The daily business briefing: November 8, 2022
China's COVID shutdown could devastate Foxconn's iPhone revenue, judge denies Theranos founder's bid for new trial, and more
Analysts: China shutdown could send Foxconn iPhone revenue plummeting
Morgan Stanley analysts estimated that Apple supplier Foxconn Technology Group could lose 20 percent of its revenue for the rest of the year if China's COVID-19 shutdowns prevent it from shipping any more iPhones from its Zhengzhou operation in 2022, the investment bank said in a Monday research note. Such a drastic fallout from China's aggressive coronavirus policies is unlikely, but the worst-case scenario would result in a 36 percent drop in revenue from iPhone production from Foxconn's main listed unit, Hon Hai Precision Industry Co. China has ordered Taiwan-based Foxconn to shut down the Zhengzhou manufacturing facilities under Beijing's COVID Zero policy. Apple warned that deliveries of its latest iPhones would be "temporarily impacted" by the restrictions.
Judge denies new trial for Theranos' Elizabeth Holmes
A federal judge on Monday denied Theranos founder Elizabeth Holmes' request for a new trial, according to court documents. Holmes, 37, was convicted in January of defrauding investors in her blood-testing startup, although she was acquitted on three counts of defrauding patients who paid for Theranos blood tests. Her lawyers filed for a new trial based on alleged government misconduct and "newly discovered" evidence from the government's closing arguments at the trial of former Theranos President Ramesh "Sunny" Balwani, who was convicted in July of defrauding Theranos investors and patients. U.S. District Judge Edward Davila said in Monday's ruling that Holmes' lawyers didn't provide enough evidence to prove alleged government misconduct, and prosecutors' statements at Balwani's trial wouldn't clear Holmes.
Tyson Foods CFO arrested after falling asleep in wrong house
Tyson Foods Chief Financial Officer John Tyson, son of the meat giant's chairman, was arrested over the weekend for allegedly falling asleep in someone else's house. Tyson, 32, was charged with criminal trespass and public intoxication after he was found asleep in a woman's bed in Fayetteville Arkansas, according to a preliminary arrest report from the Fayetteville Police Department. Tyson apologized in a companywide email. "I am embarrassed for personal conduct that is inconsistent with my personal values, the company's values, and the high expectations we hold for each other here at Tyson Foods," Tyson said, adding that he was getting counseling on his alcohol consumption.
Stock futures edge up as Election Day begins
U.S. stock futures were little changed early Tuesday ahead of the midterm elections, which will determine which party controls Congress and steers future spending policies. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1 percent at 6:30 a.m. ET. Nasdaq futures were up 0.3 percent. The three main U.S. indexes rose on Monday as candidates made their final pitches for votes. The Dow and the S&P 500 jumped 1.3 percent and 1.0 percent, respectively. The tech-heavy Nasdaq gained 0.9 percent. Republicans are favored to take control of the House from Democrats, while the Senate remains a toss-up.
Twitter's reduced staff struggles to counter political misinformation as Election Day arrives
Twitter workers scrambled to address posts with political misinformation on Monday after the social media company's new owner, Elon Musk, fired roughly half of its staff just days before Tuesday's midterm elections. Musk didn't reduce Twitter's content-moderation staff by as much as other parts of the company, laying off about 15 percent of that department's workers. But employees said ahead of the layoffs Twitter limited how many employees can examine a specific account's history, a process that is part of determining whether it is being used maliciously and should be blocked. Researchers tracking misinformation notified Twitter of three posts by far-right figures on Friday that pushed false election fraud claims.