ReportWire

Tag: Consumer Products

  • Ryan Gosling has ‘Barbie’ director Greta Gerwig cracking up in new ‘I’m Just Ken’ behind-the-scenes footage | CNN

    Ryan Gosling has ‘Barbie’ director Greta Gerwig cracking up in new ‘I’m Just Ken’ behind-the-scenes footage | CNN

    [ad_1]



    CNN
     — 

    Even “Barbie” director Greta Gerwig can’t get “Kenough” of Ryan Gosling.

    The actor, who stars as Ken in the movie, had Gerwig in the throes of laughter on set while filming the “I’m Just Ken” musical sequence, as seen in new behind-the-scenes footage that was released on Monday.

    The video showcases the pair cracking up while watching a playback of Gosling singing about living a life of “blond fragility,” and later bending over in laughter after the cast of Kens dance around the set during the infamous “Beach off.”

    In another clip, Gerwig hilariously throws her hands to her mouth after watching Gosling furiously rip off his coat, and even Simu Liu, who also plays Ken, is seen losing it alongside Gosling during the 1950’s dance sequence.

    And as if Gosling’s commitment to nailing this role wasn’t clear enough, the triple-threat’s talent is reinforced when he’s seen fully nailing his dance moves in bonus footage of him performing parts of the musical number during various rehearsals.

    Guns N’ Roses guitarist Slash is also seen recording his guitar part for the song, and producers Mark Ronson and Andrew Wyatt are showcased working their magic in the studio as the cast of Kens sing with passion while recording their backup vocals.

    “Barbie” premiered in theaters last month and has seen massive box office success. The movie has grossed over $1 billion globally, making Gerwig the first solo female director with a billion-dollar movie.

    The “I’m Just Ken” sequence in the film illustrates Ken’s frustration with the dynamic between himself and Margot Robbie’s Barbie. The pair are best friends, but Ken’s feelings for Barbie go beyond that.

    “I’m just Ken. Where I see love she sees a friend,” he sings. “What will it take for her to see the man behind the tan, and fight for me?”

    It’s clear though that Gosling is so much more than just Ken, and he’s Kenough.

    [ad_2]

    Source link

  • Housing market has hit ‘rock bottom,’ says Redfin CEO Glenn Kelman

    Housing market has hit ‘rock bottom,’ says Redfin CEO Glenn Kelman

    [ad_1]

    Housing market has hit ‘rock bottom,’ says Redfin CEO

    [ad_2]

    Source link

  • S&P 500 ends at lowest level in a month as investors monitor signs of China’s weakening economy

    S&P 500 ends at lowest level in a month as investors monitor signs of China’s weakening economy

    [ad_1]

    U.S. stocks closed sharply lower Tuesday as investors monitored signs of China’s darkening economic backdrop and gauged if a robust U.S. consumer could spell more Federal Reserve rate hikes. The Dow Jones Industrial Average DJIA fell about 360 points, or 1%, to about 34,946, according to preliminary FactSet data. The S&P 500 index SPX dropped 1.2% to about 4,437, its lowest close since mid-July, according to FactSet. The Nasdaq Composite Index COMP ended 1.1% lower. Chinese retail sales and industrial production in the world’s second biggest economy grew less than expected in July. Its growing property woes also contributed…

    [ad_2]

    Source link

  • Want companies to lower their prices? Stop buying stuff from them.

    Want companies to lower their prices? Stop buying stuff from them.

    [ad_1]

    The thing that will make companies lower prices is if consumers stop complaining about paying more for the things they need and want, and actually start refusing to buy them.

    As the U.S. corporate earnings-reporting season progresses, with earnings from major retailers Walmart Inc.
    WMT,
    +0.59%    ,
    Target Corp.
    TGT,
    +0.10%
    and Home Depot Inc.
    HD,
    +0.52%
    on tap next week, investors can get a ground-floor view of how consumer demand may have been hurt, or not, by higher prices, and what the companies plan to do, or not do, about it.

    This dynamic of how consumers adjust their spending habits when prices change is referred to by economists as the price elasticity of demand.

    “ For companies to cut prices, ‘you have to have the consumer go on strike, and they’re not there yet.’”


    — Jamie Cox, Harris Financial Group

    Those who trust companies will choose to ratchet down prices on their own, or at least not raise them because the rise in input costs has been slowing, haven’t been listening to what the many companies have told analysts on their post-earnings-report conference calls.

    Read: U.S. inflation eases again, PCE shows. Prices rise at slowest pace in almost two years.

    Kraft Heinz Co.
    KHC,
    +0.47%
    acknowledged after its second-quarter report that its relatively higher prices have hurt demand, but not by enough for the food and condiments company to consider cutting prices.

    Colgate-Palmolive Co.
    CL,
    +0.81%
    said it will continue to raise prices, even as inflation slows and selling volume declines, as the consumer-products company continues to be laser focused on boosting margins and profits.

    And while PepsiCo Inc.
    PEP,
    +0.16%
    was worried that elasticities would increase, given how its lower-income customers were being particularly pressured by inflation, the beverage and snack giant reported strong results as it witnessed “better elasticities” in most of the markets in which it operated.

    “Obviously, there is still carryover pricing, and I don’t think we’ll do anything different than our normal cycles on pricing in the balance of the year,” PepsiCo Chief Financial Officer Hugh Johnston told analysts, according to an AlphaSense transcript.

    Basically, as MarketWatch has reported, so-called greedflation is alive and well.

    Jamie Cox, managing partner for Harris Financial Group, said as long as the job market stays strong, as it is now, corporate greed will continue to pay off.

    “If something is more expensive, and you have a job, you’ll complain about it, but you won’t substitute it for something cheaper,” Cox said. For companies to cut prices, “you have to have the consumer go on strike, and they’re not there yet,” Cox added.

    “ ‘At some point, people are going to say, “All right — enough.” ’ ”


    — Paul Nolte, Murphy & Sylvest Wealth Management

    The reason elasticity is so important in the current environment is that, as long as consumers continue to pay the higher prices companies are charging, inflation will remain stubbornly high, making it, in turn, more likely that the Federal Reserve will continue to raise interest rates or, at the very least, not lower them.

    But the longer interest rates stay high enough to crimp economic growth, the more likely the stock market will reverse lower as recession fears rise.

    “At some point, people are going to say, ‘All right — enough,’ ” said Paul Nolte, senior wealth manager and market strategist at Murphy & Sylvest Wealth Management. “But we just haven’t seen that yet.”

    What is elasticity?

    Economists use the term “price elasticity of demand” to refer to the way in which consumers adjust their spending habits when prices change.

    “Elasticity tries to measure how much more producers will want to produce if prices rise, and how much more consumers will want to buy if prices fall,” explained Bill Adams, chief economist at Comerica.

    Elasticity often depends on the type of product a company sells.

    For example, consumer-discretionary-goods companies that sell products and services that people want will often experience greater price elasticity than consumer-staples companies that sell things that people need, such as groceries and prescription drugs.

    But even for needs, consumers often still have a choice, as less expensive generic, or private-label, alternatives may be available.

    Andre Schulten, chief financial officer of consumer-staples maker Procter & Gamble Co.
    PG,
    +0.58%    ,
    which recently beat earnings expectations as it continued to raise prices, telling analysts that, while there was “some trading into private label,” the overall market share of private-label products was unchanged for the year.

    As Harris Financial’s Cox said, consumers may be complaining about higher prices, but they aren’t yet desperate enough to stop buying.

    The Federal Reserve’s latest Beige Book economic survey stated that business contacts in some districts had observed a “reluctance” to raise prices as consumers appeared to have grown more sensitive to prices, but other districts reported “solid demand” allowed companies to maintain prices and profitability.

    That’s likely why companies and analysts have become less concerned about price elasticity. Based on a FactSet analysis, mentions of the word “elasticity” in press releases and conference calls of S&P 500 companies
    SPX
    increased as inflation and interest rates started surging in early 2022 through the end of the year.

    With inflation trends softening this year, the Fed took a brief pause in raising rates in June, helping fuel further stock-market gains, before raising rates again in July.

    Mentions of the word elasticity in earnings press releases and conference-call transcripts of S&P 500 companies.


    FactSet

    As the chart shows, “elasticity” popped up in more than 55% of earnings releases and conference calls in mid-2022, but with the second-quarter 2023 earnings-reporting season more than half over, mentions had dropped to about 20%.

    Perhaps that will pick up, as retailers, especially those catering to lower-income customers — recall the PepsiCo comment — assess the demand impact of continued price increases.

