BlockFi bankruptcy fuels FTX contagion
BlockFi followed FTX into bankruptcy with liabilities for creditors well into the billions.
Biden expected to ask Congress to help avert rail strike — source
President Joe Biden is expected to call on Congress to intervene to avert a potential rail strike that could happen as early as Dec. 9, a source briefed on the matter told Reuters.
On Monday, more than 400 groups called on Congress to intervene in the ongoing railroad labor standoff that threatens to idle shipments of food and fuel and strand rail travelers while inflicting billions of dollars of economic damage.
White House Press Secretary Karine Jean-Pierre declined to comment on Biden’s plans but reiterated that a “shutdown is unacceptable because of the impact it would have on jobs and families and farms and businesses and communities… The president is directly involved in the process.”
Labor Secretary Marty Walsh, Transportation Secretary Pete Buttigieg and Agriculture Secretary Tom Vilsack have been involved in discussions with the rail industry, unions and agriculture industry stakeholders, Jean-Pierre said.
Walt Disney CEO Bob Iger meets with employees
Walt Disney CEO Bob Iger says the hiring freeze at the media and entertainment company will continue.
Iger also said not to expect any headline making mergers and acquisitions.
FTX resumes ordinary course payments of employees and certain foreign contractors
FTX Trading Ltd., and approximately 101 additional affiliated companies, announced that most FTX subsidiaries around the world are resuming ordinary course payment of salary and benefits to employees worldwide and ordinary course payments to certain non-U.S. contractors and service providers.
The relief includes cash payments with respect to both pre-petition and post-petition periods, subject to limits for payment of pre-petition amounts established by the orders of the Bankruptcy Court. The FTX group will pay vendors and service providers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.
Express announces refinancing transactions to reduce interest rate exposure
Express announced two transactions in support of a comprehensive plan to refinance its capital structure and expand its liquidity access while concurrently reducing interest rate exposure and providing flexibility to pay down its outstanding term debt balance.
The fashion apparel retailer:
• Increased the maximum revolver amount by $40 million to $290 million by amending its current $250 million senior secured asset-based revolving credit facility.
• Refinanced and reduced fixed debt exposure by amending its current $140 million senior secured asset-based term loan credit facility, including refinancing its $90 million first-in-last-out term loan and terminating its $50 million delayed draw term loan, of which $43 million was previously paid down.
Elon Musk: Apple threatened to yank Twitter from App Store
Elon Musk accused Apple Inc of threatening to block Twitter Inc from its app store without saying why in a series of tweets on Monday that also said the iPhone maker had stopped advertising on the social media platform.
The billionaire CEO of Twitter and Tesla said Apple was pressuring Twitter over content moderation demands.
The action, unconfirmed by Apple, would not be unusual as the company has routinely enforced its rules and previously removed apps such as Gab and Parler.
Parler, which is popular with U.S. conservatives, was restored by Apple in 2021 after the app updated its content and moderation practices, the companies said at the time. “Apple has mostly stopped advertising on Twitter. Do they hate free speech in America?,” Musk, who took Twitter private for $44 billion last month, said in a tweet.
He later tagged Apple Chief Executive Officer Tim Cook’s Twitter account in another tweet, asking “what’s going on here?”
Apple did not immediately respond to requests for comment.
Market volatility likely in 2023: Goldman Sachs
Investors may see “recession scares” next year because the stock market has not factored in a potential recession, warns Goldman Sachs.
The investment bank said there is a 39% probability of a growth slowdown in the U.S. over the next 12 months. Despite that, risk assets are only reflecting an 11% chance.
Azek sees 10% year over year decline in volume for fiscal 2023.
Azek is lower in extended trading. The designer and manufacturer of low maintenance and environmentally sustainable outdoor living products missed Wall Street profit expectations but topped revenue forecasts.
Net sales for the three months ended September 30 decreased 12.0% to $304.6 million; the estimate was $288.411 million.
The fiscal fourth quarter net loss was $4.8 million compared to net profit of $38.6 million.
Adjusted diluted earnings per share was 16 cents. The estimate was 17 cents.
