Segal on Friday tweeted that “the work isn’t complete,” referring to Twitter’s ambition to build “the world’s townsquare.” Mr. Segal didn’t respond to a request for additional comment. Mr. Musk has said buying Twitter would accelerate his creation of an app that combines the capabilities of several apps in one. The future executives that Mr. Musk installs will have to share his vision for Twitter, Mr. Ives said, and prepare to support growth initiatives that will take years to build.

☆ Asia-Pacific will lead global economic growth in 2023, S&P says
▼ + stars: | 2022-10-27 | by ( Jihye Lee | ) www.cnbc.com time to read: +2 min

Ed Jones | AFP | Getty ImagesEconomies in Asia-Pacific will dominate global growth in the upcoming year, according to S&P Global Market Intelligence. S&P predicts the region will achieve real growth of roughly 3.5% in 2023, while Europe and the U.S. will likely face recession. The firm trimmed its growth forecast for global real GDP by 0.6 percentage point from last month's forecast of 2% — and now expects to see 1.4% growth in 2023. That's a steep decline from 5.9% global growth in 2021 and even slower than the 2.8% growth S&P expects for 2022. "With moderate growth in Asia-Pacific, the Middle East, and Africa, the world economy can avoid a downturn, but growth will be minimal," said Sara Johnson, executive director of economic research, S&P Global Market Intelligence.

☆ Even Barry Sternlicht is getting hammered by rising rates. A recent deal his $6 billion firm backed out of shows how.
▼ + stars: | 2022-10-26 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +7 min

The scuttled deal shows how rising rates have hit Starwood CEO Barry Sternlicht's bottom line. It has canceled its plans to purchase the Stamford, Connecticut, mortgage originator Luxury Mortgage Corp., according to a person with direct knowledge of the deal. The situation with Luxury Mortgage, however, shows how rising rates have also affected Starwood's bottom line. A budding partnership was upended by rising ratesIn recent years, Starwood has become one of Luxury Mortgage's biggest customers. Luxury Mortgage's business has also been strained in recent months.

☆ Sterling hits six-week high as Sunak mulls delay to Oct. 31 budget plan
▼ + stars: | 2022-10-26 | by ( Lucy Raitano | ) www.reuters.com time to read: +3 min

LONDON, Oct 26 (Reuters) - Sterling soared to six-week highs on Wednesday, as Britain's new Prime Minister Rishi Sunak holds his first cabinet meeting amid reports he could delay the announcement of a plan to repair the country's public finances. Sunak took power on Tuesday with a promise to fix the mistakes of his predecessor and stabilise the economy, warning Britain faced a "profound economic crisis". Foreign minister James Cleverly said on Wednesday the government's fiscal plan, scheduled for Oct. 31 and hotly anticipated by markets, could be delayed, suggesting a little more time might be needed to spell out the details. The pound was last up 1.16% against the dollar at $1.1601, and was 0.41% higher versus the euro at 86.500 pence per euro. "Things are certainly starting to look a lot more constructive for the pound," said Michael Brown, head of market intelligence at Caxton.

☆ POLL Rising U.S. rates pose biggest risk for Japan but recession unlikely
▼ + stars: | 2022-10-25 | by ( Kantaro Komiya | Devayani Sathyan | ) www.reuters.com time to read: +4 min

REUTERS/Florence Lo/IllustrationTOKYO, Oct 25 (Reuters) - The biggest risk to Japan's economy over the next year is a prolonged period of U.S. monetary tightening, although the world's third-largest economy is unlikely to sink into a recession, the majority of economists polled by Reuters said. Policymakers worldwide, including the International Monetary Fund, have cut global growth projections for 2023, citing elevated prices and higher cost of borrowing. While most economists agreed that such risks would not plunge Japan into a recession, they said that was mainly owing to a low base. "Japan's economy appears robust compared with overseas peers, but that's just because its recovery from the pandemic has been lagging behind," said Fukoku's Takamatsu. Elsewhere in the poll, a median estimate of 34 respondents had the Japanese economy expanding an annualised 2.0% in October-December, slightly better than the 1.9% forecast in the September poll.

☆ Political chaos tips British firms into deeper slide - PMIs
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +3 min

LONDON, Oct 24 (Reuters) - British businesses are suffering their worst month since January 2021, when they were under a COVID-19 lockdown, as the country's political upheavals compound concerns about inflation and rising interest rates, a survey showed on Monday. German business activity declined at a faster rate than in Britain, although France fared better than both. "More evidence of economic weakness, combined with signs of less heated inflationary pressures, should, all else equal, tone down the (BoE's) appetite to raise interest rates substantially in its November meeting," Beck said. Truss has said she will resign once her successor is chosen at the end of this week. "As night follows day, investment and employment will suffer in the months ahead as companies adjust to the increasingly challenging environment," Williamson said.

☆ Japan October factory growth slows to 21-month low, but services pick up
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +2 min

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) eased to a seasonally adjusted 50.7 in October, down from the prior month's final 50.8. Growth in the services sector picked up, however. The au Jibun Bank Flash Services PMI Index expanded for a second month, rising to a seasonally adjusted 53.0 in October after September's 52.2 final, according to the survey. Earlier this month, Japan reopened its borders to individual foreign tourists after more than two years of pandemic isolation. The au Jibun Bank Flash Japan Composite PMI, which is estimated by using both manufacturing and services, also accelerated, rising to 51.7 from the prior month's final 51.0, it showed.

☆ Fears of a severe recession deepen as European business activity slows on surging energy costs
▼ + stars: | 2022-10-24 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

Business sentiment in the euro area dropped once again ahead of an ECB meeting where President Christine Lagarde is expected to raise rates again. European business activity took another hit in the month of October, reporting the steepest output loss since April 2013 excluding pandemic lockdowns. Firms have been under pressure due to higher inflation, particularly coming from energy costs and wage pressures. Manufacturing activity led the losses, but services output also dropped for a third consecutive month. In terms of national breakdown, business activity in Germany came in at 44.1, versus 45.7 in the previous month.

☆ Pound holds ground as Rishi Sunak leads race to become UK prime minister
▼ + stars: | 2022-10-24 | by ( Julia Horowitz | ) edition.cnn.com time to read: +6 min

London CNN Business —Britain’s third prime minister in seven weeks will face the huge challenge of projecting stability after a period of historic political and financial market chaos. Rishi Sunak emerged over the weekend as the clear front-runner in the dramatic race to replace Liz Truss, who’s set to be the shortest-serving prime minister in UK history. “A key focus for the next Prime Minister and their chosen Chancellor needs to be fiscal responsibility,” Carl Emmerson, deputy director of the Institute for Fiscal Studies, said in a statement. An economy in recessionThe Bank of England forecast last month that the UK economy was already in recession. 10 Downing Street, investors and economists expect the revamped economic plan outlined by current finance minister Jeremy Hunt to remain intact.

☆ VIEW Rishi Sunak to become Britain's new PM, UK markets rally
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +8 min

LONDON, Oct 24 (Reuters) - Former British finance minister Rishi Sunak will be Britain's next prime minister after his rivals quit the race, which analysts said had relieved some of the nervousness around the outlook for the UK economy, boosting domestic markets. The new Prime Minister needs to confirm their leadership team as soon as possible and provide clarity on their strategy for stabilising the economy and their policy priorities. ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK:"Coming to a very rapid decision on who the prime minister is going be certainly breathes a sigh of relief into the markets. RUTH GREGORY, SENIOR UK ECONOMIST, CAPITAL ECONOMICS, LONDON:"The fall in gilt yields on the news today that Rishi Sunak will become the UK’s next Prime Minister has reduced the chances of a significant fiscal consolidation. With the pound, just because we have a new Prime Minister in place, all of the issues don't just go away and we still have remarkable strength being enjoyed by the dollar."