    Meanwhile, the branded-foods company Conagra Brands Inc.
    CAG,
    +0.71%    ,
    whose wide-ranging food brands including Birds Eye, Duncan Hines, Hunt’s, Orville Redenbacher’s and Slim Jim, were starting to see the emergence of a different dynamic.

    Chief Executive Sean Connolly said consumers were shifting behavior in some categories as prices remained high. Rather than trade down to lower-priced alternatives, he noticed some consumers buying fewer items overall, “more of a hunkering down than a trading down.”

    That’s exactly the kind of consumer behavior that is needed, if companies are to stop feeding into the greedflation phenomenon and to start pulling back on prices.

    [ad_2]

    Source link

  • Why have frozen fruit and vegetable prices soared by almost 12% — but the cost of fresh produce has not?

    Why have frozen fruit and vegetable prices soared by almost 12% — but the cost of fresh produce has not?

    [ad_1]

    What’s going on with frozen fruit and vegetables?

    Food prices rose 0.2% on the month in July after remaining unchanged in June, and they rose 4.9% on the year, while the cost of food at home rose 3.6% on the year, government data released Thursday showed. Prices of fresh fruits and vegetables rose just 1.2% year over year.

    However, there were some big — even alarming — outliers: Frozen fruit and vegetable prices increased by 11.8% in July over last year, frozen vegetable prices rose 17.1% and frozen noncarbonated juice and drink prices rose 16.3%.

    Those price rises are at odds with overall inflation figures. U.S. consumer prices rose to 3.2% in July from 3% in the prior month, the Bureau of Labor Statistics said this week. It was the first increase in 13 months.  

    Why have the prices of frozen fruits and vegetables shot up over the past 12 months, while the cost of fresh fruits and vegetables has increased so little? 

    Climate change and extreme weather conditions — from heavy rainfall to drought, particularly in California — have led to big problems for farmers. This has been compounded by issues related to the war in Ukraine and an ongoing increase in the cost of labor, experts said.

    As a result, a large proportion of the fruits and vegetables grown were destined to be sold as fresh produce — which led to a shortage of ingredients for frozen goods, said Brad Rubin, sector manager at Wells Fargo Agri-Food Institute. “Because of the late crop, lots of produce is being pushed to the fresh market to keep up with demand,” he said.

    California weather

    California has experienced some drastic weather conditions over the last 12 months. Some 78 trillion gallons of water fell in California during winter 2022 and early spring 2023, according to data from the National Weather Service, delaying planting. And all that snow and rain was followed by a months-long drought in the region.

    What happens in California is felt by consumers across the country. 

    “California produces nearly half of U.S.-grown fruits, nuts and vegetables,” according to estimates from the Sciences College of Agriculture, Food & Environmental Sciences at California Polytechnic State University in San Luis Obispo. “California is the only state in the U.S. to export the following commodities: almonds, artichokes, dates, dried plums, figs, garlic, kiwifruit, olives, pistachios, raisins and walnuts,” it says.

    The subsequent price rises hit ingredients like strawberries and raspberries especially hard, Rubin added. Inventories of frozen berries are “near five-year lows” after winter storms in Watsonville flooded agricultural fields, damaging and delaying the strawberry crop. Most of the strawberries in the U.S. are grown in California. 

    Labor costs

    Frozen fruits and vegetables have a longer supply chain than fresh produce, which can make them more vulnerable to disruptions in inventory, experts say. Rising energy prices are also pushing up the cost of cold storage. 

    In addition to those issues, U.S. farmers are dealing with increased labor costs and fewer migrant workers, partly due to changes in government policies and the closure of borders during the COVID-19 pandemic, according to a February 2023 report from the Federal Reserve Bank of San Francisco. 

    “Immigration has traditionally provided an important contribution to the U.S. labor force,” the report said. “The flow of immigrants into the United States began to slow in 2017 due to various government policies, then declined further due to border closures in 2020-21 associated with the COVID-19 pandemic. This decline in immigration has had a notable effect on the share of immigrants in the U.S. labor force.”

    Russia’s invasion of Ukraine also continues to affect agricultural production in the U.S., said Curt Covington, senior director of institutional business at AgAmerica Lending, a financial-services company providing agricultural loans. Because the war disrupted supplies of commodities like wheat and corn — also pushing up prices for those goods — farmers have been prioritizing planting those crops over vegetables. 

    “These escalating frozen-vegetable prices present a challenge for farmers as they grapple with increased production costs and labor pressures,” and that presents a long-term challenge for farmers, “potentially impacting their profitability,” Covington said. 

    All of these factors — from international supply chains to extreme weather conditions — will have an effect on the cost of frozen goods in U.S. supermarkets. Ultimately, experts said, consumers will end up paying the price.

    [ad_2]

    Source link

  • US wholesale inflation rose more than expected in July | CNN Business

    US wholesale inflation rose more than expected in July | CNN Business

    [ad_1]


    Minneapolis
    CNN
     — 

    US wholesale inflation rose more than expected in July, reversing a yearlong cooling trend, the Bureau of Labor Statistics reported Friday.

    The Producer Price Index, which tracks the average change in prices that businesses pay to suppliers, rose 0.8% annually. That’s above June’s upwardly revised increase of 0.2% and higher than expectations for a 0.7% gain, according to consensus estimates on Refinitiv.

    Producer price hikes increased 0.3% from June to July, the highest monthly increase since January.

    PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers, and is a proxy for potential price changes in stores.

    Services and demand for services were the primary culprits behind the lift higher for producer prices, said Kurt Rankin, senior economist for PNC Financial Services. Services prices rose 0.5% from June, the highest monthly increase since March 2022 for the category, BLS data shows.

    “The inflation story now, be it for producers or consumers, is demand,” he told CNN. “Mainly that’s consumers still spending money on services.”

    The food index, which had declined for three straight months, rose 0.5% in July, suggesting a 6.3% annualized pace of inflation, he said.

    “Consumers continue to go out and spend money,” Rankin said. “And as long as consumers are spending money, that’s going to create demand from producers, so that’s going to drive up their costs for their raw materials, for their transportation needs, etc.”

    “And they’re going to pass those prices on to consumers,” he added.

    That’s an unpleasant cycle.

    “The numbers over the past six months have been much more encouraging, but it’s a reminder that the Federal Reserve has an eye toward the possibility of inflation flaring up again,” he said.

    The report comes just one day after the Consumer Price Index showed that prices rose 3.2% annually in July. That increase, which was below the 3.3% economists were anticipating, was largely driven by year-over-year comparisons to a softer inflation number the year before.

    Similar base effects played their role in the headline PPI increase as well, noted Rankin.

    The tick upward to 0.8% doesn’t tell the whole story, because the index decreased in five of the previous seven months. Annualizing the 0.3% monthly gain, however, would put the PPI rate at about 3.6% and core at 3.8%, he said.

    “So the July number does suggest that there’s still some producer cost pressures,” he said.

    When stripping out the more volatile categories of food and energy, core PPI rose 2.4% annually in July. That’s in line with what was seen in June but a tick above economists’ expectations for a slight cooling.

    On a month-to-month basis, core PPI increased 0.3%, also the highest monthly gain since January.

    “The underlying trends show that PPI inflation is reverting to its pre-pandemic run rate, though progress is likely to be slower in [the second half of 2023] than [the first half],” Oxford Economics economists Matthew Martin and Oren Klachkin wrote Friday in a note. “While these data will comfort Fed officials, policymakers will likely maintain a hawkish tone and keep a close eye on whether last month’s jump in services prices persists in the months ahead.”

    US stock futures tumbled after the report was released, as the hotter-than-expected data fueled concerns that the Fed could continue to hike rates in order to rein in inflation. The Dow has since pared its losses and is back in the green.

    One month does not make a trend, and this result alone should not trigger a September increase from the Fed, but it certainly could heighten concerns, Rankin said.

    “One spark could reignite this,” he said. “We’re seeing energy prices, oil prices, rising over the past few weeks. Any flareup in oil prices goes straight through to not only manufacturing costs, but transportation of goods to market, even transportation of food to restaurants. So even services, leisure and hospitality get hit when energy prices spike, so that possibility is always there.”

    The PPI’s energy index, which increased 0.7% in June, showed that prices were flat for July.

    “So the fact that energy prices were not a contributor tho this month’s reading makes this number jumping a bit a stark reminder that the Federal Reserve’s fight against inflation and their rhetoric regarding that fight is going to remain hawkish in the near term.”

