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Indian billionaire Adani charged in US with bribery

GAUTAM ADANI — EN.WIKIPEDIA.ORG

GAUTAM ADANI, the billionaire chair of Indian conglomerate Adani Group and one of the world’s richest people, has been indicted in New York over his role in a $265-million bribery scheme, according to US prosecutors.

US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay the bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India’s largest solar power plant project.

A judge has issued arrest warrants for Gautam Adani and Sagar Adani and prosecutors plan to hand those warrants to foreign law enforcement, court records show.

Prosecutors also said the Adanis and another executive at Adani Green Energy, former Chief Executive Officer Vneet Jaain, raised more than $3 billion in loans and bonds by hiding their corruption from lenders and investors.

Gautam Adani, Sagar Adani and Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in a US Securities and Exchange Commission (SEC) civil case.

Fallout for the Adani empire, which was rocked by a short-seller attack in February 2023, was immediate with shares in conglomerate’s listed companies stocks tumbling between 10% and 20%.

Adani Green Energy also cancelled plans on Thursday to raise $600 million in US dollar-denominated bonds. The bond had been priced but was pulled following the news.

Adani dollar bonds slumped in Asian trading, with prices down between 3% and 5% on bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came under a short-seller attack in February 2023.

According to an indictment, some conspirators referred privately to Gautam Adani with the code names “Numero uno” and “the big man,” while Sagar Adani allegedly used his cellphone to track specifics about the bribes.

The Adani Group has not responded to requests for comment.

Gautam Adani, Sagar Adani and Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in a US SEC civil case.

Five other defendants were charged with conspiring to violate the Foreign Corrupt Practices Act, a US anti-bribery law, and four were charged with conspiring to obstruct justice.

None of the defendants is in custody, a spokesperson for U.S. Attorney Breon Peace in Brooklyn said. Gautam Adani is believed to be in India.

Gautam Adani, 62, is worth $69.8 billion according to Forbes magazine. He is one of the few billionaires formally accused in the United States of criminal wrongdoing. — Reuters

Apple makes $100-million investment proposal for new plant in Indonesia

APPLE.COM

JAKARTA — Tech giant Apple has made a $100 million investment proposal to Indonesia to build a plant to manufacture accessories and components, the industry ministry said on Wednesday.

The proposal comes after Indonesia banned sales of Apple’s iPhone 16 over the firm’s failure to meet local rules on components. Indonesia requires certain smartphones sold domestically to comprise at least 40% locally made parts.

The trade ministry will meet on Thursday to discuss Apple’s proposed West Java plant, its spokesperson Febri Hendri Antoni Arif said in a statement.

“By holding a meeting on Thursday, this means that the industry minister welcomes Apple’s investment commitment,” he said.

Apple has no manufacturing facilities in Indonesia, but has since 2018 set up application developer academies with a combined cost of 1.6 trillion rupiah ($99 million).

Apple did not immediately respond to a request for confirmation.

Indonesia has also banned sales of smartphones made by Alphabet’s for a similar reason. — Reuters

Is climate change making tropical storms more frequent? Scientists say it’s unclear

LARGE WAVES can be seen at Bagasbas Beach in Daet, Camarines Norte, due to Super Typhoon Pepito, Nov. 17, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

SINGAPORE — An unusual cluster of typhoons in the West Pacific and a series of powerful hurricanes in the Atlantic are raising questions about the impact that climate change is having on tropical storms across the globe.

As nations thrashed out the details of a new climate financing package at the Conference of the Parties (COP29) talks in Azerbaijan, the Philippines was hit by its sixth deadly typhoon in a month while the United States was recovering from two devastating hurricanes.

Scientists say it remains unclear how much climate change is reshaping the storm season, or if it is responsible for the rare appearance of four tropical cyclones at the same time in the West Pacific — the first time this has happened in November since 1961.

Higher sea surface temperatures speed up evaporation and provide additional “fuel” for tropical cyclones, boosting rainfall and wind speeds, they say.