For full-year fiscal 2023, Azek is assuming new construction and repair and remodel market declines and as a result, an approximately 10% year over year decline in volume.
Dow drop nears 500 points on inflation, China COVID fears
U.S. stocks fell across the board with all 11 of the S&P’s top sectors sinking, led by energy and materials, as fears over China’s COVID-19 lockdowns sent chills through financial markets. Consumer staples fell the least. Adding to uncertainty more hawkish talk on future rate hikes by Federal Reserve officials. In commodities, oil rebounded by 1.2% to $77.24.
China’s Pinduoduo beats quarterly revenue estimates
Chinese e-commerce platform Pinduoduo Inc beat Wall Street estimates for third-quarter revenue on Monday, helped by COVID-related lockdowns in the country that forced consumers to shop online.
Intermittent lockdowns and a recovery in consumer spending helped Pinduoduo and other Chinese online retailers gain business in the July-September quarter.
Pinduoduo said its revenue jumped 65% to 35.50 billion yuan ($4.99 billion) in the quarter ended Sept. 30, surpassing estimates of 30.94 billion yuan, according to Refinitiv data.
Agricultural produce, consumer electronics and beauty products were among categories that performed well, Pinduoduo Chairman and Chief Executive Chen Lei told analysts on a call following the earnings announcement.
Yahoo to buy minority stake in Taboola in digital ad push
Yahoo Inc will buy nearly 25% of Taboola.com Ltd and become its largest shareholder in a deal allowing the online advertising company to exhibit paid content on the web portal’s many sites.
The 30-year contract, announced on Monday, marks a big bet by internet pioneer Yahoo on digital advertising at a time when industry giants from Alphabet-owned Google to Meta Platforms Inc are struggling with an inflation-driven downturn in ad spending.
The Yahoo-Taboola partnership is expected to generate $1 billion in annual revenue, but the companies did not provide any other financial details. Yahoo will also get a seat on Taboola’s board.
Yahoo, owned by private equity firm Apollo Global Management since a $5 billion buyout last year, has over the years been overtaken by Google and Facebook, but it still has nearly 900 million monthly active users thanks to a collection of sites such as Yahoo Finance, Yahoo Sports and TechCrunch.
The deal will hand Taboola exclusive rights to sell native ads on Yahoo’s sites.
FTX bankruptcy has unique challenges: Ken Feinberg
The special master of the 9/11 Victims Compensation Fund says the bankruptcy of FTXC is a “unique case,” with valuation more difficult to determine because it’s a cryptocurrency entity headquartered in the Bahamas.
Feinberg, who also oversaw compensation funds for the victims of the Boston Bombings, said any potential fund for FTX would be a “ways down the road” if needed.
Stagflation spooks fund managers
Fund managers see stagflation as the biggest risk to the global economy in 2023, continuing to create volatility in the stock market, according to Bank of America researchers.
A recent pulse survey found that 92% of fund managers expect a period of high inflation and low economic growth next year, while 0% are forecasting a Goldilocks scenario, in which the economy avoids a recession and inflation slows.
Hain Celestial names new CEO
Hain Celestial has named Wendy Davidson as President and Chief Executive Officer, effective January 1, 2023.
Current CEO Mark Schiller will continue to serve as President and Chief Executive Officer until December 31, 2022, at which point, he will become a non-executive director on the Board and will serve as an ongoing resource to Ms. Davidson.
Ms. Davidson is a seasoned consumer packaged goods executive with deep expertise in sales and marketing. She most recently served as President of the Americas for Glanbia Performance Nutrition, where she delivered strong results in a post-pandemic recovery while integrating several acquired brands into a single operating model.
Hain Celestial’s brands include Celestial Seasonings, Garden of Eatin’ and Joya.
Wynn Macau leads rise in Macau casino stocks after new licenses announced
Wynn Macau led a rally in Macau gaming stocks on Monday after the city’s government said all six incumbent casino operators would be given new licenses to operate in the world’s biggest gambling hub from January.
Shares in Wynn Macau jumped as much as 18.8% to HK$5.18, their highest since Oct. 10, and were on course for their biggest daily gain since October 2011.
