The daily business briefing: August 9, 2023

1. China exports fall, consumer prices drop

Beijing on Wednesday reported that its exports to the rest of the world plunged in July at their fastest pace since February 2020, as Western manufacturers reduced their reliance on Chinese suppliers. The decline threatened to slow China's recovery from the coronavirus crisis despite government efforts to stimulate the world's second largest economy. Nomura economists wrote in a note to investors that exports will probably keep falling through 2023. China's National Bureau of Statistics also reported that consumer prices fell 0.3% and producer prices fell 4.4% in July compared to a year earlier, as demand remained weak despite the lifting of pandemic restrictions.

The Wall Street Journal The New York Times

2. Los Angeles city workers stage 1-day walkout

Thousands of Los Angeles municipal workers walked off the job for a one-day strike on Tuesday, in the first major walkout by the city's employees in decades. The striking employees — including airport custodians, lifeguards, traffic officers, engineers, and sanitation workers — accused the city of unfair labor practices and refusing to bargain in good faith, saying job vacancies were forcing them to work longer hours for less pay. "L.A. city you're no good," workers wearing purple union T-shirts chanted at Los Angeles International Airport. "Treat your workers like you should." Mayor Karen Bass and other officials denied that the city was being unfair, and said no services would shut down during the strike.

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Los Angeles Times

3. Stock futures firm up after Tuesday's losses

U.S. stock futures rose slightly early Wednesday after Tuesday's losses. Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were all up 0.1% at 7:30 a.m. ET. The major indexes fell on Tuesday after Moody's downgraded 10 small and mid-sized U.S. lenders, dragging down bank stocks and dampening investor sentiment. The Dow and the S&P 500 closed down a little more than 0.4%, while the tech-heavy Nasdaq fell 0.8%. Some analysts said the pullback could indicate trouble, while others said it was to be expected after this year's rally. "I think you're just seeing a little bit of a breather," Victoria Greene, chief investment officer G Squared Private Wealth, told CNBC's "Closing Bell: Overtime."

CNBC

4. ESPN combines with Penn Entertainment to create ESPN Bet

ESPN and Penn Entertainment on Tuesday announced a 10-year deal to create an online sports betting brand called ESPN Bet. Penn will pay ESPN $2 billion for the use of its name, marketing and talent. Penn will relaunch its Barstool-branded online app as ESPN Bet, and operate it. ESPN Chair Jimmy Pitaro said combining ESPN's brand and Penn's sports-book experience offered a "tremendous opportunity to serve the ever-growing number of consumers interested in betting." Penn bought a stake in Barstool Sports, a controversial sports media company founded by Dave Portnoy, in 2020 and acquired the rest of the company earlier this year, but its Barstool-branded sportsbook struggled to gain market share. Penn said Tuesday it had sold Barstool back to Portnoy.

The New York Times The Washington Post

5. Sony reports profit drop as Hollywood strikes delay films

Sony reported Wednesday that its fiscal first-quarter profit fell 17% from a year earlier, fueling concerns about the financial fallout from strikes by Hollywood writers and actors. The Japanese electronics and entertainment company posted quarterly profit of $1.5 billion, down from about $1.8 billion a year ago. Sony said a favorable exchange rate boosted the results, while revenue in its movie operations was expected to suffer due to the Writers Guild of America and Screen Actors Guild-American Federation of Television and Radio Artists strikes, which have resulted in delays to movie and TV show releases. Sony Pictures profit fell to $115 million, a 68% drop from the same period in 2022.

The Associated Press The Hollywood Reporter