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Tag: won

  • Hubbard Inn’s TikTok Lawsuit Won’t Stop as Judge Denies Motion to Dismiss

    Hubbard Inn’s TikTok Lawsuit Won’t Stop as Judge Denies Motion to Dismiss

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    A judge has denied a motion to dismiss a lawsuit filed against a Hubbard Inn customer who in March posted a TikTok video claiming the venue’s bouncer dragged her out of the bathroom and shoved her, sending her “flying down the staircase.”

    The customer, Julia Reel, is the subject of a defamation lawsuit filed by the Hubbard Inn’s lawyers. In the filing, the bar’s council claims that her social media post, which was shared more than 100,000 times, defamed the business, leading to more than $30,000 in canceled reservations, threats to their staff, and negative publicity with their Yelp page review bombed.

    “I will never be going back there, and you shouldn’t either,” Reel said in her now-deleted video.

    Reel’s video showed her sitting on her bed, calling the March 10 incident “the craziest experience she’s ever been in” and that she was “manhandled.” Cook County circuit court judge Patrick Sherlock denied her motion to dismiss the case on Tuesday, September 25, and ordered a response to the court by Tuesday, October 15.

    After Reel posted her video in March, in an unusual move for a restaurant, Hubbard Inn responded with its own video spliced with Reel’s voiceover that included security footage allegedly showing the Tiktokker and a friend walking down a staircase with a bouncer following them. The Hubbard Inn video claimed Reel was “politely escorted off the premises, ensuring a safe exit.” A week later, the club filed the lawsuit against Reel.

    Reel quickly turned to a law firm, Corboy & Demetrio, which put out its own TikTok video with a statement defending their client; it’s since been deleted and Reel has since switched attorneys.

    Part of Reel’s new council, Rebecca Kaiser Fournier, an attorney at Henderson Parks, didn’t immediately return a request for comment. Reel is also represented by Forde & O’Meara, according to Cook County documents.

    As the drama unfolded in March, online observers sat back and took their shots at Reel. The popular social media account Know Your Meme even posted about the conflict.

    Reel filed a police report following the alleged altercation at Hubbard Inn claiming she was treated at Northwestern Memorial Hospital after a bouncer removed her from a bathroom while she was urinating. She claims the bouncer pushed her down the stairs causing her head to hit the ground. Reel, 22 at the time, told police she suffered bruises to her head and arm. No arrests were made.

    A Hubbard Inn rep says police never contacted the bar for any follow-ups to Reel’s report.

    In the motion to dismiss, filed on Wednesday, September 4, Reel’s attorneys argue her client’s video was “not a statement of fact but rather an internet review and her opinion of the business — not grounds for a defamation claim.” Reel’s attorneys also cite a classic piece of Chicago restaurant lore: a lawsuit filed by Peter Schivarelli, the founder of Demon Dogs, a hot dog stand that once stood under the CTA’s Fullerton Red and Brown line stop in Lincoln Park.

    Schivarelli, a former streets and sanitation supervisor (who also managed the rock band Chicago), in 1999 sued CBS Chicago over a commercial that referenced a 1997 news report about Schivarelli’s involvement in a ghost payrolling scandal. The ad touted the channel’s investigative reporting unit and featured a clip from Pam Zekman’s piece with the reporter telling Schivarelli “you are cheating the city.” Schivarelli would argue that the clip lacked context and counted as defamation. The case was dismissed in 2001.

    Hubbard Inn’s attorneys claim Reel ignored multiple requests in March to remove her post and that pushed them to sue.

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    Ashok Selvam

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  • Foxtrot Won’t Reopen Locations on Armitage and Southport

    Foxtrot Won’t Reopen Locations on Armitage and Southport

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    Two key North Side Foxtrot locations will not be part of the comeback plan led by the chain’s founder. CoStar reports that Hotel Chocolat, a company founded in the U.K. — and recently purchased by Mars — has leased the spaces at 900 W. Armitage Avenue in Lincoln Park and 3334 N. Southport Avenue in Lakeview.

