- American industrial icon US Steel is on the verge of being absorbed as industry consolidates further The Associated Press
- U.S. Steel Takeover Talk Rattles Manufacturers – WSJ The Wall Street Journal
- The Elon Musk of steel? Meet the Brazilian mogul who just bid $7.2 billion to bring two Fortune 500 giants together Fortune
- US Steel rejects a $7.3 billion offer from rival Cleveland-Cliffs; considers alternatives News 5 Cleveland WEWS
- Esmark CEO: Cleveland-Cliffs is offering stock for U.S. Steel because they don’t have cash, we do CNBC Television
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Tag Archives: industrial
Northern Ireland’s top police officer apologizes for ‘industrial scale’ data breach – The Associated Press
- Northern Ireland’s top police officer apologizes for ‘industrial scale’ data breach The Associated Press
- Northern Ireland police release officers’ names in ‘monumental’ breach The Washington Post
- The personal details of Northern Ireland’s main police force have been leaked – three reasons why that’s incredibly dangerous The Conversation
- We know the risks of policing Northern Ireland, but this data breach exposes us as never before The Guardian
- Police Service of Northern Ireland’s dangerous error The Telegraph
- View Full Coverage on Google News
Philadelphia prison escape: Ameen Hurst, Nasir Grant wanted for breaking out of Philadelphia Industrial Correctional Center – WPVI-TV
- Philadelphia prison escape: Ameen Hurst, Nasir Grant wanted for breaking out of Philadelphia Industrial Correctional Center WPVI-TV
- Philadelphia prison escape: 2 inmates, including convicted murderer, on the run | LiveNOW from FOX LiveNOW from FOX
- Two Philadelphia inmates escape prison without notice for nearly 19 hours; one considered ‘dangerous’ Fox News
- Manhunt underway for 2 convicts who escaped Pennsylvania prison without notice for 19 hours WPXI Pittsburgh
- Police searching for 2 inmates who escaped Philadelphia correctional center 6abc Philadelphia
- View Full Coverage on Google News
Charts suggest investors should bet on ‘work horses’ in the Dow Jones Industrial Average, Jim Cramer says
CNBC’s Jim Cramer on Friday told investors to steer clear of stocks in the Nasdaq Composite and instead place their bets on names listed in the Dow Jones Industrial Average.
“Even though tech has started the new year strong, and it was crazy good today, the charts, as interpreted by Larry Williams, say you need to be a little bit wary of the show horses in the Nasdaq and bet on the work horses in the Dow,” he said.
Stocks rose on Friday to close out a positive week for all three major indexes. The Nasdaq has climbed 11% this year, as investors have bet on less aggressive interest rate hikes from the Federal Reserve.
To explain Williams’ analysis, Cramer examined the daily chart of the Nasdaq-100 dating back to November 2021.
While some technicians believe it’s a bullish sign that the index has broken above its 200-day moving average over the past two days, Williams points out that the Nasdaq-100 has come back down after breaching the level in the past, according to Cramer.
He then reviewed the daily chart of the Dow going back to February 2022.
Unlike the Nasdaq-100, which Williams believes is a “show horse” index due to how much interest it gets, the Dow is more representative of Main Street, Cramer said.
He added that the blue-chip index broke out above its 200-day moving average back in November and has stayed above it since.
“Williams finds this chart a lot more compelling,” he said.
For more analysis, watch Cramer’s full explanation below.
CNH Industrial workers on strike since May approve new deal
More than 1,000 CNH Industrial workers who have been on strike since last May approved a new contract Saturday with the maker of tractors, bulldozers, backhoes and other heavy equipment.
© Provided by The Associated Press
United Auto Workers President Ray Curry is interviewed, Thursday, Jan. 19, 2023, in Detroit. (AP Photo/Carlos Osorio)
The United Auto Workers said union members in Racine, Wisconsin, and Burlington, Iowa, approved the deal two weeks after they rejected an earlier agreement.
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The union didn’t didn’t disclose any details of what is included in the contract.
A spokeswoman for CNH Industrial didn’t immediately respond Sunday to questions about the new agreement. Previously, the company said the last offer that workers rejected included raises of 28% to 38% over four years.
“This agreement reflects the effort of a determined bargaining team and members being on an almost nine-month strike,” UAW President Ray Curry said in a statement.
