CEOs have gotten more pessimistic in the last five months. There’s a lot to be worried about

What are they pessimistic about? Well, ‘What aren’t they pessimistic about?’ Might be the better question. Geopolitics is at the top of their list, mentioned by 51% of the CEOs, right up there with inflation (51%), followed by financial instability (38%). With wars in Europe and the Middle East and continued tension between the U.S. And China, the world bears some frightening similarities to 1914 and 1939. And persistently high interest rates after a decade and a half of free money means there’s a big receding wave that will certainly catch some people “swimming naked,” as JPMorgan CEO Jamie Dimon put it yesterday, paraphrasing one of Warren Buffett’s most famous quotes.

Labor and skills shortages are still on the minds of 35% of CEOs, and increasing regulation is bothering an equal percentage. Cyber risk came in sixth on their list of concerns, mentioned by 25% of CEOs.

And since it is Friday, some feedback. Matt Kobussen of BlackRock corporate communications wrote in response to my Tuesday report that his company’s votes in favor of environmental and social shareholder actions dropped from 41.3% in the 2020-21 proxy year to a mere 8.7% in the 2022-23 proxy year. He claims new SEC rules broadening the scope of shareholder proposals led to a “decline in proposal quality,” and therefore this steep plunge was not a “singular result of politics.” Okay, I accept that. But does “decline in proposal quality” explain a drop of 32 percentage points? I think not. The political backlash has hit its mark.

More news below.

Alan Murray
@alansmurray
[email protected]

TOP NEWS

Apple earnings

Apple shares fell over 3% in extended trading after the iPhone maker reported a 1% decline in quarterly sales, the fourth in a row. Sales in Greater China were flat, as Apple reportedly struggles to sell the latest iPhone in mainland China, its most important non-U.S. Market. CEO Tim Cook also did not provide updates on the company’s AI plans, using almost the exact same wording on the subject as last quarter’s earnings call. Coins2Day

Guilty

A jury found one-time crypto mogul Sam Bankman-Fried guilty of seven criminal charges, including wire fraud, securities fraud, and money laundering. The Department of Justice accused the FTX founder of misappropriating about $8 billion in customer funds. The jury reached its verdict in just five hours–speedy for a white-collar crime case–almost exactly one year after a scoop from crypto outlet Coindesktriggered the exchange’s collapse. Coins2Day

Saving Yellow

Transport company Jack Cooper is reportedly trying to save bankrupt trucking firm Yellow from liquidation. But Jack Cooper still needs to convince Yellow’s creditors, including the U.S. Government, which gave Yellow $700 million in an emergency loan in 2020. U.S. Senators are now asking the Treasury Department to extend the terms of the government loan to help Yellow find a buyer. Coins2Day

AROUND THE WATERCOOLER

Commentary: Amazon’s $26 billion delivery business runs on exhausted, sweat-soaked drivers running door to door. Now we’re on strike by Cecilia Porter

Consumers are paying more than ever for streaming TV each month and analysts say there’s no reason for the companies to stop raising prices by Rachyl Jones

Think like a hacker and play the long game—How Amazon’s chief security officer protects all that data by Lila MacLellan

Women aren’t turning to ‘lazy girl jobs’ because they’re work-shy—they’re significantly more burned out than men, major Gallup survey finds by Orianna Rosa Royle

Gen Z and millennials have found a lucrative new hobby thanks to skyrocketing luxury prices: Flipping designer handbags by Hillary Hoffower

Brands like Walmart and Nestle are right to worry about Wegovy. Novo Nordisk sold $900m of the weight loss drug last quarter—and 95% was in the U.S.By Ryan Hogg

This edition of CEO Daily was curated by Nicholas Gordon.