    Mars, which manufactures Twix and M&Ms from its Goose Island campus, paid about $662 million for the premium chocolate maker with 126 locations in the U.K., Japan, Ireland, St. Lucia, and Gibraltar. According to its website, the company began in 1994 and opened its first shop in 2004. They sell drinking chocolates, gift boxes, and more while “challenging the status quo for cacao farming.” A New York location opened in 2018 but has since closed.

    The Lincoln Park Foxtrot shared space with Jeni’s Splendid Ice Creams. Coincidentally, a Jeni’s remains open a few doors from the Southport location in Lakeview. Foxtrot was an upscale corner store that sold trendy snacks and stocked some items made by those within Chicago’s restaurant community. That includes Pretty Cool Ice Cream, the brand created by Dana Salls Cree, the former pastry chef at the Publican.

    Foxtrot founder Mike LaVitola has been busy reestablishing vendor relationships since the chain suddenly closed in April. LaVitola was not in charge of Outfox Hospitality when it ceased operations, and the newly formed venture is separate from Foxtrot’s former parent which also included the two Dom’s Kitchen & Market stores in Old Town and Lincoln Park. LaVitola has attempted to distance himself from Outfox’s failures in convincing former vendors to work with his new company.

    The sudden closure extinguished goodwill with vendors who haven’t been paid for their orders. Workers have filed lawsuits alleging the company didn’t properly inform them of the closures while demanding backpay.

    Last week, liquor applications began to pop up in city records showing plans to reopen stores in Old Town, Fulton Market, Wicker Park, and Gold Coast. Earlier this summer, LaVitola said he planned on reopening 15 stores in Chicago and Austin, Texas. The majority would be in Chicago. LaVitola founded Foxtrot in 2015 and is chairman of the new entity set to revive the chain. It’s backed by Further Point Enterprises, an investment fund. At a May auction, it paid $2.2 million for Foxtrot’s assets.

    In Texas, customers remain waiting for word on which locations will reopen.

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    Ashok Selvam

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  • Illinois Tried to Bait Restaurants With Carp But Customers Won’t Bite

    Illinois Tried to Bait Restaurants With Carp But Customers Won’t Bite

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    On a balmy Saturday afternoon in March, a crowd gathers in the parking lot as Dirk Fucik, owner of Dirk’s Fish & Gourmet Shop, presides over his customary seafood sampling event. Amidst the alluring scent wafting from the grill, Fucik invites eager onlookers to savor an array of oceanic delicacies, including salmon, shrimp, tuna, and fish cakes.

    “Try these copi cakes,” Fucik urges, introducing the unfamiliar fish cakes to some intrigued guests. Their puzzled expressions accompany inquiries about the nature of the fish. “They used to be known as Asian carp,” he adds.

    In 2022, Illinois launched a marketing campaign spotlighting the invasive carp, which have gained infamy for displacing native fish in the Mississippi River and its surrounding streams. The Chicago Tribune reported that the federal Great Lakes Restoration Initiative earmarked $600,000 for a five-year promotional drive to boost the fish’s consumption. Concerns over the unappetizing name “carp” led to a rebranding initiative. Its new name, “copi,” is derived from “copious,” symbolizing its abundance in state waters.

    Esteemed restaurants in Chicago such as Ina Mae Tavern and Gaijin joined the cause to popularize copi as a food source, crafting enticing recipes and leveraging their influence to amplify the campaign. Spearheading the promotional efforts is Tetra Tech, a consulting firm, that manages a dedicated webpage and an Instagram account. The latter regularly features upbeat promotional videos with catchy rhythms and slogans proclaiming, “An invasive species that is delicious!”

    But two years into the campaign, enthusiasm among chefs and restaurants to promote the fish has waned. Except for Dirk’s, all participating restaurants and fish markets in Chicago have quietly removed copi from their menus.

