>>> What to look at today - 26th of January 2023

European and US equity futures rose, while Asian shares advanced amid a positive tone for risk taking, with a gauge of dollar strength near a nine-month low and hopes for a pause in interest rate hikes.  Hong Kong-listed technology companies surged more than 3% after traders returned from Lunar New Year holidays, pushing a benchmark of Asian stocks toward the highest close since April. Japan’s Topix index erased earlier gains as the yen strengthened, leading the charge among Group-of-10 currencies against the dollar.  Markets in Australia were closed for a national holiday, along with those in India, which have been rocked by US short seller Hindenburg Research LLC targeting Adani Group with accusations of manipulation and fraud. Mainland China markets remain closed. A number of dollar bonds issued by Adani Group declined further Thursday. Among the top losers were Adani Ports and Special Economic Zone’s 2024 notes, which posted the biggest single-day drop since April 2020. Gains posted this week in US-listed Chinese stocks and the S&P 500 added to the updraft for Hong Kong equities. Also supporting sentiment in Asia, holiday travel and box office data in China showed signs of recovery as people took advantage of Beijing’s pivot away from its Covid Zero policy.  The dollar’s weakness accompanied speculation that the Federal Reserve may be getting closer to pausing its rate-hike cycle. The Bank of Canada, which led its global peers in raising rates rapidly last year, has now indicated it will hold steady.
Treasuries were little changed in Asian trading. An auction of five-year Treasury notes on Wednesday extended a winning streak, reflecting robust investor appetite for US government debt. In the US stock market overnight, earlier losses were mostly recovered, as attention shifted from Microsoft Corp.’s dire sales warning to Tesla Inc.’s earnings report after the closing bell. Elon Musk’s electric-vehicle giant whipsawed in late trading before gaining more than 5%. International Business Machines Corp. delivered an upbeat annual sales forecast while announcing it would eliminate about 1.5% of its global workforce, following similar job cuts by many of its tech peers. The S&P 500 is headed for the best January since 2019 driven by expectations that the Fed will moderate its rate hikes. The equity rebound came just as the economy is headed for a downturn — setting the stage for a selloff, JPMorgan Chase & Co.’s Marko Kolanovic told CNBC. The New York Stock Exchange said a manual error tied a backup system caused Tuesday’s wild price swings and trading halts for hundreds of company stocks. Japan’s benchmark 10-year government bond yields rose 2.5 basis points as they inch back toward the BOJ’s 0.5% ceiling. oil steadied as investors weighed the outlook for Chinese demand. Gold was little changed. US After Hours STX +7.6%, LEVI +6.2%, URI +4.5%, LVS +4.3%, TSLA +4.1% higher on earnings; TER -5.5%, NOW -3.6%, LRCX -3.1%, IBM -2% lower on earnings

Nikkei -0,12% Hang Seng +2,23% CSI +0,61% Shanghai +0,76% Shenzen +0,65%

Eur$ 1,0911 CNH 6,7500 CNY 6,7927 JPY 129,59 GBP 1,2394 CHF 0,9177 RUB 69,5186 TRY 18,8127 WTI$ 80,41 Gold 1,944 BTC 23,060 -2,33% ETH 1,610

S&P +0,25% Nasdaq +0,50% EuroStoxx +0,58% FTSE +0,32% Dax +0,55% SMI +0,38%

Macro :
- Biden Says US Will Send Tanks to Ukraine in Broad Allied Effort
- Adani's Stunning $100 Billion Wealth Boom Faces Biggest Risk Yet
- Netanyahu Says Legal Reform Will Strengthen Democracy, Economy

