Business

Stocks In Asia Mixed After Wall Street Breaks Its Losing Streak

(CTN NEWS) – BANGKOK – After Wall Street’s slight comeback, driven by tech companies, which ended the market’s longest losing streak since December, shares in Asia were mixed on Friday.

Benchmarks increased in Sydney and Tokyo but decreased in Hong Kong, Shanghai, and Seoul. U.S. futures moved slightly lower as oil prices increased.

Japan stated that in January, the increase in its core consumer price index—which excludes volatile fresh foods—was the highest in 41 years.

But, economist Kazuo Ueda, who has been nominated to lead the country’s central bank, told lawmakers he favors keeping Japan’s benchmark interest rate close to zero to ensure stable growth.

When BOJ Gov. Haruhiko Kuroda leaves office in April after serving two terms of five years characterized by historically lax regulations, Ueda is anticipated to take over.

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Feb. 24, 2023. (AP Photo/Ahn Young-joon)

Though Ueda attempted to dismiss such expectations, talk over a potential change in the ultra-lax monetary posture has been sparked by the leadership change.

Ueda informed the legislature that the price increases are at their height and that “time is needed before the consequences of monetary policy set in.”

The BOJ is hesitant to change course because of concerns over a potential global recession and the fact that wages in Japan have not kept up with price rises.

According to Darren Tay of Capital Economics, food inflation “suggests that it has already peaked” due to its waning momentum.

We still anticipate inflation to drop below the Bank of Japan’s 2% target by mid-year, despite the government’s energy subsidies going into force this month.

The S&P/ASX 200 index in Australia increased 0.3% to 7,307.00, while the Nikkei 225 index in Tokyo increased 1.3% to 27,453.48.

A currency trader gestures at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Feb. 24, 2023. (AP Photo/Ahn Young-joon)

The Sensex in India dropped 0.2% to 59,467.56.

The Shanghai Composite index dropped by 0.6% to 3,267.16 and the Hang Seng index in Hong Kong shed 1.2% to 20,099.79. The Kospi in South Korea fell 0.6% to 2,423.61. Taiwan and Bangkok also said no.

The S&P 500 gained 0.5% on Thursday, closing at 4,012.32 for its first rise in five days. The Nasdaq composite rose 0.7% to 11,590.40 and the Dow Jones Industrial Average rose 0.3% to 33,153,91.

After Nvidia posted better-than-expected profits for the most recent quarter, tech stocks took the lead. After it also provided a sales prediction for the near future that exceeded certain analysts’ forecasts, its shares increased by 14%.

It cited the resurging popularity of video games and the desire for products utilizing artificial intelligence.

Concerns about rising interest rates have recently hurt tech and high-growth equities. They are considered to be among the most susceptible as the Federal Reserve raises rates in an effort to combat inflation.

A person wearing a protective mask walks past an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Monday, Feb. 20, 2023. (AP Photo/Eugene Hoshiko)

Wall Street To Increase Its Predictions

Prices for investments suffer from high rates, especially those deemed to be the riskiest, most expensive, or whose major growth is expected to occur in the farthest future. They increase the likelihood of a recession by slowing the economy.

A growing number of reports have revealed that the American economy is doing better than anticipated, giving rise to optimism that a recession can be avoided.

But, this has also compelled Wall Street to increase its predictions for the level and duration of interest rates.

The latest sign that the labor market is still robust is that fewer workers than anticipated applied for unemployment benefits last week. According to a different analysis, the economy probably grew a little less than predicted in the final three months of 2022.

However, the US economy expanded at a 2.7% annual rate.

The bond market, where Treasury yields have surged higher this month, has shown the strongest evidence of Wall Street’s elevated expectations for rates and the Fed.

On Thursday, they relaxed a little bit, easing some of the pressure on stocks.

People wearing protective masks walk past an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Monday, Feb. 20, 2023.(AP Photo/Eugene Hoshiko)

The yield on the 10-year Treasury, which influences mortgage and other significant lending rates, decreased from 3.93% late Wednesday to 3.86% early Friday. It reached a peak of 3.95% earlier this week, getting close to its highest point since November.

Moderna, whose shares dropped 6.7% after it said its fourth-quarter profit plunged 70% as COVID-19 vaccine sales declined and the company caught up on a royalty payment, was among the losers on Wall Street.

In other trade on Friday, New York Mercantile Exchange electronic trading saw U.S. benchmark crude oil rise 70 cents to $76.09 per barrel.

The benchmark price for international trade, Brent crude, increased by 73 cents to $82.68 per barrel.

The American dollar decreased from 134.70 Japanese yen to 134.66 yen. From $1.0596 to $1.0594, the euro decreased.

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Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP