Netflix workers are planning to protest the company"s airing of Dave Chappelle"s transphobic comments

After co-CEO Ted Sarandos defended the company's decision this week, trans employees and their allies planned a protest for next week......»»

Category: topSource: bizjournalsOct 14th, 2021

Netflix employees walk out in protest of company"s airing of transphobic Dave Chappelle special

In the Bay Area and Hollywood, dozens of company workers walked out to call attention to the hurt caused by Chappelle's comments and to call on the company to do better by the trans community......»»

Category: topSource: bizjournalsOct 20th, 2021

Why Netflix Investors Should Care About Its Chappelle Controversy

Co-CEO Ted Sarandos struck a note of contrition while speaking to journalists on the eve of a planned worker walkout Netflix co-CEO Ted Sarandos struck a note of contrition while speaking to journalists after the company released its third-quarter results on the eve of a planned walkout Wednesday by at least 1,000 workers in the wake of one of the biggest controversies the company has faced. The streaming platform came under fire earlier this month for airing comedian Dave Chappelle’s latest special, The Closer. The show, which landed on the streaming site Oct. 5 and contains offensive jokes concerning transgender people in particular, has drawn the ire of LGBTQ activists as well as Netflix’s own employees. [time-brightcove not-tgx=”true”] What happened at Netflix Sarandos sent an internal memo to employees Oct. 8 arguing The Closer did not cross the line of inciting hate or violence and days later doubled down on that sentiment, writing in another email: “We have a strong belief that content on screen doesn’t directly translate to real-world harm.” Disappointed with the response from leadership, the trans employee resource group (ERG) at Netflix planned a company-wide walkout scheduled for Wednesday. On Tuesday, Sarandos told Deadline, “I screwed up the internal communication,” and acknowledged that he should have recognized that some employees were “hurting very badly from the decision made.” He said the comments in his second email “came out with a very blanket statement that storytelling doesn’t have impact on the real world, which is the opposite of everything I’ve ever said, thought or felt.” The Chappelle controversy has exposed a disconnect between Netflix’s decision makers and some of its staff and subscribers. Three employees were suspended for attending a virtual meeting for top executives that they were not invited to earlier this month, but were later reinstated. One employee was fired on Oct. 15 for leaking confidential information about what Netflix paid for Chapelle’s special ($24.1 million) to Bloomberg. Read more: Breaking Down the Controversy Around Dave Chappelle’s Netflix Special The Closer While many young LGBTQ activists took to social media demanding that Netflix remove what they deemed to be a transphobic Chappelle special from its services, Sarandos did not indicate he would have done anything differently concerning the airing of the special and he told the Wall Street Journal he did not have plans to remove it from the platform. “I don’t think a warning card or an edit would’ve been appropriate,” he told Deadline. He also defended the platform’s right to stream controversial content. Sarandos’ response to the fallout made it clear that it wasn’t something the company’s leadership had been prepared for: “We are in uncharted grounds here, we have never had internal emails leaked to the press before,” he told Deadline. Ahead of the planned walkout Wednesday in response to the company’s handling of the situation, Netflix engineer Terra Field—one of the workers who had been suspended, and co-vice president of the Netflix Trans* ERG—wrote in a post on Medium that she didn’t want Netflix to take The Closer down. However, she wrote that she did want the company and others with similar levels of influence to “stop pretending that transphobia in media has no effect on society.” She also wrote in the Oct. 18 post that she was asking the company to add a warning to existing content that contains transphobia, promote “queer and trans” content after viewers have consumed transphobic items and to promote queer and trans talent and pay them well. The Trans* ERG is making similar demands, according to a report by the Verge. “We value our trans colleagues and allies, and understand the deep hurt that’s been caused,” a spokesperson for Netflix said in an emailed statement. “We respect the decision of any employee who chooses to walk out, and recognize we have much more work to do both within Netflix and in our content.” The walkout comes as the practice of taking strike action has become more common in a tighter labor market. In the tech industry, employees of Facebook, Instacart and Amazon are among those who have been emboldened to protest company policies and treatment of workers in recent years. Netflix’s third-quarter results were solid Netflix’s third-quarter earnings release on Tuesday showed it had beaten its own expectations, increasing membership by 4.4 million versus its 3.5 million projection. The company now has 214 million paid subscribers, marking an improvement from a disappointing first half of the year. The company lauded the success of shows such as Korean series Squid Game—which 142 million member households watched globally in the four weeks after its release on Sept 17—as a factor in the platform’s reach and the strength of its content. While the company’s tone on the Chappelle special appears to have shifted, the controversy—one of the first high profile issues of this kind that the company has faced—highlights a potential concern for Netflix in the longer term. The company currently depends on millennials and boomers for subscriptions—market tracker Business of Apps puts Netflix’s median subscriber age at 35-44—but an increasingly socially liberal Generation Z (those aged 9-24) are the users that the company will need to target to help it grow in the future. The latest age range data released by the Census Bureau shows that, as of July 2019, nearly a third of the U.S. population was under the age of 24. Read more: Gen Z and Millennials Are Leading a ‘Great Reshuffle.’ Here’s What That Means According to a survey of 2,200 respondents over the age of 18 in the U.S., 68% of Gen Z-ers have a Netflix subscription. A 2019 report by Pew Research Center found that a higher proportion of Gen Z-ers surveyed ascribe to the belief that gender and sexuality are fluid concepts compared to millennials. Nearly 1 in 6 Gen Z-ers identify as LGBTQ, according to a survey by Gallup, based on more than 15,000 interviews conducted throughout 2020. That might mean that Netflix will need to take these potential users’ views into account in future decision-making. Some users said on Twitter that they would be boycotting Netflix in solidarity with the workers staging a walkout on Wednesday. No Netflix today, friends. — Saeed Jones (@theferocity) October 20, 2021 Netflix is a dominant player in the streaming sector but it may not be able to rely on that position long term. It faces competition from the likes of Disney+, which has racked up 116 million subscribers, HBO, which has 68 million, and Amazon Prime, with 200 million subscribers (although not all of them use subscription add-on Amazon Prime video). While Netflix’s third quarter results were solid, investors might be taking note of the PR disaster. The company’s shares were down on Wednesday, although they are still trading much higher than they were a year ago......»»

Category: topSource: timeOct 20th, 2021

3 new complaints from McDonald"s workers accuse the company of a "pattern of sexual harassment" and retaliation

The new complaints filed with the EEOC by McDonald's employees allege that they were retaliated against after reporting sexual harassment. Tatyana Makeyeva/Reuters Three new sexual harassment claims against McDonald's were announced today. All three claims allege retaliation for reporting harassment. McDonald's says "sexual harassment and assault have no place in any McDonald's restaurant." McDonald's workers in 10 US cities are planning a one-day strike over what they say is a huge sexual harassment problem throughout the chain. Workers participating in the walkout are working with Fight for $15, which has been involved in previous strikes and labor actions across the fast-food industry. The organization is also filing three new EEOC complaints alleging retaliation for reporting sexual harassment. "McDonald's was and is engaged in a pattern of sexual harassment against women, including by maintaining a hostile work environment at its stores and retaliating against those who complain about sexual harassment," according to one of the complaints filed with the agency about a McDonald's location in California."Every single person working at a McDonald's restaurant deserves to feel safe and respected when they come to work, and sexual harassment and assault have no place in any McDonald's restaurant." McDonald's USA told Insider in a statement. "We know more work is needed to further our workplace ambitions, which is why all 40,000 McDonald's restaurants will be assessed and accountable to Global Brand Standards."The female employee says that she worked in a corporate-owned location from November 2019 to August 2020, and she reported inappropriate touching and actions between a department manager and a teenage cashier, which is against McDonald's policy."After I repeatedly reported and opposed sexual harassment, McDonald's retaliated against me by changing my working conditions, filing pretextual written reprimands against me, denying me a transfer, and terminating my employment," the complaint says.Another worker, in a new EEOC filing in Louisiana, alleges that she was harassed by a coworker between December 2020 and January 2021, which eventually led to her losing her job at McDonald's."He regularly asked me about having sex and graphically described the sexual acts he wanted to engage in with me," showed the reporting worker pictures of his genitals, and asked to touch her breasts, she wrote. After reporting this treatment, the manager "would frequently avoid me and became unfairly critical of my work," the report says. until she was told to leave and not come back.In the third new complaint, a 16-year-old employee in Illinois says that a shift manager repeatedly touched her at work beginning in May 2021, and her hours were reduced in retaliation after reporting."I felt so uncomfortable and scared that I could not bear to keep working in that environment," so she quit in June 2021."I bring this charge on behalf of all women who work or have worked at McDonald's, who have been subjected to sexual harassment, a hostile working environment, and retaliation for complaining," each of the three filings include under the charges category. Over 50 sexual harassment lawsuits from workers have come out in recent years alleging the McDonald's company culture allows these behaviors. In 2020, a $500 million class action lawsuit filed by Florida workers alleged a "systemic sexual harassment problem." Some of the claims center around inappropriate advances and comments from coworkers and supervisors, while others are about a lack of proper training and support around sexual harassment. McDonald's has taken some steps to address these problems, introducing a hotline in 2019 where workers can anonymously report harassment, though the Illinois employee mentions in the suit that she was never made aware of the hotline.McDonald's says the new standards, designed to create a culture of safety, will be implemented globally beginning in January 2022. They'll include training in retaliation, harassment, and anti-violence policies, annual crew and manager surveys, and a new process for reporting complaints. Do you have a story to share about a retail or restaurant chain? Email this reporter at the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 26th, 2021

Take our return-to-office survey to help us understand how employees feel about their companies" remote work policies

How do remote work and return-to-office policies impact employees? We want to hear from workers worldwide. Insider Many companies have been working remotely for over a year. Now it's time for them to decide when and how to return, and the first policies are being announced. Have an opinion? Take our survey. Do you miss the office? Share your opinion in our global survey Should you bring your employees to the office five or two days a week?Who should decide on the time and date of return to the office: management boards, teams, or employees themselves? Offices are (probably) coming back Global companies already have the first answers. For now, they agree on one thing: they want to open offices as soon as possible. The date moves every month.In early September this year, Google announced that it would be January 2022. Earlier it spoke of October 2021, and even earlier about September and July.Other tech giants are also planning to reopen their offices early next year. Facebook, Apple, Uber, and Roblox all set the new date for January. Asana and Lyft chose February, and Airbnb selected September 2022.After it didn't follow its announcement to open offices in early October this year, Microsoft does not want to announce a new return date at all. As for companies outside the tech industry, Goldman Sachs employees have been in the office since June this year, and Nike and Starbucks employees will head back to the office from January 2022.Only the vaccinated can enterIf there is one thing American employers agree on in return-to-office policies, it's vaccination. Back in July this year, Facebook, Google, Amazon, and Microsoft did not require employees to be vaccinated against COVID-19. Today the same companies treat vaccinating office staff as mandatory. This is the case with Google (from July 28), Facebook, Twitter, Lyft, Uber, Cisco, Microsoft, Adobe, VMware, Twilio, and Asana.One of the few big tech companies that has yet to make COVID-19 vaccination mandatory is Apple. Beginning November 1, unvaccinated office workers in this company must undergo a COVID-19 test every time they enter their office door, and the vaccinated ones must take one rapid test per week. By October 24, all employees must inform the iPhone manufacturer of their vaccination status and show proof.Do you miss the office? Share your opinion in our global survey Apple will soon be forced to change its policy on compulsory vaccination, though. US President Joe Biden ordered government contractors to fully vaccinate their employees by December 6, and Apple sells its products to the US administration through a dedicated sales channel.Is working in the office an opportunity or an obligation?The main line of dispute on hybrid work is around flexibility - should employees be given the choice between working in the office and working from home? There is no consent among companies here. The social network Twitter gives the greatest freedom among tech corporations. In May 2020, at the height of the pandemic, CEO Jack Dorsey announced to employees that they could work remotely "forever". Offices were treated as an option for those willing. Among large corporations, this seems to be the exception rather than the rule. Facebook, Google, Microsoft, Uber, Revolut, Spotify, KPMG, EY, JP Morgan, HSBC, Unilever, and Disney have all announced hybrid work as company policy.For now, these plans only exist on paper. Some employees are openly protesting against being forced to work in the office. As recently reported by Vox and The Verge, over 7,000 Apple employees participate regularly in an internal corporate Slack group called "remote work advocacy," where workers discuss their frustrations with management on the issue, and how other companies are offering more flexible arrangements. The group's conversations with CEO Tim Cook on remote work leak to the press regularly, proving how important and sensitive the subject is for tech talent.Employers change their minds about working from homeThe pressure on employers to adopt fully flexible work is growing. Amazon CEO Andy Jassy announced a new policy in mid-October stating that workers will be able to perform their tasks from home full time, and how many days they come into the office will be up to their team director to decide. Labor market analysts note that Amazon has just started a huge recruiting campaign for 40,000 corporate and tech positions which will constitute a 20% rise in staffing. Remote work could potentially become a bargaining chip in the fight for specialists.Do you miss the office? Share your opinion in our global survey The research firm Gartner recently asked 10,000 digital workers in the US, Europe and Asia about what is important to them at work and what helps them to be more productive. 43% of specialists mentioned flexibility of working hours, and 30% of them indicated that they are more effective when they spend less time commuting or do not commute to the office at all.In late September, PwC became the first of the big four accounting and consulting companies to offer permanent remote work to willing customer service staff, affecting 40,000 people in the US alone. PwC employees who choose to work from home permanently will have to come to the offices at least three days a month for scheduled in-person meetings, key team meetings, client visits, or learning sessions.PwC makes no secret that its flexible attitude to work from home is motivated by the desire to retain and attract talent, and in mid-June this year, the company, which employs 295,000 people worldwide, announced a plan to recruit 100,000 new workers (70-75,000 from outside the US). Share your opinion with usThe future model of work is being shaped in front of our eyes. As the Amazon and PwC examples show, offering employees real flexibility in their choice of work options can be a calling card for the most innovative employers in the months to come. What's your opinion? What should be the future work model for you and your company?Share your opinion in our global survey about returning to the office. There are 17 questions that will take you no more than 5-7 minutes to answer.In return, you will receive a report with research results and expert comments. We'll also invite you to an exclusive webinar where you will learn how the world's most progressive companies are resolving their return-to-office dilemmas. Do you miss the office? Share your opinion in our global surveyRead the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 25th, 2021

McDonald"s workers are staging another one-day strike to protest the alleged sexual harassment of employees at the chain"s restaurants

A fast-food workers' advocacy group is calling for McDonald's to address cases of alleged sexual harassment happening in its US stores. Workers strike at a McDonald's location in Detroit in August. Jarmier Owens McDonald's workers are planning another strike on Tuesday to protest alleged sexual harassment at multiple locations in the US. The strike will build upon a pattern of McDonald's #MeToo movements that started in 2018. The McDonald's effort is the latest in a line of worker strikes across multiple industries in the month of October alone. The "Striketober" streak continues as McDonald's employees become the latest group of workers to demand corporate change.Employees at the fast-food giant in at least ten cities across the US, including Chicago and St. Louis, are planning a one-day strike on Tuesday to protest allegations of sexual harassment against employees. During the strike, employees will "demand that McDonald's stop wasting time and listen to workers when it comes to fixing rampant sexual harassment in their stores," the workers' rights group Fight for $15 wrote in a Facebook post on Friday. The McDonald's strike follows a rise of protests in recent months over what some workers say are poor working conditions, toxic cultures, and insufficient wages at a range of companies including John Deere, Netflix, Kellogg's, and American Airlines. The fight for workers' rights has been further magnified by ongoing pandemic pressures, labor shortages, and supply chain issues, which have made it harder to retain employees.Fight for $15 helped organize the strike, which serves as a direct response to the alleged rape of a 14-year-old McDonald's worker in Pittsburgh by a manager at the restaurant, according to USA Today.The effort also comes amid claims of harassment across other McDonald's restaurants, including a lawsuit filed in September after a McDonald's franchisee did not adequately respond to harassment complaints from multiple teenagers in 22 locations in California, Nevada, and Arizona. "I'm going on strike because despite years of protests, McDonald's still refuses to take responsibility for the countless women and teenagers who face harassment on the job at its stores across the globe," Jamelia Fairley, a McDonald's employee in Sanford, Florida, told The Hill."It's not safe to work at McDonald's," former Milwaukee McDonald's worker Jennifer Berry said in a Facebook post shared by Fight for $15. "It's our right to feel safe at our job. We deserve to work for a company that cares about their employees."McDonald's also experienced a wave of employee unrest on the heels of the #MeToo movement. Workers at the fast-food company organized a similar one-day strike in September 2018, which became the first multistate strike in the US specifically aimed at sexual harassment.Workers have staged multiple strikes against sexual harassment in the company, with at least 50 workers filing charges against the company since 2016 as of April 2021, according to The Associated Press. Workers cited physical and verbal harassment, as well as retaliation when they made complaints.In April, McDonald's announced new mandatory training starting next year for over 2 million workers in 39,000 stores around the world, focused on combatting harassment, discrimination, and violence in its restaurants."Every single person working at a McDonald's restaurant deserves to feel safe and respected when they come to work, and sexual harassment and assault have no place in any McDonald's restaurant,'' McDonald's US said in a statement to USA Today on Friday. "We know more work is needed to further our workplace ambitions, which is why all 40,000 McDonald's restaurants will be assessed and accountable to global brand standards."McDonald's did not immediately respond to request for comment about the impending strike and how the company is addressing these latest concerns.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 23rd, 2021

Netflix fires the organizer of a trans employee walkout

The employee told Bloomberg that Netflix spent exorbitant amounts of money to produce Dave Chapelle's comedy specials. Dave Chappelle during "The Closer." Mathieu Bitton An unnamed Netflix employee was fired for leaking internal data, the company said. Netflix is under fire for supporting Dave Chappelle's comedy special, which features transphobic jokes. The ex-employee organized a planned October 20 walkout in protest of Netflix's stance. Netflix said Friday it had fired the leader of a trans resource group at the company for leaking financial data "outside the company."The now ex-employee, who did not want to share their identity for fear of online harassment, but who the Verge reported is "Black" and "pregnant," is accused of sending information to Bloomberg detailing the higher-than-average cost to produce Dave Chappelle's latest Netflix special, "The Closer," which has been criticized for containing transphobic comments. The individual was also in charge of staging a walkout on October 20 to protest Netflix's handling of the controversial comedy special.Hollywood Reporter first reported the firing on Friday."We have let go of an employee for sharing confidential, commercially sensitive information outside the company," a Netflix spokesperson said to Insider on Friday. "We understand this employee may have been motivated by disappointment and hurt with Netflix, but maintaining a culture of trust and transparency is core to our company."The employee told Bloomberg that Netflix spent exorbitant amounts of money to produce Dave Chapelle's comedy specials.According to the Bloomberg report, Netflix spent a whopping $24.1 million on The Closer and $23.6 million on Chappelle's 2019 special, "Sticks & Stones." For comparison, Netflix spent $21.4 million to produce the cultural phenomenon "Squid Game." The internal documents also revealed that Chappelle's 2019 special had an "impact value" of $19.4 million, meaning the special cost more to produce than it created in value for the company. A Netflix spokesperson said a review of internal logs found that only one employee had accessed the information shared with Bloomberg. Critics tore into "The Closer," which debuted October 5, after the comedian made transphobic comments in the special, including "gender is a fact" and voicing support for "Harry Potter" author J.K. Rowling, who has made anti-trans comments in the past. Multiple Netflix employees took to social media condemning the special and Netflix's decision to give Chappelle a platform. LGBTQ+ comedian Hannah Gadsby criticized Netflix CEO Ted Sarandos in an Instagram post on Friday, after Sarandos referenced her in a memo defending the decision to air Chappelle's special. Jaclyn Moore, who identifies as trans and works as an executive producer on Netflix's "Dear White People," announced she would stop working with the company, which she said profits from "blatantly and dangerously transphobic content."Meanwhile, Netflix reinstated trans employee Terra Field and two others who were suspended for attending an executive meeting uninvited to protest Chappelle's special."Our employees are encouraged to disagree openly, and we support their right to do so," a Netflix spokesperson previously told Insider. Read the original article on Business Insider.....»»

Category: personnelSource: nytOct 15th, 2021

Netflix has fired a worker who was organzing a walkout to protest its airing of Dave Chappelle"s transphobic comments

The streaming media giant reportedly dismissed the worker over suspicions of leaking viewership and other data to the press. But the firing came days before the protest the employee was helping plan......»»

Category: topSource: bizjournalsOct 15th, 2021

Comedian Hannah Gadsby tore into Netflix"s "amoral algorithm cult" after its co-CEO defended releasing Chappelle"s new special

Hannah Gadsby, who won an Emmy for a Netflix special, lambasted Ted Sarandos as Netflix continues to face criticism for its new Chappelle special. Gadsby. Netflix Comedian Hannah Gadsby, who won an Emmy for a Netflix special, lambasted the company's co-CEO. Co-CEO Ted Sarandos referenced Gadsby in a memo to staff defending Dave Chappelle's new special. Some Netflix employees and talent have criticized the special, in which Chappelle makes transphobic comments. Comedian Hannah Gadsby tore into Netflix co-CEO Ted Sarandos in an Instagram post on Friday, after Sarandos wrote a memo to staff, which referenced her, defending Dave Chappelle's controversial new standup special."Now I have to deal with even more of the hate and anger that Dave Chappelle's fans like to unleash on me every time Dave gets 20 million dollars to process his emotionally stunted partial word view," Gadsby wrote. "You didn't pay me nearly enough to deal with the real world consequences of the hate speech dog whistling you refuse to acknowledge, Ted."Gadsby has two standup specials on Netflix, including "Nanette," for which she won an Emmy. Sarandos defended Chappelle and Netflix's decision to release his new special, "The Closer," in an all-staff memo this week after employees began speaking out against the special, as reported by multiple outlets including Variety and The Hollywood Reporter. The Netflix trans employee resource group is planning a company-wide walkout next week."We are working hard to ensure marginalized communities aren't defined by a single story," Sarandos wrote in part. "So we have 'Sex Education,' 'Orange is the New Black,' 'Control Z,' Hannah Gadsby and Dave Chappelle all on Netflix. Key to this is increasing diversity on the content team itself.""The Closer" is Chappelle's sixth and perhaps final Netflix special. The comedian struck a three-special deal in 2016 with Netflix worth $60 million, The New York Post reported at the time, but it's unclear if he was paid more for the additional specials.In "The Closer," Chappelle makes transphobic comments and defends "Harry Potter" author JK Rowling by exclaiming "Team TERF!," which stands for trans exclusionary radical feminist, a term Rowling has referred to herself as.Gadsby isn't the first person with content on Netflix who has spoken out against the streamer over the special.Jaclyn Moore, who is trans and is an executive producer on Netflix's "Dear White People," said that she wouldn't work with the company "as long as they continue to put out and profit from blatantly and dangerously transphobic content." Below is Gadsby's full post:"Hey Ted Sarandos! Just a quick note to let you know that I would prefer if you didn't drag my name into your mess. Now I have to deal with even more of the hate and anger that Dave Chappelle's fans like to unleash on me every time Dave gets 20 million dollars to process his emotionally stunted partial word view. You didn't pay me nearly enough to deal with the real world consequences of the hate speech dog whistling you refuse to acknowledge, Ted. Fuck you and your amoral algorithm cult … I do shits with more back bone than you. That's just a joke! I definitely didn't cross a line because there isn't one."Read the original article on Business Insider.....»»