Keep an eye on :
- ARAMI FP : Aramis 1Q Adjusted Revenue EU439.3M Vs. EU396.5M Y/y
- ARCAD NA : Arcadis Prepares Rollout of Dutch National Hydrogen Network
- BUCN SW : Bucher FY Sales Beats Estimates
- CABKA NA : Cabka Names Frank Roerink Interim Chief Financial Officer
- CVX US : Chevron to Buy Back $75 Billion in Stock After Record Profits
- CSGN SW : Credit Suisse Dismisses Bankers in Mexico Amid Global Job Cuts
- DPW GY : Deutsche Post Workers to Strike Again Thursday, Union Says
- DGE LN : *DIAGEO 1H ORGANIC NET SALES +9.4%, EST. +8.12%
- DIC GY : DIC Asset Prelim 2022 FFO ~EU114.2M, Sees 2023 FFO EU90M-EU97M
- EDF FP : French nuclear energy giant EDF to join local market
- EDP PL : EDP Renovaveis Says Electricity Production Rose 10% in 2022
- ELIOR FP : Elior Group 1Q Revenue Misses Estimates
- ESSITYB SS : Essity FY Revenue Meets Estimates (1)
- FINGB SS : Fingerprint Cards 4Q Operating Loss SEK527.3M
- GET FP : Getlink FY Revenue Beats Estimates
- GRNG SS : Granges 4Q Adjusted Operating Profit Misses Estimates
- INTRUM SS : Intrum 4Q Revenue Beats Estimates
- LR FP : Legrand to Divest Russian Operations, Expects ~€150m Impairment
- LLOY LN : Lloyds Invests in App Helping London Bankers Avoid Traffic Fines
- MDM FP : Maisons du Monde 4Q Sales EU358M Vs. EU369M Y/y
- NOKIA FH : Nokia Beats Fourth-Quarter Estimates Amid ‘Robust’ Demand
- TIGO SS : Apollo and Marcelo Claure in talks over buyout of LatAm telco Millicom
- MS US : Morgan Stanley Fines Bankers Over Messaging Breaches: FT
- EGP PL : Mota-Engil Shares Jump as CaixaBank Sees ‘Strong Growth Ahead’
- OTOVO NO : Otovo Offering of 12.6m Shares Prices at NOK19.88/Share via DNB
- PGS NO : PGS 4Q Ebitda Beats Estimates
- PRX NA : Prosus to Cut 30% of Corporate Staff in Latest Tech Layoffs
- RANK LN : Rank Group 1H Net Gaming Revenue GBP338.9M Vs. GBP333.7M Y/y
- READ SS : Bonnier News Increases Offer Price to SEK14.40/Share for Readly
- RWE GY : Germany’s RWE Sees Windfall as Energy Crisis Stokes Profits
- SAB SM : Sabadell 4Q Net Income Beats Estimates
- SAP GY : SAP Will Explore Sale of its Controlling Stake in Qualtrics
- SRT GY : Sartorius FY Adjusted Ebitda Meets Estimates
- SEBA SS :
- SGSN SW : SGS FY Adjusted Operating Income Misses Estimates
- SHEL LN : Trinidad to Speed Up Gas Project with Shell After Waiver: PM
- SOI FP : SOITEC 3Q Like-for-Like Sales +25%
- SON PL : Sonae’s MC Unit Says 2022 Sales Rise 11.5% to €5.98b
- STM FP : STMicroelectronics 1Q Net Revenue Forecast Beats Estimates
- TELIA SS : Telia 4Q Adjusted Ebitda Meets Estimates
- TSLA US : Tesla 4Q Adj EPS $1.19, Est. $1.12
- TOD IM : Tod's FY Revenue Beats Estimates
- TTE FP : Reportedly Qatar said to be in talks to acquire stake in cluster of Iraq energy projects from, looking for a 30% stake
- TRYG DC : Tryg 4Q Profit After Tax Beats Estimates
- VOLVB SS : Volvo Fourth-Quarter Earnings Miss on Cost Pressure, Supply Woes
- WDI GY : EY Germany to axe hundreds of jobs in post-Wirecard cost-cutting push

>>> Europe : Brokers Upgrades & Downgrades - 26th of January 2023

>>> Up
* BAE Raised to Buy at SocGen
* Lonza Raised to Overweight at KeyBanc; PT 650 Swiss francs
* Thales Raised to Buy at SocGen; PT 141 euros

>>> Down
* Arjo Cut to Sell at Pareto Securities; PT 35 kronor
* Axfood Cut to Hold at Nordea
* Boohoo Cut to Underperform at RBC; PT 35 pence
* Grolleau Cut to Hold at Stifel; PT 7.30 euros
* Lonza PT Cut to 500 Swiss francs at Intron Health
* Netcompany PT Cut to 260 kroner from 325 kroner at Citi
* Nibe Cut to Sell at Pareto Securities; PT 105 kronor
* Novartis Cut to Neutral at Citi After Revamp, Drug Headwinds
* Prodways Cut to Neutral at Oddo BHF; PT 3.40 euros

