The daily business briefing: March 31, 2023
Japan restricts advanced chip exports to discourage military use, Virgin Orbit halts operations, and more

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Japan restricts advanced chip exports without specifically targeting China
Japan said Friday it will restrict exports of 23 types of semiconductor manufacturing equipment, bringing it in sync with restrictions the United States announced in October to curb China's access to chipmaking technology and slow its technological and military advances. Japan, which has major chip makers like Nikon and Tokyo Electron, didn't single out China as a target for its policy, but said it wanted to prevent advanced chip technology from being used for military purposes. "We are fulfilling our responsibility as a technological nation to contribute to international peace and stability," Minister for Economy, Trade, and Industry Yasutoshi Nishimura said.
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Virgin Orbit halts operations after failing to secure funding
Virgin Orbit, Sir Richard Branson's satellite-launching rocket company, is halting operations "for the foreseeable future" CEO Dan Hart told employees Thursday. "Unfortunately, we've not been able to secure the funding to provide a clear path for this company," Hart said, according to CNBC, which obtained a recording of his remarks. "We have no choice but to implement immediate, dramatic, and extremely painful changes." The company, which developed a system to put satellites into orbit using a modified 747 jet that drops rockets mid-flight, plans to eliminate about 90 percent of its staff, leaving it with 100 workers. Hart said people who are laid off will get severance, extended health benefits, and a "direct pipeline" to available jobs at sister company Virgin Galactic.
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Biden calls for tightening regulations for midsize banks
President Biden on Thursday urged financial regulators to tighten rules for midsize banks, his strongest response so far to the financial turmoil triggered by the failure of two banks last month. Biden called for requiring banks to shield themselves from potential losses and keep enough cash on hand to get through a crisis. Regulators could accomplish the proposals without congressional action. Biden's plan would subject more banks to annual stress tests to determine whether they are strong enough to weather events like the Federal Reserve's aggressive interest rate hikes, which have been identified as a factor in Silicon Valley Bank's failure this month.
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Netflix scales back film production
Netflix is reworking the unit that makes its films as it aims to scale back the number of movies it makes, the company said Thursday. Film chief Scott Stuber says he is trying to reduce output to help ensure high quality. The streaming service has released more than 50 original movies a year, more than any other company in Hollywood. Netflix plans to combine its units that make small and midsize films, resulting in a small number of layoffs. Lisa Nishimura, who led Netflix into standup comedy and original documentaries in 15 years at the company, will be leaving, as will 10-year Netflix veteran Ian Bricke, a vice president in the film group.
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Stock futures edge higher on last day of 1st quarter
U.S. stock futures were little changed early Friday ahead of a key inflation report on the last day of the first quarter. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2 percent at 6:30 a.m. ET, while Nasdaq futures were down less than 0.1 percent. The Dow is down 1 percent for the quarter while the S&P 500 and tech-heavy Nasdaq are up 5.5 percent and 14.8 percent, respectively. Economists polled by Dow Jones expect that the Federal Reserve's core personal consumption expenditures index, which excludes volatile food and energy costs, rose 4.7 percent on an annualized basis.