And the latest assessment by the Intergovernmental Panel on Climate Change (IPCC), published in 2023, expressed “high confidence” global warming would make storms more intense.

The Philippines’ latest Super Typhoon Man-Yi landed on Saturday, forcing the evacuation of hundreds of thousands of residents. At least eight people died on Monday, adding to a death toll of more than 160 since October.

“It is rare to see a cluster of four tropical cyclones in the western north Pacific at the same time,” said Feng Xiangbo, a tropical storm researcher at Britain’s University of Reading.

“(But) blaming climate change… for this unprecedented event this week is not straightforward,” he added.

Evidence suggests that while climate change is increasing storm intensity, it has also reduced their frequency, especially during what is typically the late season from October to November, Feng said.

This year, atmospheric waves that have recently been active near the equator could be an alternative explanation for the unusual uptick, Feng said, but their relationship with climate change is unclear.

The belt of high pressure known as the sub-tropical ridge, part of the global atmospheric circulation system, has been stronger and stretched further north and west than usual, according to Choy Chun Win, Senior Scientific Officer at the Hong Kong Observatory.

The ridge could have steered the storms in a westerly direction, diverting them away from cooler waters and wind shears, which would normally weaken them, providing an explanation why four could coexist, he said.

“However, more research is required to assess the contribution of climate change to the chance occurrence of the multiple tropical cyclones and the longer tropical cyclone season,” he added.

Ben Clarke, weather researcher with London’s Grantham Institute on Climate Change and Environment, said it “would make sense” that rising ocean temperatures would extend the typhoon season, but the evidence is not conclusive.

“There has been a clear recent increase in the number of tropical cyclones affecting the Philippines in its less active season from approximately December to February, but this doesn’t tell us much about … June-November,” he said.

STRONGER HURRICANES
In an analysis published on Wednesday, U.S. weather researchers Climate Central said Atlantic hurricanes have intensified significantly this year as a result of record-breaking ocean warming.

Since 2019, warmer temperatures have driven average wind speeds up by 18 miles per hour (29 kph) and pushed three hurricanes into the highest Category 5, the study said.

The two deadly Category 5 hurricanes known as Helene and Milton, which hit Florida in September and October respectively, would have been unlikely without climate change, it said.

Research is still ongoing on whether tropical cyclones are becoming more frequent, but there is high scientific confidence that warmer sea temperatures are driving up rainfall and causing higher storm surges, said Daniel Gilford, Climate Central’s lead hurricane researcher.

“While other factors contribute to each storm’s strength, the impacts of elevated sea surface temperatures are prominent and significant,” he said.

“In the Atlantic, more than 80% of storms since 2019 were clearly influenced by warm ocean temperatures caused by carbon pollution.” — Reuters

Angela Merkel, in memoir, recalls tricks for dealing with Donald Trump

BERLIN — Angela Merkel sought advice from the pope on dealing with Donald J. Trump when he was first elected US president, hoping to find ways of convincing a man she saw as having a property developer’s winner-or-loser mentality not to quit the Paris climate accords.

In her memoir, extracts of which were published in German weekly Die Zeit late on Wednesday evening, the long-serving German chancellor detailed her difficulties in dealing with Trump, who, she said, appeared to her fascinated by Russian President Vladimir Putin and other authoritarian leaders.

“He saw everything from the perspective of the property developer he was before entering politics,” she wrote. “Each parcel of land could only be sold once, and if he didn’t get it someone else did. That’s how he saw the world.”

Pope Francis, when Ms. Merkel asked him, in general terms, for advice on dealing with people “with fundamentally different views,” immediately understood she was referring to Mr. Trump and his desire to quit the climate accords, she wrote.

“Bend, bend, bend, but make sure it doesn’t break,” he told Ms. Merkel, according to her account.