>>> Initiation
* Advanced Medical New Buy at Berenberg on Strong Growth Outlook
* Alstom Reinstated Outperform at Oddo BHF; PT 31.80 euros

>>> Call
* Daetwyler Falls as Berenberg Sees Short-Term Headwinds Ahead
* Lloyd’s Insurers Entering ‘Golden Era,’ Hiscox Raised: JPMorgan
* Netcompany Cut at MS, PT to Street-Low at Citi on Margins
* Ocado, Boohoo Both Cut at RBC on Cautious Internet Stocks View
* Saipem Top Oil Services Pick at JPMorgan, Subsea 7 Downgraded
* Soitec 3Q Sales In-line With Inventories a Concern: Berenberg
* Vonovia, LEG, TAG Property Headaches Might Have Only Just Begun

>>> US After Hours Summary: STX +7.6%, LEVI +6.2%, URI +4.5%, LVS +4.3%, TSLA +4

After Hours Summary: STX +7.6%, LEVI +6.2%, URI +4.5%, LVS +4.3%, TSLA +4.1% higher on earnings; TER -5.5%, NOW -3.6%, LRCX -3.1%, IBM -2% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: STX +7.6%, LEVI +6.2%, URI +4.5% (also initiates dividend; also plans to restart its share repurchase program), ETD +4.4%, LVS +4.3%, TSLA +4.1%, XM +2.9%, CALX +2.6%, AXS +2%, HXL +0.5% (also increases dividend), SLG +0.4%, STLD +0.4%, LBRT +0.3%, AMP +0.1%, CNS +0.1%

Companies trading higher in after hours in reaction to news: DV +8% (to join S&P SmallCap 600), CVX +2.5% (authorizes new $75 bln share repurchase program; also increases dividend), TGNA +2.2% (DoJ nearing buyout approval, according to NY Post), ET +1.3% (increases dividend), WU +1.1% (names new CFO), DELL +0.7% (has acquired cloud orchestration startup Cloudify, according to TechCrunch), LMT +0.6% (SAP and LMT expand strategic relationship), DWAC +0.5% (Facebook and Instagram to lift Trump suspension, according to NBC News), OFG +0.2% (increases dividend), BHLB +0.2% (names new CFO; also authorizes new $50 mln share repurchase program), META +0.2% (Facebook and Instagram to lift Trump suspension, according to NBC News)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: WOLF -7.3%, TER -5.5% (also authorizes new $2 bln share repurchase program), FLEX -3.9%, NOW -3.6%, LC -3.4%, LRCX -3.1% (also commences 7% workforce reduction), AZPN -2.2%, AXTA -2.1%, IBM -2% (also will cut about 3,900 jobs, according to Bloomberg), BOOT -1.9%, PLUG -1.1%, LCII -1%, CSX -0.8%, RLI -0.5%, SEIC -0.3%, CLS -0.2%, PKG -0.1%

Companies trading lower in after hours in reaction to news: FNA -10% (stock offering), SNX -7% (announces 4.5 mln share offering by selling stockholders and concurrent repurchase authorization of 900,000 of those shares), BX -0.9% (UC Investments will acquire an additional $500 mln in BREIT shares), NKLA -0.7% (introduces new hydrogen energy brand "HYLA"), CPB -0.6% (names new CFO), LUV -0.3% (Dept of Transportation is probing scheduling meltdown, according to WSJ)

>>> US Notable earnings/guidance movers: LEVI +7%, STX +6%, URI +5.8%, XM +3.5%, ETD +2.6% on upside; LC -7.7%, BOOT -5.3%, NOW -5.3%, FLEX -3.5%, LRCX -2.7% on downside


Notable earnings/guidance movers: LEVI +7%, STX +6%, URI +5.8%, XM +3.5%, ETD +2.6% on upside; LC -7.7%, BOOT -5.3%, NOW -5.3%, FLEX -3.5%, LRCX -2.7% on downside