    “Nobody bothered to order them,” says an operations manager at one of the partnering restaurants, who requested anonymity to avoid jeopardizing their relationship with the Illinois Department of Natural Resources (IDNR). Despite having a pleasant, mild flavor, the fish is very bony and hard to process, the manager says. Converting the fish into chopped or ground form was an alternative, yet selling patties at a profitable price point proved challenging. According to the manager, copi was removed from their menu within two weeks of promotion.

    At Dirk’s Fish and Gourmet in Lincoln Park, they’ve turned copi into patties.
    Xuandi Wang/Eater Chicago

    Brian Schoenung, program manager at the IDNR overseeing the copi campaign, acknowledged challenges in maintaining partnerships. In addition to supply chain disruptions and manufacturing failures, the campaign has had to navigate diminishing media interest along with lukewarm consumer reception.

    “We had a dip, and that dip has not been insignificant,” Schoenung says. “We got a lot of media right off the bat. As things fall out of the spotlight, you’re going to see a little bit of a backslide.”

    Emblazoned with promotional materials featuring the slogan “Choose Copi,” Dirk’s introduced copi burgers in salsa and teriyaki flavors, and it continues to offer chopped and ground carp.

    However, the persistent negative stereotypes surrounding carp make it a hard sell. Fucik says that many consumers mistakenly associate copi with common carp, imagining them to be bottom-dwelling creatures with a muddy flavor. On the contrary, the four species designated for consumption primarily inhabit upper water regions, feeding on algae, wetland flora, and, notably for black carp, mussels, and snails. Fucik frequently finds himself explaining the distinction to customers, emphasizing that copi, unlike their European counterparts, are mild-flavored and boast high levels of omega-3 fatty acids while maintaining low levels of mercury and other contaminants.

    Due to its relatively low demand, copi doesn’t grace the menu at Fucik’s restaurant. Sales of frozen fish patties notably lag behind seafood staples like salmon and tuna. On average, about 100 pounds of copi move in a month, compared to the rapid turnover of salmon, with 100 pounds often selling out in a single day.

    “I don’t sell a ton of it, but I don’t mind buying it,” Fucik says. “It’s a good cause, and it’s a good fish. And it would be nice to figure out a way to eradicate [them].”

    Invasive carp found their way into American waters through deliberate introduction, as detailed in the 2017 book The Death and Life of the Great Lakes by Milwaukee Journal Sentinel reporter Dan Egan. In 1963, researchers at a federal lab in Arkansas advocated for importing these bottom-feeding fish as a natural means of water purification, aiming to reduce reliance on chemical treatments. Amidst growing environmental awareness spurred by Rachel Carson’s influential book, Silent Spring, which illuminated the dangers of widespread herbicide and pesticide use, there arose a pressing need for alternative, environmentally friendly solutions. The U.S. Department of the Interior’s Fish Farming Experimental Laboratory imported three cardboard boxes of juvenile grass carp, native to Asia and renowned for their insatiable appetite for seaweed, with hopes of them cleaning up weed-choked rivers and irrigation ditches across the Southern United States.

    A person with tongs grilling fish on a ceramic green grill.

    Dirk Fucik hangout in the parking lot outside his seafood shop.
    Xuandi Wang/Eater Chicago

    Within a decade of the grass carp’s introduction, an Arkansas fish farmer, in pursuit of his own batch of exotic weed-eating fish, accidentally imported three other Asian carp species: black, bighead, and silver carp. However, these carp didn’t fulfill their intended purpose. Silver and bighead carp, as filter feeders, depleted plankton and other nutrients from the waters they inhabited, while black carp sustained themselves on mollusks. Recognizing the potential ecological threat posed by these species, the fish farmer handed them over to the government. State fishery workers attempted to breed the carp in a laboratory but were unsuccessful. So they released the fish into the river and expected them to perish. To their surprise, the carp thrived and rapidly reproduced.

