Analysts expect the six largest U.S. banks by assets to set aside roughly $4.5B in loan-loss reserves. Four of six banks – JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley – are due to report their respective Q3 earnings this week. Goldman Sachs and Bank of America report their earnings next week. More: - This would mark the banks' third straight month of loan-loss provision increases.
- Banks expect the Fed's interest rate hikes to slow the economy and result in higher credit losses.
- The KBW Bank Index is down roughly 22% so far this year, while the S&P 500 is down ~20%.
- Bank executives have said that credit quality in the U.S. remains excellent, with defaults tracking well below historical norms.
- They noted that companies and consumers still have some cash reserves accumulated during the pandemic.
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Top Chinese semiconductor chip manufacturers lost roughly $8.6B in market value on Monday following news of the new U.S. export controls aimed at curbing China’s advances in the sector. On Friday, the U.S. published new export controls restricting the sale of semiconductors to China made with U.S. technology unless the vendors obtain an export license. More: - The new measures are considered the largest shift in U.S. policy toward shipping technology to China since the 1990s.
- On Monday, shares of China’s largest chipmaker, Semiconductor Manufacturing International Corp, fell ~4%.
- Hua Hong Semiconductor and Shanghai Fudan Microelectronics declined 9.4% and 20.2%, respectively.
- The controls also prohibit U.S. citizens or entities from working with Chinese chipmakers without explicit approval.
- They also limit the export of manufacturing tools that would allow China to develop its own equipment.
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British weapons manufacturer BAE Systems is considering restarting its M777 howitzer weapon production after the big gun’s performance in Ukraine boosted its demand. Before the war in Ukraine, BAE had begun winding down the production of the M777 howitzer. According to BAE, several countries have expressed interest in the weapon. More: - Ukrainian forces have been using the weapon against Russian troops in recent months.
- BAE said it is in talks with the U.S. Army to restart production of the weapon.
- The U.S. Army runs the weapon’s program, and any foreign sales must be approved by the U.S. government.
- The Russia-Ukraine war is expected to change the global armaments industry.
- According to analysts, high-profile weaponry like the U.S. M142 High Mobility Artillery Rocket System, or HIMARS, and the Anglo-Swedish NLAW portable antitank missile, would also likely see a boost in demand.
- The weapons have proven very effective against Russian forces in Ukraine.
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Rivian shares fell ~9% on Monday after the electric truck and SUV manufacturer recalled nearly all of its vehicles over a safety issue. The Amazon-backed company said it discovered a fastener connecting the upper control arm and steering knuckle might have been improperly installed. More: - In a regulatory notice published over the weekend, Rivian said the problem could lead to excess wheel camber or tilt and, in some rare cases, separation of the wheel, impacting the driver’s ability to steer the vehicle.
- Rivian is recalling about 13,000 vehicles built in late 2021 and through September 2022 and estimates about 1% of the cars are impacted by the defect.
- A company spokeswoman noted that there are no known injuries related to the defect.
- Rivian began selling its EV in Q3 2021 and has delivered 13,198 vehicles so far.
- Rivian shares closed at $31.48, down ~7.3% for the day.
- The company is down nearly 70% YTD.
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Rowan Trollope, the CEO of cloud software provider Five9, announced his resignation on Monday. Trollope said he is leaving to become the CEO of a venture-backed pre-IPO startup. Trollope noted that Five9 is in a great position, and he remains bullish about the company’s future. More: - Trollope will be succeeded by former Five9 CEO Mike Burkland, effective Nov. 28.
- Burkland stepped down from the CEO position in 2017 after he was diagnosed with cancer.
- Five9 provides cloud contact center software that helps agents provide effective service over the phone from any location.
- In July 2021, Zoom agreed to buy Five9 for $14.7B in stock; however, Five9 shareholders ultimately rejected the deal, noting the price was too small.
- Five9 shares fell 22% following Trollope’s resignation announcement.
- It closed at $57.30, down ~25.6% for the day.
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Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has committed $2.3B in new long-term football sponsorship deals so far this year. Under Crown Prince Mohammed bin Salman, the PIF has been working to diversify the country's economy. PIF has more than $600B in assets under management. More: - The PIF has a dual mandate – help with national development efforts and pursue financial returns.
- Saudi Arabia has been investing in various popular sports recently.
- Last year, a consortium led by the PIF bought Premier League club Newcastle United for over £300M (then at ~$409M).
- Earlier this year, the Kingdom launched its PGA Tour competitor, LIV Golf, and reportedly set aside $2B for it.
- Dustin Johnson has clinched the inaugural LIV Golf Individual Championship. The title comes with an $18M bonus and brings his total earnings past $30M for the year with two events left to play.
- For comparison, Scottie Scheffler leads this year's PGA Tour money list with $14M.
- Saudi Arabia is expected to bid for the 2030 World Cup, with Egypt and Greece as potential partners in the bid.
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- The U.S. and Germany are leading calls from shareholders in the World Bank for the financial institution to change its business model to encourage more action on climate change. The World Bank provides loans and grants to poorer countries.
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 |  | Vanessa Omeokachie is a Freelance Writer for Inside.com. She writes the Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, exploring cities, and traveling. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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