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The SEC received more than 200,000 comments on its proposal to let public companies report financial results twice yearly instead of quarterly, the highest response recorded for an SEC proposal. Most submissions opposed the change, arguing it would reduce transparency, limit investor access to timely information and increase opportunities for fraud. Public-school teacher Lori Amann compared quarterly company reporting with regular student grades, while the Little Warrior Foundation said quarterly disclosures helped it avoid relying on a supplier facing financial difficulties. Exxon Mobil supported semiannual reporting, arguing that companies would still disclose material developments promptly, while Gallagher suggested reporting three times annually. Despite widespread criticism, the SEC is expected to advance some version of the proposal after reviewing the comments and potentially revising its language.

 

Wall Street Journal

During a Senate confirmation hearing, Keith Sonderling, President Donald Trump's nominee for Labor Secretary, emphasized his extensive experience in labor law. He has served as acting secretary since April, following Lori Chavez-DeRemer's departure. "Few people have had the opportunity to experience the department from so many perspectives," Sonderling said. Despite his qualifications, he faced criticism from Democratic senators, particularly Patty Murray, who expressed concerns over the rescinding of a Biden-era overtime pay rule that could have benefited 4m workers. Murray warned that confirming Sonderling might lead to further erosion of worker protections. Sonderling also addressed concerns about the management of Department of Education grants and the impact of artificial intelligence on jobs, stating: "What we believe we're going to see is that AI-impacted jobs can potentially make you more productive." He is expected to be confirmed despite the contentious hearing.

 

U.S. News

The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey jumped to 41.4 in July from 10.3 in June, dramatically exceeding economists’ expectations of 13, as more than half of manufacturers reported stronger business activity, supported by gains in new orders and shipments. Despite the sharp improvement in current conditions, the survey’s forward-looking business activity index fell to 34.4 from 50.2, signaling more cautious expectations for future growth, while rising price pressures continued to highlight persistent inflation risks for policymakers.

 

Investing

RTT News

Filings for unemployment benefits in the U.S. decreased to 208,000 for the week ending July 11, marking the lowest level in 10 weeks, according to the Labor Department. This figure is significantly below the 219,000 applications predicted by analysts from FactSet. The decline in jobless claims suggests a stable job market, despite a slowdown in hiring, with only 57,000 jobs added in June. The unemployment rate slightly decreased to 4.2%, primarily due to many individuals ceasing their job search. Notably, companies like Microsoft announced job cuts, with 4,800 positions eliminated, reflecting ongoing caution in the labor market.

 

Los Angeles Times

The Trump administration is considering a $100,000 bond for green card applicants to ensure they are “financially self-sufficient” and contribute positively to society, according to State Department spokesperson Tommy Pigott. This initiative aims to enforce U.S. immigration laws and protect public benefits from potential burdens posed by immigrants with significant medical needs. Pigott stated: “We are working closely with the Department of Homeland Security to introduce commonsense and effective procedures.” The proposed bond would be collected from applicants or their U.S.-based family members and returned later. This follows a previous attempt to impose a similar fee for H-1B visa applications, which was blocked by a federal judge. The administration's focus on financial requirements reflects ongoing efforts to tighten immigration policies.

 

The Hill

Worker shortages in the U.S. have improved since the pandemic, yet companies still seek skilled employees. "Talent is always the No. 1 site selection criterion," said Larry Gigerich, executive managing director of Ginovus. States are actively promoting their talent pools to attract businesses, with workforce quality being a significant factor in CNBC's annual America's Top States for Business study, which accounts for 13.8% of a state's score. States like Virginia, Colorado, and Florida are making strides in workforce education and training, while Texas leads in attracting workers. Despite progress, challenges remain, particularly in matching skills with job openings.

 

CNBC

In a recent meeting, Microsoft chief executive Satya Nadella expressed concerns about the restrictions imposed by Anthropic on its Fable generative AI model. He stated: “It doesn't make sense,” referring to the limitations on user requests. Nadella emphasized the need for companies to develop cost-efficient AI models without relying solely on major players. He also highlighted the importance of unifying Microsoft's Copilot AI for both consumers and corporate workers, a move he believes should have been made earlier. Despite a $5bn investment in Anthropic, Microsoft is exploring its own AI models amid concerns about competition and market dynamics. Nadella's remarks reflect a push for broader access to AI capabilities, stating: “It can't be that there are only two companies in the world with token capital.”

 

CNBC

Starbucks has won the dismissal of a shareholder lawsuit alleging the company misled investors by concealing declining sales in the U.S. and China, after a federal judge ruled that former chief executive Laxman Narasimhan's statements about sales trends were at least as plausibly an innocent assessment as an attempt to mislead the market. The lawsuit was brought after Starbucks' shares fell 16% in May 2024, when the company cut its annual sales forecast and reported a 4.4% decline in comparable store sales, including declines of 3% in the U.S. and 11% in China. The ruling removes a legal challenge stemming from Starbucks' weakening performance before chief executive Brian Niccol took over.