    [ad_2]

    Source link

  • Campbell Soup Company buys Sovos Brands, maker of Rao’s for $2.7 billion | CNN Business

    Campbell Soup Company buys Sovos Brands, maker of Rao’s for $2.7 billion | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Iconic canned soup company Campbell is expanding its reach in the Italian food market.

    Campbell (CPB) announced Monday that it would acquire Sovos Brands, maker of the popular Italian food brands like Rao’s sauces and Michael Angelo’s frozen entrees, as well as noosa yogurt, in a deal worth $2.7 billion.

    “We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio,” Campbell’s president and CEO Mark Clouse said in a statement. “The Sovos Brands portfolio strengthens and diversifies our Meals & Beverages division and paired with our faster-growing and differentiated Snacks division, makes Campbell one of the most dependable, growth-oriented names in food.”

    Campbell’s Meals & Beverages division includes its trademark soups, SpaghettiO’s, juice brand V8 and Prego sauces. But Campbell said Rao’s sauces attract a different consumer set than Prego’s.

    “Rao’s is the premium, market-leading sauce and it strengthens and diversifies our Meals & Beverages portfolio, complementing the core, mainstream portfolio,” the company told CNN. “It also provides an opportunity for expansion to adjacent categories like frozen meals, dry pasta, premium ready to serve soups.”

    By acquiring premium frozen meal brand Michael Angelo’s, Campbell will also beef up the frozen food portfolio it already owns under its Pepperidge Farm’s brand.

    While popular yogurt brand noosa is “not core to our strategy,” the company told CNN, “noosa is terrific, well-run business, with great products and strong profitability… The strength of the business will allow us to be patient as we evaluate strategic alternatives.

    Sovos Brands founder and head Todd Lachman called the acquisition a “momentous occasion.”

    “We have built a one-of-a-kind, high growth food company focused on taste-led products across a portfolio of premium brands, anchored by the Rao’s brand,” he said in a statement included in Campbell’s news release. “This transaction is expected to create substantial value for our shareholders, resulting in a 92% increase from our 2021 IPO price.”

    Shares of Campbell on Monday closed at $44.34, down $0.81, or 1.79%.

    [ad_2]

    Source link

  • Warren Buffett’s Berkshire Hathaway swings to Q2 profit, operating earnings up 6%

    Warren Buffett’s Berkshire Hathaway swings to Q2 profit, operating earnings up 6%

    [ad_1]

    Warren Buffett’s Berkshire Hathaway swung to a profit in the second quarter owed to its investment portfolio and insurance holdings, according to a release out Saturday. 

    The holding company with businesses that range from insurer Geico and railroad BNSF Railway to Dairy Queen restaurants and its own energy division posted net income of $35.9 billion, or $24,775 a class A share equivalent. That compared with a loss of $43.8 billion, or $29,754 a class A share equivalent, a year earlier. 

    Berkshire’s
    BRK.A,
    -1.37%

    BRK.B,
    -1.08%
    after-tax operating earnings, a figure Warren Buffett wants shareholders to and which excludes some investment results, rose 6% to just over $10 billion from $9.3 billion a year earlier. Regulations do require Berkshire to include unrealized gains and losses from its investment portfolio when it reports its net income. 

    Berkshire’s stock repurchases totaled $1.4 billion in the second quarter, compared with $4.4 billion in the first quarter and $1 billion for the year-earlier period. The Q2 repurchases were below an estimate of $2.2 billion from UBS analyst Brian Meredith.

    Reduced buybacks did come alongside appreciation in Berkshire stock, which was up 10% in the second quarter.

    Berkshire ended the second quarter with $147.4 billion in cash and cash equivalents, compared with $105.4 billion in the same period a year ago. 

    Berkshire’s Class A shares have been hovering near all-time highs, up 21% over the past year and bringing the company’s market value to roughly $780 billion. 

    [ad_2]

    Source link

  • Greedflation is not letting up. Here’s what companies are saying about it.

    Greedflation is not letting up. Here’s what companies are saying about it.

    [ad_1]

    The second-quarter earnings season so far is showing that one trend that featured in the first quarter has not gone away.

    “Greedflation,” or the practice of companies raising prices to protect their profit margins, is alive and well, based on the number of companies that have so far acknowledged raising prices yet again, even as inflation readings have come down and as some acknowledge that their input costs are falling.

    At the same time, companies continue to emphasize on earnings calls that their customers are showing signs they are weary of higher prices and are shopping more frequently at more stores, while spending less per trip.

    See: Consumers are shopping in more stores than ever before to save money

    “Across industries, we’ve seen the same story over and over the last two years,” said Liz Zelnick, director of economic security and corporate power at Accountable.US, a liberal-leaning consumer-advocacy group.

    “CEOs claim outside forces made them gouge consumers, then turn around and give themselves raises and boast of record profits and billions in new investor handouts,” she said, referring to the billions of stock buybacks and dividend payouts the same companies have made.

    See: U.S. inflation slows again, CPI shows, as Fed weighs another rate hike

    Also read: U.S. wholesale inflation slows to a crawl, PPI shows

    Procter & Gamble Co.
    PG,
    -1.10%    ,
    for example, said it raised prices by up to 9% in its latest quarter, after raising them up to 10% the previous quarter and up to 10% in the same quarter in 2022.

    On a call with analysts, Chief Executive Jon Moeller signaled more price increases to come, which he attributed to the company’s innovation pipeline, which is creating must-have products.

    “If you look back historically, pricing has been a positive contributor to our top-line growth for something like 48 out of the 51 last quarters and again as we strengthen our innovation program even further, that will provide opportunities to continue to benefit from modest pricing,” said Moeller, according to a FactSet transcript.

    See also: Colgate to keep raising prices as inflation slows to boost margins and profit

    The company blew past earnings estimates with adjusted per-share earnings of $1.37, ahead of the $1.32 FactSet consensus, and sales of $20.6 billion, versus the $20 billion FactSet consensus.

    Gross margin increased 380 basis points from a year ago, driven by 340 basis points of pricing benefit and 290 basis points of productivity savings.

    Coca-Cola Co.
    KO,
    -1.51%
    also swept past estimates and raised guidance after the drinks and snacks giant increased prices by 10%. The company’s adjusted operating margin rose to 31.6% from 30.6% a year ago.

    Conagra Brands Inc.
    CAG,
    -0.62%
    raised prices by up to 17%, which Chief Executive Sean Connolly described as “inflation-justified.” The parent of brands such as Birds Eye, Duncan Hines, Hunt’s, Orville Redenbacher’s and Slim Jim also reported that its customers are buying less food to stretch their budgets.

    For more, see: Consumers are now ‘hunkering down’ rather than ‘trading down’ on groceries, Conagra says

    Oreo cookie maker Mondelez International Inc.
    MDLZ,
    -1.82%
    raised prices in North America by 10.4 percentage points in the second quarter and raised prices for all developed markets by 12.4 percentage points. That’s after raising North America prices by 15 percentage points and prices in developed markets by 13.4 percentage points in the first quarter.

    The company’s second-quarter gross margins expanded by 3.1 percentage points to 39.4%. Revenues rose 17%, while volumes were flat.

    At Campbell Soup Co.
    CPB,
    -1.05%    ,
    sales for its fiscal third quarter were up 5%, led by “favorable net price realization,” as the company disclosed as the very first bullet point in its release. Campbell raised prices of meals and beverages by 9% and if snacks by 15%, after raising them by 15% and 13%, respectively, in the second quarter.

    However, volumes were down in the third quarter as shoppers proved sensitive to higher prices.

    Kraft Heinz Co.
    KHC,
    -0.82%
    on Tuesday said it too has lost business because it raised prices more than its competitors, but it’s not planning to cut prices to try to get those customers back anytime soon.

    “[W]hile we did lose share in the quarter, as price gaps have stayed wider for longer than we would have liked, we are managing the business for the long term and still generated mid-single-digit top-line growth within the range of what we expected,” Chief Executive Miguel Patricio said.

    The company, parent to brands including Kraft Mac and Cheese, Heinz Ketchup, Jell-O and Lunchables, indicated on the post-earnings conference call with analysts that rather than increasing discounting, or just cutting prices, it will remain focused on protecting margins, which has been allowing it to accelerate investment in the business, particularly in marketing, research and development and technology.

    Besides, as Chief Financial Officer Andre Maciel said, the gaps between Kraft’s prices and those of competitors are not getting worse. “If anything, they are slightly getting better,” Maciel said, according to an AlphaSense transcript.