The highly anticipated announcement on licenses signals stability and continuity for the Macau operators, which have invested more than $50 billion in the Chinese special administrative region in the past 20 years.
Frontier Airlines ends customer phone support
Frontier Airlines is cutting the cord on its customer service phone line.
Customer service is now digital to ensure “customers get the information they need as expeditiously and efficiently as possible,” a Frontier spokesperson told FOX Business.
Cyber Monday may be a record setter
Cyber Monday shopping may set a record. Adobe Digital Insights predicts total spending will reach between $11.2 billion and $11.6 billion.
The forecast tops Black Friday spending, which also set a new record this year, and surpasses the $10.7 billion consumers spent last Cyber Monday, according to the latest Adobe Analytics figures.
In the U.K., the volume of payments was up 5.0% compared to the same point in 2021, data from Barclaycard Payments showed.
Reuters contributed to this report.
Apple and iPhone supplier Foxconn raise their estimates of production shortcomings
Apple may be facing an iPhone shortage following turmult at its manufacturing plant in Zhengzhou, China. Lockdowns and worker unrest are expected to result in production being short nearly 6 million iPhone Pro devices.
The facility of supplier Foxconn produces most iPhone 14 Pro and Pro Max devices, in-demand units that have picked up the lack of demand for the regular iPhone 14. Apple cut its overall production target to about 87 million units from an earlier projection of 90 million units, according to Bloomberg.
Cryptolender BlockFi files for bankruptcy
BlockFi Inc. and eight affiliates filed for bankruptcy protection in New Jersey to stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all clients and other stakeholders.
To ensure a smooth transition into Chapter 11, BlockFi is filing with the court a series of customary motions to allow the cryptocurrency lender to continue to operate its business.
Stocks, oil slide as China’s COVID-19 lockdowns spook investors
U.S. stocks fell as investors monitored widespread protests around COVID-19 lockdowns in China with all three of the benchmarks slipping. Those fears also dented oil which dropped over 2% to the $74 per barrel level.
Lawmakers are piling onto the FTX fallout with the first of several hearings to begin this week.
Bitcoin, Ethereum, Dogecoin all lower in crypto trading
Cryptocurrency prices edged lower early Monday with Bitcoin, Ethereum and Dogecoin all showing losses.
t approximately 5 a.m. ET, Bitcoin was trading at nearly $16,210 (-1.41%), or lower by $233.
For the week, Bitcoin was trading higher by 1.09%.
For the month, the cryptocurrency was lower by nearly 19%.
Ethereum was trading at approximately $1,171 (-1.98%), or lower by more than $23.4.
For the week, Ethereum was trading higher by nearly 4.64%.
For the month, it was trading lower by approximately 21.31%.
Dogecoin was trading at $0.095437 (-3.71%), or lower by approximately $0.003672.
For the week, Dogecoin was higher by more than 28.4%. For the month, the crypto was higher by nearly 28%.
Gas, diesel prices fall overnight
The nationwide price for a gallon of gasoline slipped Monday to $3.546. On Sunday, the price was $3.555, according to AAA. The average price of a gallon of gasoline on Saturday was $3.566.
One week ago, a gallon of gasoline cost $3.662. A month ago, that same gallon of gasoline cost $3.716. A year ago, a gallon of gasoline nationwide cost $3.394.
Gas hit an all-time high of $5.016 on June 14, approximately 25 weeks ago.
Diesel declined early Monday nationwide as well, slipping to $5.215. On Sunday, the price was $5.228, according to AAA.
One week ago, a gallon of diesel cost $5.298. A month ago, that same gallon of gasoline cost $5.308. A year ago, a gallon of gasoline cost $3.641.
US stock move lower after holiday-shortened Friday session
U.S. stock futures were lower early Monday morning after a mixed, shortened session on Wall Street Friday.
On Friday, when markets closed at 1 p.m. Eastern following the Thanksgiving day holiday on Thursday, the S&P 500 fell less than 0.1% to close at 4,026.12.
Nearly 70% of stocks in the benchmark index gained ground, but the broader market was dragged lower by technology companies, whose high valuations give them more heft in pushing the market higher or lower.