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☆ The US government just declared war on crypto
▼ + stars: | 2023-06-07 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

In less than 24 hours, the SEC filed lawsuits against some of the biggest players in crypto. First came Binance, the world's largest crypto exchange, and its outspoken CEO and founder Changpeng Zhao. The SEC drew a line in the sand for the entire crypto ecosystem: It's our way or the highway. Too many things that make crypto special — anonymity, decentralization — are exactly the type of things financial regulators hate. Here are two experts both issuing warnings about the stock market.

Persons: Dan DeFrancesco, we've, Al Pacino, Michael Corleone, Changpeng Zhao, bitcoin, it's, Gary Gensler, Goldman Sachs, Gensler, FTX's Sam Bankman, Fried, Binance, Kim Kardashian, Mike Coppola, Kim K, It's, Hafize Gaye Erkan, she's, Serta Simmons, LIV Golf, Michael Klein, Jeffrey Cane, Nathan Rennolds Organizations: Paramount, SEC, Netflix, Getty, SKKY Partners, First, Goldman, Party, PGA, LIV, LinkedIn Locations: outflows, First Republic, Republic, California, New York, London

☆ They said we were getting a recession. Instead, we’re getting a bull market
▼ + stars: | 2023-06-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

A recipe for a bull market, apparently. “The key difference for us is that you tend to see bull markets coincide with economic expansions, not economic contractions.”Still, since the last bull market, we’ve had a pandemic, a war in Europe, a banking crisis and a debt crisis among other dramas. “Such narrowness is not what new bull markets are built on.”The bottom line: Investors should “avoid getting sucked into this as a new bull market,” said Samana. A nationwide UPS strike would be the largest work stoppage in US history, reports my colleague Vanessa Yurkevich. US Bankruptcies reach highest level in 13 yearsChapter 11 filings in the US have reached their highest levels since the end of the Great Recession, according to new data from S&P Global Market Intelligence..

Persons: “ We’re, ” Sameer Samana, we’ve, ”, Kevin Gordon, Charles Schwab, Lisa Shalett, they’ve, Vanessa Yurkevich, We’ve, Fred Zuckerman, pare Organizations: CNN Business, Bell, New York CNN, Federal, Wells, Wells Fargo Investment Institute, CNN, Tech, Nvidia, US, Morgan Stanley Wealth Management, UPS, Teamsters, –, Brotherhood of Teamsters, 1st, “, ”, P Global Market Intelligence, Bed, P, Retail, City Locations: New York, Wells Fargo, Europe, Samana, America

NEW YORK, June 6 (Reuters) - Subway reached an agreement with a master franchisee to open nearly 4,000 new sandwich shops across mainland China over the next 20 years, it said on Tuesday. Other companies are also beefing up their presence in China, including Starbucks, which plans to open 3,000 new stores there by 2025. Subway's deal with master franchisee Shanghai Fu-Rui-Shi Corporate Development Co Ltd (FRS) is the largest such agreement in Subway's history. FRS will get exclusive rights to manage and develop all Subway locations in China. "China is a key market with significant long-term growth opportunity, and we look forward to bringing the Subway experience to even more guests in the region," Subway Chief Executive John Chidsey said in a statement.

Persons: John Chidsey, Hilary Russ, Lincoln Organizations: YORK, Starbucks, Shanghai Fu, Corporate Development Co, Asia Investment Capital, Thomson Locations: China, U.S

☆ From Party City to Bed Bath & Beyond: Bankruptcies just hit their highest level since the Great Recession
▼ + stars: | 2023-06-06 | by ( Kaja Whitehouse | ) www.businessinsider.com time to read: +2 min

Corporate bankruptcies just hit their highest levels since 2010, according to new data. This year's bankruptcies include Party City, Serta Simmons, and the parent of Silicon Valley Bank. There were 54 corporate bankruptcies in the US in May, bringing this year's total to 286, according to new data from S&P Global Market Intelligence. That's the highest number of US corporate bankruptcies recorded for the first five months of the year since 2010, the data provider said. This year's bankruptcies include party goods retailer Party City and mattress seller Serta Simmons, both of which filed for restructuring protection in January.