    Considering the market-share losses and with inflation coming down, “do you think you took too much price, given you said you took price ahead of competitors, and they have not followed?” UBS analyst Cody Ross asked on the conference call.

    CEO Miguel Patricio’s answer was simple: “No.”

    “I mean, we had very high inflation. And we are leaders in the vast majority of categories where we play. And it’s our role as leader to try to compensate … this inflation with price increases,” Patricio said. “So I would do everything again. I mean we can always go back on price if we think we have to or when we have to. But we had to lead price increases.”

    All of that leaves families to foot the bill for higher food prices, said Accountable.US’s Zelnick.

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP
    has gained 1.2% in the year to date, while the SPDR S&P Retail ETF
    XRT
    has gained 10.3%. The S&P 500
    XRT
    has gained 17%.

    Tomi Kilgore contributed.

    [ad_2]

    Source link

  • Tupperware stock soars 90% after debt restructuring agreement

    Tupperware stock soars 90% after debt restructuring agreement

    [ad_1]

    Tupperware Brands Corp.’s stock climbed more than 90% in extended trading Thursday after the beleaguered maker of iconic food containers announced a debt restructuring agreement.

    The surge sent the stock hurtling toward a nine-month high. In a statement released after market close, Tupperware
    TUP,
    -4.09%
    said that it has finalized an agreement with its lenders to restructure its existing debt obligations. The agreement will improve the company’s overall financial position by amending certain credit obligations and extending the maturity of certain debt facilities to allow it to continue with its turnaround efforts, Tupperware said.

    The agreement provides for the reduction/reallocation of $150 million in interest and fees, and an extension of the stated maturity of approximately $348 million of principal and reallocated interest and fees to fiscal year 2027 with payment-in-kind, or PIK, interest.

    Related: Tupperware and Yellow have skyrocketed, but don’t confuse them with meme stocks

    Tupperware also announced the reduction of amortization payments required to be paid through fiscal year 2025 by approximately $55 million, and immediate access to a revolving borrowing capacity of approximately $21 million.

    “I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omni-channel consumer brand,” Tupperware CFO Mariela Matute said in the statement. “We are committed to making ongoing progress in improving liquidity and strengthening our capital structure. We appreciate the support of our lenders, who share in our strategy, as we move forward.”

    Related: How ‘left-for-dead’ Tupperware became a buzzy trading play

    In April, Tupperware issued a going-concern warning, essentially cautioning that it could go bust. The beleaguered company also announced the hiring of financial advisers to help it navigate its near-term challenges. On July 7, Tupperware said that it had entered a waiver agreement with some of its creditors.

    Also on Thursday, Tupperware said that its second-quarter earnings report will be filed late. In an SEC filing, Tupperware explained that it is unable to file its report for the quarter ended July 1 by the prescribed due date. Tupperware cited “the time and effort” required to complete its consolidated financial statements for its Form 10-K annual report for the fiscal year ended Dec. 31, 2022 and the Form 10-Q for the quarter ended April 1, 2023. “The company will be unable, without unreasonable effort or expense, to complete and file the Q2 Form 10-Q within the prescribed time period,” it said. “As previously disclosed on its Form 8-K on April 7, 2023, the Company is continuing its restatement of previously issued financial statements and the financial statement close process for the year ended December 31, 2022.”

    Since the 8-K filing, Tupperware has “identified additional prior period misstatements and additional material weaknesses in internal control over financial reporting,” the company said. The April 7 8-K filing also disclosed the company’s “substantial doubt” about Tupperware’s ability to continue as a going concern. “While the Company is still completing its second-quarter 2023 financial close process, it expects that its Q2 Form 10-Q will reflect a material decline in revenues for the quarter ended July 1, 2023 as compared to the quarter ended June 25, 2022,” Tupperware said in the filing. “The Company believes that its preliminary estimated revenue results for the quarter ended July 1, 2023 will be within the range of $260-$270 million.”

    Related: Tupperware stock skyrockets to a record 434% gain in July

    Tupperware’s stock has skyrocketed recently, despite a dearth of fresh news. Nonetheless, Tupperware should not be confused with a meme stock, according to Samantha LaDuc, founder of LaDucTrading.com. Tupperware’s recent trading activity is also reminiscent of spikes in other names also recently seen as “left for dead,” as  LaDuc put it to MarketWatch last week.

    [ad_2]

    Source link

  • Greedflation is not letting up. Here’s what companies are saying about it.

    Greedflation is not letting up. Here’s what companies are saying about it.

    [ad_1]

    The second-quarter earnings season so far is showing that one trend that featured in the first quarter has not gone away.

    “Greedflation,” or the practice of companies raising prices to protect their profit margins, is alive and well, based on the number of companies that have so far acknowledged raising prices yet again, even as inflation readings have come down and as some acknowledge that their input costs are falling.

    At the same time, companies continue to emphasize on earnings calls that their customers are showing signs they are weary of higher prices and are shopping more frequently at more stores, while spending less per trip.

    See: Consumers are shopping in more stores than ever before to save money

    “Across industries, we’ve seen the same story over and over the last two years,” said Liz Zelnick, director of economic security and corporate power at Accountable.US, a liberal-leaning consumer-advocacy group.

    “CEOs claim outside forces made them gouge consumers, then turn around and give themselves raises and boast of record profits and billions in new investor handouts,” she said, referring to the billions of stock buybacks and dividend payouts the same companies have made.

    See: U.S. inflation slows again, CPI shows, as Fed weighs another rate hike

    Also read: U.S. wholesale inflation slows to a crawl, PPI shows

    Procter & Gamble Co.
    PG,
    +0.18%    ,
    for example, said it raised prices by up to 9% in its latest quarter, after raising them up to 10% the previous quarter and up to 10% in the same quarter in 2022.

    On a call with analysts, Chief Executive Jon Moeller signaled more price increases to come, which he attributed to the company’s innovation pipeline, which is creating must-have products.

    “If you look back historically, pricing has been a positive contributor to our top-line growth for something like 48 out of the 51 last quarters and again as we strengthen our innovation program even further, that will provide opportunities to continue to benefit from modest pricing,” said Moeller, according to a FactSet transcript.

    See also: Colgate to keep raising prices as inflation slows to boost margins and profit

    The company blew past earnings estimates with adjusted per-share earnings of $1.37, ahead of the $1.32 FactSet consensus, and sales of $20.6 billion, versus the $20 billion FactSet consensus.

    Gross margin increased 380 basis points from a year ago, driven by 340 basis points of pricing benefit and 290 basis points of productivity savings.

    Coca-Cola Co.
    KO,
    -0.49%
    also swept past estimates and raised guidance after the drinks and snacks giant increased prices by 10%. The company’s adjusted operating margin rose to 31.6% from 30.6% a year ago.

    Conagra Brands Inc.
    CAG,
    -0.75%
    raised prices by up to 17%, which Chief Executive Sean Connolly described as “inflation-justified.” The parent of brands such as Birds Eye, Duncan Hines, Hunt’s, Orville Redenbacher’s and Slim Jim also reported that its customers are buying less food to stretch their budgets.

    For more, see: Consumers are now ‘hunkering down’ rather than ‘trading down’ on groceries, Conagra says

    Oreo cookie maker Mondelez International Inc.
    MDLZ,
    +0.09%
    raised prices in North America by 10.4 percentage points in the second quarter and raised prices for all developed markets by 12.4 percentage points. That’s after raising North America prices by 15 percentage points and prices in developed markets by 13.4 percentage points in the first quarter.

    The company’s second-quarter gross margins expanded by 3.1 percentage points to 39.4%. Revenues rose 17%, while volumes were flat.

    At Campbell Soup Co.
    CPB,
    -0.95%    ,
    sales for its fiscal third quarter were up 5%, led by “favorable net price realization,” as the company disclosed as the very first bullet point in its release. Campbell raised prices of meals and beverages by 9% and if snacks by 15%, after raising them by 15% and 13%, respectively, in the second quarter.

    However, volumes were down in the third quarter as shoppers proved sensitive to higher prices.

    Kraft Heinz Co.
    KHC,
    -1.75%
    on Tuesday said it too has lost business because it raised prices more than its competitors, but it’s not planning to cut prices to try to get those customers back anytime soon.

    “[W]hile we did lose share in the quarter, as price gaps have stayed wider for longer than we would have liked, we are managing the business for the long term and still generated mid-single-digit top-line growth within the range of what we expected,” Chief Executive Miguel Patricio said.