When Mr. Trump first took office in 2017, Merkel was one of the world’s longest-serving elected leaders and the most influential in the European Union by far after having shaped Germany and the continent’s response to the euro zone debt crisis, the COVID-19 pandemic and Russia’s initial 2014 invasion of Ukraine.

As much of the world fretted over Mr. Trump’s presidency, Ms. Merkel’s unruffled demeanor and her frequent invocations of values like freedom and human rights led to some dubbing her the true “leader of the free world” — a moniker traditionally reserved for US presidents.

Written before Mr. Trump’s reelection, the book expresses the “heartfelt hope” that Vice-President Kamala Harris would defeat her rival.

Her memoir, entitled Freedom: Memories 1954-2021 will be published in more than 30 countries on Nov. 26. She will launch the book in the US a week later at a Washington event with former President Barack Obama, with whom she forged a close political relationship.

Germany’s first female leader was still popular with voters at the end of 16 years in office, but her legacy has come under greater scrutiny, with some blaming the huge bets on Russian energy made by her governments for both Russia’s full-scale invasion of Ukraine in February 2022 and Germany’s current economic doldrums.

Ms. Merkel herself has expressed no regret about her Russia policies and kept a low profile since leaving office.

In the published extracts of her memoir, she discusses her many encounters with Mr. Putin, describing how he struck her as a man desperate to be taken seriously.

“I experienced him as someone who didn’t want to be disrespected, ready to lash out at all times,” she wrote. “You might find that childish and contemptible, you might shake your head at that. But it meant Russia never vanished from the map.”

At one point she appears to suggest that Putin’s 2022 invasion of Ukraine was timed to follow her departure from office. “You won’t always be Chancellor, and then they’ll join NATO,” he said of Ukraine. “And I want to prevent that.”

Some Central and Eastern European leaders, she added, had been guilty of wishful thinking: “They seem to want the country to just disappear, to not exist. I couldn’t blame them… But Russia, heavily nuclear armed, did exist.” — Reuters

Advisers favor 2025 China growth target of around 5%

Workers inspect dual-mass flywheels at the production line during an organized media tour to an auto parts factory in Nanjing, Jiangsu province, China June 27, 2024. — REUTERS

BEIJING — Chinese government advisers are recommending that Beijing should maintain an economic growth target of around 5.% for next year, pushing for stronger fiscal stimulus to mitigate the impact of expected U.S. tariff hikes on the country’s exports.

The ambition to sustain a growth pace that seemed difficult to reach throughout 2024, if confirmed, would surprise financial markets betting on a gradual slowdown in the world’s second-largest economy as trade tensions intensify.

Four of the six advisers who spoke with Reuters favor a 2025 target of around 5%. One adviser recommends a goal of “above 4%” and another suggests a 4.5-5% range. A Reuters poll this week predicted China will grow 4.5% next year, but also tipped that tariffs could impact growth by up to 1 percentage point.

The advisers, who do not participate in decision-making, will submit their proposals to the closed-door annual Central Economic Work Conference next month, when top leaders discuss policies and goals for next year.

The target, one of the most closely watched indicators globally for clues of Beijing’s near-term policy intentions, will not be officially announced until an annual parliament meeting in March.

The recommendations of the advisers are considered by policy makers in the final decision-making process. The most popular view among the advisers is usually adopted although it is not always the case. Any plans could still change before the legislative session.

Most advisers commented on condition of anonymity as they were not authorized to speak to the media.

Holding lofty growth goals in the face of threatened tariffs in excess of 60% on Chinese goods imports from incoming US President Donald Trump suggests Beijing is ready to spend big, particularly if it cannot negotiate lower levies or delay them.

“It’s entirely possible to offset the impact of Trump’s tariffs on China’s exports by further expanding domestic demand,” said Yu Yongding, one of the advisers and a government economist who advocates for a roughly 5% goal.

“We should adopt stronger fiscal policy next year,” said Yu, adding the budget deficit “should definitely exceed” this year’s planned level of 3% of gross domestic product (GDP).