Persons: Serta Simmons Organizations: Silicon Valley Bank, P Global Market Intelligence, P's, Intelligence, Party City, Bank, Federal Locations: Silicon

That month, it announced five new agreements with multi-unit operators to condense and transfer more than 230 existing restaurants. "There is strong interest in growth opportunities with Subway from multi-unit operators," Subway said in a statement to Reuters for this story. Klein, the franchise attorney, said that since 2022, his firm examined three multi-unit Subway deals on behalf of clients interested in investing in the chain for the first time. Of the 100 largest multi-unit U.S. restaurant franchisees by revenue in 2022, none had a Subway in their portfolio, according to a ranking by Franchise Times magazine. Instead, top franchisees owned hundreds of Wendy's (WEN.O), Yum Brands' (YUM.N) Pizza Hut and Taco Bell, Restaurant Brands' Burger King, Dine Brands' (DIN.N) Applebee's and other chains.

Persons: Justin Klein, John Gordon, Klein, it's, Gordon, Burger, Alicia Miller, Hilary Russ, Matthew Lewis Organizations: YORK, Subway, Reuters, QSR Magazine, Restaurant Brands International Inc, Times, Yum Brands, Bell, Restaurant Brands, Catalyst Insight, Thomson Locations: United States, U.S, Miami, Jersey, New York, Nevada, New Mexico

☆ Private equity is being squeezed from all sides
▼ + stars: | 2023-05-12 | by ( Edward Chancellor | ) www.reuters.com time to read: +8 min

But this time around there’s a lot more private equity money chasing a limited number of opportunities. So private equity funds could face the prospect of a prolonged period of higher borrowing costs, lower valuations, and depressed investment returns. The birth of private equity coincided with the Reagan administration’s policy of relaxing regulations and tax cuts. Recent high profile corporate bankruptcies owned by private equity include car-rental firm Hertz and retailer Toys R Us. The private equity industry could soon find itself caught in a pincer, between tighter financing on the one hand and tighter regulation on the other.

The tally of U.S. companies that have gone bankrupt so far in 2023 is higher than the first four months of any year since 2010, data from S&P Global Market Intelligence showed. There were 54 corporate bankruptcy petitions in April, down from 70 in March, S&P Global said. Still, the year-to-date count more than doubled to 236 from a year ago. Consumer discretionary companies logged a higher number of bankruptcies than any other sector in 2023, according to S&P Global, with the once high-flying retailer Bed Bath & Beyond among the latest victims. Largest bankruptcies of 2023 (with more than $1 billion in liabilities):Source: S&P Global Market Intelligence, Refinitiv EikonReporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Citi appoints new North Africa, Levant and Central Asia head
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: 1 min

DUBAI, May 8 (Reuters) - Banking group Citi has appointed Omar Hafeez as head of its North Africa, Levant and Central Asia operations based in Dubai after a reorganisation of the company's MENA region, it said on Monday. Hafeez transfers from Japan, where he was head of the corporate banking business, the third largest for Citi globally. The North Africa, Levant and Central Asia sub-cluster consists of Algeria, Tunisia, Morocco, Egypt, Jordan, Lebanon, Turkey, Kazakhstan and Israel, Citi said. Reproting by Yousef Saba Writing by Lisa Barrington Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

May 2 (Reuters) - Starbucks Corp (SBUX.O) beat Wall Street estimates on Tuesday for quarterly profits and comparable sales, powered by a sharp recovery in business in China and steady demand for its coffees and cold drinks in North America. Even so, some analysts expected China sales to remain in the red after tumbling 29% the previous quarter. Instead, the world's largest coffeehouse chain posted a 3% rise in China comparable sales in its second quarter ended April 2, boosting the company's international sales 7%, more than double the 2.94% increase of the average analyst's estimate, according to Refinitiv data. Globally, the Seattle-based chain's comparable sales climbed 11%, trouncing analysts' expectation of a 7.36% rise. Excluding one-time items, Starbucks earned 74 cents per share, beating estimates of 65 cents.