    As reported in Egan’s book, the carp began proliferating in the wild, with baby bighead and silver carp appearing in rivers and streams throughout the South. They starve out their competition by stripping away the plankton upon which every other fish species directly or indirectly depends. Bighead carp can grow larger than 100 pounds and consume up to 20 pounds of plankton daily. The invasive carp biomass in some stretches of rivers in the Mississippi basin is thought to be more than 90 percent.

    Silver carp, slightly smaller than bighead carp, have gained notoriety as YouTube sensations due to their tendency to leap out of the water like aquatic missiles when disturbed by the sound of a boat motor. This makes them a significant concern for recreational industries and water sports. Their disruptive behavior, coupled with their impact on the fish market, make them a primary target among interest groups for government intervention.

    “The Great Lakes provide a lot of jobs and bring a lot of money into the region,” says Molly Flanagan, chief operating officer at Alliance for the Great Lakes, who works on invasive species policies. “If invasive carp get into the lakes or get into the rivers that feed the lakes, it could have devastating consequences for our $7 billion a year fishing industry and our $16 billion a year recreational boating industry across the region.”

    Around 2010, the invasive carp crisis gained high-level policy attention. Following the aftermath of Hurricane Ida in 2009 (there were concerns fish would jump over to the other lake due to the hurricane), policymakers rushed to devise strategies to prevent the intrusion of carp into the Great Lakes, according to Flanagan. A study conducted by the Great Lakes Commission explored various measures to impede carp from migrating northward, including a proposal to reverse the flow of the Chicago River (again) to sever the connection between the Great Lakes and the Mississippi River Basin — an essential conduit for invasive species movement. However, the exorbitant costs associated with this plan rendered it unfeasible, Flanagan said. Nevertheless, the study prompted Congress to urge the U.S. Army Corps of Engineers to conduct its own investigation.

    Among the options explored is the inclusion of the fish on restaurant menus. The White House had appointed a special committee to address the invasive carp issue, and it was keen on exploring the possibility of turning them into a food source. To test the market, they enlisted out-of-state chefs to prepare complimentary samples, offering them frozen carp at no cost.

    In 2010, Fucik received a call from the White House. Initially dismissed as a scam, the phone call proved to be legitimate when Fucik got in touch with the U.S. Army Corps of Engineers. Fucik’s lifelong passion for fish stems from memories of growing up in a Catholic household where fish was a dietary staple, plus regular summer fishing trips with his uncle. After working in the fish market for several years, he opened his store. So when it turned out the call really was from the White House, Fucik immediately embraced the invitation and began to experiment with new recipes incorporating the fish.

    The same year, Fucik showcased hundreds of carp burgers at Taste of Chicago, a summer food festival in the city. Despite initial hesitation from some diners, many found themselves pleasantly surprised by the taste. As word of mouth spread, eager patrons quickly formed lines in front of his venue.

    Then, Fucik noticed a decline in the momentum of the campaign. He attributes this downturn to an incident in Minneapolis, where an Asian business delegation arriving at the airport was confronted with a sign urging them to “Kill Asian Carp,” a well-intentioned plea aimed at curbing the spread of the invasive species. The visitors found the message off-putting.

    In 2014, Minnesota state senators successfully passed a measure mandating that Minnesota agencies designate the fish as “invasive carp.” This move was adopted by other government agencies during the height of the COVID-19 pandemic in response to the surge in anti-Asian hate crimes. According to the Associated Press, the U.S. Fish and Wildlife Service changed its designation to “invasive carp” in 2021.

    In Illinois, the main concern is the infiltration of carp into Lake Michigan via the Illinois River, which connects to the Great Lakes through the Chicago Sanitary and Ship Canal. To counter this threat, the state has implemented a series of measures — electronic barriers, locks, and dams strategically positioned at key choke points along the waterway –– to prevent the fish from swimming upstream into Lake Michigan. By deploying multiple barriers, policymakers hope that even if an invasive carp could bypass one, it would encounter another barrier, the DNR’s Schoenung says. The state also implemented contracted removal efforts, paying 10 cents per pound to fishers to incentivize commercial harvesting. According to Schoenung, since the autumn of 2019, approximately 22 million pounds of carp have been removed through these initiatives. Targeted removal has reduced the fish’s population by half and successfully prevented invasive carp from establishing a population in Lake Michigan. In the South of Joliet’s Brandon Road Lock and Dam, the carp population has decreased by nearly 90 percent, according to Schoenung.