Some economists have urged Beijing to ditch or adopt lower growth targets to reduce its reliance on stimulus, which has fuelled property bubbles and huge local government debts. But advocates for ambitious targets argue they are crucial for safeguarding China’s global stature, national security, and social stability.

President Xi Jinping’s vision of “Chinese-style modernization” envisages doubling the size of the economy by 2035 from 2020 levels, potentially surpassing that of the United States. Economists outside China do not believe that goal is realistic, but it still influences domestic policy discussion.

“To meet the 2035 goals, we need to achieve economic growth of around 5% in 2025,” said a second government adviser.

It is not known how many such proposals the government receives.

VULNERABLE EXPORTS
International Monetary Fund Managing Director Kristalina Georgieva warned last month that China’s growth could slow “way below 4%” unless it shifts from an export- and investment-led economic model to one driven by consumer demand.

The tariff threat has rattled China’s industrial complex, which sells goods worth more than $400 billion annually to the United States. Many manufacturers have been shifting production abroad to escape tariffs.

Yu downplayed Mr. Trump’s threat, noting that China’s net exports’ GDP contribution is minor. They accounted for 2.2% of GDP in 2023 although gross exports made up close to 20% of total economic output, official data show.

Other economists argue that industrial output, revenues, investment and jobs depend heavily on external demand and that additional trade barriers could exacerbate deflationary pressures and growth headwinds.

“If China’s exports take a hit and cannot be offset by rising domestic demand, deflationary pressures will intensify,” said the adviser recommending a target of “above 4%.”

The adviser who proposed 4.5-5% said: “The pressure on the economy will be even greater next year. Our exports could be greatly affected.”

MORE STIMULUS?
This month, China unveiled a 10 trillion yuan ($1.4 trillion) debt package to ease municipal financing strains, but refrained from direct fiscal stimulus. Analysts say Beijing may want to keep the powder dry until Mr. Trump makes his first move.

Finance Minister Lan Foan said more stimulus measures were in the pipeline, without giving details on size or timing.

Government advisers say China’s budget deficit could spike to 3.5-4% of GDP next year and more special treasury bonds, typically not included in annual budgets, could be issued to fund infrastructure and other investment.

They say consumer-focused policies could include stronger financial support for low-income residents and expanding a subsidy scheme introduced this year to boost purchases of appliances, cars and other goods. Large scale cash voucher handouts are unlikely, the advisers say.

But they also urge officials to push ahead with promised tax, welfare and other policy changes to address structural imbalances.

“If reforms stall and we rely solely on policy stimulus, it will not be sustainable in the long run,” said the most conservative adviser. — Reuters

Archegos’ Bill Hwang sentenced to 18 years in prison for massive US fraud

JÖRG HUSEMANN DA PIXABAY

NEW YORK — Former billionaire investor Sung Kook “Bill” Hwang was sentenced to 18 years in prison on Wednesday over the collapse of Archegos Capital Management, which cost Wall Street banks more than $10 billion.

Hwang was sentenced by U.S. District Judge Alvin Hellerstein in Manhattan, where a jury convicted Hwang in July on 10 criminal charges including wire fraud, securities fraud and market manipulation.

“The amount of losses that were caused by your conduct are larger than any other losses I have dealt with,” Hellerstein said before announcing the sentence.

Archegos’ March 2021 implosion took less than a week, stunning Wall Street and Hwang’s lenders.

The U.S. Attorney’s office in Manhattan sought a 21-year prison term for Hwang – unusually long for a white-collar case – and for him to forfeit $12.35 billion and make restitution to victims.

“It stands among a rare class of cases that truly could be described as a national calamity,” prosecutor Andrew Thomas said at the sentencing hearing before Hellerstein.

Hellerstein did not reach a decision on Wednesday on whether Hwang must forfeit money or pay restitution. The sentencing hearing is expected to resume on Thursday.