NEW YORK, May 1 (Reuters) - Subway, which is exploring a potential $10 billion sale, further shrank last year in the United States as franchisees closed 2.7% of the brand's sandwich shops, squeezing its royalties and fees. The chain shed another net 571 locations in 2022 after even steeper closings in previous years in the United States, its largest global market, according to the latest disclosure document it provides to franchisees who are interested in buying locations. Subway has closed thousands of U.S. locations in recent years due to over-expansion, outdated operations and decor, stale menus and $5 footlong deals that eroded franchisees' profits. Subway franchisees closed more than 1,000 net U.S. locations in 2021 and 1,609 in 2020. At the end of 2022, Subway had 20,576 shops in the United States.

☆ Deutsche Bank shrugs off basket-case mantle
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

Some alighted on Deutsche Bank (DBKGn.DE), the erstwhile whipping boy of European banking. True, the bank’s total deposits fell by 29 billion euros, or roughly 5%, between Dec. 31 and March 31. In Banco Santander’s (SAN.MC) European business, customer deposits also fell roughly 5% over the same period. Meanwhile, three-quarters of corporate banking deposits either have a fixed term or are used as part of the customers’ operations, making them stickier. Deutsche, previously the basket-case of European banking, was always a likely target for investors hunting for the next weak link.

Net profit attributable to shareholders was 1.158 billion euros ($1.28 billion). That compared with profit of 1.060 billion euros a year earlier, and was better than analysts' expectations for a profit drop to around 977 million euros. "We have worked hard to achieve this stability," Deutsche Bank Chief Executive Officer Christian Sewing told employees in a memo. Revenue at the investment bank unit fell 19% to 2.7 billion euros in the first quarter from a year earlier. The investment bank's revenue decrease was countered by gains at the corporate bank and retail bank, which saw 35% and 10% increases.

☆ Deutsche Bank logs 11th straight quarterly profit, reveals job cuts
▼ + stars: | 2023-04-27 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

A Deutsche Bank AG branch in the financial district of Frankfurt, Germany, on Friday, May 6, 2022. The Thursday report nevertheless showed deposits fell over the course of the quarter to 592 billion euros from 621.5 billion euros at the end of 2022. watch nowDeutsche's corporate bank net revenues came in at 2 billion for the quarter, up 35% year-on-year and the highest quarterly figure since the launch of its transformation program. However, the bank also flagged job cuts for non-client facing staff and reported a sharper-than-expected 19% year-on-year fall in investment bank revenues year-on-year. He suggested that, in scrutinizing Deutsche Bank, market participants saw a strong and profitable business model, stable balance sheet and deposit base, a "very moderate" and "well underwritten" commercial real estate book and "no near-term financing needs."

☆ Swedish bank SEB's operating profit beats forecast in Q1
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

STOCKHOLM, April 26 (Reuters) - Swedish bank SEB (SEBa.ST) reported first-quarter operating profit above market expectations on Wednesday as higher interest rates boosted income from loans. SEB, Sweden's top corporate bank, said operating profit was 11.62 billion Swedish crowns ($1.13 billion) versus a year-ago 7.86 billion, easily beating a mean forecast of 9.49 billion, according to estimates provided by the company. Soaring inflation over the past year has seen central banks crank up key rates radically, boosting interest income for Swedish banks, while volatile markets have increased demand for risk management services. Commission income fell to 5.17 billion crowns from a year-ago 5.40 billion, below the mean forecast 5.26 billion. However, SEB said its net credit losses fell to 272 million the quarter from 535 million a year ago, below the 686 million seen by analysts.