Throughout the strike, workers fought for raises that would help cover soaring inflation and wouldn’t be consumed by increases in health insurance costs. Before the walkout started last May 2, workers rejected a deal with 18.5% raises because of those concerns.
“Our negotiators tenaciously bargained to the very end, even fighting for contract improvements in the face of threats from CNHI to hire permanent strike replacements,” UAW Vice President Chuck Browning said. “Combined with the incredible support from our members, it’s remarkable what had to be endured to achieve this contract.”
With more than 37,000 employees worldwide, CNH Industrial has continued to produce construction and agricultural equipment throughout the strike and worked to keep its Wisconsin and Iowa plants running. The company, which is based in the United Kingdom, said its third-quarter profits jumped 22% to $559 million. It is set to release its next earnings report in early February.
The CNH strike was one of the longest ones in the recent spate of strikes since the pandemic. Workers at a variety of companies have been demanding and getting significant raises and better benefits amid widespread worker shortages. New unions have been established at Starbucks stores and Amazon warehouses, although some locations have rejected unions.
More than 10,000 Deere & Co. workers secured 10% raises and improved benefits after their monthlong strike in 2021 at another agricultural equipment maker.
In one of the highest-profile labor disputes of the past year, more than 100,000 railroad workers received 24% raises and $5,000 in bonuses in a five-year deal after Congress stepped in and blocked a potential strike because of fears about the economic consequences. Even with the big raises, many rail workers remain frustrated with the deal that was imposed on them because it didn’t resolve their quality-of-life concerns about demanding schedules and the lack of paid sick time.
© Provided by The Associated Press
FILE – In this photo made on March 28, 2014, earth moving and construction equipment by New Holland, a CNH Industrial brand, is stored on a lot at the Highway Equipment Company in Zelienople, Pa. More than 1,000 CNH Industrial workers who have been on strike since last May have approved a new contract with the maker of tractors, bulldozers, backhoes and other heavy equipment. The United Auto Workers union said workers in Racine, Wisconsin, and Burlington, Iowa, approved the deal Saturday, Jan. 21, 2023 — two weeks after they rejected an earlier agreement. (AP Photo/Keith Srakocic, File)
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FTC Plan to Ban Noncompete Clauses Shifts Companies’ Focus
Businesses and lawyers are beginning to assess what the Federal Trade Commission’s proposed ban of noncompete clauses in employment contracts could mean for worker mobility, wages and the way future compensation agreements are structured.
While a full or partial ban could expand the pool of potential hires, it also would weaken a tool that employers have come to rely on to retain talent and protect trade secrets and other proprietary information, lawyers say. More companies likely would turn to a patchwork of alternative mechanisms to keep people from leaving and taking valuable information with them, including nondisclosure agreements and employment contracts that reward longevity, they say.
“Employers have operated with an understanding that they can protect their interests through noncompetes,” said Matthew Durham, a Salt Lake City-based attorney with Dorsey & Whitney LLP who advises companies on employment matters. “What you’re seeing, reflected in the FTC proposal and elsewhere, is a growing hostility to the idea that there should be those kinds of restrictions, and it’s changing the environment that employers have been comfortable with in the last number of years.”
The FTC proposed a ban this month on nearly all noncompetes, saying that the clauses—which typically prohibit workers from moving to a new employer or starting new ventures of their own—hamper competition in the labor market, suppress wages and hold back innovation and entrepreneurship. The proposal came in response to an executive order from President Biden in 2021.
Businesses say they impose noncompete clauses on employees to protect trade secrets and other confidential information, including customer lists and financial data.
The FTC contends that noncompete clauses discourage innovation and entrepreneurship.
Photo:
Eric Lee for The Wall Street Journal
Mr. Durham and others say they believe the FTC may narrow its rule after hearing comments from the public, including employers and business organizations that have already signaled their opposition to the current proposal. The agency could, for example, allow noncompetes for highly compensated workers.
Noncompetes are common in employment contracts for senior employees like software engineers, sales representatives and top executives. Over time, they have been applied to many parts of the U.S. workforce, including some janitors, baristas, schoolteachers and entry-level workers. According to the FTC, one in five U.S. workers is currently subject to a noncompete clause.
Noncompetes are regulated at the state level, and many states have already taken action to limit use of the clauses by, in some cases, forbidding employers from imposing them on people earning under a particular wage threshold or for certain types of workers.