Category: smallbizSource: nytOct 15th, 2021

Netflix"s co-CEO said content doesn"t "translate to real-world harm" in defense of Chappelle"s new special. A Netflix documentary suggests otherwise.

The Netflix documentary "Disclosure" makes the case that content can lead to real-world harm against the trans community. Ted Sarandos, Netflix co-CEO & Chief Content Officer Frazer Harrison/Getty Images Netflix's co-CEO sent a memo defending the decision to stream Dave Chappelle's new special. In the memo, he said that content "doesn't directly translate to real-world harm." Some people pointed out that a Netflix documentary, "Disclosure," argues otherwise. Netflix co-CEO Ted Sarandos issued another defense of the company releasing Dave Chappelle's controversial new standup special, "The Closer," in which he said "content on screen doesn't directly translate to real-world hard."That sentiment prompted a slew of people, including the creator of Netflix's "BoJack Horseman," to point out that a Netflix documentary, called "Disclosure," argues the exact opposite.In "The Closer," Chappelle makes transphobic comments that have sparked a backlash from some Netflix employees. Sarandos sent a company-wide memo on Monday addressing concerns over the special, according to Variety and The Hollywood Reporter, which obtained copies of the note."With 'The Closer,' we understand that the concern is not about offensive-to-some content but titles which could increase real world harm (such as further marginalizing already marginalized groups, hate, violence etc.)," Sarandos wrote in part. "Last year, we heard similar concerns about '365 Days' and violence against women. While some employees disagree, we have a strong belief that content on screen doesn't directly translate to real-world harm."In light of Sarandos' memo, people including critics, industry professionals, and activists have pointed to a documentary, Netflix's "Disclosure," that suggests otherwise.A Netflix spokesperson declined to comment for this story."If only Sarandos had access to a documentary called 'Disclosure' that makes a very convincing argument about the many ways content has translated to real-world harm for the trans community," Rolling Stone chief TV critic Alan Sepinwall tweeted. "It's on … [checks notes] … Netflix."Raphael Bob-Waksberg, who created Netflix's adult animated comedy "BoJack Horseman," tweeted: "There's a very good documentary called 'Disclosure' that I would recommend to anyone who works in the content biz. It's on Netflix."In a statement to Variety in response to Sarandos' comments, GLAAD also cited the documentary."Authentic media stories about LGBTQ lives have been cited as directly responsible for increasing public support for issues like marriage equality," GLAAD said. "But film and TV have also been filled with stereotypes and misinformation about us for decades, leading to real world harm, especially for trans people and LGBTQ people of color. Ironically, the documentary 'Disclosure' on Netflix demonstrates this quite clearly."After "The Closer" debuted, some Netflix employees spoke out against the release of the special. Notably, Terra Field, a senior software engineer who is trans, went viral on Twitter last week, saying that Chappelle "attacks the trans community, and the very validity of transness - all while trying to pit us against other marginalized groups."Field and two other employees were suspended last week for attending an executive meeting they were not invited to, The Verge and Variety reported, but have since been reinstated following an investigation. Netflix issued a statement this week pushing back against the notion that the employees were suspended for any criticism of the Chappelle special. "It is absolutely untrue to say that we have suspended any employees for tweeting about this show," a Netflix spokesperson said. "Our employees are encouraged to disagree openly and we support their right to do so."Sarandos' all-staff memo follows a memo to executives last week, in response to questions fielded during the aforementioned executive meeting, in which he defended the special by calling Chappelle "one of the most popular stand-up comedians today."Now, Netflix's trans employee resource group is planning a company-wide walkout on October 20, The Verge reported on Wednesday.In the special, Chappelle said that "gender is a fact" and defended "Harry Potter" author JK Rowling, who has also been criticized for transphobic comments. Rowling has identified as a "TERF" (trans exclusionary radical feminist), and Chappelle exclaimed "Team TERF!" in his special.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 14th, 2021