    A man with glasses sitting at a table with Chinese fish dishes.

    Johnny Zheng sits at A Fusion in Chinatown.
    Xuandi Wang/Eater Chicago

    Following the earlier marketing attempts, the copi campaign emerged as a pivotal initiative to provide an outlet for commercial fishers to offload their catch. A majority of the harvests find their way into fertilizers, pet meals, and bait for lobsters and crayfish in Southern states. However, recognizing the nutritional value of carp — high in protein and omega-3 fatty acids — and its status as one of the most consumed fish worldwide, there’s a compelling case to diversify the use of these fish by incorporating them into the domestic food market. The high costs of transportation hindered efforts to simply export the fish.

    “By doing so, you’re making the best use of a valuable resource, and you’re also incentivizing harvest,” Schoenung said.

    In other regions, particularly in Asia, copi is an essential part of the culinary culture. Historical records trace Chinese consumption of carp back to the Tang Dynasty, according to the U.N. During this period, the family name of the emperor sounded similar to the Chinese name for Eurasian carp, or common carp, the only fish cultured in China at the time. To avoid potential political innuendo, the royal family prohibited the sale and consumption of common carp by the public. This restriction led farmers to turn to alternative species for aquaculture, including bighead carp, silver carp, grass carp, and black carp. These species thus thrived in China and became significant protein sources, symbolizing fortune.

    Many ethnic groups are bewildered by Americans’ aversion to the fish. The phenomenon even caught the attention of a Korean television outlet that dispatched a crew to interview Fucik. Schoenung noted that the fish’s name change has little impact on the international markets in the U.S. Many foreigners are accustomed to eating carp and indifferent to the stigma around its former name.

    Johnny Zheng, an established entrepreneur based in Chicago’s Chinatown, has become an organic participant in the campaign in recent years. Hailing from China’s Eastern Fujian province, he fondly remembers eating carp cakes and carp fish balls during his childhood. Propelled by a strong sense of cultural pride, he says he has made it his mission to challenge the negative perceptions surrounding carp by introducing it to mainstream markets.

    In his role as president of the Mid-America Restaurant Association, Zheng discovered a factory specializing in repurposing carp into fertilizers and animal feed. Frustrated by how his cherished childhood delicacy was underutilized, he took over the factory and resolved to transform the fate of the fish by redirecting them to the dinner table.

    “When Asian carp make headlines, the coverage is always negative. It’s reminiscent of other narratives about things from China such as its technology — a portrayal of invasion into mainstream American society and driving out its local supply,” Zheng says. “I know this narrative is wrong and want to prove that Asian carp are not mere ‘trash fish.’ They can be delicious and serve as a valuable source of protein.”

    Zheng’s primary customers are Chinese, and not the average American. To reshape the fish’s public perceptions, Zheng invested substantial capital in transforming carp into packaged goods. His factory produces fish heads, as well as fish balls and fish noodles. These products have gradually found their way onto the shelves of numerous Asian groceries. In 2022, he opened another restaurant, A Fusion, in Chicago’s Bridgeport neighborhood, to prominently feature the fish on the menu. By creating a dedicated supply chain and culinary outlet for carp-based delicacies, Zheng says he hopes to promote their consumption while honoring their culinary potential.

    Despite waning media attention to the cause, Zheng says he remains committed to popularizing copi among U.S. customers. While his investment has yet to yield a noticeable outcome, he says he is faithful that his investment will soon generate an impact.

    A windwo with stickers on it.

