Foxconn, Apple's largest manufacturing partner, reported a 29% decline in revenue in November to $18B, compared to October, and an 11% decrease YoY. This is the first time in more than a decade that Foxconn has reported a month-over-month decline in revenue for November due to often increased production to meet holiday sales demand. More: - Foxconn referred to the ongoing COVID-19 outbreak and disruptions at its large manufacturing complex in Zhengzhou, China.
- COVID disruptions at the Zhengzhou facility led to a violent workers' revolt a couple of weeks ago.
- Foxconn said it had contained the COVID and worker revolts, noting November was the most impacted period.
- The company said it is currently reallocating production capacity to its other factories and hiring new employees.
- According to sources, Foxconn aims to return its Zhengzhou facility to full production capacity after the new year.
- Foxconn's Zhengzhou facility assembles Apple's iPhone 14 Pro and Pro Max models.
- Last month, Apple warned investors of lower shipments of its iPhone 14 Pro and Pro Max models, citing COVID disruptions at its manufacturing facilities in China.
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Slack co-founder and CEO Stewart Butterfield is stepping down and will leave parent company Salesforce in January. The news comes days after Salesforce co-CEO and former Twitter chair Bret Taylor announced he would leave the company in January to start a new venture. More: - Butterfield said he doesn’t plan to do anything entrepreneurial but plans to spend more time with his family, focus on his health, and work on other personal projects.
- Lidiane Jones will succeed Butterfield as Slack CEO.
- Jones currently serves as Salesforce’s executive vice president for Cloud.
- Salesforce acquired Slack last year for $27B, the company’s largest acquisition.
- Other executives leaving the company include Tamar Yehoshua, Slack’s chief product officer, and Jonathan Prince, Slack’s marketing, brand, and communications head.
- Noah Weiss will succeed Yehoshua as Slack’s new product chief.
- Salesforce shares were down nearly 8% around 3 p.m. ET on Monday, trading around $133.33 a share.
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Swiss multinational commodity and mining company Glencore has agreed to pay $180M to the Democratic Republic of Congo to settle corruption charges. So far this year, Glencore has paid more than $1.66B to authorities worldwide to settle corruption charges. More: - The settlement with the DRC covers any past and future claims related to Glencore’s alleged misconduct in the country from 2007 to 2018.
- In May, Glencore pleaded guilty to bribery and market manipulation charges following a joint investigation by the U.S., U.K., and Brazilian authorities.
- The U.S. investigation found evidence that Glencore paid around $27.5M to third parties to secure “improper business advantages” in the DRC.
- A portion of the payments when intended for bribes.
- The DRC is Africa’s largest copper producer and the source of half of the world’s cobalt.
- Glencore owns the Mutanda copper-cobalt mine in the DRC and has a 75% stake in Kamoto Copper Company.
- Despite the fines, Glencore is expected to report record profits this year, around $3.2B.
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Tesla has denied reports that it would cut the December output of its Model Y by 20% at its Shanghai plant. Tesla called the media reports untrue. On Monday, Bloomberg reported that EV maker was making the cuts due to decreased demand in China. Bloomberg cited people familiar with the matter. More: - On news of the rumored production cut, Tesla shares fell more than 4% on Monday morning.
- The stock closed at $182.45 per share, down ~6.4% for the day.
- In October, Tesla cut the prices of its Model 3 and Model Y vehicles sold in China.
- The starting price of its Model 3 was cut by 5% to 265,900 yuan ($36,774), and the starting price of the Model Y SUV was cut by 8.8% to 288,900 yuan ($41,497).
- Tesla delivered a record 100,291 vehicles in China in November.
- Tesla’s Shanghai factory mainly serves the Chinese market; however, some cars are exported to Europe and other parts of Asia.
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OPEC+ agreed to stick to its current policy of reducing oil output by 2 million barrels a day, or about 2% of global demand, from November through the end of 2023. Analysts had expected the group to announce further oil production cuts following the EU’s $60 Russia oil price ceiling announcement last week. More: - On Monday, the EU also began its ban on all sea imports of Russian oil.
- In October, OPEC+ announced a shocking 2 million barrels a day oil production cut, citing the ongoing effects of the COVID-19 pandemic and geopolitical uncertainty.
- Oil prices have fallen below $85 a barrel compared to their near-record high in June of more than $120 a barrel.
- According to AAA, the average price per gallon of regular gas in the U.S. on Sunday was $3.41, down from its summer high of over $5.
- The U.S. and other Western allies have called on the 23-nation oil exporting group to increase its oil output to help the global economy.
- Saudi Arabia and Russia lead OPEC+.
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Hertz has agreed to pay $168M to settle about 95% of pending claims related to vehicle-theft reporting. The car rental company had 364 pending claims where customers were reported for car thefts they didn't commit, and some even arrested, due to inventory mismanagement. More: - Hertz said it does not expect the settlement to have a material impact on its capital allocation plans for 2022 and 2023.
- Hertz noted it expects to recover a good portion of the settlement amount from its insurance carriers.
- Hertz CEO Stephen Scherr said by resolving the claims, the company is putting customers first.
- In May 2020, Hertz filed for chapter 11 bankruptcy after accumulating $19B in debt and nearly 700,000 vehicles, mostly unused due to the COVID-19 pandemic.
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- Nike said it has parted ways with Brooklyn Nets star Kyrie Irving. Irving's agent said both parties mutually decided to part ways.
- Russia has accused Ukraine of attacking two air bases deep within its territory with drones that killed three people and injured seven. On Monday, U.S. officials said the U.S. secretly modified the advanced Himars rocket launchers it gave Ukraine so the missiles couldn't be used to fire long-range missiles into Russia.
- The FBI is investigating an attack on two North Carolina electrical substations in Moore County that knocked out power to 45,000 homes and businesses in the region. Authorities say the stations were riddled with gunfire and estimate the attack occurred on Saturday around 7 p.m.
- According to a recent congressional report, fintech companies oversaw many fraudulent loans through the Paycheck Protection Program (PPP) authorized by Congress to provide small businesses with loans during the COVID-19 pandemic. Fintech firms Blueacorn and Womply facilitated one in every three PPP loans.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. 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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