Futures Drift Before Taper-Triggering Jobs Report

Futures Drift Before Taper-Triggering Jobs Report US equity-index drifted in a tight range overnight, in a tight range before key jobs data that could provide clues on the Federal Reserve’s policy. As noted in our preview, unless the jobs report is a disaster, it will virtually assure the Fed launches tapering in one month. Markets drifted higher on Thursday after the Senate averted the risk of an immediate default, pushing global stocks on course for their best week since early September, but a late day selloff wiped away most gains and closed spoos below the critical 4400 level. At 07:30 a.m. ET, Dow e-minis were up 35 points, or 0.10%, S&P 500 e-minis were up 5.00 points, or 0.1%, and Nasdaq 100 e-minis were up 10.75 points, or 0.07%. Treasury Yields were 1 point higher after earlier tagging 1.60%, the highest since June. The dollar was flat while Brent topped $83 before paring gains. Bitcoin traded above $55,000. Uncertainty over the debt ceiling negotiations and a run-up in U.S. Treasury yields over elevated inflation were major concerns among investors earlier this week, injecting volatility in equity markets this week. High-growth FAAMG stocks slipped in premarket trading following sharp gains in previous session. Energy firms including Chevron Corp and Exxon Mobil gained about 0.8% tracking crude prices, while major U.S. lenders also edged up as the benchmark 10-year yield hit its highest level since June 4. Here are some of the biggest movers and stocks to watch today: Tesla (TSLA US) shares in focus after Elon Musk says a global shortage of chips and ships is the only thing standing in the way of the company maintaining sales growth in excess of 50% Sundial Growers (SNDL US) shares rise as much as 19% in U.S. premarket after the Canadian cannabis producer said it will buy liquor and pot retailer Alcanna for $276m in stock Allogene Therapeutics (ALLO US) plunges 36% in U.S. premarket trading after an early-stage study of its cell therapy was put on hold by U.S. regulators Prelude Therapeutics (PRLD US) fell in U.S. premarket trading, adding to Thursday’s 40% plunge on early- stage data for the company’s experimental cancer treatments that Barclays says came in below expectations Vaxart (VXRT US) rises 8% in U.S. premarket trading after its oral tablet vaccine candidate cut transmission of Covid-19 in animals, according to data from a study led by Duke University Faraday Future (FFIE US) slides 4% in U.S. premarket trading after J Capital says it is short on the stock. The short-seller says they don’t think the company “will ever sell a car” Codiak Biosciences (CDAK US) shares fell 6% in Thursday postmarket trading after disclosing that Sarepta Therapeutics is terminating a research license and option agreement Agile Therapeutics (AGRX US) tumbled Thursday postmarket after the women’s health-care company said that it intends to offer and sell shares of its common stock, as well as warrants to purchase shares of its common stock, in an underwritten public offering Looking to today's main event, economists expect September hiring to have surged by 500,000 jobs as the summer wave of COVID-19 infections began to subside, and as millions of Americans no longer receive jobless benefits, positioning the Fed to start scaling back its monthly bond buying.  “All roads lead to non-farm payrolls data which will decide, in the market’s minds, whether the start of the Fed taper is a done deal for December,” said Jeffrey Halley, senior market analyst at OANDA. “I do not believe that markets have priced in the Fed taper and its implications to any large degree yet. Even a weak number probably only delays the inevitable for another month.” Even “reasonably soft” payrolls and unemployment figures wouldn’t be enough to change the minds of its officials, according to Ipek Ozkardeskaya, senior analyst at Swissquote. “Only a shockingly low figure could do that,” she said. “The persistent rise in oil prices can only continue boosting inflation fears and the central bank hawks, limiting the upside potential in case of a further recovery in stocks.” “As soon as you start thinking about tapering it’s really hard to not then think about what that means for the Fed funds rate and when that might start to increase,” Kim Mundy, currency strategist and international economist at Commonwealth Bank of Australia in Sydney, said on Bloomberg Television. “We do see scope that markets can start to price in a more aggressive Fed funds rate hike cycle.” In Europe, tech companies led the Stoxx Europe 600 Index down 0.2%, with energy stocks and carmakers being the only industry groups with meaningful gains. Chip stocks fell, especially Apple suppliers, following a profit warning from Asian peer and fellow supplier AAC Technologies. On the other end, European travel stocks rose after U.K. confirmed the travel “red list” will be cut to just seven countries; British Airways parent IAG and TUI led the advances. Here are some of the biggest European movers today: Daimler shares gains as much as 3.2%, outperforming peers, after UBS upgrades stock to buy from neutral, calling it an earnings momentum story that stands to gain from strong demand, electrification trends and its future focus on passenger cars. Adler shares rise as much as 13% after shareholder Aggregate sells a call option to Vonovia for a 13.3% stake in the German real estate investment firm at a strike price of EU14 per share. Cewe Stiftung shares jump as much as 4.2%, their best day in over three months, after the photography services firm gets a new buy rating at Hauck & Aufhaeuser. Weir shares fall as much as 6.3%, to the lowest since Nov. 13, after the U.K. machinery maker announced that a ransomware attack will affect full-year profitability; Jefferies says it’s unlikely that guidance beyond that will be revised. Zur Rose slumps as much as 9.2% after Berenberg downgrades the Swiss online pharmacy to hold from buy, citing the expected negative impact from a delay in the implementation of mandatory e-prescriptions in Germany. Czech digital-payments provider Eurowag shares slide as much as 10% as it starts trading in London, after pricing its IPO below an initial range and making its debut a day later than planned. Asian stocks rose for a second day as China’s market reopened higher and the U.S. Senate approved a short-term increase in the debt ceiling. The MSCI Asia Pacific Index advanced as much as 1% in a rally led by consumer discretionary shares. Alibaba and Tencent were among the biggest contributors to the gauge’s climb. Shares in mainland China surged more than 1% as investors returned from the Golden Week holiday. Chinese property shares fell after a report that more than 90% of China’s top 100 property developers’ sales declined in September by an average of 36% from the same period last year, while investor concerns about developers’ liquidity rose after Fantasia bonds were suspended from trading. In mainland: CSI 300 Real Estate Index drops as much as 2%, Seazen Holdings falls as much as 5%, Poly Developments -4%. Asia’s stock benchmark is slightly down for the week, as rising bond yields weighed on tech-heavy indexes in South Korea, Taiwan and Japan. The gauge is down more than 1% this month amid an energy shortage in China and India.  “Markets may not want to commit directionally” given that we have non-farm payrolls data on the docket, making a follow-through of today’s rally suspect, said Ilya Spivak, the head of Greater Asia at DailyFX. Traders are expecting today’s U.S. employment data to provide clues on the direction of the world’s largest economy. On Thursday, the U.S. averted what would have been its first default on a debt payment. Most major benchmarks in Asia climbed, led by Japan, Indonesia and Australia. India’s central bank kept its lending rates at a record low at a policy meeting today. In Australia, the S&P/ASX 200 index rose 0.9% to close at 7,320.10. All industry groups edged higher. The benchmark rose 1.9% for the week, the biggest weekly gain since early August. Miners led the charge, having the best week since July, banks the best since the start of March. EML Payments tumbled after an update on its Ireland subsidiary from the country’s central bank. Chalice Mining continued its rebound, finishing the session the strongest performer in the mining subgauge.  There is a risk of excessive borrowing due to low interest rates and rising house prices, Reserve Bank of Australia said in its semiannual Financial Stability Review released Friday. In New Zealand, the S&P/NZX 50 index fell 0.1% to 13,086.60 In rates, Treasury futures remained under pressure after paring declines that pushed 10-year yield as high as 1.5995% during European morning, highest since June 4; the 1.60% zone is thought to have potential to spur next wave of convexity hedging. U.K. 10-year is higher by 4bp, German by 2.3bp - gilts underperformed, weighing on Treasuries as money markets continue to bring forward BOE rate-hike expectations. During U.S. session, September jobs report may seal case for Fed taper announcement in November.  In FX, the greenback traded in a narrow range versus G10 peers while 10-year Treasury yields approached 1.6%, outperforming Bunds.  Gilt yields rose 5-6bps across the curve; demand for downside protection in the pound eases this week as the U.K. currency moves off cycle lows amid money markets repricing. U.K. wage growth rose at its strongest pace on record in a survey of job recruiters, indicating strains from a shortage of workers are persisting. Turkish lira initially weakens above 8.96/USD before recouping half of its losses In commodities, oil extended a rebound, on track for a seventh weekly gain. Crude futures pushed to the best levels for the week. WTI rises 1.5% near $79.50, Brent pops back on to a $83-handle. Spot gold trades a $5 range near $1,757/oz. Base metals are mostly positive, with LME nickel gaining over 3.5%. Looking at the day ahead, the highlight will be the aforementioned September jobs report. Central bank speakers include ECB President Lagarde and the ECB’s Panetta. Market Snapshot S&P 500 futures little changed at 4,389.50 STOXX Europe 600 down 0.3% to 457.18 MXAP up 0.4% to 194.72 MXAPJ up 0.2% to 636.80 Nikkei up 1.3% to 28,048.94 Topix up 1.1% to 1,961.85 Hang Seng Index up 0.6% to 24,837.85 Shanghai Composite up 0.7% to 3,592.17 Sensex up 0.7% to 60,070.61 Australia S&P/ASX 200 up 0.9% to 7,320.09 Kospi down 0.1% to 2,956.30 Brent Futures up 1.4% to $83.09/bbl Gold spot up 0.0% to $1,756.25 U.S. Dollar Index little changed at 94.29 German 10Y yield up +3.4 bps to -0.151% Euro little changed at $1.1549 Top Overnight News from Bloomberg Global talks to reshape the corporate tax landscape are set to resume on Friday after Ireland’s decision to adhere to the world consensus on a minimum rate removed one hurdle to an agreement that still hangs in the balance Germany’s Social Democrats hailed a positive start in their effort to form a government after their first meeting with the Greens and the pro-business Free Democrats A U.S. nuclear-powered attack submarine struck an object while submerged in international waters in the Indo- Pacific region last week, the Navy said, adding that no life- threatening injuries were reported China drained the most short- term liquidity from the banking system in a year on a net basis as it reduced support after a week-long holiday. Government bond futures slid by the most since August China’s central bank will continue to push for the reform of its benchmark loan rate and make deposit rates more market-based, according to a senior official India’s central bank surprised markets by suspending its version of quantitative easing, signaling the start of tapering pandemic-era stimulus measures as an economic recovery takes hold U.K. government bond yields have climbed to levels last seen before the Brexit referendum in 2016 relative to German peers, as traders brace for inflation in Britain over the next decade to far outpace the rate in Europe’s largest economy A detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded mostly higher as the region conformed to the global upbeat mood after the agreement in Washington to raise the debt ceiling which the Senate approved, with the overnight bourses also invigorated by the return of China and strong Caixin PMI data. The ASX 200 (+0.9%) was led higher by strength in mining names with underlying commodity prices boosted as Chinese buyers flocked back to market which helped the ASX disregard a record increase in daily COVID-19 cases in Victoria state. Nikkei 225 (+1.3%) was the biggest gainer and reclaimed the 28k level as exporters benefitted from a softer currency, while attention turns to PM Kishida who will outline his policy program today and is reportedly planning to present an additional budget after the election. Furthermore, there were recent comments from an ally of the new PM who suggested that capital gains tax could be raised to 25% from the current 20% without affecting stock prices, although this failed to dent the mood in Tokyo and weaker than expected Household Spending was also brushed aside. The gains for the KOSPI (-0.1%) were later reversed alongside the tentative price action in index heavyweight Samsung Electronics after its Q3 prelim. results showed oper. profit likely rose to its highest in three years but missed analysts’ forecasts. Hang Seng (+0.6%) and Shanghai Comp. (+0.7%) were mixed with the latter jubilant on reopen from the Golden Week holiday after improved Caixin Services and Composite PMI data which both returned to expansionary territory. This helped mainland stocks overlook the recent developer default fears and largest daily liquidity drain by the PBoC since October last year, although Hong Kong initially lagged amid heavy Northbound Stock Connect trade. Finally, 10yr JGBs declined on spillover selling from T-notes and with havens shunned amid the gains across riskier assets, although downside in JGBs was limited given the BoJ’s presence in the market for nearly JPY 1.5tln of JGBs with up to 10yr maturities. Top Asian News Gold Steadies Ahead of Key U.S. Jobs Report as Yields Climb Investors Fear Tax Talk in Kishida’s ‘New Japanese Capitalism’ China Coal Prices Plunge as Producers Vow to Ease Shortages China Developer Stocks Fall After Report of Monthly Sales Drop An initially contained to marginally-firmer European cash open followed an upbeat APAC handover (ex-Hang Seng) was short-lived with bourses coming under moderate pressure; Euro Stoxx 600 -0.3%. As such, major indices are all in the red, except for of the UK FTSE 100 which is essentially unchanged and bolstered by strength in heavy-weight energy and mining names given broader price action the return of China. Sectors were initially mixed at the open, but in-fitting with the action in indices, has turned to a predominantly negative performance ex-energy. Crossing to the US, futures have directionally been following European peers, but the magnitude has been more contained, with the ES unchanged as we await the September labour market report for any read across to the Fed’s policy path; however, officials have already made it clear that it would have to be a very poor report to spark a deviation from its announced intentions, where it is expected to announce an asset purchase tapering in November. Returning to Europe, Daimler (+2.5%) stands out in the individual stocks space, firmer after a broker upgrade and notable price target lift at UBS; Marks & Spencer (+1.5%) is also supported on broker action. To the downside lies Weir Group (-3.0%) after reports of a ransomware attack. Top European News Adler’s Largest Shareholder Sells Option on Stake to Vonovia; A Controversial Tycoon Sits on Adler’s $9 Billion Pile of Debt Chip Stocks Drag Tech Gauge Lower as Asian Apple Supplier Warns European Gas Rises as Bumpy Ride Continues With Cold Air Coming Lira Weakens to Fresh Low as Rising U.S. Yields Add Pressure In FX, the Dollar is trying to regroup and firm up again after its latest downturn amidst a further rebound in US Treasury yields, more pronounced curve re-steepening, and perhaps some relief that the Senate finally passed the debt ceiling extension bill, albeit by a slender margin and only delaying the issue until early December. Looking at the DXY as a benchmark, a marginally higher low above 94.000 and lower high below 94.500 is keeping the index contained as the clock ticks down to September’s jobs report that is expected to show a recovery in hiring after the prior month’s shortfall, but anecdotal data has been rather mixed to offer little clear pointers for the bias around consensus - full preview of the latest BLS release is available via the Research Suite under the Ad-hoc Economic Analysis section. From a technical perspective, near term support for the DXY resides at 94.077 (vs the current 94.139 base) and resistance sits at 94.448 (compared to a 94.338 intraday high). TRY - A double whammy for the already beleaguered Lira as oil prices come back to the boil and ‘sources’ suggest that Turkish President Erdogan’s patience is wearing thin with the latest CBRT Governor as the Bank waited until September to cut rates. Recall, Erdogan has already ousted a CBRT chief for not loosening monetary policy in his belief that lowering the cost of borrowing will bring inflation down, and although the reports have been by a senior member of his administration there is a distinct feeling of no smoke without fire in the markets as Usd/Try remains bid having only held below 9.0000 by short distance between 8.9707-8.8670 parameters. CHF/JPY - No real surprise that the low yielders and funders are underperforming, even though broadly upbeat risk sentiment during APAC hours has not rolled over to the European session. The Franc has retreated to 0.9300 vs the Buck and Yen is trying to fend off pressure on the 112.00 handle after failing to sustain momentum through 111.50 before weaker than expected Japanese household spending data overnight. However, decent option expiry interest from 111.85-75 (1.4 bn) may weigh on Usd/Jpy pending the aforementioned US payrolls outcome. AUD - Some payback for the Aussie after Thursday’s outperformance, as Aud/Usd loses a bit more momentum following its rebound beyond 0.7300 and with hefty option expiries at 0.7335 (2.7 bn) capping the upside more than smaller size at the round number (1.1 bn) cushions the downside. In commodities, WTI and Brent remain on an upward trajectory after the mid-week pullback; as it stands, crude benchmarks are near fresh highs for the week, with WTI for November eyeing USD 80/bbl once again. Fresh news flow for the complex has been sparse, aside from substantial UK press focus on the domestic energy price cap potentially set to increase next year. More broadly, US officials have largely reiterated commentary from the Energy Department provided on Thursday around not currently intending act on energy costs with a reserve release. The session ahead has just the Baker Hughes rig count specifically for crude scheduled, though the complex may well get dragged into a broader risk move depending on the initial reaction to and analysis on NFP. For metals, spot gold and silver are contained around the unchanged mark and haven’t been affected by any significant amount by the firmer USD or elevated yield space thus far. Elsewhere, base metals are buoyed by China’s return and strong Caixin data from the region, although it is worth highlighting that the likes of LME copper are well off earlier highs. US Event Calendar 8:30am: Sept. Change in Nonfarm Payrolls, est. 500,000, prior 235,000 Change in Private Payrolls, est. 450,000, prior 243,000 Change in Manufact. Payrolls, est. 25,000, prior 37,000 Unemployment Rate, est. 5.1%, prior 5.2% Sept. Underemployment Rate, prior 8.8% Labor Force Participation Rate, est. 61.8%, prior 61.7% Average Weekly Hours All Emplo, est. 34.7, prior 34.7 Average Hourly Earnings MoM, est. 0.4%, prior 0.6% Average Hourly Earnings YoY, est. 4.6%, prior 4.3% 10am: Aug. Wholesale Trade Sales MoM, est. 0.9%, prior 2.0%; Wholesale Inventories MoM, est. 1.2%, prior 1.2% DB's Jim Reid concludes the overnight wrap I’ve never quite understood why you’d go to the cinema if you’ve got a nice telly at home but such has been the nature of life over the last 19 months that I was giddy with excitement last night at booking tickets for James Bond at the local cinema next week. We’ve booked it on the same night as our first ever physical parents evening where I’ll maybe have the first disappointing clues that my three children aren’t going to be child prodigies and that maybe they’ll even have to settle for a career in finance! Markets have been stirred but not completely shaken this week and yesterday they continued to rebound thanks to the near-term resolution on the US debt ceiling alongside subsiding gas prices, which took the sting out of two of the most prominent risks for investors over the last couple of weeks. That provided a significant boost to risk appetite, and by the close of trade, the S&P 500 had recovered +0.83% in its 3rd consecutive move higher, which put it back to just -3.0% beneath its all-time high in early September, whilst Europe’s STOXX 600 was also up +1.60% and closed before a later US sell-off. Attention will today focus squarely on the US jobs report at 13:30 London time, which is the last one before the Fed’s next decision in early November, where a potential tapering announcement is likely bar an extraordinarily poor number today, or an exogenous event in the next few weeks. Starting with the debt ceiling, yesterday saw Democratic and Republican Senators agree to pass legislation to raise the ceiling by enough to get to early December, meaning we won’t have to worry about it for another 8 whole weeks. The Senate voted 50-48 with no Republicans blocking the legislation to increase the debt limit by $480bn, with House Majority leader Hoyer saying that the House would convene on Tuesday to pass the measure as well. To raise it for a longer period, the chatter out of Washington made it clear that Democrats would need to need to raise the debt ceiling in a partisan manner as part of the reconciliation process. As we mentioned in yesterday’s edition, this extension means that a number of deadlines have now been punted into the year end, including the government funding and the debt ceiling (both now expiring the first Friday of December), just as the Democrats are also seeking to pass Biden’s economic agenda through a reconciliation bill containing much of their social proposals, alongside the $550bn bipartisan infrastructure package. And on top of that, we’ve also got the decision on whether Chair Powell will be re-nominated as Fed Chair, with the decision 4 years ago coming at the start of November. So a busy end to the year in DC. The other main story yesterday was the sizeable decline in European natural gas prices, with the benchmark future down -10.73% to post its biggest daily loss since August. Admittedly, they’re still up almost five-fold since the start of the year, but relative to their intraday peak on Wednesday they’ve now shed -37.5%. So nearly a double bear market all of a sudden! The moves follow Wednesday’s signal that Russia could supply more gas to Europe. However, even as energy prices were starting to fall back from their peak, the effects of inflation were being felt elsewhere, with the UN’s world food price index climbing to its highest level in a decade in September. Looking ahead, today’s main focus will be on the US jobs report for September later on. Last month the report significantly underwhelmed expectations, coming in at just +235k, which was well beneath the +733k consensus expectation and the slowest pace since January. That raised questions as to the state of the labour market recovery, and helped to complicate a potential decision on tapering, with nonfarm payrolls still standing over 5m beneath their pre-Covid peak. This month, our US economists are expecting a somewhat stronger +400k increase in nonfarm payrolls, which should see the unemployment rate tick down to a post-pandemic low of 5.1%. On the bright side at least, the ADP’s report of private payrolls for September on Wednesday came in at an above-forecast 568k (vs. 430k expected), while the weekly initial jobless claims out yesterday for the week through October 2 were beneath expectations at 326k (vs. 348k expected). Ahead of that, global equities posted a decent rebound across the board, with cyclicals leading the march higher on both sides of the Atlantic. As mentioned at the top, the S&P 500 advanced +0.83%, which was part of a broad-based advance that saw over 390 companies move higher on the day. That said the index was up as much as +1.5% in early US trading before slipping lower in the US afternoon. The pullback was partly due to new headlines that China’s central bank plans to continue addressing monopolistic actions in internet companies that operate in the payments sector. Nonetheless, Megacap tech stocks were among the big winners yesterday, with the FANG+ index up +2.08%, whilst the small-cap Russell 2000 index was also up +1.58%. In Europe, the STOXX 600 (+1.60%) posted its strongest daily gain since July, and the broader gains helped the STOXX Banks index (+1.61%) surpass its pre-pandemic high, taking it to levels not seen since April 2019, even as sovereign bond yields moved lower. Speaking of sovereign bonds, yesterday saw a divergent set of moves once again, with yields on 10yr Treasuries up +5.2bps to 1.573%, their highest level since June, whereas those across the European continent moved lower. The US increase came against the backdrop of that debt ceiling resolution, and there was a noticeable rise in yields for Treasury bills that mature in December, which is where the debt ceiling deadline has now been kicked to. Elsewhere in North America, the Bank of Canada’s Macklem joined the global central bank chorus and noted inflation pressures were likely to be temporary, even if they’ve been more persistent than previously expected. Meanwhile over in Europe, lower inflation expectations helped yields move lower, with those on 10yr bunds (-0.3bps), OATs (-1.1bps) and BTPs (-3.6bps) all moving back. Overnight in Asia, all markets are trading in the green with the Nikkei (+2.16%) leading the way, along with CSI (+1.34%), Shanghai Composite (+0.60%), KOSPI (+0.22%) and Hang Seng (+0.04%). Chinese markets reopened after a week-long holiday so the focus will again be back on property market debt, and today the PBOC injected just 10bn Yuan with its 7-day reverse repos, resulting in a net liquidity withdrawal of 330bn Yuan. That comes as the services and composite PMIs did see a pickup from August level, with the services PMI up to 53.4 (vs. 49.2 expected), moving back above the 50 mark that separates expansion from contraction. In Japan however, household spending was down -3.0% year-on-year in August (vs. -1.2% expected) which came amidst a surge in the virus there. There’s also some news on the ESG front, with finance minister Shunichi Suzuki saying that the country would introduce ESG factors when considering the finance ministry’s foreign reserves. Looking forward, S&P 500 futures (+0.06%) are pointing to a small move higher. In Germany, as talks got underway today on a potential traffic-light coalition, it was reported by DPA that CDU leader Armin Laschet had signalled his willingness to stand down, with the report citing unidentified participants from internal discussions. In televised remarks last night, Laschet said that his party needs fresh voices across the board and that new leadership will be in place soon. This moves comes as Germany’s Social Democratic Party held talks with the Greens and the Free Democratic Party to enact a new three-way ruling coalition, which would leave the CDU out of power entirely. There wasn’t a massive amount of data yesterday, though German industrial production fell by -4.0% in August (vs. -0.5% expected), which follows the much weaker than expected data on factory orders the previous day. Elsewhere, the Manheim used car index increased +5.3% in September, its first positive reading in 4 months. Our US economics team points out that there tends to be around a two month lag between wholesale prices and CPI prints, so we aren’t likely to see this impact next week’s CPI print but it will likely prevent a bigger fall towards the end of the year. To the day ahead now, and the highlight will be the aforementioned September jobs report from the US. Central bank speakers include ECB President Lagarde and the ECB’s Panetta. Tyler Durden Fri, 10/08/2021 - 07:50.....»»