  • Earnings/guidance gainers: LEVI +7%, STX +6%, URI +5.8%, XM +3.5%, ETD +2.6%, CALX +2.1%, HXL +1.9%, LVS +1.4%
  • Earnings/guidance losers: WOLF -7.9%, LC -7.7%, BOOT -5.3%, NOW -5.3%, FLEX -3.5%, LRCX -2.7%, AZPN -2.2%, AXTA -2.1%, SLG -1.7%

>>> US Close Dow +0,03% S&P -0,02% Nasdaq -0,18%

Closing Stock Market Summary

Today's trade looked a lot different at the open compared to where things ended up. Valuation concerns following Microsoft's (MSFT 240.61, -1.43, -0.6%) disappointing fiscal Q3 outlook and expected growth deceleration for its Azure business fueled a broad retreat to kick off the session. 

Investors also had a negative reaction initially to results and/or guidance from the likes of Dow component Boeing (BA 212.68, +0.70, +0.3%), Texas Instruments (TXN 175.04, -2.00, -1.1%), Kimberly-Clark (KMB 132.06, -2.57, -1.9%), and Norfolk Southern (NSC 242.97, -12.91, -5.1%). This added to the early weakness and the sense that the market might have gotten ahead of itself with the January rally. 

There was also an element of geopolitical angst in play after Germany and the U.S. reached an agreement to supply tanks to Ukraine for its fight against Russia.

Sentiment started to shift, however, when buyers showed up fairly quickly after the S&P 500 slipped below its 200-day moving average (3,961). Most stocks either narrowed their losses or completely recovered and closed the session with a gain. The Invesco S&P 500 Equal Weight ETF (RSP) was down 1.4% at its low for the day, but managed to close with a 0.2% gain. 

Even Microsoft, which had been down as much as 4.6%, briefly tipped into positive territory before settling with a slim loss. 

The resilience to early selling efforts became its own upside catalyst and the rebound effort picked up steam in the afternoon trade, likely driven by some short-covering activity and a fear of missing out on a potential breakout move.  The main indices ultimately closed near their best levels of the day, which had the S&P 500 above the 4,000 level and the Dow Jones Industrial Average in positive territory. 

Market internals highlight the strong reversal seen today. Early on, decliners led advancers by a 4-to-1 margin at the NYSE and a nearly 3-to-1 margin at the Nasdaq. At the close, advancing issues had the lead over decliners by a slim margin at both the NYSE and the Nasdaq. 

Roughly half of the 11 S&P 500 sectors closed with a gain led by financials (+0.7%) thanks to an earnings-driven gain in Capital One (COF 116.09, +9.58, +9.0%). The defensive-oriented utilities sector (-1.3%) was the worst performer and the only sector to move more than 1.0%.

Notably, the Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) outpaced the three main indices today to close with a modest gain. 

  • Nasdaq Composite: +8.1% YTD
  • Russell 2000: +7.3% YTD
  • S&P Midcap 400: +6.5% YTD
  • S&P 500: +4.6% YTD
  • Dow Jones Industrial Average: +1.8% YTD

Reviewing today's economic data:

  • Weekly MBA Mortgage Applications Index 7.0%; Prior 27.9%
  • Weekly EIA Crude Oil Inventories +0.533M; prior +8.41M

Looking ahead to Thursday, market participants will receive the following economic data:

  • 8:30 ET: Advance Q4 GDP (consensus 2.6%; prior 3.2%), advance Q4 Chain Deflator (consensus 3.2%; prior 4.4%), December Durable Orders (consensus 2.9%; prior -2.1%), Durable Orders ex-transportation (consensus -0.2%; prior 0.2%), weekly Initial Claims (consensus 205,000; prior 190,000), Continuing Claims (prior 1.647 mln), December advance goods trade deficit (prior -$83.30 bln), December advance Retail Inventories (prior -0.3%), and December advance Wholesale Inventories (prior 1.0%)
  • 10:00 ET: December New Home Sales (consensus 614,000; prior 640,000)
  • 10:30 ET: Weekly natural gas inventories (prior -82 bcf)

Valero Energy (VLO), Comcast (CMCSA), Archer-Daniels (ADM), American Airlines (AAL), Dow (DOW), Northrop Grumman (NOC), Southwest Air (LUV), Mastercard (MA) and Blackstone (BX) are some of the notable names reporting earnings ahead of tomorrow's open.