“The vast majority of people in America can’t afford a lawyer to defend a noncompete case,” said Jonathan Pollard, an attorney in Florida who represents workers whose employers are trying to enforce noncompete clauses. “Just the threat of enforcement is often enough to restrain talent in the labor market.”
Some states, such as California and Oklahoma, hold that the clauses are unenforceable in all or nearly all employment contracts.
A number of studies suggest noncompetes suppress wages and innovation. A review of Oregon’s 2008 ban on noncompetes for hourly workers found that wages rose an average of 2% to 3%. Another study, examining Hawaii’s 2015 ban on noncompete agreements for high-tech workers, found an 11% increase in job moves and a 4% increase in new-hire salaries.
The clauses restrain not just pay and entrepreneurship, but also professional development, workers and some attorneys say.
Daniel Bachhuber had worked as a software consultant for years when he decided to take an in-house job in the fall of 2018. His new employer required that he sign a one-year noncompete agreement, which he said was so broad it would have prevented him from practicing his core skills if he were to leave the company or be fired.
Mr. Bachhuber balked. Earlier in his career, he had been laid off a few weeks into a new job, just after his first child was born. If that happened at the new job, he recalled thinking, he would be unable to earn a living for a year. “I’m always thinking, worst case scenario, what kind of downstream protection do I have?” the 35-year-old said. “Even if I was employed just one day, I couldn’t go back to the same clients I had.”
Daniel Bachhuber turned down a job after an employer wouldn’t change a noncompete clause.
Photo:
Mason Trinca for The Wall Street Journal
He consulted a lawyer and tried to renegotiate the contract, hoping to salvage a role that would have expanded his skills and given him a chance to work directly with the chief technology officer on special projects. The company declined to change the noncompete clause and, reluctantly, Mr. Bachhuber turned down the position.
Employers have other tools to protect information besides noncompete agreements, including nondisclosure agreements, trade secret laws and nonsolicitation agreements, which prohibit workers from poaching customers or employees of their prior firm.
But those tools generally can only be used after an employee violates the agreement, said Julie Levinson Werner, who represents employers as a partner with law firm Lowenstein Sandler LLP. “Once someone goes to another company, you’re really on the honor system. You have no way to monitor what information is being disclosed or not,” she said.
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Observers on both sides say that limitations on the clauses will compel employers to get more creative about how they retain talent, using everything from compensation to career advancement to keep workers engaged and loyal to the company. Some companies use deferred compensation—such as retention bonuses or rolling stock options that vest after, say, three years—to give people incentives to stay.
“Do you get better results with honey or vinegar?” said Ms. Werner. “If you want to motivate people and have them happy to stay, you have to look at compensation, the overall environment, how you treat them.”
The fate of the FTC’s final rule is up in the air. After a 60-day comment period, the commissioners will consider potential changes to the initial proposal and then issue a final rule. That rule will likely be challenged by business groups or individual companies, and courts will determine its trajectory, attorneys say.
Write to Lauren Weber at Lauren.Weber@wsj.com
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China reports 3% GDP growth for 2022 as December retail sales, industrial production beat estimates
Chinese officials expect about twice the number of Lunar New Year trips this year as last year since many people can return to their hometowns without any Covid restrictions. Pictured here is the Jinan West Railway Station on Jan. 15, 2023.
Bloomberg | Bloomberg | Getty Images
BEIJING — China reported GDP growth for 2022 that beat expectations as December retail sales came in far better than projected.
GDP grew by 3% in 2022, the National Bureau of Statistics said Tuesday. That was better than the 2.8% forecast in a Reuters’ poll. The GDP growth number did miss the official target of around 5.5% set in March. In 2021, China’s growth had rebounded by 8.4% from just 2.2% growth in 2020.
Fourth-quarter GDP rose by 2.9%, beating expectations from the Reuters’ poll of 1.8% growth.
Retail sales fell by 0.2% for the year. But retail sales in December declined by 1.8% from a year ago, less than the expected 8.6% plunge predicted by a Reuters’ poll.
Within retail sales, those of catering fell by 6.3% in 2022. Sales of apparel, cosmetics and jewelry all declined for the year. Medicine was one of the bright spots, after sales surged by nearly 40% in December from a year ago.
Online retail sales of physical goods rose by 17.2% in December from a year ago, according to CNBC calculations of official data accessed through Wind. Those online sales accounted for 27.2% of total retail sales.
In 2022, the metropolis of Shanghai locked down for about two months in an attempt to control a Covid outbreak. China’s stringent zero-Covid policy restricted travel and business activity across the country.