Category: smallbizSource: nytOct 8th, 2021

Why Nike Hasn’t Weighed In on NBA Superstar Kyrie Irving’s Vaccine Hesitancy

Brooklyn Nets star point guard Kyrie Irving has put Nike in an awkward position. And that’s not even referring to the time in July when he called the company’s design of the latest Kyrie 8 signature shoes “trash” on social media. (Irving subsequently walked those comments back.) Irving, one of the most dazzling players on… Brooklyn Nets star point guard Kyrie Irving has put Nike in an awkward position. And that’s not even referring to the time in July when he called the company’s design of the latest Kyrie 8 signature shoes “trash” on social media. (Irving subsequently walked those comments back.) Irving, one of the most dazzling players on the globe who every game seems to pull off some basketball magic trick heretofore never seen, has to this point hesitated to receive a COVID-19 vaccination, a position that has caused everyone from Kareem Abdul-Jabbar, New York City mayor Bill de Blasio, and Spain’s prime minister to oppose his stance. Under New York City law, Irving cannot compete in Brooklyn home games, or practice at the team’s facility, without at least one does of a COVID-19 vaccine. [time-brightcove not-tgx=”true”] (While Irving has not publicly confirmed he’s unvaccinated, he participated in Nets media day remotely on Sept. 27, and did not practice with the team in Brooklyn on Tuesday due to the city’s vaccination protocols.) Nike, Irving’s biggest sponsor, plans to release the Kyrie 8s in November. Sales woulds benefit if he were actually playing, full time. The company—not to mention the NBA, his Nets teammates and fans—wants Irving to receive a vaccine; some 95% of NBA players are already vaccinated. TIME reached out to Nike for comment on the Irving situation. Nike is chose to stay mum on the matter. Read More: Brands Continue to Back Naomi Osaka, Showing An Evolution in How Sponsors Treat Athletes We’re living in an age when consumers demand that companies take stands on important issues. Nike itself, for example, threw its full support behind Colin Kaepernick after his social justice protest effectively got him fired from the NFL. Supporting vaccines—and public health—would seem like a worthy cause for the company. Not to mention in its own self-interest. If Irving gets sick, his performance could suffer. If he spreads the disease, his reputation could take a serious hit. So by staying silent on Irving, is Nike being hypocritical, or just carrying out a smart business strategy that protects a company that generated $44.5 billion in revenues in its most recent fiscal year? It’s probably some combination of both. Nike’s new vaccine mandate Just this week, Nike announced that all U.S. office-based employees will need to be vaccinated. The company plans on calling its workers back to offices on January 10. So while Irving may not technically be a Nike employee, the company’s position could be interpreted as a double standard. “If Nike and other sponsors believe that vaccines are important and everyone should get them, they should say the same about their athletes,” says Ricardo Fort, former VP of global sports and entertainment partnerships at Coca-Cola who now has is own consulting firm. “I don’t see a reason for having two different approaches.” From a strategic perspective, however, Nike has good reason to stay on the sidelines. First off, Irving may soon receive his shot: the Nets’ first game in Brooklyn is on October 24, and he only needs a first vaccination shot to be eligible to play. So Irving has some time to decide whether he’s willing to miss games. And while some consumers may be upset about Kyrie’s stance, they’re not taking it out on Nike—at least not yet. So the company has little incentive to inject itself into the vaccine wars. “Look, their business is built on on selling sneakers and apparel,” says Scott Rosner, a sports consultant and academic director of Columbia University’s sports management program. “There’s a social justice component of what they do. But that’s not what drives their business and their growth.” No stance, more profit? While the numbers would indicate that most consumers disagree with Irving’s stance—62% of Americans have received at least one vaccine dose, and 56% are fully vaccinated—that might not really matter. “From Nike’s perspective, athletes do have freedom of choice,” says Rosner, “and, at the end of the day, the bottom line is still the bottom line. Kyrie Irving sells a significant number of sneakers for Nike. That kind of thing, at least for the time being, allows them to take more of a hands off approach.” If Irving ultimately decides to sit out his home games, Nike may have to craft some sort of response. But the timing of his decision—on the heels of the release of his latest Nike shoe—would likely prove more harmful to business than any kind of mass backlash. “Brand shaming and virtue signaling by advocacy groups of all types have become so commonplace as to have lost part of their power and influence,” says David Carter, founder of the Sports Business Group and adjunct professor at the University of Southern California’s Marshall School of Business. Remember, when Nike threw its weight behind Kaepernick, loud calls for Nike boycotts followed. Instead, sales rose. “We can disagree with Irving’s misunderstanding of science,” says Rosner. “But does that make it rise to the level of a boycott, where there’s going to be a mass boycott against Kyries? I don’t think so.” Irving is a complicated character. He’s done plenty of good, like committing $1.5 million to supplement the income of WNBA players who chose to sit out their 2020 season due COVID-19 concerns or to work on social justice issues. But he has also shared flat-earth theories, and last season broke NBA safety protocols by attending a family birthday party maskless. Now on the eve of the NBA’s 75th season, he’s created a vaccine controversy. “It’s a bad spot,” says longtime sports business professor Kenneth Shropshire, who leads Arizona State’s Global Sports Institute. “It’s hard for Nike to lay low. But I think that’s the best thing they can do.” While hoping he just gets that jab.        .....»»