☆ Energy costs push Germany flash PMI to 29-month low - S&P Global
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

High energy costs were a major factor, especially in manufacturing, where the rate of contraction was at its fastest in two-and-a-half years, though manufacturing was also hit by weaker demand, S&P Global said. The flash manufacturing PMI fell to 45.7 from 47.8 the month before. "The flash PMI data show the downturn in German business activity gathering pace at the start of the fourth quarter, adding to the growing signs of an impending recession," said Phil Smith, economics associate director at S&P Global Market Intelligence. Germany's flash services PMI fell to 44.9 from 45.0. Register now for FREE unlimited access to Reuters.com RegisterReporting by Thomas Escritt; editing by John StonestreetOur Standards: The Thomson Reuters Trust Principles.

☆ Cost of insuring UK debt against default drops as Sunak becomes PM
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

LONDON, Oct 24 (Reuters) - The cost of insuring Britain's debt against default fell to its lowest since last month's "mini budget", according to data from S&P Global Market Intelligence on Monday, after Rishi Sunak won the race to become Britain's next prime minister. Five-year sovereign credit default swaps (CDS) on UK government debt fell to 30 basis points, from 35 bps at Friday's close. This was their lowest since Sept. 23, when outgoing Prime Minister Liz Truss and her then-finance minister Kwasi Kwarteng unveiled a fiscal plan that contained billions of pounds in unfunded tax cuts. Sunak, who served as finance minster under Boris Johnson, said on Monday Britain faced serious economic challenges and needed stability and unity. Register now for FREE unlimited access to Reuters.com RegisterReporting by Amanda Cooper; Editing by Karin StroheckerOur Standards: The Thomson Reuters Trust Principles.

☆ Speculators bet Credit Suisse shares have further to fall
▼ + stars: | 2022-10-21 | by ( Nell Mackenzie | ) www.reuters.com time to read: +3 min

Oct 21 (Reuters) - Investors have been adding to bets that Credit Suisse's shares still have further to fall after a social media storm forced a fresh look at the Swiss lender's problems. Credit Suisse declined to comment. In terms of financial firms subject to the highest amount of short selling, Credit Suisse currently stands fourth behind investment firms T. Rowe Price, BlackRock and Blackstone, according to data specialist FIS. Reuters Graphics"Retail investors were all over developments in Credit Suisse," said Ivan Ćosović, founder of data group Breakout Point, which tracks the sentiment of retail traders on platforms like Reddit. Credit Suisse was the subject of a flood of unsubstantiated rumours and critical memes including titles such as: "Everything is Fine?"

☆ Markets are losing retail traders, that's bad for stock prices
▼ + stars: | 2022-10-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Daily average trades at companies like TD Ameritrade (AMTD) and Charles Schwab (SCHW) spiked to new highs in March 2020 and again in January 2021 and February 2021. The number of daily retail trades at Morgan Stanley fell more than 15% over the third quarter from a year earlier, to 805,000 trades a day. In Februrary 2021, Interactive Brokers registered an average of 3.7 million daily retail trades. Recent search trends on Google also show a drop in interest in the stock market. The Investor Movement Index (IMX), created by TD Ameritrade to indicate the sentiment of retail investors, fell by 7.26% during the September period.

☆ Traders Raise Bets Against Energy Stocks, Fearing Rally Will Fade
▼ + stars: | 2022-10-20 | by ( Akane Otani | ) www.wsj.com time to read: 1 min

Within the energy sector, traders are the most short on drillers and companies refining and marketing oil and gas. More traders are betting that energy stocks’ big 2022 rally won’t last. Short interest in U.S. energy stocks has risen to 3.9%, the highest level since October 2020, according to S&P Global Market Intelligence. That means that 3.9% of energy shares available for trading are being held by short sellers. Within the energy sector, traders are the most short on drillers and companies refining and marketing oil and gas and the least short on transportation and storage companies.

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