☆ 'Go into places and experiences that make you uncomfortable': 3 CEOs on the importance of taking risks at work
▼ + stars: | 2023-04-26 | by ( Gili Malinsky | ) www.cnbc.com time to read: +2 min

You also want to grow and move your career forward by experimenting with new projects and ways of working. It's taking those risks on the job that helps you and the company learn critical lessons and ultimately find success. 'Go into places and experiences that make you uncomfortable'Edward Jones CEO Penny Pennington started her career in corporate banking helping businesses with funding. "Go into places and experiences that make you uncomfortable," she said, adding that, "that's where the growth comes. "When you're willing to put yourself out there, you're going to be uncomfortable.

April 25 (Reuters) - Chipotle Mexican Grill Inc (CMG.N) topped Wall Street expectations for first-quarter profits and sales on Tuesday, helped by higher menu prices, 41 new restaurant openings and some recovery among lower-income customers. The company said it expects second quarter and full year comparable sales growth in the mid-to-high single digits. Even with inflation squeezing household budgets, restaurant chains are expected to post higher sales growth in the first quarter. Comparable sales at California-based Chipotle jumped about 11% in the first quarter, while analysts on average expected an 8.6% rise, according to Refinitiv data. Inflation in the second half is "really a wild card," Chief Financial Officer Jack Hartung said on the earnings call.

☆ Canadian dealmakers expect low-carbon shift will drive mining M&A
▼ + stars: | 2023-04-20 | by ( Maiya Keidan | ) www.reuters.com time to read: +3 min

TORONTO, April 20 (Reuters) - Canadian advisors to mergers and acquisitions (M&A) expect a shift toward low-carbon technologies and government subsidies for them will spur dealmaking in mining for years to come and some are already gearing up for it. Clients are hiring mining people within dealmaking teams, and boutique M&A advisory firms are adding talent, mostly in mining, he said. Canada this year expanded an investment tax credit to equipment needed by mining companies - and any other companies in the EV supply chain - to extract or process critical minerals. For copper and nickel deals, it was the best quarter on record since at least 1990, the data showed. "Mining is one of those sectors where you really want to be prepared for the inevitable market pickup."

☆ Comerica profit beats as interest income boost offsets deposits fall
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

April 20 (Reuters) - Comerica Inc (CMA.N) on Thursday beat Wall Street estimates for first-quarter profit, as the regional lender's interest income surged from the U.S. Federal Reserve's rate hikes and helped soften a blow from a fall in deposits. Net interest income (NII), which measures the difference between the interest earned on loans and given out on deposits, rose to $708 million for the three months ended March 31, from $456 million a year earlier. Deposits decreased by $3.7 billion since the beginning of the banking crisis on March 9, largely due to diversification by customers, Comerica said. Reuters GraphicsThe bank reported a profit of $2.39 per share, beating analysts' average estimate of $2.29, according to Refinitiv data. Net income attributable to common shareholders rose to $317 million from $182 million.

NEW YORK, April 18 (Reuters) - Burger King is banking on its viral "Whopper Whopper" jingle to lift sales as part of the flagging fast-food chain's turnaround plan, as broader economic uncertainty pushed two big franchisees into bankruptcy. "I'm optimistic about the trajectory of sales in 2023," said U.S. and Canada Burger King president Tom Curtis in an interview, adding that the jingle's fervent success was "unanticipated." Unlike other fast-food chains like Subway that are consolidating restaurant ownership among fewer franchisees, Burger King is expanding the number of owners in its system. This year, two large U.S. Burger King franchisees that run more than 200 locations across at least 10 states have filed for bankruptcy, citing poor sales atop surging costs for labor and goods. "We don't want to diminish the importance of this crisis, but we also will leverage it to bring in new operators," Curtis said.

☆ The American consumer has bad news for the economy
▼ + stars: | 2023-04-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

That’s why Wall Street is already fretting over Friday’s retail sales report, which is expected to show that the mighty American consumer is pulling back. Economists forecast that retail sales fell 0.4% in March from the month before. But Goldman Sachs and Bank of America analysts say core sales — that’s without autos, gasoline, and building materials — slowed by about 1%. A taxing problem: Still, the health of the American consumer is still relatively strong, the BofA analysts said. A one-bedroom apartment had a median rent of $4,150, up 9.6% from last year, while a two-bedroom apartment had a median rent of $5,680, up 18.3% from a year ago.