    The window at Dirk’s features a sticker reflecting the new branding of the fish.
    Xuandi Wang/Eater Chicago

    Schoenung says he expected the campaign to be a marathon. Creating a market for something unfamiliar to many U.S. diners will take more than an overnight operation, but he remains confident that it will eventually take off.

    “We’ve got the right pieces in place — we’ve got the marketing, we’ve got the stories, and we’ve got the fish supply,” Schoenung says. “Just building those other pieces, and linking it all together, I am very hopeful and very confident that we’re going to be able to do that.”

    For now, Fucik plans to continue to sell copi in small amounts, holding onto hope for future funding that would allow him to host more events promoting the fish. He remains optimistic that public perception of the fish might change through continuing media exposure. Perhaps a headline reporting an injury caused by carp leaping out of the water could reignite interest in consuming the fish, thrusting it back into the news cycle, he says.

    “I’m sure we’ll have another surge in interest at some point in time when something comes up,” Fucik says. “Somebody will get hit by a carp in the head in their boat and it’ll make the news. Then all of a sudden they’ll get resurrected again, and they’ll be showing all the videos and then it’ll trickle down to me again. Things get recycled because there is always a new generation of people who haven’t heard about it.”

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    Xuandi Wang

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  • D&D’s 2024 revision of won’t be finished until 2025

    D&D’s 2024 revision of won’t be finished until 2025

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    Wizards of the Coast has been teasing the next revision of the Dungeons & Dragons 5th edition ruleset since at least 2022. At the same time, it’s been working to temper fans’ expectations while managing multiple controversies — including, but not limited to, the OGL debacle, a particularly heinous round of holiday layoffs by its corporate owner, and a complicated recall of defective products. It also assured fans that the rules will be backward-compatible and player-focused, with lots of good guidance for novice Dungeon Masters. Also? They aren’t going to be complete until 2025.

    The seminal role-playing game’s official 50th anniversary was last month, and it passed without much fanfare from its owner. Then, on Monday, Wizards shared a news briefing containing a partial release calendar for the next 12 months. Buried at the bottom is the fact that Monster Manual, the third and final book in the new set of revised 5th edition rulebooks, won’t be available as a physical product until Feb. 18, 2025 — over a year from now. That means fans won’t have the full complement of revised core rules until after D&D’s 51st birthday. For comparison, the original 5th edition Monster Manual arrived in the same year, 2014, as the other two core rulebooks.

    Making matters worse, that date further complicates the revised edition’s proposed naming convention. It, perhaps erroneously, started out being called One D&D and shifted to be known as the 2024 revision. But that’s largely academic at this point.

    Here are the highlights from the announcement, including details on a few new adventures and a history book:

    • First up, the Player’s Handbook (2024) is expected to release on Sept. 17, 2024, followed by the Dungeon Masters Guide (2024) on Nov. 12, 2024, and Monster Manual (2025) on Feb. 18, 2025. According to Wizards, all three will have the now customary two-week digital pre-release window for those who pre-order it through D&D Beyond. That means you could potentially start playing with the revised rules for characters, combat, and adventuring by Sept. 3, 2024.

    The standard cover for Vecna: Eve of Ruin.
    Image: Wizards of the Coast

    The hand of Vecna adorns the collectible cover of Vecna: Eve of Ruin, rendered in bold line art.

    Alternate art cover, available only at local game stores.
    Image: Wizards of the Coast

    • Vecna: Eve of Ruin is a campaign for characters starting at level 10, and tops out at level 20. It’s set to arrive as a physical product on May 21, 2024, and as a digital product for those who pre-order two weeks ahead of time. From the official description:

    A high-stakes adventure in which the fate of the entire multiverse hangs in the balance. The heroes begin in the Forgotten Realms and travel to Planescape, Spelljammer, Eberron, Ravenloft, Dragonlance, and Greyhawk as they race to save existence from obliteration by the notorious lich Vecna who is weaving a ritual to eliminate good, obliterate the gods, and subjugate all worlds.