Before sentencing Hwang, Hellerstein asked the defendant’s lawyer, Dani James, how she thought Hwang compared to Sam Bankman-Fried, who was sentenced in March to 25 years in prison for stealing $8 billion from users of the now-bankrupt FTX exchange.

“Mr. Bankman-Fried was literally stealing from his customers,” James said. “I don’t think that’s what’s happened here.”

Hwang had asked for no prison, forfeiture or restitution, and to remain free on bail while he appealed his conviction. James said his low risk of committing more crimes meant a lengthy prison term served no purpose.

“The notion that he would commit a crime in the future, it’s just not so,” James said.

Bankman-Fried denies wrongdoing and is appealing his conviction.

STARTED AS FAMILY OFFICE
Hwang, 60, was a protege of late hedge-fund billionaire Julian Robertson.

He set up Archegos in New York as a family office in 2013, the year after his former hedge fund Tiger Asia Management pleaded guilty to wire fraud in an insider-trading case.

Prosecutors accused Hwang of lying to banks about Archegos’ portfolio so he could borrow money aggressively and make concentrated bets on media and technology stocks such as ViacomCBS, now called Paramount Global.

While Archegos eventually managed $36 billion, Hwang’s borrowing helped him amass $160 billion of exposure to stocks.

His downfall occurred when Hwang was unable to meet margin calls, as the prices of some of his favorite stocks began falling and various banks unloaded stocks that had backed his so-called total return swaps.

More than $100 billion of market value in Hwang’s stocks was wiped out. Several banks suffered losses, including Credit Suisse, which lost $5.5 billion, and Nomura Holdings. Credit Suisse is now part of UBS.

Hwang’s lawyers’ request for no punishment also cited Hwang’s Christian faith and his nonprofit Grace and Mercy Foundation, which has since 2006 donated at least $600 million to combat homelessness, poverty and human trafficking, among other causes.

In a statement to the court before Hellerstein announced the sentence, Hwang said he hoped the punishment would “allow me to serve as much as I can given the circumstances.”

Hwang’s lawyers have said his net worth has fallen to “at most” $55.3 million.

Hwang’s co-defendant, former Archegos Chief Financial Officer Patrick Halligan, was convicted at the same trial on three criminal charges. His sentencing is scheduled for Jan. 27. Both chose not to testify at their two-month trial. — Reuters

Japan eyes $141 billion of fiscal spending under new stimulus package, NHK says

JUN RONG LOO-UNSPLASH

TOKYO – Japan’s government is considering 21.9 trillion yen ($141 billion) worth of fiscal spending under a new stimulus package to be approved this week, public broadcaster NHK said on Thursday.

The overall size of the package, which includes funding from the private sector, would total 39 trillion yen, with 13.9 trillion yen coming from the government general account, NHK reported without citing sources.

Major hurdles over the package were cleared on Wednesday after Japan’s ruling coalition agreed with a key opposition party on the draft of the package designed to help cushion the blow to households from rising prices. – Reuters

US charges five in ‘Scattered Spider’ hacking scheme

STOCK PHOTO | Image from Freepik

U.S. prosecutors unveiled criminal charges on Wednesday against five alleged members of Scattered Spider, a loose-knit community of hackers suspected of breaking into dozens of U.S. companies to steal confidential information and cryptocurrency.

Martin Estrada, the U.S. Attorney in Los Angeles, said the defendants conducted phishing attacks by sending bogus but real-looking mass text messages to employees’ mobile phones warning that their accounts would be deactivated.

The hackers, in their teens or 20s at the time, allegedly directed employees to links for entering log-in information, enabling the hackers to steal from their employers and millions of dollars of cryptocurrency from individuals’ accounts.

Victims allegedly included at least 12 companies in the gaming, outsourcing, telecommunications and cryptocurrency fields, plus hundreds of thousands of individuals.

Mr. Estrada’s office confirmed that the case concerned Scattered Spider. No victims were identified by name.