☆ Private bankruptcy filings are blowing past their COVID-era peaks as credit stress builds for small businesses
▼ + stars: | 2023-04-01 | by ( Carla Mozée | ) www.businessinsider.com time to read: +5 min

Private bankruptcy filings this year have surpassed a peak set in the early stage of the pandemic, UBS said. So far in 2023, private bankruptcy filings have outstripped a peak set in the early stage of the COVID pandemic by a wide margin. Bankruptcy hot spots include the real estate industry, which has led this year's increase in private bankruptcy filings. The UBS Evidence Lab Corporate Bankruptcy Monitor tracks US corporate chapter 7, 11, and 15 bankruptcy filings. After sifting through data, UBS outlined several takeaways, including that private bankruptcy filings are led by the real estate, chemicals, healthcare, and retail industries.

[1/2] Starbucks workers attend a rally as they go on a one-day strike outside a store in Buffalo, New York, U.S., November 17, 2022. REUTERS/Lindsay DeDario//File PhotoNEW YORK, March 29 (Reuters) - Starbucks shareholders approved a proposal for the coffee chain to conduct an independent assessment of its labor practices as it contends with hundreds of newly unionized U.S. cafes, according to voting results filed on Wednesday. The city's public pension funds and a coalition of other shareholders, who combined hold about 2.2 million Starbucks shares, proposed the assessment. "It is clear from the vote result in the proposal that our investors share our commitment to our partners," Starbucks said in its regulatory filing disclosing the results. The Seattle-based company said it will use findings of the review to "understand how we can best support our partners."

REUTERS/Julia NikhinsonWASHINGTON/NEW YORK, March 29 (Reuters) - Starbucks' former Chief Executive Howard Schultz defended himself and the coffee chain against allegations of "union busting" at a U.S. Senate committee hearing in Washington on Wednesday. Senator Bernie Sanders, Chair of the Senate Health, Education, Labor, and Pensions Committee, told Schultz that "Starbucks has waged the most aggressive and illegal union busting campaign in the modern history of our country." "These are allegations and Starbucks has not broken the law," Schultz told Sanders during the hearing. His return to Starbucks as its interim leader in April 2022 was "95% focused on the operations of the business" and his involvement in the company's union strategy has been "de minimis," Schultz said. Republicans defended Schultz, praising the company's competitive wages, health benefits, employee stock purchase program and other benefits.

[1/2] Starbucks Chairman and CEO Howard Schultz looks on during its Annual Meeting of Shareholders in Seattle, Washington March 21, 2012. Senators blasted ex-Starbucks Chief Executive Howard Schultz on Wednesday over the company's "union busting" when he was at the helm. Starbucks has denied allegations that it illegally fired pro-union baristas or spied on workers as hundreds of stores organized unions starting in late 2021. "These are allegations and Starbucks has not broken the law," Schultz told Sanders during the hearing. His return to Starbucks as its interim leader in April 2022 was "95% focused on the operations of the business" and his involvement in the company's union strategy has been "de minimis," Schultz said.

☆ UBS salvages most value from Credit Suisse wreck
▼ + stars: | 2023-03-19 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

Meanwhile the government will cover up to 9 billion Swiss francs of losses, such as markdowns on Credit Suisse assets, past a certain threshold. A UBS takeover is preferable to the Swiss government nationalising Credit Suisse or winding it down. Follow @liamwardproud on TwitterCONTEXT NEWSUBS will rescue Credit Suisse in a deal worth about 3 billion Swiss francs, Swiss authorities and the two banks said on March 19. Shareholders in Credit Suisse will get one new UBS share for every 22.48 shares they currently hold. Based on UBS’s closing price on March 17 the offer values Credit Suisse shares at 0.76 Swiss francs each, well below the last closing price of 1.86 Swiss francs.

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