    • Quests from the Infinite Staircase is another anthology, a format that Wizards has excelled at in the past with hits like Candlekeep Mysteries and Journeys Through the Radiant Citadel. Expect it on store shelves July 16, 2024, and as a digital product for those who pre-order two weeks earlier. The official description reads:

    This anthology weaves together six classic DUNGEONS & DRAGONS adventures while updating them for the game’s fifth edition. The Infinite Staircase holds doors leading to fantastic realms. It’s home to the noble genie Nafas, who hears wishes made throughout the multiverse and recruits heroes to fulfill them.

    A golden D&D ampersand on a red cover.

    Image: Wizards of the Coast

    The ultimate book showcasing D&D’s inception, including Gary Gygax’s never-before-seen first draft of D&D written in 1973, a curated collection of published fanzine and magazine articles contribute to D&D’s origin story. Each document is introduced, described, and woven into the story by one of the game’s foremost historians, Jon Peterson.

    The news release teases a few more things to come in 2024, including projects that have yet to be announced. Highlights include a return of adversarial, tournament-style play common to the original version of D&D. There will also be “footwear and apparel from Converse, an official LEGO(tm) IDEAS building set complete with minifigures, and delicious treats suitable for snacking around the gaming table from Pop-Tarts.” More convention appearances by the D&D team are promised, as is the rollout — in some form — of the highly anticipated 3D virtual tabletop.

    For more, check out the D&D Beyond website.

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    Charlie Hall

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  • The Townies, Part 2: Who Won the Year in Hollywood?

    The Townies, Part 2: Who Won the Year in Hollywood?

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    In Part 2 of the exclusive Townie Awards, Matt and Bloomberg’s Lucas Shaw select their Winner of the Year in Hollywood, and give out a number of additional awards, including Executive Fail of the Year, Low-Key Flex, Movie Marketing Miss of the Year, The “Did I Say That Out Loud” Award for Worst Quote, the Mea Culpa I Was Wrong Award, as well as the Suck It Haters I Was Right Award, and more.

    For a 20 percent discount on Matt’s Hollywood insider newsletter, What I’m Hearing …, click here.

    Email us your thoughts! thetown@spotify.com

    Host: Matt Belloni
    Guest: Lucas Shaw
    Producers: Craig Horlbeck and Jessie Lopez
    Theme Song: Devon Renaldo

    Subscribe: Spotify

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    Matthew Belloni

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  • Asian stocks moving lower in wake of latest volatile session on Wall Street

    Asian stocks moving lower in wake of latest volatile session on Wall Street

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    TOKYO (AP) — Asian shares were mostly lower on Wednesday following another volatile day on Wall Street, as traders braced for updates on inflation and corporate earnings.

    Benchmarks fell in Tokyo
    NIY00,
    +0.09%
    ,
    Shanghai
    SHCOMP,
    -1.12%

    and Hong Kong
    HSI00,
    -2.90%

    but rose in Sydney.

    South Korea’s Kospi
    180721,
    +0.34%

    lost 0.1% to 2,189.86 after the Bank of Korea raised its key rate by 0.5 percentage point, amid the backdrop of Fed rate hikes in the U.S. and growing inflation risks from the weak won and rebounding global oil prices.

    In currency trading the Japanese yen declined to a 24-year low against the U.S. dollar
    JPYUSD,
    -0.24

    at 146 yen-levels, raising expectations of another intervention by Tokyo to prop up the yen. By midday the dollar
    USDJPY,
    +0.24%

    was at 146.17 yen, up from 145.80 late Tuesday. The euro
    EURUSD,
    +0.12%

    cost 96.96 cents, inching down from 97.07 yen.

    The weaker yen raises costs for both consumers and businesses who rely on imports of food, fuel and other needs, but the bigger purchasing power for foreign currencies is expected to boost tourism. Japan reopened fully to individual tourist travel this week after being closed for more than two years because of the pandemic.

