Sinclair Broadcast Group Inc.'s regional sports business filed for bankruptcy Tuesday after cord-cutting consumers left the company unable to service its debt and keep paying for the broadcast rights agreements it had with professional sports teams.
Diamond Sports Group LLC enters chapter 11 aiming to renegotiate its broadcast contracts with teams and to restructure its more than $8 billion of total debt stemming from Sinclair's 2019 deal to purchase the business from Walt Disney Co.
Household Retailer Boxed Is Negotiating With Lenders for Bankruptcy Sale
Grocery courier Boxed Inc. said Tuesday it might file for bankruptcy as it continues to explore a possible sale of the business less than two years after going public through a merger with a special-purpose acquisition company, or SPAC.
The e-commerce company specializing in household staples and pantry items said in a securities filing that it is actively soliciting proposals for the sale of all or most of its assets to improve its liquidity position. Boxed went public in 2021 by merging with a SPAC at a time when the popularity of such blank-check companies was exploding.
DOJ Sues Rite Aid for Allegedly Filling Opioid Prescriptions With 'Obvious Red Flags'
Rite Aid Corp. knowingly filled unlawful prescriptions for controlled substances, ignoring red flags and helping fuel the country's opioid epidemic, the Justice Department alleged in a lawsuit.
The department filed the complaint against the pharmacy chain Monday in federal court in Cleveland, joining an existing whistleblower lawsuit filed in Ohio in October 2019.
Fed to Consider Tougher Rules for Midsize Banks After SVB, Signature Failures
WASHINGTON-The Federal Reserve is rethinking a number of its own rules related to midsize banks following the collapse of two lenders, potentially extending restrictions that currently only apply to the biggest Wall Street firms.
A raft of tougher capital and liquidity requirements are under review, as well as steps to beef up annual "stress tests" that assess banks' ability to weather a hypothetical recession, according to a person familiar with the latest thinking among U.S. regulators.
February Retail Sales to Show if Consumers Pulled Back
A report on February retail sales will show whether Americans pulled back on spending after a strong start to the year, aided by unseasonably warm weather and a strong labor market.
U.S. consumers have shown surprising vigor in early 2023, after their spending weakened late last year. Retail sales, a measure of spending at stores, online and in restaurants, rose by a seasonally adjusted 3% in January, the Commerce Department said. That was the largest monthly gain in nearly two years and came after sales fell in November and December.
Where Investors Are Parking Their Cash Now
Rattled by a volatile stock market and the Federal Reserve's spate of interest-rate increases, more investors are hiding out in cash-alternative mutual funds and short-term bond exchange-traded funds.
Total inflows into money-market funds through mid-March were a net $96.8 billion, according to Refinitiv Lipper, the largest inflow over the first 2 1/2 months of a calendar year since 2008. Short-term U.S. Treasury bond funds saw their third-largest monthly inflows on record-$10 billion-in February.
China's Economy Rebounds, Spurred by Consumption
SINGAPORE-Economic activity in China rebounded in January and February as the country emerged from almost three years of tough Covid-19 controls, adding to signs of resilience in the global economy after the sudden collapse of two U.S. banks unnerved investors.
The data suggest China's expected recovery is broadly on track after posting one of its weakest years for growth in decades in 2022. A pickup in retail sales suggests consumption is taking over as the engine of growth while factories contend with sinking exports and the real-estate sector shrinks, figures published Wednesday show.
China's Central Bank Keeps Key Policy Rates Unchanged
China's central bank kept its key policy rates unchanged on Wednesday, suggesting a hold on benchmark lending rates later this month.
The People's Bank of China injected 481 billion yuan ($70 billion) worth of liquidity into the banking system via its one-year medium-term lending facility at an interest rate of 2.75%. The MLF interest rate, which is used to price the nation's benchmark loan prime rate, was the same as the previous operation.
China and Russia Denounce U.S., Allies Over Submarine Deal
Moscow joined Beijing in criticizing as provocative and destabilizing a plan set this week to speed the sale of U.S. nuclear-powered submarines and technology to Australia, with both U.S. rivals expressing concern that the arrangement risks further proliferation of weapons.
President Biden hosted Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak on Monday in San Diego as they moved ahead with the submarine plans within their existing alliance and a grouping known as Aukus.
Biden to Tout Economic Message in Campaign Battleground State of Nevada
LAS VEGAS-President Biden is visiting the battleground state of Nevada to raise campaign cash and tout his economic message, as the state's Democratic Party completes a tumultuous leadership change that saw the ouster of a divisive liberal as party chair.