Category: topSource: timeOct 6th, 2021

Futures Tumble As Nat Gas Prices Explode, Stagflation Fears Surge

Futures Tumble As Nat Gas Prices Explode, Stagflation Fears Surge In our market comments on Tuesday we were stunned by the resilient surge in tech names and the broader market, even as yields soared on the biggest jump in breakevens since the presidential election, noting that something is very broken with this picture. Well, one day later normalcy is back: US stock index futures tumbled as much as 1.3% on Wednesday before paring some losses, after soaring oil and gas prices (rising as much as 40% in Europe today alone) fed into fears of higher inflation and fueled concerns of sooner-than-expected tapering, which in turn pushed 10Y yields just shy of 1.57%. At 730 a.m. ET, Dow e-minis were down 309 points, or 0.9%, S&P 500 e-minis were down 49 points, or 1.12%, and Nasdaq 100 e-minis were down 181 points, or 1.23%, to the lowest level since June 25 on a closing basis, signaling more downside for tech shares after Tuesday’s short reprieve Up to Tuesday’s close, the S&P 500 index logged its fourth straight day of 1% moves in either direction. According to Reuters, the last time the index saw that much volatility was in November 2020, when it rose or fell 1% or more for seven straight sessions. The selloff was much more severe in Europe, with the Stoxx 600 falling as much as 2% to a 2 month low, with every industry sector firmly in the red as the region’s natural gas prices soared to catastrophic levels... ... even as the European Union pledged swift action to ensure the spiking costs don’t stifle the economy (it just didn't explain precisely what it would do). Asian stocks also dropped amid continued China property contagion fears. The 10-year TSY yield touched their highest since June, slamming shares of mega-cap FAAMGs; tech shares led the stocks selloff Apple (AAPL US -1.5%), Facebook (FB US -1.6%), Microsoft (MSFT US -1.6%), Tesla (TSLA US -1.4%) down in U.S. premarket trading. Economy-sensitive parts of the market also came under pressure, with lenders such as Bank of America Corp , JPMorgan Chase & Co and Morgan Stanley shedding more than 1% each. Boeing and industrial conglomerates Caterpillar Inc and 3M Co dropped between 0.8% and 2.0%. Ironically, even though Brent remained well above $82, energy names also slumped with Exxon sliding 1% on what appears to be profit taking to plug margin holes elsewhere. American Airlines’ shares fell 3.7% in U.S. premarket session after Goldman cut its recommendation for the stock to sell. Meanwhile, Palantir Technologies extended its gains to rise 9.3% as the company said it won a U.S. Army contract to supply data and analytics services. Here are some of the other notable market movers: Gogo (GOGO US) drops 5.3% in U.S. premarket trading after Morgan Stanley downgrades to underweight, with competitive landscape expected to pressure valuation and free cash flow over coming year American Airlines (AAL US) slides 3.6% in U.S. premarket trading on Goldman Sachs downgrade, according to Bloomberg data U.S. Steel (X US) down more than 5% in U.S. premarket trading on Goldman Sachs downgrade, according to Bloomberg data Calyxt (CLXT US) shares jump 5.4% premarket after the company said it will focus on engineering synthetic biology solutions for customers across the nutraceutical, cosmeceutical, pharmaceutical, advanced materials, and chemical industries Indus Realty Trust (INDT US) fell postmarket Tuesday after launching a 2 million stock offering Noodles & Co. (NDLS US) shares rose 2% in Tuesday postmarket trading after Stephens started coverage with an overweight rating, saying the restaurant chain is poised for strong growth that should lead to higher multiples Allison Transmission (ALSN US) is accelerating the development of electrification technology for integration into the U.S. Army’s ground combat vehicle fleet Palantir (PLTR US) shares rise 14% in U.S. premarket trading after the the software company said Tuesday it was selected by the U.S. Army to provide data and analytics for the Capability Drop 2 program "Right now you’re seeing inflation risk really start to percolate and I do think that you’re going to see that really eat into margins as we go through the fourth quarter into 2022,” Erin Browne, multi-asset portfolio manager at Pimco, said on Bloomberg Television. “The energy crisis that’s starting to loom in Europe is a real risk that is being underestimated by the market right now." “The spike in energy prices continue fueling expectations of higher inflation for longer. Therefore, central banks will be forced to cool down the overheating in inflation rather than trying to boost recovery,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Any weakness in the jobs figure could send the U.S. equities back below their 100-dma levels, as soft economic data could no longer revive the central bank doves." As such, all eyes will be on the U.S. private payrolls data, due at 8:15 a.m. ET. The numbers come ahead of the more comprehensive non-farm payrolls data on Friday, which is expected to cement the case for the Federal Reserve’s slowing of asset purchases. Meanwhile, a stalemate over Republicans and Democrats about the debt limit showed no sign of abating, with President Joe Biden saying that his Democrats might make an exception to a U.S. Senate rule to allow them to extend the government’s borrowing authority without Republican help. European stocks fell even more, with the Stoxx Europe 600 index plunging 2% to lowest since July 20; Travel, autos and retail names are the weakest sectors although all Stoxx 600 sub-indexes are off at least 1%, tech was also underperforming. As noted above, gas prices remain a focal pressure point with several measures hitting record levels. Here are some of the biggest European movers today: Adler shares extend decline to 21% in Frankfurt after Viceroy Research publishes a report saying it is short Adler Group SA and its listed subsidiaries. Deutsche Telekom shares fall 4%, close to the level at which Goldman Sachs offered about EU1.5b worth of shares, as part of a deal to swap some of Softbank’s T- Mobile stake for one in Deutsche Telekom. Ambu shares fall as much as 8.1%, most since Aug. 17, after company cut its FY financial outlook. IP Group shares drop as much as 8.1%, their worst day in nine months, after CEO Alan Aubrey and CIO Mike Townend retire. GN Store Nord shares rise as much as 7.5% as it agrees to buy SteelSeries, a maker of software-enabled gaming gear, from Nordic private equity company Axcel for an enterprise value of DKK8b on a cash and debt-free basis. Tesco shares rise as much as 4.6% to an eight-month high after Britain’s biggest supermarket operator said it will buy back GBP500m of stock and raised its FY profit forecast. HSBC rises as much 2.5% as UBS upgrades the Asia-focused lender to buy from neutral, saying the market is taking a risk by being underweight. PageGroup shares jump as much as 6.9%, most since April, as the staffing firm boosts its profit forecast. Peer Hays also gains. Dustin shares jump as much as 11%, most since April 13, after the IT solutions provider’s Ebit for the fourth quarter beat the average analyst estimate. Atlantic Sapphire gains as much as 15% as Pareto sees improvements ahead. Asian stocks headed for their longest losing streak since August as a selloff in the heavyweight tech sector deepened amid rising Treasury yields. The MSCI Asia Pacific Index declined as much as 0.8%, in its fourth day of decline, with Samsung and Tencent among the biggest drags. A benchmark tracking Chinese technology stocks in Hong Kong closed at a record low. Japan’s Nikkei 225 and South Korea’s Kospi were the biggest losers, sliding more than 1% each. China Tech Stock Gauge Falls to Test Record Low as Yields Rise Investors have yet to digest issues such as the inflation outlook, among other concerns including gridlock over the U.S. debt ceiling and higher global energy prices. The MSCI Asia Pacific Index is approaching year-to-date lows seen in August.  “At the moment, given all the uncertainties regarding the growth, inflation and policy outlooks, we are still in the middle of the tempest, so to speak,” Kyle Rodda, an analyst at IG Markets, said by email.  Indonesian, Malaysian and Philippine stock benchmarks were among the region’s best performers. In Japan, the Topix closed 0.3% lower while the Nikkei225 capped its worst daily losing streak since July 2009 and entered a technical correction, as Japanese equities tumbled while Treasury yields climbed. Fast Retailing Co. and Tokyo Electron Ltd. were the largest contributors to a 1.1% loss in the Nikkei 225, which fell for an eighth-straight day. The gauge, which had risen as much as 1.4% earlier in the day, closed more than 10% down from its September high. The broader Topix dipped 0.3%, erasing an early 1.6% advance, driven by losses in automakers. Banks climbed on the spike in Treasury yields. Japanese stocks had opened the day higher, following a rebound in U.S. shares. Both major gauges fell for a seventh day Tuesday amid market disappointment with the new government and a host of threats to global economic growth. ‘Kishida Shock’ Hits Japan Markets Wary of Redistribution Plan “Technicals such as RSI and Bollinger are showing that these moves may have been overdone in the short term, but Japan is hostage to the continued global concerns regarding inflation, supply chains and Chinese credit along with PM Kishida’s ‘new capitalism’ concept,” said Takeo Kamai, head of execution services at CLSA Securities Japan Co Australia's S&P/ASX 200 index fell 0.6% to close at 7,206.50, reversing an earlier advance of as much as 0.4%. Banks contributed the most to the benchmark’s decline after Australia’s banking regulator raised loan buffers in a bid to cool the nation’s booming housing market. a2 Milk was the worst performer after a class action lawsuit was filed against the company. Whitehaven was the top performer, rising for a fourth straight day.  In New Zealand, the S&P/NZX 50 index fell 0.3% to 13,166.44. The nation’s central bank raised interest rates for the first time in seven years and signaled further increases will likely be needed to tame inflation. The RBNZ lifted the official cash rate by a quarter percentage point to 0.5%. In rates, Treasuries were off their worst levels of the day after the 10Y yield rose briefly topped 1.57%, and remained cheaper by more than 2bps across long-end. The 10-year yield was around 1.55%, cheapest since June 17; U.K. 10-year cheapens by further 1.8bp vs U.S., German 10-year by 0.5bp. In the U.K., the 10-year breakeven rate climbed above 4%, twice the Bank of England’s target, spurred by soaring energy costs. Money markets have almost fully priced a rate hike as soon as December, in what would be the central bank’s first increase in over three years. Peripheral spreads widen to core with long-dated BTPs widening ~3bps to Germany. In FX, USD is well bid with risk assets trading poorly. Bloomberg dollar index rises 0.5%, pushing through last Friday’s highs. NZD, NOK and AUD are the weakest in G-10. Crude futures trade a narrow range near Asia’s opening levels. WTI is down 0.4% near $78.60, Brent briefly trades above $83 before dipping into the red. Spot gold extends Asia’s weakness to print fresh lows for the week near $1,745/oz. Base metals are in the red. LME copper the worst performer, dropping 1.9% to trade near the $9k mark. In commodities, crude futures trade a narrow range near Asia’s opening levels. WTI is down 0.4% near $78.60, Brent briefly trades above $83 before dipping into the red. Spot gold extends Asia’s weakness to print fresh lows for the week near $1,745/oz. Base metals are in the red. LME copper the worst performer, dropping 1.9% to trade near the $9k mark Elsewhere, Bitcoin traded around the $51,000 mark. Looking at the day ahead, data releases include German factory orders for August, the German and UK construction PMIs for September, Euro Area retail sales for August, and the ADP’s September report on private payrolls from the US. From central banks, we’ll also hear from the ECB’s Centeno. Market Wrap S&P 500 futures down 0.9% to 4,294.75 STOXX Europe 600 down 1.5% to 449.34 MXAP down 0.7% to 191.25 MXAPJ down 0.8% to 622.40 Nikkei down 1.1% to 27,528.87 Topix down 0.3% to 1,941.91 Hang Seng Index down 0.6% to 23,966.49 Shanghai Composite up 0.9% to 3,568.17 Sensex down 0.2% to 59,596.78 Australia S&P/ASX 200 down 0.6% to 7,206.55 Kospi down 1.8% to 2,908.31 Brent Futures up 0.1% to $82.67/bbl Gold spot down 0.7% to $1,747.69 U.S. Dollar Index up 0.32% to 94.28 German 10Y yield up 2 bps to -0.168% Euro down 0.3% to $1.1560 Top Overnight News from Bloomberg Boris Johnson’s insistence that higher pay for U.K. workers is worth the pain of supply chain turmoil is generating buzz among Conservative Party members that he’s planning to raise the minimum wage in a keynote speech on Wednesday European energy prices extend their blistering rally as the supply crunch shows no sign of easing and the European Union pledged a quick response to keep the crisis from damaging the economy Chinese Fantasia Holdings Group Co., which develops high-end apartments and urban renewal projects, failed to repay a $205.7 million bond that came due Monday. That prompted a flurry of rating downgrades late Tuesday to levels signifying default. The stumble stirred broader angst in volatile markets amid public holidays in China and uncertainty about Evergrande President Emmanuel Macron nominated Bank of France Governor Francois Villeroy de Galhau for a second term, opting for stability in one of the most important appointment decisions on European Central Bank policy making for years to come The German Green Party is seeking to start exploratory talks with the SPD and liberal FDP party on forming a governing coalition, Green Party co-leader Annalena Baerbock said Saudi Arabia reduced oil prices for its main buyers, a day after OPEC+ sent crude futures surging by sticking to a plan for slow and steady supply increases A more detailed look at global markets courtesy of Newsquawk: Asia-Pac bourses traded mostly lower after failing to sustain the initial momentum from Wall St, where all major indices gained as investors bought back into tech and with sentiment helped by better-than-expected ISM services PMI, while continued upside in oil prices and a higher yield environment also underpinned energy and financials. This initially lifted the overnight benchmark indices although gains in the ASX 200 (-0.6%) were later reversed as the strength in energy and tech was overshadowed by weakness in the broader market including underperformance in the top-weighted financials sector after the regulator announced a loan curb measure targeting mortgage lending. Nikkei 225 (-1.1%) faded its opening gains and brief foray into 28k territory with auto names among the laggards amid ongoing production disruptions and with PM Kishida’s new cabinet beginning on shaky ground as polls showed his approval rating was at just 55% heading into the upcoming election, which was also the lowest for a new leader in 13 years, while KOSPI (-1.8%) gave up initial spoils with firmer than expected CPI data supporting the case for another hike by the BoK this year. Hang Seng (-0.6%) conformed to the soured mood amid weakness in property and biotech with participants also focusing on Chief Executive Lam’s final policy address of her current term where she proposed measures to address the housing issue, although this failed to lift the property sector as Evergrande concerns lingered after Hong Kong property agencies sued the Co. to recover overdue commissions and with shares in its New Energy Vehicle unit suffering double-digit percentage losses. Finally, 10yr JGBs were lower on spillover selling from T-notes and despite the downturn in stocks, while the absence of BoJ purchases in the market today added to the lacklustre demand with the central bank instead offering to buy JPY 125bln in corporate bonds from October 11th with 1yr-3yr maturities. Top Asian News China Tech Stock Gauge Falls to Record Low as Yields Rise Top Glove Says Cooperating in Investigation Over Worker’s Death China Resources Unit Said to Be in Talks for JLL China Business Asian