Business Of Fashion : What Happened to Crypto’s Luxury Shoppers

What Happened to Crypto’s Luxury Shoppers
The crypto market’s dramatic decline hasn’t totally curbed its wild spending, though it does look to be shifting its predilection for loud luxury toward a more discrete sense of style.

KEY INSIGHTS
  • Crypto insiders say there's been a shift from loud, flashy fashion toward a more discrete and simplified style as asset prices have fallen and the industry has suffered.
  • With parties and conferences being part of the culture, crypto shoppers are still spending, but how much they're dropping on luxury goods and what they're buying has changed.
  • It's difficult to gauge how much crypto consumers are foregoing luxury purchases, but experts point to a "you only live once" attitude keeping many spending.

These days, a leather minidress isn’t on Meltem Demirors’ shopping list.

A crypto investor and chief strategy officer of CoinShares, a digital asset management firm, Demirors said her fashion spending changed as the crypto market has suffered through its downturn. The industry has endured a prolonged slump in currency values and the spectacular collapses of pillars such as the Terra stablecoin and crypto exchange FTX. Demirors was among those to feel the FTX fallout.

“I think pretty much everyone in the industry did,” she said. “But you know, I’m on a one-woman mission to make this industry stylish. That hasn’t stopped.”

Demirors hasn’t given up her luxury brands — she’s particularly partial to Prada — but her priority is on clothes she’ll wear in her day-to-day life: fewer leather minidresses, more understated pieces from labels like The Row.

She’s also adjusting to the industry’s more subdued mood. Travelling and attending events — and looking good while you’re there — are part of the culture in crypto. The parties and conferences are still happening, but they’re perhaps less exuberant than they used to be.

“So maybe instead I buy something different that’s more versatile, more comfortable, maybe a little bit more situationally appropriate for the current environment,” she said.

In late 2021, the crypto industry was on a high. The price of Bitcoin topped $60,000, NFTs were booming and crypto insiders were flush with funds that they directed toward purchases of items like luxury watches and high-end fashion. Fashion brands sought their piece of the action, taking cryptocurrencies as payment, releasing NFT collections and flocking to cities such as Miami, a popular crypto hub, where they staged runway shows and opened stores. That December, analysts at Jefferies estimated crypto wealth may have driven as much as a quarter of luxury sales in Miami over the preceding year.

A large amount of that wealth has since been wiped out. Currencies like Bitcoin and Ether are presently worth about one-third of their 2021 peaks. A number of firms in the industry have slashed their workforces.

Exactly what the effect has been on luxury sales in the US is difficult to pin down. Prices on the secondary market for certain high-end watches coveted by crypto investors have fallen off their early 2022 highs. But a sizable share of crypto’s riches was concentrated in a small number of hands to begin with, and plenty of investors held other assets they could fall back on. Even as the industry has faltered, the US luxury market remained strong throughout 2022. (It has recently begun to slow as middle-income Americans rein in their purchases in the face of inflation and rising interest rates.)

What’s notable is that spending by crypto shoppers isn’t quite as conspicuous as it once was. While some are certainly still buying, for others, how much they’re dropping on fashion and what they’re purchasing has changed.

Crypto’s Style Shift

Tough times haven’t curtailed spending entirely.

“My clients, they’re still movin’ and groovin’,” said Donté McGuine, a stylist with a number of crypto clients and co-founder of the brand Wahine with actor and model Evan Mock. “The jets are still jetting and the yachts are still yachting.”

But even McGuine’s clients have changed what they’re buying. Generally speaking, they’re shopping a little smarter, McGuine said. One client who travels frequently has moved away from buying runway pieces, for example, and is focused on simpler items that still pop but can also be packed easily in a suitcase.

“For an industry where consumption is part of the job, some of that has changed,” said Raihan Anwar, director of community at Blockchain Creative Labs and head of community and culture for Friends With Benefits, a crypto group centred on crypto’s intersection with culture. “There has been an overall shift to being a little more tactful, a little more utilitarian.”