    The company, parent to brands including Kraft Mac and Cheese, Heinz Ketchup, Jell-O and Lunchables, indicated on the post-earnings conference call with analysts that rather than increasing discounting, or just cutting prices, it will remain focused on protecting margins, which has been allowing it to accelerate investment in the business, particularly in marketing, research and development and technology.

    Besides, as Chief Financial Officer Andre Maciel said, the gaps between Kraft’s prices and those of competitors are not getting worse. “If anything, they are slightly getting better,” Maciel said, according to an AlphaSense transcript.

    Considering the market-share losses and with inflation coming down, “do you think you took too much price, given you said you took price ahead of competitors, and they have not followed?” UBS analyst Cody Ross asked on the conference call.

    CEO Miguel Patricio’s answer was simple: “No.”

    “I mean, we had very high inflation. And we are leaders in the vast majority of categories where we play. And it’s our role as leader to try to compensate … this inflation with price increases,” Patricio said. “So I would do everything again. I mean we can always go back on price if we think we have to or when we have to. But we had to lead price increases.”

    All of that leaves families to foot the bill for higher food prices, said Accountable.US’s Zelnick.

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP
    has gained 1.2% in the year to date, while the SPDR S&P Retail ETF
    XRT
    has gained 10.3%. The S&P 500
    XRT
    has gained 17%.

    Tomi Kilgore contributed.

    [ad_2]

    Source link

  • Tupperware stock tumbles toward snapping five-day win streak in which it soared more than 300%

    Tupperware stock tumbles toward snapping five-day win streak in which it soared more than 300%

    [ad_1]

    Shares of Tupperware Brands Corp.
    TUP,
    -31.78%
    tumbled 18.8% in morning trading Wednesday, which puts them on track to snap a five-day win streak, and to suffer the biggest one-day drop since it sank 27.5% on May 8. The food-storage container company’s “meme”-like stock, which closed Tuesday at the highest price since Nov. 15, 2022, had rocketed 304.5% over the previous five-sessions, and skyrocketed 767.7%. amid a 10-session stretch through Tuesday in which it had gained nine times. The stock has run up 273.5% over the past three months, but was still down 39.3% over the past 12 months, while the S&P 500
    SPX,
    -1.38%
    has gained 10.8% over the past year.

    [ad_2]

    Source link

  • iPhone users will soon have to adjust to this small but significant change | CNN Business

    iPhone users will soon have to adjust to this small but significant change | CNN Business

    [ad_1]



    CNN
     — 

    Get your thumb ready for next month. Apple

    (AAPL)     is making a subtle change to the iPhone’s software that will likely mess with your muscle memory: The big red “end call” button is moving.

    The iPhone’s phone app will get a series of updates coming to iOS 17, including an updated design that repositions the hang up button to the bottom right of the screen, next to other functions. The button currently sits separately at the bottom middle of the phone app, underneath the buttons to mute, access the keypad or add a call.

    The new call screen, which is already available for download in a beta version for developers, sparked some strong reactions among iOS users on social media: “iOS 17 has the FaceTime button where the end call button used to be,” tweeted one user. “Muscle memory be damned.”

    The change is likely to streamline the look of the phone app and put all functions in one place. Apple did not respond to a request for comment.

    At its annual Worldwide Developer Conference in May, the company showed off a slew of new tools coming to iOS 17 that make calling and messaging others more personalized and customized. iPhone users, for example, will be able to design contact “posters,” a custom image to appear when they call someone or receive their call.

    Meanwhile, a new feature called Live Voicemail will transcribe a caller’s message in real time, so users can decide whether to ignore or take the call, and a tool called NameDrop will let users share their contact information by holding two iPhones close together. In addition, FaceTime will support the ability to leave video messages when someone isn’t available to chat.

    Other changes coming to iOS 17 include a more accurate autocorrect, improved dictation in iMessage, and a more responsive Siri. Apple typically launches its latest mobile operating system in September, following its annual iPhone event.

    [ad_2]

    Source link

  • Why cell phone service is down in Maui — and when it could be restored | CNN Business

    Why cell phone service is down in Maui — and when it could be restored | CNN Business

    [ad_1]



    CNN
     — 

    Thousands of people in Maui are without cell service as the wildfires continue to rage out of control on the island, preventing people from calling emergency services or updating loved ones about their status. It could take days or even weeks to get the networks back up and running.

    “911 is down. Cell service is down. Phone service is down,” Hawaii Lt. Gov. Sylvia Luke told CNN on Wednesday morning.

    Although strong winds can sometimes threaten cell towers, most are strong enough to handle the worst that even a Category 5 hurricane can bring. Fire, however, complicates the issue.

    “When the fires get too close to cell sites, they will obviously burn equipment, antennas, and feedlines,” said Glenn O’Donnell, VP of research at market research firm Forrester. “In extreme cases, they will also weaken the towers, leading some to collapse. The smoke and flames can also attenuate signals because of the particulate density in the air.”

    If a tower collapses, cell networks could take months to restore. But if carriers are able and prepared to do restorations with mobile backup units, it could bring limited service back within hours, O’Donnell said. Wireless carriers often bring in COWs (Cells On Wheels), COLTs (Cells On Light Trucks), and GOaTs (Generators on Trailers) in emergencies to provide backup service when cell towers go down.

    Power outages are also a threat to cell phone towers. The Maui disaster has already wiped out power to at least 14,000 homes and businesses in the area, according to PowerOutage.us. Many towers have backup power generators, but they have limited capacity to keep towers running.

    Cell towers have back-up technology built in, but this is typically done through optical fiber cables or microwave (wireless) links, according to Dimitris Mavrakis, senior researcher at ABI Research. However, if something extraordinary happens, such as interaction with rampant fires, these links may experience “catastrophic failures and leave cells without a connection to the rest of the world.”

    And, in an emergency, a spike in call volume can overload the system – even if people are able to get reception.

    “Even cells that have a good service may experience outages due to the sheer volume of communication happening at once,” Mavrakis said. “Everyone in these areas may be trying to contact relatives or the authorities at once, saturating the network and causing an outage. This is easier to correct though and network operators may put in place additional measures to render them operational quickly.”

    A T-Mobile spokesperson said the company is monitoring the situation and assessing the fire’s impact on its equipment in the area.

    “When conditions are safe, our Emergency Management Team will deploy portable, agile satellite and microwave solutions that will restore service in impacted areas,” the spokesperson said. “We also have portable generators ready to deploy to sites affected by commercial power loss, and our Emergency Response Team is working with FEMA and the state of Hawaii to support firefighters and other first responders, organizations and communities.”

    An AT&T spokesperson told CNN it is also assessing the’ impact to its wireless network and “will continue to coordinate closely with local utility companies on restoration progress.” The company is waiving talk, text and data overage charges during this time.

    Verizon did not immediately respond to CNN’s request for comment.

    Satellite networks, however, continue to operate regardless of what’s happening on the ground. This means satellite phones, which often feature large antennas, can help provide voice, SMS, and data services anywhere on Earth, even without cell service.

    Satellite phones have been popularized over the years by hikers, emergency responders and intrepid travelers, but they are are expensive and are not mainstream products. However, some newer smartphone models – including the latest model iPhone 14 and some phones built by Motorola and Huawei – offer built-in satellite connectivity, which allows the sending of SOS messages via satellites.

    For example, Apple’s free Emergency SOS via satellite service, which launched last year, allows iPhone users to contact dedicated dispatchers in emergency situations via satellites. When a user attempts to call 911 and is unable to get on a cell network, they will be automatically redirected to the service’s dispatchers where they can answer a questionnaire with short multiple choice questions to share information quickly. The dispatchers also receive their coordinates, medical ID and emergency contact information.

    Apple told CNN the feature is reserved for connections to emergency services and does not allow users to contact friends and family. For anyone who has access to a Wi-Fi connection while wearing an Apple Watch, the Walkie-Talkie feature could also be used to send messages or make calls. However, Wi-Fi networks can also fail when optical fiber networks are disrupted.

    Although it’s unclear how long cell phone service could be down in affected regions, companies have been able to bring connectivity to disaster regions in the past. In 2017, Google worked with AT&T and T-Mobile to deploy its Project Loon balloons to deliver Internet to Puerto Rico in the aftermath of Hurricane Maria.

    Hawaii’s Red Cross recently tweeted that people can call 1-800-RED-CROSS to see if their loved ones are at a local shelter.