    Japan’s benchmark Nikkei 225 lost 0.2% to 26,348.73 in morning trading. Australia’s S&P/ASX 200
    ASX10000,
    -1.54%

    gained nearly 0.2% to 6,656.00. Hong Kong’s Hang Seng slipped 2% to 16,491.39, while the Shanghai Composite shed 1.2% to 2,943.24.

    On Tuesday, the S&P 500
    SPX,
    -0.65%

    fell 0.7%, marking its fifth straight loss, closing at 3,588.84. The Nasdaq
    COMP,
    -1.10%

    dropped 1.1% to 10,426.19. The Dow Jones Industrial Average
    DJIA,
    +0.12%

    added 0.1% to 29,239.19, while the Russell 2000 index
    RUT,
    +0.06%

    rose 1 point, or about 0.1%, to 1,692.92.

    Recession fears have been weighing heavily on markets as stubbornly hot inflation burns businesses and consumers. Economic growth has been slowing as consumers temper spending and the Federal Reserve and other central banks raise interest rates.

    The International Monetary Fund on Tuesday cut its forecast for global economic growth in 2023 to 2.7%, down from the 2.9% it had estimated in July. The cut comes as Europe faces a particularly high risk of a recession with energy costs soaring amid Russia’s invasion of Ukraine.

    See: Global economy most vulnerable since COVID crisis, with housing market at potential ‘tipping point,’ IMF warns

    Wall Street is closely watching the Federal Reserve as it continues to aggressively raise its benchmark interest rate to make borrowing more expensive and slow economic growth. The goal is to cool inflation, but the strategy carries the risk of slowing the economy too much and pushing it into a recession.

    “The market desperately wants a reason for the Fed to be able to stop tightening and the data recently hasn’t given them that opening with respect to inflation,” said Willie Delwiche, investment strategist at All Star Charts.

    Computer-chip manufacturers continued slipping in the wake of the U.S. government’s decision to tighten export controls on semiconductors and chip manufacturing equipment to China. Qualcomm
    QCOM,
    -3.99%

    fell 4%.

    See: Intel reportedly plans to lay off thousands of workers, with details potentially emerging alongside quarterly earnings

    Uber
    UBER,
    -10.42%

    fell 10.4% and Lyft
    LYFT,
    -12.02%

    slumped 12% following a proposal by the U.S. government that could give contract workers at ride-hailing and other gig economy companies full status as employees.

    The Fed will release minutes from its last meeting on Wednesday, possibly giving Wall Street more insight into its views on inflation and next steps.

    Investors still expect the Fed to raise its overnight rate by three-quarters of a percentage point next month, the fourth such increase. That’s triple the usual amount, and would bring the rate up to a range of 3.75% to 4%. It started the year at virtually zero.

    Rex Nutting: Leading indicators show inflation is slowing, but Fed policy makers are too busy looking in rearview mirror to notice

    The government will also release its report on wholesale prices Wednesday, providing an update on how inflation is hitting businesses. The closely watched report on consumer prices will be released on Thursday, and a report on retail sales is due Friday.

    “Everyone is still hoping that every inflation report will be the one that shows that pressure is alleviating,” Delwiche said.

    Wall Street is also gearing up for the start of the latest corporate earnings reporting season, which could provide a clearer picture of inflation’s impact.

    Among the companies reporting quarterly results this week: PepsiCo
    PEP,
    +0.48%
    ,
    Delta Air Lines
    DAL,
    -1.97%

    and Domino’s Pizza
    DPZ,
    -1.99%
    .
    Banks including Citigroup
    C,
    -2.76%

    and JPMorgan Chase
    JPM,
    -2.89%

    will also report results.

    In energy trading, benchmark U.S. crude
    CL00,
    -0.75%

    lost 82 cents to $88.53 a barrel in electronic trading on the New York Mercantile Exchange. U.S. crude-oil prices fell 2% Tuesday. Brent crude
    BRN00,
    -0.56%
    ,
    the international pricing standard, fell 62 cents to $93.67 a barrel.

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