Anwar has noticed a growing emphasis on connoisseurship, with watches being an example. Crypto shoppers still want pieces from Rolex and Patek Philippe, he said, but they’re also “talking more about the Omegas of the world” — excellent timepieces that just don’t have quite the same trophy status. They’re looking for specific models and vintage pieces, too, rather than just buying a hyped watch like a Nautilus or Royal Oak. In terms of clothing, some of his friends have gotten into buying vintage Yohji Yamamoto and Cav Empt, the label co-founded by Japanese streetwear pioneer Sk8thing.

Demirors said she’s observed a fashion shift away from loud prints and logos to items that are more discrete. There’s less Gucci and more brands like Loro Piana and Zegna for men, or Bottega Veneta and Margiela for women. (Nobody is touching Balenciaga after its strongly criticised campaign featuring children alongside sexually suggestive toys, she noted.) Women and men alike are buying Issey Miyake’s Pleats Please.

“In the bull market there was a lot of indiscriminate buying,” she said. In today’s bear market, however, shoppers are starting to develop their own personal style and emphasising items that, as Demirors put it, are a little more “refined” and “adult.”

Effects of the Crypto Crash

On his last US trip in November, Flavio Cereda, an analyst at Jefferies who was involved in the firm’s previous estimates on crypto’s luxury spending, said some brands were already seeing softer sales, but that probably had more to do with “their own weakening brand heat more than crypto crash,” he wrote in an email. Top performers like Louis Vuitton, Dior and Chanel were still doing quite well.

In the Miami Design District, home to a number of luxury stores that receive crypto customers, momentum at the shops hasn’t slowed, according to Danielle Merollo, the district’s director of personal shopping. Morello said in a statement that recent store openings by several new luxury brands have drawn a steady influx of personal shopping clients “who go well beyond the cryptocurrency wealth consumers.”

Of course, that it’s harder to spot crypto’s effects at all is arguably noteworthy.

“In late 2021 the impact of crypto in the US was obvious — this is not so much the case today,” Cereda wrote in his email.
The secondhand market for high-end watches is one arena where insiders say there has been a visible impact. By May of last year, values of some timepieces were down 30 percent to 40 percent, according to Jeffery Fowler, chief executive of Hodinkee, a popular watch resource and marketplace.

While Fowler said there were other factors at play that make it difficult to draw a direct line of cause and effect to the crypto crash, like weakness in the broader stock market and plummeting market values for tech firms, he believes crypto’s troubles were a key part of the mix.
“I think the correlation holds,” he said.

Chrono24, a watch marketplace that’s based in Germany but now sees its highest number of sales in the US, also pointed to a “direct impact” from crypto’s decline, its co-CEO and founder, Tim Stracke, said in a statement.

The YOLO Lifestyle

Even in a downturn, however, crypto shoppers might be more willing to spend their disposable income on discretionary items like luxury products and expensive fashion.

The industry has “historically showed a strong ‘YOLO’ (You Only Live Once) attitude,” Federica Levato, a senior partner and the EMEA leader for fashion and luxury at Bain & Company, wrote in an email.
It has tended to attract young talent willing to trade high risk for potentially high rewards right now, not necessarily a job with a long horizon that allows them to save for retirement. McGuine also pointed to a “YOLO lifestyle” as a factor in how his clients shop. They don’t generally have responsibilities such as kids or a mortgage and are focused on enjoying the present.

If the crypto market does eventually pick up again, it seems likely luxury purchases will rise again with it. Fowler said Hodinkee saw prices of hyped timepieces stabilising after the crypto prices hit bottom and levelled out last year.

Demirors said she feels 100 percent certain the industry will rebound and spending will continue. That spending will just look different than it used to.

WSJ : A Casino at Saks, Times Square or the U.N.? Companies Pitch NYC Officials

A Casino at Saks, Times Square or the U.N.? Companies Pitch NYC Officials
Lawmakers representing midtown Manhattan have been skeptical, though they haven’t shut the door entirely

Gambling companies competing to build a casino in Manhattan, one of the industry’s most coveted untapped markets, face skepticism from officials who would need to approve projects in the heart of the city.

Real-estate and casino developers are pitching several sites in midtown Manhattan, including on the top floors of the Saks Fifth Avenue across from Rockefeller Center and in the very heart of Times Square. It’s vital to be near the city center to draw the right mix of tourists and wealthy clients, they said.