    [ad_2]

    Source link

  • South Korea’s Hynix is looking into how its chips got into Huawei’s controversial smartphone | CNN Business

    South Korea’s Hynix is looking into how its chips got into Huawei’s controversial smartphone | CNN Business

    [ad_1]


    Hong Kong/Seoul
    CNN
     — 

    SK Hynix, a South Korean chipmaker, is investigating how two of its memory chips mysteriously ended up inside the Mate 60 Pro, a controversial smartphone launched by Huawei last week.

    Shares in Hynix fell more than 4% on Friday after it emerged that two of its products, a 12 gigabyte (GB) LPDDR5 chip and 512 GB NAND flash memory chip, were found inside the Huawei handset by TechInsights, a research organization based in Canada specializing in semiconductors, which took the phone apart for analysis.

    “The significance of the development is that there are restrictions on what SK Hynix can ship to China,” G Dan Hutcheson, vice chair of TechInsights, told CNN. “Where do these chips come from? The big question is whether any laws were violated.”

    A Hynix spokesperson told CNN Friday that it was aware of its chips being used in the Huawei phone and had started investigating the issue.

    The company “no longer does business with Huawei since the introduction of the US restrictions against the company,” it said in a statement.

    “SK Hynix is strictly abiding by the US government’s export restrictions,” the company said.

    Industry insiders said it was possible that Huawei had purchased the memory chips from the secondary market and not directly from the manufacturer. It’s also possible Huawei may have had a stockpile of components accumulated before the US export curbs kicked in fully.

    TechInsights had previously revealed that the “brains” of the phone were powered by a 5G Kirin 9000s chip made by China’s top chipmaker Semiconductor Manufacturing International Corporation, better known as SMIC.

    It is still examining the Mate 60 Pro and does not rule out the possibility of finding more components made by companies subject to US trade sanctions. So far, it has found that most of the phone’s components were provided by Chinese suppliers.

    Analysts have said the smartphone is a major breakthrough for China as it clashes with the United States over access to advanced technology.

    The development prompted two US congressmen, Mike Gallagher and Michael McCaul, to call on the White House – which is seeking more information about the phone – to further restrict technology export sales to Chinese companies.

    Huawei and SMIC have not replied to requests for comment.

    In 2019, the US government banned American companies from selling software and equipment to Huawei. It also restricted international chipmakers using US-made technology from working with the company.

    That is why, four years later, last week’s launch of the Mate 60 Pro shocked industry experts who didn’t understand how Huawei, which is headquartered in Shenzhen, would have the ability to manufacture such an advanced smartphone following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    [ad_2]

    Source link

  • US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    [ad_1]

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Commerce Secretary Gina Raimondo says the US government has no evidence that Huawei can produce smartphones with advanced chips “at scale,” as it continues to investigate how the sanctioned Chinese manufacturer made an apparent breakthrough with its latest flagship device.

    On Tuesday, Raimondo told US lawmakers that she was “upset” by news of the launch of Huawei’s Mate 60 Pro during her visit to China last month.

    “The only good news, if there is any, is we don’t have any evidence that they can manufacture 7-nanometer [chips] at scale,” she told a US House of Representatives hearing.

    “Although I can’t talk about any investigations specifically, I promise you this: every time we find credible evidence that any company has gone around our export controls, we do investigate.”

    Analysts who have examined the smartphone said it represented a “milestone” achievement for China, suggesting Huawei may have found a way to overcome American export controls.

    US officials have long argued that the company poses a risk to US national security, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims.

    TechInsights, a research organization that specializes in semiconductors and took the phone apart for analysis, says it includes a 5G Kirin 9000s processor developed by China’s leading chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

    That surprised many because SMIC, a partially state-owned Chinese company, has also been subject to US export restrictions for years. It has not responded to previous requests for comment from CNN.

    TechInsights also found two chips belonging to SK Hynix, a South Korean chipmaker, inside the handset.

    A SK Hynix spokesperson told CNN earlier this month that it was aware of the issue and investigating how that was possible, since the South Korean firm “no longer does business with Huawei” because of US export controls.

    Huawei declined to comment on the capabilities and components of its phone.

    Raimondo said Tuesday that US officials were “trying to use every single tool at our disposal … to deny the Chinese an ability to get intellectual property to advance their technology in ways that can hurt us.”

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    That left the company, once the world’s second largest smartphone seller, in bad shape.

    As of the second quarter of 2023, Huawei was no longer in the top five of mobile phone vendors in China, let alone globally, according to Counterpoint Research.

    But its new phone is a big help for the company — and may pose a challenge to Apple’s (AAPL) market share in China, according to Ivan Lam, a senior analyst at Counterpoint.

    Huawei is scheduled to hold a product launch event next Monday, where new phones are expected to be the main focus, according to Toby Zhu, a Canalys mobility analyst.

    Other devices, like tablets or earphones, may also be shown off. Huawei has not publicly released details of the event.

    In the coming months, the firm plans to release another 5G phone, possibly under Nova, its mid-range lineup, Chinese news outlet IT Times reported Tuesday, citing unidentified industry sources. Huawei declined to comment.

    Zhu said the phone was widely expected to come with 5G capability, powered either by the “Kirin 9000s chip or another chip.”

    If it does, the new model could become even more popular than the Mate 60 Pro, which starts at 6,999 yuan (about $959), because of its relative affordability, he added.

    While Raimondo was unhappy with the timing of Huawei’s launch, analysts say it was unlikely to have been arranged to coincide with her presence in China.

    It was likely “a marketing campaign aimed at winning over customer interest before the iPhone 15 hits the market,” analysts at Eurasia Group wrote in a report.

    The move helped the Shenzhen-based company capture the second spot in China’s smartphone market in the first week of September, ahead of Apple’s big event, said Lam of Counterpoint.

    — Rashard Rose and Mengchen Zhang contributed to this report.

    [ad_2]

    Source link

  • India arrests Chinese smartphone executive in fraud probe | CNN Business

    India arrests Chinese smartphone executive in fraud probe | CNN Business

    [ad_1]


    New Delhi/Hong Kong
    CNN
     — 

    An executive at Vivo, one of China’s top smartphone makers, has been arrested in India in connection with a money laundering probe, raising fears of a renewed crackdown on Chinese businesses in the country.

    Guangwen Kuang, the head of administration at Vivo India, was taken into custody on Tuesday by India’s Enforcement Directorate (ED), his lawyer, Mudit Jain, told CNN. The ED is the country’s main financial crimes investigation agency, responsible for probing money laundering and violations of foreign exchange laws.

    Kuang, a Chinese national, was arrested alongside three other people and would be held in custody for three days, according to a court document shared with CNN by Jain.

    One of the other detainees was a person who had helped Vivo set up its offices in India, and the other two were accountants, according to the document.

    In a statement to CNN, a Vivo spokesperson confirmed that one employee had been arrested and vowed that the company would “exercise all available legal options.”

    “The recent arrest deeply concerns us,” the representative said. “Vivo firmly adheres to its ethical principles and remains dedicated to legal compliance.”

    Allegations of money laundering against Vivo were first made in July 2022, when the ED said it had carried out searches at 48 Vivo locations in the country and seized $60 million from the company’s bank accounts.

    The agency accused Vivo of tax fraud and said the firm had remitted 624.8 billion rupees ($7.9 billion), mostly to China.

    “These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” the ED said at the time.

    The company said at the time that it was cooperating with the investigation.

    The raids came two months after India seized more than $700 million from another big Chinese smartphone maker, Xiaomi, which was also accused of moving money out of the country illegally.

    Xiaomi denied wrongdoing, saying all its operations were “firmly compliant with local laws and regulations.”

    Xiaomi and Vivo are hugely popular with Indian consumers, both ranking in the top three of the country’s vast smartphone market behind Samsung.

    Despite the regulatory crackdown, Vivo is still India’s second biggest smartphone brand, commanding 17% of the market in the second quarter, according to Counterpoint Research.

    Xiaomi, meanwhile, has seen its market share slip from 19% to 15% in the same period.

    Relations between China and India soured significantly after a deadly clash at their shared contested border in 2020. Authorities in India later banned Chinese apps and subjected deals with Chinese firms to greater scrutiny.

    Since then, tensions between India and China have continued to simmer.

    Vivo’s troubles this week prompted a swift reaction in Chinese media. State-run tabloid Global Times accused India of “rising protectionism.”

    The executive’s detainment appears to signal a “hardened crackdown on Chinese companies,” the outlet said in a report Wednesday.

    China’s embassy in India has previously warned that the probes of Chinese firms in India risked damaging its reputation among foreign investors and have disrupted “normal business activities.”