Security experts and officials have said Scattered Spider is composed of small clusters of people, including youngsters, who collaborate on-and-off on specific jobs.

The group has been blamed for unusually aggressive cybercrime sprees, targeting major multinational companies as well as individual cryptocurrency investors.

Some experts previously complained about law enforcement’s apparent inability to crack down even though the identities of some suspects, including several living in Western countries, were known, industry insiders told Reuters last year.

That may now be changing.

“The days of easy money and no consequences are over,” said Allison Nixon, chief research officer at cybersecurity company Unit 221B. “Defenders and law enforcement are meeting this wave of cybercrime aggressively now. Young people that have fallen into online crime culture need to exit before they become the next target.”

The defendants are Tyler Buchanan, 22, of Scotland; Ahmed Elbadawy, 23, of College Station, Texas; Joel Evans, 25, of Jacksonville, North Carolina; Evans Osiebo, 20, of Dallas; and Noah Urban, 20, of Palm Coast, Florida.

Each was charged with two conspiracy counts and aggravated identity theft, and Mr. Buchanan was also charged with wire fraud.

Investigators traced Mr. Buchanan through domain registration records for phishing websites, registered under an account whose user name included the name of late actor Bob Saget.

Officials said the suspects’ illegal activity spanned from September 2021 and April 2023.

Scattered Spider drew particular notoriety in September 2023 when members of its community broke into and locked up the networks of casino operators Caesars Entertainment and MGM Resorts International, and demanded hefty ransom payments. Caesars paid about $15 million to restore its network.

It was unclear whether these five defendants were connected with Scattered Spider’s casino hackings.

The U.S. Department of Justice declined to comment on specific victims. Caesars did not immediately return requests for comment. MGM said the defendants did not appear to be related to the cyber attack against its network.

Mr. Evans was arrested on Tuesday in North Carolina. Mr. Urban has pleaded not guilty to 14 fraud and conspiracy charges in a separate case in Florida.

Mr. Buchanan was arrested in June at an airport in Palma de Mallorca, Spain as he attempted to board a flight to Naples, Spanish authorities said at the time. He is awaiting extradition from Spain, a Justice Department spokesman said.

A public defender representing Urban did not immediately respond to a request for comment. Lawyers for the other defendants could not immediately be identified. – Reuters

IMF mission concludes visit to Egypt for the fourth review of loan program

THE International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. — REUTERS

CAIRO – The International Monetary Fund said on Wednesday that its mission had concluded a visit to Egypt and made substantial progress on policy discussions toward the completion of the fourth review of IMF loan program.

The review, which could unlock more than $1.2 billion in financing, is the fourth under Egypt’s latest 46-month IMF loan program that was approved in 2022 and expanded to $8 billion this year after an economic crisis marked by high inflation and severe foreign currency shortages.

The IMF also said that Egypt “has implemented key reforms to preserve macroeconomic stability”, including the unification of the exchange rate that eased imports, with its central bank reiterating its commitment to sustain a flexible exchange rate regime.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the program not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement. – Reuters

Senators ask Biden administration to back higher pilot retirement age

STOCK PHOTO | Image by StockSnap from Pixabay

A bipartisan group of five U.S. senators including incoming Senate Majority Leader John Thune urged President Joe Biden’s administration on Wednesday to back international efforts to raise the mandatory pilot retirement age.

Last year, Congress rejected a push to raise the mandatory airline pilot retirement age to 67 from 65. International rules prevent airline pilots older than 65 from flying in most countries outside the United States.

The group of senators is led by Marsha Blackburn and includes her fellow Republicans Thune and Lindsey Graham as well as Democrat Mark Kelly and independent Joe Manchin.

They urged U.S. Secretary of State Antony Blinken to advocate at the International Civil Aviation Organization, an agency of the United Nations, for hiking the retirement age. They did not suggest a specific age.

“The American public deserves the most qualified and experienced pilots when traveling,” the senators wrote in the letter first reported by Reuters.

