World Street | Lockheed Martin flies lower, Netflix on Raw rights, China market mayhem, Amazon online cars

World Street offers a sneak peek into the world of business and economy

Lockheed Martin's profit forecast seems have fallen short of the Street expectations, while Netflix takes the plunge into the wrestling ring Raw. As China tries to heal the bleeding wounds in a faltering stock market, US Treasury yields firm up, and Turkey endorses Sweden's NATO entry. All these and more in this edition of World Street...

Lockheed Martin forecast its 2024 profit below Wall Street expectations on Tuesday, as the US defence contractor's largest aeronautics segment that makes the F-35 jets faces supply chain disruptions, reports Reuters.

US defence firms see a notable increase in orders amid escalating tensions between China and the Philippines, the ongoing conflict between Russia and Ukraine, and in the Middle East. However, pandemic-related disruptions in labour and supply chains are weighing on the sector.

Streaming pioneer Netflix took a big step into live events on Tuesday with a more-than-$5-billion rights deal that would make it the exclusive home of World Wrestling Entertainment's Raw from January 2025. The 10-year partnership will see Raw on the streaming platform in places like the US, Canada, UK and Latin America, the companies said.

China's plunging stock market is leading to losses of billions of dollars worth of derivatives linked to the country's equity inidces, forcing a vicious cycle of selling in stocks and futures contracts, according to a Reuters report. Stock markets in Hong Kong and in mainland China plunged on Monday, extending a long spell of weakness driven by an exit of foreign investors alarmed by China's wobbly economy and a lack of stimulus measures.

Chinese authorities are weighing measures to stabilise the slumping stock market, Bloomberg News reported, citing people familiar with the matter.

Policymakers are seeking to mobilise about 2 trillion yuan ($278.53 billion), mainly from offshore accounts of state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link, the report said.

The rouble eased after hitting a one-week high against the dollar on Tuesday as the Russian government proposed extending capital controls that have buoyed the currency in recent months until the end of the year.

The capital controls, ordered by President Vladimir Putin in an October decree, require exporters to convert foreign currency revenues into roubles.

The Los Angeles Times plans to lay off 94 newsroom employees — one-fourth of its newsroom staff, according to reports. The announcement followed LA Times Guild walking off their job to protest against the layoffs, marking the first newsroom union work stoppage in the newspaper’s 143-year history. Layoffs and buyout have hit several news media organisations - from Washington Post to CNN.

Turkish legislators endorsed Sweden’s membership in NATO, lifting a key hurdle on the previously nonaligned country’s entry into the military alliance. Turkey had been delaying Sweden’s membership for over a year as the country is too lenient towards groups that Ankara regards as security threats. The ratification now goes to Turkish President to sign, after which all allies will have approved Sweden’s membership except Hungary.

Amazon is attempting to bring in a seamless online shopping experience for new and used car sales - a highly complex and regulated industry, as per reports. Last month, the company started its pilot project, allowing a small number of Hyundai dealers to sell vehicles through the platform to employees only. So far, the program is small but dealers have kept their eye on it.

Energy prices for Europe are likely to increase as more petroleum products and crude tankers are diverting away from the Rea Sea and the Suez Canal. At least six crude tankers are taking a much longer route around Africa’s Cape of Good Hope rather than the Suez Canal, a diversion caused by the Houthi rebel attacks, which would add up to 45 days to the voyage, as per global trade intelligence company Kpler.

The US treasury yields continued to remain on an upward trend ahead of key economic data releases later in the week. The yield on 10-year treasury note stayed above 4 percent mark, while 2-year treasury yields were at 4.3 percent last. Investors are also trying to understand when the Federal Reserve's interest rate cut would materialise, a key determinant of market trajectory and economy this year.