    — Vedika Sud contributed to this report.

    [ad_2]

    Source link

  • Apple could be about to make the biggest change to the iPhone in 11 years | CNN Business

    Apple could be about to make the biggest change to the iPhone in 11 years | CNN Business

    [ad_1]



    CNN
     — 

    Apple is set to unveil the iPhone 15 in just a few days, and it’s widely expected to come with a significant change.

    The iPhone 15 is heavily rumored to ditch Apple’s proprietary Lightning charger in favor of USB-C charging, marking a milestone for the company by adopting universal charging. The change could ultimately streamline the charging process across various devices — and brands.

    The switch would come less than a year after the European Union voted to approve legislation to require smartphones, tablets, digital cameras, portable speakers and other small devices to support USB-C charging by 2024. The first-of-its-kind law aims to pare down the number of chargers and cables consumers must contend with when they purchase a new device, and to allow users to mix and match devices and chargers even if they were produced by different manufacturers.

    “This is arguably the biggest disruption to iPhone design for several years, but in reality, it is hardly a dramatic move,” said Ben Wood, an analyst at CCS Insight.

    That’s because Apple

    (AAPL)     has previously switched its iPads and MacBooks to USB-C charging. Still, the company has been resistant to making the change on the iPhone.

    Last year, Apple’s senior vice president of worldwide marketing, Greg Joswiak, publicly stressed the value and ubiquity of the Lightning charger, which is designed for faster device charging, but noted “obviously we will have to comply” with the EU mandate.

    “We have no choice, like we do around the world, to comply with local laws, but we think the approach would have been better environmentally and better for our customers to not have a government [have] that perspective,” Joswiak said at the time.

    The EU’s decision is part of a greater effort to tackle e-waste overall, but could it generate more in the short term as people phase out their Lightning cables. (Apple will also likely need to develop a Lightning cable recycling program.)

    Although Apple has voiced environmental concerns over what happens to old Lightning chargers, it has financial reasons for pushing back on the change, too.

    Apple introduced the Lightning charger alongside the iPhone 5 in 2012, replacing its existing older 30-pin dock connector with one that enabled faster charging and had a reversible design. It also ignited a related accessories business, requiring users to buy a $30 Lightning adapter to connect the device to older docks, alarm clocks and speaker systems.

    “For Apple, it was all about being in control of its own ecosystem,” said David McQueen, a director at ABI Research. “Apple makes good money from selling Lightning cables and its many related accessories.”

    It also takes a financial cut from the third-party accessories and cables that go through its Made For iPhone program. “Moving to USB Type C would take away this level of control as USB-C is a much more open ecosystem,” McQueen said.

    In addition, Apple could create its own branded USB-C cable to perform “better with an iPhone,” such as allowing for greater wattage to support faster charging while minimizing risk and damage to batteries, he added.

    It’s currently unclear if the shift to USB-C will happen for all new iPhone 15 models or only for Pro devices. The move to USB-C won’t likely be a sole incentive for people to upgrade, but it could sway some consumers who have been resistant to the iPhone over its charging limitations, according to Thomas Husson, a vice president at Forrester Research.

    The iPhone 15 devices are expected to ship with a new cable in the box, but considering many mobile devices already use USB-C, including Apple’s own iPads and MacBooks, access to charging wires shouldn’t be too hard or costly.

    “Given how widely USB-C has been used in other devices, it’s hard to imagine that customers will be totally caught out by this switch, and in the long term, it’s likely to benefit them, with a universal charging system having some very obvious upsides,” Wood said.

    Apple could also bypass wired charging altogether to make way for wireless charging but not anytime soon because “wireless charging is currently so much slower than wired,” according to McQueen. “We’ll have to wait and see on that.”

    [ad_2]

    Source link

  • Apple Watch’s new gesture control feature will have everyone tapping the air | CNN Business

    Apple Watch’s new gesture control feature will have everyone tapping the air | CNN Business

    [ad_1]



    CNN
     — 

    You’re about to see people in public tapping two fingers together in the air.

    Over the past few days, I’ve been taking phone calls, playing music and scrolling through widgets on the new Apple Watch Series 9 without ever touching the device. I’ve used it to silence my watch’s alarm in the morning, stop timers and open a notification while carrying too many bags.

    It may sound like a gimmick — and it most certainly feels strange to do it in public — but considering the small size of the Apple Watch screen, the tool offers an effective hands-free way to interact with the device.

    Apple’s latest lineup of smartwatches, the Watch Series 9 and high-end Ultra 2, feature a new gesture tool called Double Tap, allowing users to tap their index finger and thumb together twice, to control the device. It can also scroll through widgets, much like turning the digital crown.

    The feature isn’t entirely new; the previous generation of Apple Watch Ultra was capable of similar pinch-and-clench gestures via its Assistive Touch accessibility tool. But Apple’s decision to bring a feature like this to the forefront hints at an increasingly touch-free future. It also comes three months after the company unveiled the Vision Pro mixed reality headset, which will launch next year, with a similar finger tap control.

    Double Tap works in combination with the latest Apple Watch accelerometer, gyroscope and optical heart rate sensor, which looks for disruptions in the blood flow when the fingers are pressed together. That data is processed by a new machine learning algorithm and runs on a faster neural engine, specialized hardware that handles AI and machine learning tasks.

    While the concept is similar, gesture controls are different on the Vision Pro, which will track users’ eyes and hand movements. Apple told CNN it added gesture control to the headset because it needed a different, seamless interface for users to interact with, whereas Double Tap is more about simplifying the Apple Watch experience.

    When the Apple Watch’s display is turned on, the device automatically knows to respond when it senses the fingers are touched together. It essentially works as a “yes” or “accept” button; that means if a call comes through, you can Double Tap to accept it (covering the watch with your full hand, however, will silence it quickly). If a song is playing, you can pause it by double tapping, and then again to start it.

    Although you can subtly flick on the display and do the gesture close to your body, trying to conceal the movement when around other people, I found it works much better when it’s raised a bit higher. This, however, makes the action more obvious — and it’s something that will take a little getting used to seeing in person.

    “This is also about social acceptance. At the moment, I find the idea of people making this gesture more often than not in public a bit funny. But time will tell if users find it acceptable,” said Annette Zimmerman, an analyst at Gartner Research. “I think Apple is very use-case driven and focuses on user feedback on things they could improve.”

    Similarly, it took a while for people to get used to the design of Apple’s AirPods when they were announced in 2016; many criticized how they looked dangling out of users’ ears. Now they’ve become part of modern culture.

    Other learning curves exist with the Double Tap feature. Because I am right handed and wear an Apple Watch on my left hand, tapping my left fingers together to trigger the control takes an extra second or two of mental coordination.

    The future of hands-free devices

    The new Apple Watch Series 9 can be controlled by tapping two fingers together.

    Apple isn’t the only tech company developing gesture controls like this. Samsung TVs, some smartphones and Microsoft’s mixed reality headset all incorporate some hand gesture functionality. But this is Apple’s biggest push to date, and adding it to a flagship device like the Apple Watch will soon put all eyes on the concept of hand gestures.

    “It’s a great move by Apple as it differentiates the company from other brands when it comes to innovation and ease of usability. It also shows Apple’s commitment in the fields of artificial intelligence,” said Sachin Mehta, senior analyst at tech intelligence firm ABI Research. “The new double tap gesture is not a surprise as Apple keeps on developing a unified and intuitive user experience across its product line up. It will cement the Apple Watch as the smartwatch to have.”

    It works differently on the Vision Pro, which will track a user’s eyes and hand movements to make punching and swiping controls. The headset needed a different user interface for users to interact with it, and gestures give that control even when a face is covered by the hardware.

    Further showing how Apple is thinking about gesture control long term, it recently filed for patents focused on gesture controls, including for the Apple TV. That said, Mehta believes there’s no question “we expect more gesture features in Apple’s product lineup in the future.”

    In addition to Double Tap, the Apple Watch Series 9 features Apple’s powerful new in-house silicon chip and ultrawideband connectivity. It will let users log health data with their voice, use “name drop” to share contact information by touching another Apple Watch and raise their wrist to automatically brighten the display. The Series 9 will come in colors such as pink, navy, red, gold, silver and graphite.

    Apple also showed off the second iteration of its rugged Ultra smartwatch line, featuring the updated S9 custom chip and a new ultrawideband chip which uses radio waves to communicate. It also features more information on the display for more intensive tracking.