Stocks Drop as Tech Selloff Deepens Amid Rising Yields Stocks in Europe have extended on the losses seen at the cash open (Euro Stoxx 50 -2.4%; Stoxx 600 -1.8%) with risk aversion intensifying from a downbeat APAC session as markets grapple with the prospect of stagflation, the energy crunch, Evergrande woes, and geopolitics. US equity futures have conformed to the losses across stocks with the ES (-1.3%) RTY (-1.5%), NQ (-1.5%) and YM (-1.0%) all softer, whilst the former two dipped under 4,300 and 2,200 respectively. From a news-flow standpoint, fresh catalysts have been light. Euro-bouses see broad-based losses whilst the FTSE 100 (-1.6%) is somewhat cushioned (albeit under 7k) by a softer sterling alongside some heavyweight individual stocks including HSBC (+3.3%) following a broker move, and Tesco (+4.5%) after topping H1 forecasts, raised guidance and a GBP 500mln share buyback scheme. Sectors in Europe are all in the red. Banks are the best of the bunch amid the favourable yield environment. On this note, SocGen suggested that the banking sector should benefit from the rise in yields and limited exposure to China, higher energy and supply-chain bottlenecks, while that market consolidation offers some opportunities in the European tech and industrial sectors. Back to sectors, the downside sees some of the more cyclical sectors including Travel & Leisure and Auto names. In terms of some individual movers, Deutsche Telekom (-5.6%) is hit after a bookrunner noted a share offering of some 90mln shares priced at a discount to yesterday’s close. Top European News German Greens Seek Talks With SPD, FDP on Post-Merkel Government European Industry Buckles Under a Worsening Energy Squeeze Polish Central Bank Unbowed Despite Price Spike: Decision Guide Bayer Shares Turn Lower After Initial Gains on Roundup Win In FX, the Dollar is firmly back in the driving seat and the index is eyeing YTD highs having reclaimed 94.000+ status amidst another sharp downturn in risk appetite just a day after what some pundits were dubbing as a ‘turnaround Tuesday’. Instead, Asia-Pacific bourses were reluctant to pick up the baton from Wall Street and the failure to keep the ball rolling against the backdrop of ongoing strength in gas and oil prices has rattled EU equities to the extent that the Dax has lost grip of the 15k handle and FTSE is down below 7k regardless of the fact that the UK benchmark has some positive impulses beyond the obvious revenue implications for the energy sector. Back to the DXY 94.448 is the best so far ahead of 94.500 for sentimental reasons and the current y-t-d peak just a fraction above at 94.504. In terms of fundamentals, next up for the Greenback is ADP as one of the usual pointers for NFP, while Fed speak comes from Bostic who is down to talk twice today. NZD/AUD - Ironically perhaps, the Kiwi is underperforming even though the RBNZ matched market expectations with a 25 bp OCR hike overnight, and this could well be described as a classic ‘buy rumour, sell fact’ reaction given that the move was all priced in. Moreover, the accompanying statement has not altered expectations for further measured tightening and this could compound the inclination to re-position/take profit/cut longs to the detriment of the Nzd. Indeed, the Kiwi has retreated from around 0.6980 vs its US rival to circa 0.6878 and is struggling to tread water on the 1.0500 mark against the Aussie that is also losing out to its US rival on the aforementioned risk dynamic, as Aud/Usd hovers towards the bottom end of 0.7295-0.7227 parameters ahead of AIG’s services sector index. CAD/GBP - Also somewhat perverse, though a measure of the degree that the market mood has changed since yesterday, the Loonie and Sterling are both struggling to derive much from the latest advances in WTI or Brent. In fact, Usd/Cad approached 1.2650 having breached the 50 DMA (1.2626) and pulling away from a cluster of decent option expiries that start at 1.2520-25 (1 bn) and continue through 1.2550-60 (2.1 bn) to 1.2600 (1 bn) and end between 1.2720-30 (1.5 bn, while Cable has reversed through 1.3600 and the 10 DMA (1.3592) with little assistance from a sub-consensus UK construction PMI. EUR/CHF/JPY - All unable to escape the Buck’s clutches, with the Euro down to a minor new 2021 low and probing barriers at 1.1550, while the Franc is treading water around 0.9300 and the Yen is thriving to keep tabs on 111.50 due to its renowned safe-haven properties, and with the prop of JGB yields reaching multi-month peaks, albeit in catch-up trade with US Treasuries and other global bonds. SCANDI/EM - Little solace for the Nok via Brent almost touching Usd 83.50/brl at one stage, though it is holding a firm line following its ascent beyond 10.0000 vs the Eur, while the Sek has largely taken mixed Swedish data and Riksbank rhetoric from Skingsley in stride (caution warranted and now is not the time to change monetary policy), but EM currencies are all floundering with the Try sliding to yet another record trough and on course to hit 9.0000. Ahead, the Zar will be looking for something supportive from SARB Governor Kganyago via a webinar on the economy, jobs and growth. RBNZ hiked the OCR by 25bps to 0.50% as expected and the committee noted further removal of monetary policy stimulus is expected over time. RBNZ added that it is appropriate to continue reducing the level of stimulus and that future moves are contingent on the medium term outlook for inflation and employment, while policy stimulus will need to be reduced to maintain price stability and maximum sustainable employment over the medium term. Furthermore, it noted that cost pressures are becoming more persistent and capacity pressures are still evident, but added that demand shortfalls are less of an issue than the economy hitting capacity constraints and that economic activity will rebound quickly as alert level restrictions ease. (Newswires) In commodities, WTI and Brent front month futures are choppy in early European trade with a downside bias amid the risk tone, but ultimately, prices remain near recent highs with the WTI Nov contract north of USD 78.50/bbl (78.25-79.78/bbl) and Brent Dec around 82/bbl (vs USD 81.92-83.47/bbl range) at the time of writing. Nat gas has once again been the focus in the energy complex, with the UK Nat Gas future surging some 40% intraday at one point, although its US counterpart has lost some steam. A lot of attention has been the Nord Stream 2 pipeline to alleviate some of the supply/demand imbalances in the gas market heading into the winter period. Yesterday, an EU lawmaker suggested that the pipeline does not comply with EU rules, although an EU court adviser noted that Nord Stream 2 could challenge the energy rule and the decision is not final. European natural gas futures climbed to a fresh all-time high. Back to crude, it’s worth being cognizant of the underlying demand that could be fed via the higher gas prices as other energy sources are more sought after, including diesel generators for electricity usually produced by Nat Gas. Over to metals, spot gold and silver are pressured by the firmer Buck with the former back under USD 1,750/oz and at session lows at the time of writing. The downbeat tone has also taken a toll on the base metals complex, with LME copper again dipping below the USD 9,000/t from a USD 9,135/t intraday peak. US Event Calendar 7am: Oct. MBA Mortgage Applications, prior -1.1% 8:15am: Sept. ADP Employment Change, est. 430,000, prior 374,000 DB's Jim Reid concludes the overnight wrap Risk appetite returned to markets yesterday, but not without some astonishing moves in commodities and inflation markets alongside a selloff in bonds. On top of that, we also had a fresh round of signals that supply-chain issues and inflation were beginning to have real economic impacts, thanks to the global September PMI readings. The most eye catching stat of the last 24 hours is probably that the UK’s index linked bonds are now implying that the April 2022 YoY UK RPI print will be c.7%. Thanks to DB’s Sanjay Raja for pointing this out to me. That’s the point in time where Ofgem next updates its price cap for utility bills. This comes after further astonishing moves in natural gas. In the UK, gas prices were up +19.54%, marking the biggest daily percentage increase in over a year and a +183.3% move since the start of August. 10 year UK breakevens closed at an incredible 3.979% (+9.6bps on the day). To be fair this is based on RPI not the CPI that other index linked markets are. As of early next year the UK is moving to a CPI-H benchmark so these numbers will come down but it’s still an astonishing reflection on expectations for 10-year average inflation numbers. Benchmark European natural gas futures weren’t much different and were up by +20.04% to a record €116.02 per megawatt hour. That’s also the biggest daily percentage increase in over a year, and the absolute increase of €19.37 is actually more than the level at which natural gas was trading as recently as Q1 this year! That leaves natural gas prices up more than six-fold since the start of the year, and up more than three-fold since the start of July. In comparison the US gas future was “only” up +9.20%, but still reached its highest closing level since December 2008. And oil itself saw another round of gains, with Brent Crude (+1.60%) rising to its highest in almost 3 years, at $82.56/bbl, whilst WTI was up +1.69% to $78.93/bbl, its highest since 2014. This fresh round of price surges has led to another spike in inflation expectations across multiple countries even in 10 year markets, so way beyond the transitory stage. We’ve already highlighted the UK number but the 10yr German breakeven (+7.6bps) saw its biggest daily increase in nearly a year, hitting a fresh 8-year high of 1.796%. Its Italian counterpart (+8.3bps) hit a new high for the decade at 1.715%. Even in the US, where breakevens have been trading in a fairly tight band recently, we saw a +6.8bps rise to 2.460%, which is its highest closing level in 4 months. With breakevens moving sharply higher, this was clearly bad news for sovereign bonds, which sold off on both sides of the Atlantic across different maturities. Yields on 10yr Treasuries were up +4.7bps to 1.53%, with the entirety of that move resulting from higher inflation expectations rather than real rates, which actually fell on the day (-2.0bps). Over in Europe, gilts saw the biggest declines as investors continue to anticipate a potential BoE rate hike in the coming months, with 10yr yields rising by a further +7.3bps, whilst the spread of UK 10yr yields over bunds actually widened to its biggest level since the day of the Brexit referendum in 2016. That said, yields were also moving higher on the continent, with those on 10yr bunds (+2.6bps), OATs (+2.5bps) and BTPs (+3.0bps) all moving to their highest level in 3 months. The case for inflation was given further support by the September PMI releases, which pointed to supply-chain issues across multiple countries. In the Euro Area, the composite PMI was revised up a tenth to 56.2, but the release said that input prices were rising at the joint-fastest on record. Over in the US, the composite PMI was also revised up half a point from the flash reading to 55.0, but the release similarly mentioned labour shortages and capacity constraints holding back growth. The US composite PMI of 55.0 was its lowest level in a year, albeit still above the 50-mark that separates expansion from contraction. The September US ISM services reading rose 0.2 to 61.9 (59.9 expected) with the report suggesting that delta variant concerns are easing as 17 of the 18 industries reported growth over the last month. However, there were still comments in the report highlighting supply chain issues and some inability to retain or hire labour. In spite of the renewed inflation concerns clouding the Q4 outlook, the major equity indices managed to post a decent rebound from Monday’s losses, although it’s worth noting that many were only recouping those declines rather than advancing to new heights. The S&P 500 was up +1.05%, so still just beneath where it started the week after Monday’s -1.30% decline, whilst the NASDAQ was up +1.25% and the FANG+ recovered +2.23%. It was the 4th straight day that the S&P 500 moved more than 1% in either direction, the longest such streak since November 2020. While yesterday saw a broad-based rally with 21 of the 24 S&P 500 industries gaining, financials were the big outperformer thanks to higher yields. The US Financials sectors added +1.78%, whilst in Europe the STOXX Banks index (+3.99%) hit a post-pandemic high, well outpacing the broader STOXX 600 (+1.17%). Overnight in Asia, most markets continued to slide with the Nikkei (-1.00%), Kospi (-1.00%), Hang Seng (-0.71%) and Australia’s ASX (-0.68%) all moving lower on the back of higher energy prices and inflation concerns. In Japan the Nikkei extended losses for an eighth consecutive session on concerns that new PM Fumio Kishida could be outlining a redistribution plan that includes higher taxes, including on capital gains, although he’s yet to outline the specifics of the policy. Separately the Reserve Bank of New Zealand joined the club of central banks raising rates, hiking by 25bps in a move that was the first rate rise in seven years, as they also indicated more hikes might be warranted. In terms of the latest on Evergrande, the firm is still yet to release details of the “major transaction” we mentioned on Monday, with the company’s shares still suspended, whilst Fantasia saw its long-term rating cut to selective default by S&P yesterday, down from CCC. US futures are pointing to further declines later with those on the S&P 500 down -0.39%. Turning to the ongoing debt ceiling saga, the US Senate has a cloture vote scheduled for today to suspend the ceiling, but Republican leadership are confident they can block the measure and force the Democrats to raise the debt ceiling unilaterally using the budget reconciliation process (which only requires a simple majority of votes in the Senate). So this would tie a move on the debt ceiling into the reconciliation bill that includes President Biden’s “Build Back Better” economic plan. However, the Democrats are maintaining that the reconciliation process takes too long, with the Treasury estimating it will run out of funding around October 18, and have made the case that both parties have a duty to raise the ceiling, since it reflects debts racked up under administrations of both parties rather than just the Democrats. Irrespective of the debt ceiling though, it does continue to sound like there’s movement toward a deal amongst Congressional Democrats on the size of the plan, withSenator Manchin (a key Democratic moderate) reportedly not ruling out a $1.9-2.2 trillion spending plan price tag, which is also the level that President Biden had been floating to House Democrats last week. Speaking of the Senate, yesterday Senator Elizabeth Warren had yet more strong words for Fed Chair Powell. Warren has already said she opposes giving Powell a second term as the Fed Chair, and yesterday’s speech criticised him for his lack of oversight of the trading activity of Federal Reserve officials. She said Powell has “failed as a leader” and that there are “legitimate questions about conflicts of interest and insider trading” around the actions of certain Fed Officials. This follows her actions on Monday, when she called the SEC to investigate Federal Reserve officials for insider trading. At the same time, Chair Powell asked its inspector general to conduct a review of trades made by Federal Reserve members to ensure they complied with the law and Fed rules. While a White House spokesperson said yesterday that President Biden continues to have confidence in Chair Powell, Senator Warren may be setting up to float an alternative candidate for Chair in the coming weeks ahead of Powell’s term ending early next year. To the day ahead now, and data releases include German factory orders for August, the German and UK construction PMIs for September, Euro Area retail sales for August, and the ADP’s September report on private payrolls from the US. From central banks, we’ll also hear from the ECB’s Centeno. Tyler Durden Wed, 10/06/2021 - 08:07.....»»