The State Department, Federal Aviation Administration and the Air Line Pilots Association did not immediately respond to requests for comment. A group representing major airlines declined to comment.

The senators urged the U.S. mission to ICAO to “not spend this debate sitting on the sidelines. If the United States cedes our leadership role in this space on the international stage, we know that China – who is presently and actively joining our partners to advocate for raising the pilot retirement age – will gladly fill that void.”

The FAA in February asked Congress to give it time to conduct additional research before raising the retirement age. The U.S. House of Representatives had voted 351-69 in July 2023 to approve a sweeping aviation bill that would also raise the mandatory pilot retirement age to 67. But the provision was dropped from the final legislation passed by Congress.

The Air Line Pilots Association has opposed raising the retirement age and said such a move could cause airline scheduling and pilot training issues and also require reopening pilot contract talks.

The U.S. mission to ICAO in Montreal has been without an ambassador since Chesley “Sully” Sullenberger, the commercial airline pilot who safely landed an Airbus A320 on New York’s Hudson River in 2009, stepped down in July 2022. Mr. Biden nominated former Florida Governor Charlie Christ to the post in 2023, but the Senate has not confirmed the appointment. – Reuters

Target shares slide 21% as retailer expects stagnant holiday quarter sales

STOCK PHOTO | By Raysonho @ Open Grid Scheduler / Grid Engine - Own work, CC0, https://commons.wikimedia.org/w/index.php?curid=27421099

Target forecast holiday-quarter comparable sales and profit below estimates on Wednesday as value-conscious consumers shopped for low-priced essentials at rival retailers including Walmart, sending its shares tumbling 21%.

The results are in contrast to the world’s no. 1 retailer Walmart, which raised its annual sales and profit forecast for the third consecutive time a day earlier, as it took market share in groceries and merchandise.

Minneapolis-based Target now expects flat comparable sales in the fourth quarter and a profit of $1.85 to $2.45 per share. Analysts on average had expected a 1.64% rise in sales and profit of $2.66 per share.

The U.S. retailer has cut prices on thousands of essential and gift items ahead of the holiday season. It is also offering discounts on food, beverages and toys, while expanding its private-label brand, Dealworthy, to include items such as smartphone chargers and toiletries.

Still, those efforts have so far failed to attract shoppers to its stores as customers were willing to wait for deals and hunted multiple retailers to find them.

“We’re seeing a strong response to promotions than we’ve seen in some time yet,” Target CEO Brian Cornell said on a post-earnings call.

For instance, Target saw a “more pronounced sales dip” both the week before and a week after its Circle Week event between Oct.6 and Oct. 12 as consumers remained intensely promotion focused.

Apparel sales were soft as warmer-than-usual weather across the U.S. deterred spending on winter clothing, although spending on essentials and beauty was strong during the quarter.

“Things have taken a turn (for Target) in Q3. And it seems that the softness is going to linger into the holiday season as well,” CFRA analyst Arun Sundaram said.

Lingering weakness in higher-margin categories such as home decor, electronics has hurt Target this year, as shoppers watch their budgets in the face of still-high inflation.

“Consumers tell us their budgets remain stretched and they’re shopping carefully … they are becoming increasingly resourceful in their shopping behaviors,” CEO Cornell said.

Rival Walmart on Tuesday said it saw share gains across income cohorts mainly led by households which make more than $100,000 a year.

“With Walmart’s market share gains coming largely from higher income consumers, Target seems to be the one most at risk of losing additional share,” said Citi analyst Paul Lejuez.

With five fewer holiday shopping days between Thanksgiving and Christmas in what is expected to be a so-so holiday season, retailers such as Target face competition as promotions at Walmart and Amazon.com AMZN.O kicked off earlier than usual.

Meanwhile, the company’s efforts to pull forward holiday inventory in preparation for the U.S. ports strike in the East and Gulf Coast led to additional costs in its supply chain, Target’s executives said.