Authorities abruptly relaxed most controls in early December, amid a surge in local infections. While far more people plan to travel around the upcoming Lunar New Year, analysts expect Chinese consumer sentiment will take a few months to recover.
Industrial production rose by 3.6% in 2022. The figure rose by 1.3% in December, well above the 0.2% predicted by the Reuters’ poll.
Fixed asset investment for 2022 rose by 5.1%, slightly above the 5% expected by Reuters. Infrastructure investment on a year-to-date basis grew faster in December than in November, while investment into manufacturing slowed its growth. Real estate investment fell by 10% in 2022, a steeper drop than recorded for the year through November.
The unemployment rate in cities was 5.5.% as of December, while that of younger people ages 16 to 24 remained far higher at 16.7%.
“The foundation of (the) domestic economic recovery is not solid as the international situation is still complicated and severe while the domestic triple pressure of demand contraction, supply shock and weakening expectations is still looming,” the statistics bureau said in a release.
Asia-Pacific markets, Wall Street, industrial output, Hong Kong eases restrictions
Bank of Japan announces unscheduled bond purchases
The Bank of Japan announced two rounds of unscheduled purchases of Japanese government bonds in attempt to contain upward pressure in yields, according to a notice.
The central bank offered to buy unlimited amounts of two- and five-year notes at a fixed rate – and another offer to buy 600 billion yen ($4.5 billion) of one-to-10 year bonds, it said.
This is in addition to its latest announcement to purchase JGBs every business day at a rate of 0.5% starting Dec. 20.
The 10-year JGB yield was last 0.22% lower to stand at 0.465%. Bond yields move inversely to prices.
The central bank last week widened its band of yield curve tolerance for 10-year JGBs to 0.5% of either side of its 0% target from the previous range of 0.25%.
—Lee Ying Shan
South Korea’s retail sales see third month of declines, industrial output recovers
South Korea’s November retail sales fell 1.8% on an annualized basis, declining further after seeing a 0.2% drop in October, government data showed.
Meanwhile, its industrial production inched up 0.4% for the month, slightly recovering after seeing four straight months of declines previously.
South Korea is expected to release its consumer price index on Friday, in which economists polled by Reuters are expecting to see further cooled inflation of 5%.
– Jihye Lee
Oil prices dip as China’s reopening optimism fizzles
Oil prices dipped marginally as China continues to see a rising number of Covid cases as well as a strain in medical resources fizzle optimism in the nation’s reopening and fuel demand outlook.
Brent crude futures shed 0.46% to stand at $82.88 per barrel. Similarly, the U.S. West Texas Intermediate dropped 0.49% to $78.58 per barrel.
“Even the China re-opening narrative may be hobbled by record Covid breakout in China,” Mizuho Bank’s Vishnu Varathan wrote in a note, adding that its reopening should also not be mistaken for an “enduring immunity” from global recession risks.
—Lee Ying Shan
Apple’s Asia suppliers fall after shares from the tech giant record fresh low
Italy makes Covid tests mandatory for travelers from China: Reuters
Italy will require all inbound travelers from China to undergo Covid tests, Reuters reports its health minister as saying, after authorities in Milan reported that almost 50% of passengers on two flights from China tested positive.
It has not been specified what measures would be imposed on arrivals who test positive, Reuters reported.
Separately, the UK is considering following suit after the U.S. announced mandatory testing on arrivals from China, the Telegraph reported.
—Lee Ying Shan
CNBC Pro: Tech is ‘down but by no means out’ — watch these stocks in 2023, fund manager says
It’s been a bad year for tech companies, and many investors have been wondering when tech stocks will rebound.
Tech fund manager Jeremy Gleeson of AXA Investment Managers told CNBC Pro Talks last week that he still believes in the sector.
He explains why and names the stocks to buy.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Crypto exchange Kraken to shut down Japan operations
Digital currency exchange Kraken announced it will cease operations in Japan next month, and deregister from Japan’s Financial Services Agency on Jan. 31, 2023.
The exchange cited a confluence of “current market conditions in Japan” and a “weak crypto market globally” as the reasons behind its move.
The decision was also part of Kraken’s efforts to “prioritize resources and investments in those areas that align with [its] strategy and will best position Kraken for long term success.”
Bitcoin fell 0.64% in the past 24 hours and last traded at $16,571.12, according to Coin Metrics. Ether dropped 1.18% to $1,193.34.