For years, New Yorkers have had to leave the city limits to gamble at full-fledged casinos in Atlantic City or rural Connecticut. Four casinos in upstate New York have opened since 2014. Now, state gambling regulators are conducting a competitive bid process for three downstate licenses. Industry players expect two will go to video-slot parlors that already operate in Yonkers and another near John F. Kennedy International Airport in Queens—essentially leaving only one up for grabs.
A gambler slides a $100 bill into an electronic baccarat game at Resorts World, a video-slot parlor in Queens.

“New York City, for a whole host of obvious reasons, is the single-most important, unclaimed prize in gaming,” said Michael Pollock, managing director of Spectrum Gaming Group, a gambling research firm that issued a report on the New York market for state leaders. “Because of its New York City brand, because of its population, its disposable income, its existing tourism infrastructure.”

Three downstate casinos combined could generate as much as $4.4 billion in gross gambling revenue, according to Spectrum’s report.
Officials haven’t set a deadline for applications, the exact requirements of which were announced on Jan. 3. Bidders must commit to investing at least $500 million and paying a one-time $500 million fee.
Before any proposals are considered by the state’s Gaming Facility Location Board, an applicant must secure two-thirds support from a Community Advisory Committee, made up of representatives of Gov. Kathy Hochul, the state lawmakers who represent a site, and in New York City, the mayor, borough president and local City Council member.

State and local officials who represent midtown Manhattan have been openly skeptical about casinos, though they haven’t shut the door entirely. Construction of housing is a more pressing concern in a part of the city where the median monthly rent now exceeds $4,000.

“There’s going to be an uphill road for any site in Manhattan,” said Manhattan Borough President Mark Levine, a Democrat.
A rendering of Caesars Palace Times Square from SL Green Realty Corp.
ILLUSTRATION: SL GREEN

Mayor Eric Adams has said he hopes two of the new casinos will be placed in the five boroughs given the economic benefits to the city, but he hasn’t supported a specific site. Ms. Hochul hasn’t commented on specific plans but has said casinos would create jobs.

According to a Siena College Research Institute poll released Monday, support for and opposition to Manhattan casinos were tied at 38%.

Casinos could help revitalize parts of the borough, proponents say. The island has grappled with low office-occupancy rates and decreased foot traffic since the start of the pandemic.

Across the city, tourists have returned faster than office workers. The city experienced a 70% increase in visitors last year compared with 2021, according to NYC & Company, the city’s tourism marketing arm.

Mr. Levine said he’s heard pitches from four developers. In addition to privately briefing officials, some operators have also talked publicly about their plans and begun to enlist support from local residents and businesses.

In some instances, the jockeying has pitted business communities against each other.
Caesars Entertainment Inc. and office landlord SL Green Realty Corp. have proposed converting a Times Square office tower into a hotel and casino. It would cater to Midtown office workers and tourists who already come to the area, said Brett Herschenfeld, an SL Green executive vice president.
“In order for Times Square to remain relevant for 10, 20, 30 years down the road, it’s not Broadway that’s going to be the sole source of entertainment that will carry Times Square,” Mr. Herschenfeld said.
A rendering shows a proposal by the Soloviev Group for a park, residential towers and a casino at the Freedom Plaza site along the East River in Manhattan.
ILLUSTRATION: SOLOVIEV GROUP
The 6.5-acre lot owned by the Soloviev Group in Manhattan has been vacant for 17 years.

The Broadway League, which represents theater owners, issued a statement saying a casino “would bring deep economic and social disruption” to the area. Owners of some major Times Square restaurants support the proposed casino, and the Times Square Alliance, a business-backed organization that promotes the area, said it was choosing not to take sides.

Times Square has been a center of entertainment in New York for more than 100 years, and a cluster of theaters developed in the early 20th century. The Great Depression forced many theaters out of business, and they were replaced with burlesque shows, penny arcades and even illicit gambling. State and city officials starting in the 1980s began to redevelop the area to be more family friendly.

A few blocks east of Times Square, Saks hopes to convert the top four floors of its flagship store near Rockefeller Center into a “a luxury, high-end casino,” akin to what a gambler might find in Monte Carlo, Mr. Levine said. A spokeswoman for Saks parent Hudson’s Bay Co. said its facility could open faster than others because it is retrofitting existing real estate.