 

Reuters

A press freedom group has initiated a lawsuit to halt Paramount Skydance's multibillion-dollar acquisition of Warner Bros. Discovery, which owns CNN. Filed in Delaware by shareholder Paul Robbins, the suit claims that “Paramount insiders are profiting through breaches of their fiduciary duties” by compromising editorial independence for political favoritism. The lawsuit alleges that Lawrence and David Ellison promised illegal benefits to President Trump for approval of their previous merger, leading to significant changes at CBS News, including the controversial appointment of Bari Weiss as top editor. The deal has faced opposition from Democrats and media watchdogs, with a dozen state attorneys general also filing suit, citing antitrust violations.  

 

The Hill

Two former TD Bank employees, Wilfredo Aquino and Edward Low, were sentenced for their involvement in financial crimes that defrauded customers and moved millions through the bank. Aquino received 46 months for facilitating a money laundering network that processed approximately $474m, while Low was sentenced to 24 months for wire fraud and falsifying bank records. Aquino exploited his role as an assistant store manager, processing over $92m in checks without reporting suspicious activity, despite warnings. Low accepted bribes and stole confidential customer information, facilitating $484,572.16 in fraud.

 

NJ.com

As the Trump administration's January deadline for Medicaid work requirements approaches, some state lawmakers are advocating for transparency by publicly naming large companies with employees enrolled in Medicaid. California's Democratic state Sen. Lola Smallwood-Cuevas expressed concern, stating: “We think this is a bill that's about fairness.” Nearly 5m Medi-Cal recipients will be affected by the new rules. Companies like Walmart and Amazon have been highlighted for their high numbers of Medicaid enrollees, with Walmart's spokesperson asserting that they provide affordable healthcare options. The push to identify these employers aims to address the burden on taxpayers who subsidize healthcare for low-wage workers. Yvanna Cancela, a former Nevada lawmaker, emphasized the need for dialogue about the economy, questioning the fairness of full-time workers lacking health insurance. The situation reflects broader issues of healthcare access and economic stability.

 

U.S. News

Employers in California are preparing for a significant increase in health insurance premiums, projected to exceed $30,000 for family coverage by 2027. According to a survey by PwC, medical service and prescription drug costs are expected to rise by 9%, marking the highest increase since 2011. Glenn Melnick, a USC professor of healthcare finance, stated: “It's going to erode the standard of living for lots of California families.” The rising premiums are impacting wages and forcing some businesses to reduce employee hours or increase prices for consumers. The California Healthcare Foundation reported that excessive profits and administrative waste account for a significant portion of healthcare spending. Additionally, a new tax on private plans to support Medi-Cal is expected to further increase premiums, costing families an estimated $400 next year.

 

Los Angeles Times

Federal health officials have linked shredded iceberg lettuce served at Taco Bell restaurants in five states to a multistate outbreak of cyclosporiasis, a parasitic illness that can cause severe gastrointestinal symptoms. More than 1,644 people who became sick reported eating at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio, and West Virginia, while authorities are investigating more than 5,100 possible cases nationwide, including at least 140 hospitalizations. The U.S. Food and Drug Administration (FDA) said Thursday that its investigation traced the affected lettuce to a single supplier of iceberg lettuce from Mexico. Although the agency did not identify the supplier publicly, a person familiar with the investigation said Taylor Farms was linked to the outbreak.

 

Wall Street Journal

Verizon has announced plans to sell 274 company-owned retail stores and eliminate around 500 corporate roles as part of an ongoing restructuring, affecting approximately 3,000 retail and corporate employees. Following the transaction, which is expected to complete on August 16, the U.S. telecoms group will retain around 1,000 company-owned stores, with many of the divested locations expected to continue operating under franchise owners. The move follows previous job cuts and store sales as Verizon seeks to streamline operations in the highly competitive U.S. wireless market.

 

Bloomberg

NJ.com

Reuters

Wall Street Journal

JERA, Japan’s largest power generator, has begun an early-stage feasibility study into a possible U.S. stock-market listing as it seeks to expand internationally and diversify its funding options. The company, owned by Tokyo Electric Power and Chubu Electric Power, has traditionally viewed Tokyo as its main listing destination. It is now assessing U.S. market conditions, investor demand and regulatory requirements amid growing interest from overseas institutional investors. No decisions have been made on timing, structure or valuation, although JERA has previously signalled plans for an IPO to strengthen its capital base and corporate value.

 

Reuters

Investors are reducing exposure to expensive semiconductor stocks as forecasts suggest hyperscaler capital spending growth will slow from 76% this year to 25% next year and 6% in 2028. Some managers are shifting towards Amazon, software, healthcare, cybersecurity and cooling infrastructure. Alexis Bossard of Edmond de Rothschild Asset Management said slower spending would be “a relief for hyperscalers and a negative signal for the semi industry.” Concerns include stretched valuations, weaker bond demand, financing pressures and local opposition to data centres, although chip-focused funds continue attracting strong inflows.

 

Reuters

Netflix shares fell 9.2% before Friday’s opening after the company issued weaker-than-expected earnings and revenue guidance for a second consecutive quarter. Investors are questioning whether advertising, live programming and price increases can offset slowing subscriber growth and stronger competition from Disney, YouTube and other platforms. Jeffrey Wlodarczak, an analyst at Pivotal Research Group, said: “The story lacks excitement.” At least 11 analysts reduced their price targets, while concerns also grew over a weaker content slate and reduced disclosure, including annual rather than twice-yearly viewing reports from January 2027.

 

Reuters