    The Apple Watch Series 9 will start at $399 and the Ultra is priced at $799. Although they start shipping on Friday, September 22, the Double Tap feature will launch via a software update next month.

    [ad_2]

    Source link

  • Fact check: Trump falsely claims polls show his Black support has quadrupled or quintupled since his mug shot | CNN Politics

    Fact check: Trump falsely claims polls show his Black support has quadrupled or quintupled since his mug shot | CNN Politics

    [ad_1]



    CNN
     — 

    Former President Donald Trump falsely claimed Wednesday that polls show his support among Black Americans has quadrupled or quintupled since his mug shot was released.

    The booking photo was taken on August 24, when Trump was arrested in Fulton County, Georgia, on charges connected to his efforts to overturn his defeat in the state in the 2020 election.

    On Wednesday, Trump claimed in a falsehood-filled interview with conservative commentator Hugh Hewitt that “many Democrats” will be voting for him in the 2024 election because they agree with him that the criminal charges against him in four cases are unfair. He then made this assertion: “The Black community is so different for me in the last – since that mug shot was taken, I don’t know if you’ve seen the polls; my polls with the Black community have gone up four and five times.”

    Facts First: National public polls do not show anything close to an increase of “four and five times” in Black support for Trump since his mug shot was taken, either in a race against President Joe Biden or in his own favorability rating; Trump’s campaign did not respond to CNN’s request to identify any poll that corroborates Trump’s claim. Most polls conducted after the release of the mug shot did find a higher level of Black support for Trump than he had in previous polls – but the increases were within the polls’ margins of error, not massive spikes, so it’s not clear whether there was a genuine improvement or the bump was just statistical noise. In addition, one poll found a decline in Trump’s strength with Black voters in a race against Biden, while another found a decline in his favorability with Black respondents even as he improved in a race against Biden.

    Because Black adults make up a relatively small share of the overall population, they tend to have small sample sizes in national public polls. That means the margins of error for this group are big and the results tend to bounce around from poll to poll. And even if Trump’s recent polling improvement captures a real change in voter sentiment, there is no evidence that change has anything to do with his mug shot, which no poll asked about; it could just as well have to do with, say, the summer increase in the price of gas or any of numerous other factors affecting perceptions of Biden.

    Regardless, Trump greatly exaggerated the size of the recent uptick seen in some polls. Here’s a look at what polls actually show about his recent standing with the Black population, plus a fact check of three of Trump’s many other false claims from the Hewitt interview.

    CNN identified five national public polls that: 1) included data on Black respondents in particular; 2) were conducted after Trump’s mug shot was released on August 24; 3) were conducted by pollsters who had also released polls in the recent past.

    Four of the polls showed gains for Trump among Black respondents, though much smaller gains than the quadrupling or quintupling he claimed to Hewitt.

    Trump gained 3 percentage points with Black respondents in polling by The Economist and YouGov, though within the margin of error – going from 17% against Biden in mid-August to 20% in late August. (The earlier poll asked the Trump-versus-Biden question of Black adults regardless of whether they are registered to vote, while the later poll asked the question to Black registered voters, so the results might not be directly comparable.) At the same time, Trump’s favorability with Black respondents was down 9 percentage points to 18%.

    Trump gained 3 percentage points with Black registered voters between a Messenger/Harris X poll in early July and a survey by the same pollster in late August, edging up from 22% against Biden to 25%. Trump gained 6 percentage points among Black adults in polling by the firm Premise, going from 12% against Biden in an Aug. 17-21 poll to 18% in an Aug. 30-Sept. 5 poll. He gained 8 percentage points among Black registered voters in polling by Republican firm Echelon Insights, going from 14% against Biden in late July to 22% in late August. Based on the sample sizes reported for Black respondents in each poll, all of those changes are within the margin of error.

    One of the five polls, by Emerson College, showed Trump’s standing with Black registered voters worsening after the mug shot was released, though this change was also within the margin of error. In Emerson’s mid-August poll, Trump had about 27% Black support in a race against Biden; in its late-August poll, he had about 19% support.

    In addition to looking at those five polls, we contacted The Wall Street Journal about an Aug. 24-30 poll, conducted jointly by Republican and Democratic pollsters, for which the newspaper has not yet released detailed demographic-by-demographic results. Aaron Zitner, a Journal reporter and editor who works on the poll, told us that Trump’s level of support with Black voters “didn’t change at all” between the paper’s April poll and this new poll, though Biden’s standing declined slightly within the margin of error.

    Exit polls estimated that Trump received 12% of the Black vote in the 2020 election. A post-election Pew Research Center analysis found that he received 8%.

    Mike Pence’s standing in 2016

    Trump made another false polling-related claim to Hewitt.

    This one was about how Mike Pence, Trump’s former vice president and his current opponent for the Republican nomination, had performed in polls during his 2016 campaign for reelection as governor of Indiana. Pence ceased his Indiana campaign when Trump selected him as his running mate in July 2016.

    Trump said Wednesday: “I’m disappointed in Mike Pence, because I took Mike from the garbage heap. He was going to lose. You know, he was running for governor, reelection. He was running for governor again, to continue his term, and he was absolutely, you know – he was down by 10 or 15 points.”

    Facts First: Trump’s claim that Pence was trailing by “10 or 15 points” in his 2016 race is false. It’s true that Pence had faced a tough battle for reelection as governor before he ended the campaign to run nationally with Trump, but no public poll had shown him down big.

    A May 2016 poll (commissioned by a Republican group that was founded by an opponent of Pence’s right-wing stance on gay rights and other issues) had showed Pence with 40% support and his Democratic opponent, John Gregg, with 36% support; the Indianapolis Star called this a “virtual dead heat” because of the poll’s margin of error of plus or minus 4 percentage points, but nonetheless, Pence certainly wasn’t “down by 10 or 15 points” like Trump said. An April 2016 poll had showed Pence with 49% support to Gregg’s 45%, again within the margin of error but not with Pence trailing.

    “There would not be any poll that would show Pence down 10-15 points to John Gregg at that time or frankly at any point even if Pence had stayed for the reelection campaign,” Christine Matthews, the president of Bellwether Research & Consulting and a Republican pollster who conducted surveys during that 2016 race in Indiana, including the May 2016 poll mentioned above, told CNN on Wednesday. Matthews said Pence could possibly have lost the race if he had remained in it, “but no poll would have shown him down by 10-15 points in that process.”

    Alabama, Georgia and South Carolina in 2020

    Trump repeated his usual lies about the 2020 election – saying, among other things, that “it was rigged and stolen.” In support of those lies, he said: “One of the top people in Alabama said you don’t win Alabama by 45 points or whatever it is I won, and then win South Carolina in a record, nobody’s ever gotten that many votes, and then you lose Georgia by just a couple of votes. It doesn’t work that way.”

    Facts First: Trump hedged his claim that he won Alabama by “45 points,” adding the “whatever it is I won,” but the “45 points” claim is not even close to correct no matter what “one of the top people” told him; he won Alabama by about 25.5 percentage points in 2020. He lost Georgia by far more than “just a couple of votes”; it was 11,779 votes. And while he did earn a record number of votes in South Carolina, he did not win the state with anything close to a “record” margin of victory; his roughly 11.7-point margin in 2020 was about 2.6 points smaller than his own margin in 2016 and also smaller than the margins earned by numerous previous winners.

    In addition, Trump’s claim that “it doesn’t work that way” – winning some states big while losing a nearby state – is also baseless. Even neighboring states are not the same. Georgia, which Trump lost fair and square, has key demographic and social differences from South Carolina and Alabama, as we explained in a previous fact check.

    Polls and election results weren’t the only things Trump exaggerated about in the interview.

    He invoked the price of bacon while criticizing the Biden administration for speaking positively about the state of inflation, which has declined sharply over the last year but remains elevated. “They try and say, ‘Oh, inflation’s wonderful.’ What about for the last three years, where bacon is five times higher than it was just a few years ago?”

    Facts First: Trump’s claim that the price of bacon has quintupled over the last few years is grossly inaccurate. The average price of bacon is higher than it was three years ago, but it is nowhere near “five times higher.” The average price for a pound of sliced bacon was $6.236 per pound in July 2023, up from $5.776 in July 2020, according to federal data – an increase of about 8%, nowhere near the 400% increase Trump claimed.

    You can come up with a larger percentage increase if you start the clock at a different point in 2020; for example, the July 2023 average price is a 13.4% increase from the February 2020 average price. But even that larger increase is way smaller than Trump claimed.

    [ad_2]

    Source link