Soloviev Group, a property developer, has unveiled renderings for a casino just south of the United Nations headquarters along the East River at the 6.5-acre site of a former power plant.


The developer is proposing a casino capped by green space and a Ferris wheel, according to a pitch deck provided by the company.

Neither Saks nor Soloviev have announced partnerships with established gambling operators, but representatives of each developer said they are in talks. Wynn Resorts Ltd. , which operates casinos in Las Vegas and Macau, has partnered with Related Cos., a real-estate developer, on a proposal for a facility in the next phase of Related’s Hudson Yards development.

Vornado Realty Trust, which has plans to develop sites around the Pennsylvania Station rail hub, is studying the possibility of applying for a casino license in the area, a spokesman said.

Three other groups are considering casinos outside Manhattan. Las Vegas Sands Corp. has put forward a plan for a new facility on Long Island adjacent to the Nassau Coliseum. Thor Equities, another real-estate developer, is pitching a casino for Coney Island.

New York Mets owner Steve Cohen has held talks with gambling companies about including a casino in a redevelopment of the parking lots surrounding the baseball team’s stadium in Flushing.

Brian O’Dwyer, chair of the New York State Gaming Commission overseeing the bidding and selection process, told the three members of the Gaming Facility Location Board—which will evaluate and recommend projects—that their ultimate decision would be controversial no matter what they do.
“Few people will be pleased,” Mr. O’Dwyer said.
Saks hopes to convert the top four floors of its flagship store near Rockefeller Center into a ‘a luxury, high-end casino.’
PHOTO: EDUARDO MUNOZ/REUTERS

FT : Polymetal prepares to shift listing from London to Kazakhstan

Polymetal prepares to shift listing from London to Kazakhstan
Move would allow gold miner to split its Russian and Kazakh businesses

Polymetal is preparing to relocate its domicile from Jersey to Kazakhstan, so that the Anglo-Russian gold miner can carve out its Russian business in the wake of sanctions and war.

Until recently one of the most profitable gold miners in the world and a FTSE 100 company until last year, Polymetal has become emblematic of the difficulties in navigating mounting sanctions against Russia, despite not being targeted itself.

By redomiciling to Kazakhstan, the company could be allowed by Moscow to split its assets, carving out its Kazakh and Russian mines into separate entities.

Russia has banned asset sales by gold miners domiciled in “unfriendly” places such as Polymetal’s current choice of the Channel Islands.

“This would allow for the restoration of shareholder value, because the Kazakh business would re-emerge without being under the shadow of sanctions,” chief executive Vitaly Nesis told the Financial Times.

The redomiciling could be accomplished by the third quarter of this year, allowing for the split to take place potentially in the first quarter of 2024, he added.

By separating the assets, shareholders in the Kazakh mines — which accounted for more than half the company’s profits last year — could enjoy a more favourable valuation, Nesis said. The structure would also allow shareholders in the Russian mines to receive their normal dividends, which are currently blocked.

The group has eight gold and silver mines in Russia, and two in Kazakhstan. Its main holding company is incorporated in Cyprus and is owned by a Jersey-domiciled entity listed on the London Stock Exchange.

Polymetal last year produced 1.7mn ounces of gold equivalent, 2 per cent higher than in 2021, and has forecast similar production levels this year.

Sales of gold — which had temporarily fallen as sanctions forced the company to find new buyers for its Russian-produced metal — recovered by the end of the year, partly because of a surge in buying by Russian retail investors.

The Astana International Exchange (AIX) does not have arrangements in place that allow proxy voting for remote shareholders, but Nesis said Polymetal was working with AIX to make sure the infrastructure for this was put in place.

He said that while he would like to remain listed in London, this would probably be impossible once the redomiciling was complete. Polymetal’s efforts to list depository interests in London had been “denied” by service providers that “refused to deal with us”, he added.

The EU’s ninth sanctions package, adopted in December, prohibit new investment in the Russian mining sector.

The company’s share price dropped 10 per cent at market open on Wednesday before recovering some of its fall to trade 3 per cent down by late morning.