Fast-growing Nevada and its six electoral votes could be key in a tight presidential election. The state has voted for a Democrat in the past four election cycles for president. Margins have been tight, however, and Republicans see opportunity heading into next year's contest. The state will be one of the first on the 2024 primary calendar for both parties, though Mr. Biden appears unlikely to face a serious challenge from a fellow Democrat in his expected re-election campaign.
Chinese Doctor Who Sounded the Alarm on SARS Dies
Jiang Yanyong, a military surgeon who sounded the alarm on Chinese authorities' efforts to cover up the extent of a 2003 outbreak of severe acute respiratory syndrome, or SARS, died over the weekend at age 91, according to people close to Dr. Jiang and his family.
Unlike Li Wenliang, a Wuhan doctor who was initially punished for circulating an early warning about the spread of Covid-19 before his death from the disease in 2020, Dr. Jiang wasn't penalized for drawing attention to the impact of SARS in 2003. Both doctors were eventually hailed as folk heroes in state media.
Lawmakers Split on Tighter Rules After Silicon Valley Bank Failure
WASHINGTON-Republican and Democratic lawmakers largely agree that bank regulators were right to step in over the weekend to stop the failure of Silicon Valley Bank from becoming a contagion. They also think bank examiners and the company's management have many questions to answer.
But they disagree on many other fronts. Democrats want to look at tightening regulations on midsize banks they say are too loose, while Republicans are pointing the finger at Democratic spending as a root cause of the bank's weakness. Differences emerged within each party as well. These disagreements mean that any legislation to get ahead of potential future bank problems faces an uphill fight.
Russian Jet Collides With U.S. Drone Over Black Sea
A Russian jet struck a U.S. spy drone over the Black Sea and knocked it out of the sky Tuesday, the Pentagon said, in one of the first direct military confrontations between the two nations' forces since the war in Ukraine began more than a year ago.
The collision demonstrated how closely the U.S. and Russia are operating on the margins of a conflict zone, even as they aim to avoid incidents that could inflame tensions between them and widen the war in Ukraine. While the U.S. has provided Kyiv more than $30 billion in military aid and equipment, as well as intelligence, it has said it wanted to avoid conflict with Russia. Tuesday's incident demonstrated the challenges of supporting the war while, as the U.S. warned Tuesday, avoiding potential "unintended escalation."
Artillery Shortage Hampers Russia's Offensive in East Ukraine, Western Officials Say
Shortages of artillery shells are hampering Russia's grinding advance in eastern Ukraine, Western officials said on Tuesday, as Moscow pushes to capture the city of Bakhmut after months of heavy fighting and Kyiv gears up for a counteroffensive.
Russian ammunition shortages have in recent weeks worsened to the extent that extreme rationing of artillery shells is likely in force on many parts of the front, the U.K.'s Defense Ministry said on Tuesday in its daily intelligence briefing. Other European defense officials agreed with the assessment, with one stressing that Russia was working with partners including North Korea to buy ammunition quickly while it scaled up production.
Ohio Sues Norfolk Southern Over East Palestine Train Derailment
Ohio Attorney General Dave Yost sued Norfolk Southern Corp., seeking to hold the company financially responsible for the train derailment in East Palestine.
The complaint, filed in U.S. District Court of the Northern District of Ohio on Tuesday, sought civil penalties, damages, court costs and other relief for the Feb. 3 incident, which led to the derailment of 38 cars, including 11 tankers carrying hazardous materials that caught fire.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Alimnt. Couche-Tard 3Q
Badger Infra. Sols. 4Q
Converge Tech 4Q
Fortuna Silver Mines 4Q
Franco-Nevada 4Q
i-80 Gold 4Q
Savaria 4Q
Valeo Pharma 1Q
Economic Calendar (ET):
0815 Feb Housing Starts
Stocks to Watch:
DynaCERT and Cipher Neutron Signs MOU With Safe Energy and Astec in India, Europe & Middle East
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Farmers Edge 4Q Rev C$10.6M Vs. C$13.3M; 4Q Rev C$10.6M Vs. C$13.3M; 4Q Loss/Shr C$0.48 Vs. Loss C$0.47; FY Loss/Shr C$2.07 Vs. Loss C$1.81; FY Rev C$32.8M Vs. C$36.2M
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(MORE TO FOLLOW) Dow Jones Newswires
03-15-23 0625ET
