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The World
The largest US companies are preparing for a wave of congressional hearings after the midterm elections, as Republicans vow to pursue investigations into businesses’ environmental and social positions. Lawyers for financial institutions and technology companies have been training executives in recent weeks on how to respond in a televised grilling from politicians, according to people familiar with the matter. And just days out from the midterm elections, Republican senators including Tom Cotton from Arkansas have written to law firms urging them to preserve documents related to environmental, social and governance initiatives “in anticipation” of investigations. (Financial Times)
Inflation Strains Voters Across Income Levels Ahead of Midterm Elections: Lower-income Americans are feeling inflation’s impact the most, but top-earning households have become increasingly burdened. Among those with annual household incomes of more than $150,000 up to $200,000, 26% say rising prices are creating major financial strains, nearly double from the level in March. (Wall Street Journal)
US Quietly Asks Banks to Keep Some Ties With Russia, Even as Congress Balks: Treasury, State prod JPMorgan, Citi to bank some Russian firms Congress lambasted banks for continuing to do work in country. (Bloomberg)
China becomes top exporter to Russia as sanctions hit Moscow’s trade with EU: Country’s goods imports during summer months down 24% year on year, according to Kiel research. (Financial Times)
Justin Trudeau has warned that China is “play[ing] aggressive games” to undermine democratic institutions amid reports Beijing actively interfered in Canada’s federal elections. His comments came after a report that Beijing had funded a “clandestine network” of candidates in Canada’s 2019 election and just days after the federal police force said it was actively investigating a secret network of illegal Chinese “police stations” in Toronto. (The Guardian)
US says it wants to get defense talks with China ‘back on track’: White House National Security Adviser Jake Sullivan urges renewed military-to-military communication, which Beijing cut off after Nancy Pelosi’s trip to Taiwan. Such talks ‘can help create more stability and reduce the risk of misunderstanding’, he says. (South China Morning Post)
China Weighs Gradual Zero-Covid Exit but Proceeds With Caution, Without Timeline: Beijing takes gradual approach to easing pandemic policies despite concerns about impact on economy. (Wall Street Journal)
The world is on a 'highway to climate hell,' U.N. Secretary-General Antonio Guterres said, addressing the U.N. climate summit: "A window of opportunity remains open, but only a narrow shaft of light remains. The global climate fight will be won or lost in this crucial decade -- on our watch. One thing is certain: those that give up are sure to lose." (Nikkei Asia Review)
The US is working on a plan to harness cash from the world’s largest companies to help developing countries cut their use of fossil fuels, an idea it aims to unveil at the UN climate summit this week. Under the potentially transformational plans, regional governments or state bodies would earn carbon credits by reducing their power sector’s emissions as fossil fuel infrastructure such as coal-fired plants were cut and renewable energy increased. The credits would be certified by an independent, as-yet unspecified, accreditation body. Companies would then be able to buy the credits to offset their own carbon emissions. (Financial Times)
Macron backs climate cash trillions, seeking to overhaul the way climate finance flows to the countries that most need it. He called for a “huge shock of concessional financing,” suspension of debt for disaster-struck countries and putting the IMF on notice. (Politico EU)
Richard Branson’s investors may now to take him to court, a U.S. judge ruled. The British billionaire must face shareholder claims that he concealed problems in Virgin Galactic Holdings Inc's spaceship program, and sold hundreds of millions of dollars of stock at inflated prices. Branson’s team argues that the defendants knew what they were getting into, as space travel is "unquestionably a high-risk proposition." (Reuters)
Economy
Companies Look for Ways to Bring New Directors Up to Speed Quickly: Boards are tapping more rookie directors, at the same time board responsibilities have increased. A new level of onboarding is the answer. Last year, 43% of public-company board appointments were filled by first-time directors, up from 38% in 2020 and 25% in 2016, according to recruiting and advisory firm Heidrick & Struggles. A number of companies are trying new strategies to make sure their directors are up to the challenge—from assigning mentors to holding one-on-one meetings with the full management team to arranging visits to company facilities. (Wall Street Journal)
“Quiet firing” is now also a thing, according to a new study by two Michigan State University business school researchers The authors’ new research, based on a survey of ~1,000 American workers, shows a few common patterns on how companies—which may be trying to avoid legal, financial, and reputational costs—try to get their workers to quit. Among the most common signs of quiet firing: changes to work responsibilities, compensation, and communication. (HBR)
Global law firms scale back hiring as slowdown begins: Profits at some of the largest groups are shrinking because of increases in costs and decline in M&A activity. Preliminary data from the US Bureau of Labor Statistics showed the legal sector in the country lost more than 13,000 jobs in August and September, with a small rebound in October when almost 3,500 jobs were added compared to the previous month. Hundreds of job vacancies in the US legal sector were also withdrawn last month, marking the first signs of a potential slowdown, even as the number of open positions remains higher than pre-pandemic levels. (Financial Times)
Retail mortgage originations dropped 90% year-over-year at Wells Fargo, which is now reportedly contemplating layoffs. Online lenders and proptech startups are facing similar pain. (Protocol)
UK house prices suffered their biggest monthly drop for almost two years in October, with the fall largely brought on by the mini-budget and the “significant shock” it caused the property market. House prices fell by 0.4 per cent last month, the steepest fall since February 2021. (The Times)
Retail credit card interest rates hit record high: The average annual percentage rate for a retail credit card is 26.72%, an all-time high. The average general-purpose credit card APR is 22.66%. 11 cards have maximum APRs of 30.74%, including Speedy Rewards Mastercard and Kroger Rewards World Elite Mastercard. (Axios)
Technology
Tesla earned eight times as much profit per vehicle as Toyota Motor in the July-September quarter despite being outsold more than 7 to 1, a Nikkei analysis shows, putting the American electric-vehicle maker ahead in quarterly net profit for the first time since going public in 2010. (Nikkei Asia Review)
MIT researchers have figured out how to improve the energy density of non-rechargeable batteries, which most of us would be familiar with due to their use in pacemakers. The improvement may mean 50% longer lifetimes, while also improving safety—with minimal increase in cost. Since replacing the battery in a pacemaker requires a surgical procedure, the breakthrough can have a significant impact on cardiac patients’ quality of life. (MIT News)
In a partnership no one saw coming, AMC is working with Zoom to turn some theaters into giant meeting rooms. The theater chain will even provide “food and beverage offerings, possible movie viewings, and concierge-style personalized handling of meeting needs. While the unlikely pairing of a pandemic-era darling and a meme stock is more about the PR splash than either company’s bottom line, initial takes say that the idea is not entirely preposterous. (The Verge)
Sony to eliminate plastic packaging, starting with phones and earbuds: Electronics group eyes shift to paper and bamboo materials. (Nikkei Asia Review)
Twitter tells advertisers that user growth is at ‘all-time highs’ under Elon Musk. (The Verge)
Smart Links
The Supreme Court’s business agenda: 7 cases that companies are watching. (Financial Times)
This job pays $60,000 – or maybe $150,000: companies skirt New York salary law. (The Guardian)
Foxconn Plans to Invest $170 Million in EV Truck Maker Lordstown Motors. (Wall Street Journal)
Europe’s Energy Crunch Will Trigger Years of Shortages and Blackouts. (Bloomberg)
Japan shelves carbon tax as energy prices soar. (Nikkei Asia Review)
From Teslas to BMWs, cars are piling up on land and at sea in German port of Bremerhaven. (CNBC)