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Amazon tech workers are planning to call in sick on Friday to protest the company"s firing of 2 long-time, outspoken employees (AMZN)

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Carl Icahn Recommends Southwest Gas Sell Centuri Group

What’s New In Activism: Carl Icahn vs SWX Carl Icahn recommended Southwest Gas Holdings Inc (NYSE:SWX) sell its construction business, Centuri Group, while continuing to call for the utility to abandon a planned pipeline deal. Q3 2021 hedge fund letters, conferences and more “If SWX really wanted to improve its balance sheet, it would cancel […] What’s New In Activism: Carl Icahn vs SWX Carl Icahn recommended Southwest Gas Holdings Inc (NYSE:SWX) sell its construction business, Centuri Group, while continuing to call for the utility to abandon a planned pipeline deal. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more "If SWX really wanted to improve its balance sheet, it would cancel this absurd acquisition, sell Centuri, and use a portion of the proceeds to improve the balance sheet, allocating some portion of the proceeds towards the funding of future growth," wrote Icahn, in an October 20 open letter. The 4.9% shareholder previously stated he would launch a proxy contest to replace the entire board in protest against the utility's planned $2 billion acquisition of Questar Pipelines. He also plans to commence a cash tender offer for Southwest Gas at $75 per share. Southwest Gas has so far rejected Icahn’s recommendations, arguing that Questar Pipelines is an "especially compelling asset" that aligns with the company. Icahn responded by saying that management has not provided any "hard details...with equity dilution still being one of the largest variables." To arrange an online demo of Activist Insight Online, send us an email. Activism chart of the week So far this year (as of October 22, 2021), globally, 74 companies were publicly subjected to environmental activist demands. That is compared to 58 in the same period last year. Source: Insightia (Activist Insight Online) What’s New In Proxy Voting: DoL New Rule The U.S. Department of Labor (DoL) proposed a rule permitting pension plan fiduciaries to consider climate change and other ESG factors when selecting investments and exercising shareholder rights. The October 20 proposed rule, "Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights," states that "climate change and other ESG factors are often material and that fiduciaries should consider climate change and other ESG factors in the assessment of investment risks and returns." The announcement follows President Joe Biden's Executive Order 14030 on May 20, which directed the federal government to implement policies to help safeguard the financial security of U.S. families, businesses, and workers from climate-related financial risks. If approved, the new rule would overturn a Trump-era policy which required Employee Retirement Income Security Act (ERISA) plans to "select investments and investment courses of action based solely on financial considerations relevant to the risk-adjusted economic value of a particular investment." To arrange an online demo of Proxy Insight Online, send us an email. Proxy chart of the week U.S. investors supported Russell 3000 "say on pay" votes 84.8% of the time this proxy season (July 1, 2020 - June 30, 2021). European investors supported these proposals just 51.5% of the time. Source: Insightia (Proxy Insight Online) What’s New In Activist Shorts: NextPlay Shorted White Diamond Research disclosed a short position in technology company Nextplay Technologies Inc (NASDAQ:NXTP), accusing it of having "very little functional business." In an October 20 report, White Diamond said NextPlay used to be an over-the-counter stock until it was up-listed to the Nasdaq in July this year and, apart from its HotPlay subsidiary, the company makes very little revenue. White Diamond alleged that there was a stock pump at NextPlay which bumped the stock from $1.26 per share to $3 per share during a period when there was no news. The co-chairman and co-CEO of NextPlay, John Bonner, and his wife Nithinan Boonyawattanapisut were both fired from a previous company, Axion, and a court found that their dismissals were "warranted based on their conduct concerning their covert transaction to create NextPlay in concert with Monaker Group." Axion, which is now a penny stock, is also currently suing NextPlay for allegedly stealing its intellectual property for HotPlay. To arrange an online demo of Activist Insight Shorts, send us an email. Shorts chart of the week So far this year (as of October 22, 2021), eight basic materials companies have been publicly subjected to an activist short campaign. That is up from six in the same period last year. Source: Insightia (Activist Insight Shorts) Quote Of The Week This week's quote comes from Metage Capital's Richard Webb in an open letter to Third Point Capital's Daniel Loeb. “To Mr Loeb, toughen up and take some of your own medicine,, it’s not actually that bad. Who knows? You may even feel better, knowing that you have done the right thing for your investors.” – Richard Webb Updated on Oct 26, 2021, 4:59 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk11 hr. 19 min. ago

"Rust" insurance policy shows Alec Baldwin film production had $1 million liability protection

A copy of documents revealing the film production's liability insurance coverage was obtained by Insider on Tuesday. Alec Baldwin, Rust set Mark Sagliocco / Getty Images for National Geographic / Jae C. Hong / AP Photo The insurance policy covered the "Rust" film production in Santa Fe, New Mexico. It provided up to $2 million in aggregate liability protection. The insurance covers financial losses for injuries and damages caused on set. Alec Baldwin's "Rust" film production was covered for up to $1 million in costs associated with injuries and damages on set, and another $1 million workers' compensation, according to a certificate of liability insurance obtained by Insider. Last week, a prop gun discharged by Baldwin on the film's set in Santa Fe, New Mexico, killed cinematographer Halyna Hutchins and injured director Joel Souza. Unbeknownst to the actor, the gun is believed to have contained a "live round."The incident took place just hours after union workers reportedly walked off set to protest what they viewed as unsafe work conditions. They were replaced by non-union staff, according to the Los Angeles Times.As the Times noted, the "Rust" production company could face a hefty lawsuit for purported negligence.Read the original article on Business Insider.....»»

Category: dealsSource: nytOct 26th, 2021

McDonald’s employees, activists protest alleged sexual harassment outside downtown headquarters

About three dozen McDonald’s workers and activists protested alleged sexual harassment outside the fast-food company’s headquarters in West Town.About three dozen McDonald’s workers and activists protested alleged sexual harassment outside the fast-food company’s headquarters in West Town......»»

Category: topSource: chicagotribuneOct 26th, 2021