— Ryan Browne, Lee Ying Shan
U.S. will require negative Covid test from China travelers
Airline passengers entering the U.S. from China will need to have a negative Covid test, a federal health official announced on Wednesday.
The rule goes into effect on Jan. 5 and applies to all travelers who are at least two years of age from China, Hong Kong and Macau. The rule applies regardless of nationality or vaccination status.
After attempting a zero Covid policy for much longer than other major countries, China is now seeing a wave of infections after rolling back its public health restrictions in recen weeks.
— Jesse Pound
Apple breaks key technical level, sets new 52-week low
Apple fell through the key $129 level and set a new 52-week low for a second day Wednesday.
Some analysts look at Apple, the largest market cap stock, as a bellwether for the overall market and a major influence on investor sentiment.
“It’s not great for the overall market,” said Todd Sohn, technical analyst at Strategas. “The end of year is a funky time, but if it continues into the first couple of weeks of the year, it’s for real.”
Apple fell through $129 support in early trading Wednesday and touched a low of $126.41 before reversing. The stock was at $127.15 in afternoon trading.
“If your largest weight is weak and making new lows, that’s not great. Your top player is not scoring,” he said. Sohn said the five largest market cap names are still losing steam. “The silver lining is the influence on the (S&P 500) index is dropping.”
–Patti Domm
CNBC Pro: China eases its Covid restrictions. That could spell a buying opportunity in these stocks
An reopening in the world’s second-largest economy could spell a buying opportunity for investors as China unwinds much of its Covid restrictions.
Investors have taken recent developments as a signal to start snapping up China equities. They expect that China’s economy could get a boost in 2023, while the U.S. and Europe continue to deal with the lagging effect of monetary tightening that could put a damper on economic growth.
“A lot of institutional investors have been very underweight Chinese equities,” said Carlos Asilis, co-founder and CIO at Glovista Investments.
“And I think that that’s been a mistake, because it has ignored this very important potential baseline case which is now being priced in, which is that of the Chinese economy undergoing next year a similar recovery path that we saw this year in the case of the United States,” he added.
CNBC Pro subscribers can read the full story here.
— Sarah Min
Jim Cramer says he likes these 3 industrial stocks heading into 2023
CNBC’s Jim Cramer on Friday identified three industrial stocks that he believes are worth owning next year, saying he expects them to outperform the sector’s top performers in 2022.
The best-performing industrial stocks in the S&P 500 so far this year have been Northrop Grumman, Lockheed Martin and Deere — up 36.9%, 35.6% and 25.7%, respectively. Looking ahead, though, Cramer said he’d prefer to own the likes of Caterpillar, Illinois Tool Works and railroad operator CSX.
Shares of Caterpillar, which reported strong earnings two months ago, have climbed 12.6% year to date. Cramer said he favors Caterpillar over fellow machinery maker Deere.
“CAT has much more exposure to infrastructure, and I think they’ve got a boost from the oil and gas industry coming,” Cramer said. “Definitely worth owning here at 17 times earnings,” he added.
Illinois Tool Works shares are down more than 12% in 2022 because fears of an economic slowdown have trumped the company’s actual results, Cramer contended. “I like it here, of course more [so] on a pullback,” he said. “But I give you my blessing to buy ITW.”
Transports such as CSX — down nearly 16% year to date — are “totally hated” on Wall Street, Cramer acknowledged. However, he said he believes CSX is attractive for investors with extended time horizons.
“For me, it’s a long-term story. I see our East Coast ports getting more business as shipping companies adjust to the fact that our West Coast ports are dysfunctional. In the meantime, CSX is just minting money with coal,” he said. “I think it’s worth buying going into 2023.”
Cramer on hot industrial stocks, and how we’re playing the tech pivot
Jim Cramer at the NYSE, June 30, 2022.
Virginia Sherwood | CNBC
The market is so possessed by tech that it can’t see the forest through the industrials. If the discourse isn’t about the slowdown in the cloud, it’s about who is pulling out of the now-private Twitter, or how disappointing it is that co-CEO Bret Taylor left Salesforce (CRM). Meta Platforms‘ (META) Mark Zuckerberg could sneeze and Amazon (AMZN) CEO) Andy Jassy cough and it’s a bigger deal than United Airlines‘ (UAL) order for 100 Dreamliners from Boeing (BA).