Target said it “acted quickly and decisively to reroute select shipments … that came with additional cost” which hurt its profit in the reported quarter.

“My biggest worry for Target has been market share losses versus some of the more cash-rich companies like Walmart and Amazon, who have a competitive edge,” said Dave Wagner, portfolio manager at Aptus Capital Advisors that holds Target’s shares.

Target also trimmed its annual forecast for per-share earnings to between $8.30 and $8.90 from its prior range of $9 to $9.70 after weaker-than-expected third-quarter results.

The company, which operates nearly 2,000 U.S. stores, reported third-quarter adjusted earnings of $1.85 per share. Analysts on average were expecting $2.30 per share.

Overall, shopper visits rose 2.4% in the three months ended Nov. 2, lower than 3% traffic growth in the prior quarter. Store-originated comparable sales dropped 1.9%, partly offset by a 10.8% jump in digital sales.

It posted a comparable sales increase of 0.3%, well below analysts’ average estimate of 1.4%, according to data compiled by LSEG.

Target’s shares closed down 21.4% at $121.72, marking their biggest intraday percentage fall since May 2022. – Reuters

Golden Haven celebrates the 1st anniversary of its pet crematorium, announces expansion

Golden Haven celebrates the first anniversary of its pet crematorium this October 2024, its compassionate approach to honoring beloved pets.

Golden Haven, a leader in memorial care services in the Philippines, celebrated the first anniversary of its pet crematorium this October 2024. Known for providing dignified memorial care to Filipino families, Golden Haven’s comprehensive services include memorial parks, columbariums, chapels, crematoriums, and mortuary services. Expanding into pet cremation, Golden Haven has now brought its compassionate approach to honoring beloved pets, making it the first memorial care provider in the country to venture into pet memorialization.

The pet crematorium journey began at Golden Haven’s flagship branch in Las Piñas, situated along the C5 Road Extension in Global South. As the initial site for this service, it established a warm, respectful environment where pet families could honor their departed fur babies with the same dignity and care that Golden Haven extends to human memorials. Within a year, the service has seen an overwhelming demand, underscoring the essential need for respectful and loving farewells for pets.

Recognizing the importance of pet cremation for Filipino families, Golden Haven is launching new pet crematoriums across the nation by year’s end. This expansion ensures more communities can access these services, making it easier for families to honor their pets without the stress of traveling long distances. “As we celebrate this milestone, we’ve seen how vital it is to support families grieving their pets. Our aim is to provide comfort and closure while honoring pets in a dignified manner,” shares Analyn Anero, Division Head of Golden Haven Chapels and Crematorium.

Golden Haven is the first memorial care provider in the country to venture into pet memorialization, through its Pet Crematorium.

The pet crematorium service also features thoughtful touches, including free pickup within a specific radius, and options for families to hold a viewing for their pets in a comforting, serene space. Pets are gently bathed and prepared with care, providing families a final, loving memory before their beloved pets cross the Rainbow Bridge.

Golden Haven’s seamless service network for pet cremation extends to partnerships with veterinary clinics, pet grooming providers, and pet accessory shops, creating a supportive community for pet parents. In line with its dedication to responsible pet parenting, Golden Haven even organizes an annual “Pawsome Day” event, celebrating the bond between families and pets — a tradition established even before launching its pet crematorium services.

In its commitment to compassionate service, Golden Haven also facilitates the donation of items left by fur parents, redistributing these belongings to animal welfare organizations. This thoughtful initiative, combined with affordable service options, underscores Golden Haven’s mission to support pet families across every step of their journey.

Golden Haven’s holistic approach to memorial care for both people and pets, combined with its continuous drive for innovation, further solidifies its status as the leader in the industry — a position that has earned it the title of the “Gold Standard in Memorial Care.” For more information about Golden Haven’s pet cremation services and other offerings, please visit www.goldenhaven.com.ph, reach out via social media, or contact 0999-886-4176 / 0919-079-0205.

 

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