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Saudi Arabia and five other Gulf Arab countries issued a joint statement demanding that Netflix remove content they say “violates Islamic and societal values and principles,” Saudi media reported.
The statement said that the streaming giant’s material was in breach of government regulations.
Netflix has come under fire in many Middle Eastern countries for its featuring of LGBTQ+ characters and content.

Jakub Porzycki | Nurphoto | Getty Images

Saudi Arabia and five other Gulf Arab countries issued a joint statement demanding that Netflix remove content they say “violates Islamic and societal values and principles,” Saudi media has reported.
The statement said that the streaming giant’s material was in breach of government regulations, though it did not make specific reference to which topics or shows broke those rules.

It’s widely believed, however, and voiced by local media and officials, that Netflix shows featuring homosexual characters, same-sex kissing and children portrayed in a sexual light are the targets of the directive.
The move was taken “in light of the recent observation that the platform was broadcasting visual material and content which violates content controls in GCC countries,” the statement by the Saudi General Commission for Audiovisual Media and the GCC Committee of Electronic Media Officials said Tuesday.
The content “violates Islamic and societal values and principles. As such, the platform was contacted to remove this content, including content directed at children, and to ensure adherence to the laws.”
The GCC, or Gulf Cooperation Council, is comprised of the largely conservative, Muslim-majority states of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. Homosexuality is criminalized in these countries and can be punished by fines, prison time or even the death penalty. 
The authorities also threatened legal action if Netflix fails to adhere to its demand.

“All legal measures will be taken to protect the Kingdom’s sovereignty, citizens and residents from any intellectual attack aimed at affecting its societies, values, safety of upbringing their generations and protecting them from harmful content,” Esra Assery, CEO of the Saudi General Commission for Audiovisual Media, told Saudi outlet Arab News.
Netflix has not yet publicly responded to the statement and had no comment when contacted by CNBC.

A ban in Saudi Arabia?

Saudi state news channel Al Ekhbariya TV released a televised report on the topic on Tuesday featuring clips from the Netflix animated show “Jurassic World: Camp Cretaceous.” The report from the state network showed a blurred scene of two female characters expressing their love for one another and kissing.
Al Ekhbariya posted its report on its official Twitter account, which has 1.4 million followers, with the caption “Netflix promotes child homosexuality under a cinematic cover. Will #Netflix be blocked in Saudi Arabia soon?”
Another tweet from the state network read, “Netflix threatens the healthy upbringing of children,” and spreads “immoral messages.” A video in its tweet featured the hashtags “#CancelNetflix” and “#BoycottNetflix.”

Saudis shop at a supermarket at the Panorama Mall in the capital Riyadh.
Fayez Nureldine | AFP | Getty Images

Netflix has not responded to the accusations. But many of its users in the U.S. and Europe have celebrated the featuring of LGBTQ+ characters and content on the streaming platform, saying it sets a positive example for inclusivity and representation. Netflix still boasts the highest number of users of any paid-subscription streaming service, with some 220 million subscribers worldwide as of last June.
A YouGov survey from September 2021 found Netflix to be the most popular streaming service in Saudi Arabia, with 37% of residents in the kingdom saying they use it.

A crackdown on LGBTQ+ themes

This is far from the first time authorities in the oil-rich Arab Gulf states have clashed with Western media on the topic of homosexual content. In June, the Gulf countries, along with several others in East and South Asia, banned the cinematic release of Disney Pixar’s animated movie “Lightyear” over its featuring of a same-sex relationship and a brief same-sex kiss.
And in July, e-commerce giant Amazon was directed by the UAE government to block search results for LGBTQ-related products on its UAE website. Shortly before that, authorities in Saudi Arabia raided several children’s stores to seize rainbow-themed toys and clothing as part of a crackdown on homosexuality, state media reported at the time.
The pushbacks against LGBTQ+ themes come as some of the region’s countries, particularly Saudi Arabia and the UAE, attempt to diversify their economies away from hydrocarbons and attract new investment.
Part of their strategies includes liberalizing reforms and relaxing some previously strict social laws in order to attract talent from other parts of the world. Up until 2018, movie theaters were banned in Saudi Arabia; they are now being built all over the country due to these reforms, though censorship of certain content still applies.
Activists and human rights organizations have long criticized the region’s laws on homosexuality, while its governments counter that the laws protect its religious and cultural norms.

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Electric vehicle startup Harbinger is aiming to electrify medium-duty trucks with two chassis coming late next year.
The company was founded by veterans of Canoo and QuantumScape.
Harbinger hopes to tap into a market segment that hasn’t been well-represented as the auto industry moves to electric vehicles.

Harbinger EV truck
Jack Schroeder | Harbinger

A new Los Angeles-based electric vehicle startup founded by veterans of Canoo and QuantumScape said Wednesday it’s preparing to shake up the medium-duty truck market with a ready-to-build electric truck platform coming next year.
The company, called Harbinger, has developed two EV platforms it says are optimized for medium-duty trucks such as delivery vans. The platforms use motors and other technology developed in-house specifically to meet the needs of a market segment where trucks are expected to be in service for up to 20 years – far longer than the average passenger car.

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It’s a market segment that – so far, at least – hasn’t been well-served by the industrywide move to electric vehicles, CEO John Harris said.
“The companies out at the bookends, in the light-duty and heavy-duty space, are historically highly vertically integrated,” Harris told CNBC in an interview. “When we look at the medium-duty industry, it’s completely different.”
Harris said that medium-duty trucks, which fall between light-duty pickups and heavy-duty semitrucks, are generally highly specialized. Those trucks, which can range from dump trucks to delivery vans, are typically built to order for fleets by companies called upfitters, using chassis from any of several established vehicle makers.
It’s an ecosystem that hasn’t changed much in the last 50 years, Harris said. That’s why Harbinger is tailoring its products to work within that existing medium-duty ecosystem. The company is preparing two fully electric truck chassis that will be ready for upfitters to tailor to their commercial customers’ needs – at a cost that, Harris said, will be comparable to existing internal-combustion options.

Harbinger EV truck
Jack Schroeder | Harbinger

Harbinger’s products will include a “cab chassis” similar to those built by companies like Ford Motor, but electric. Upfitters use cab chassis, which come with a passenger compartment, to build box trucks, tow trucks and other similarly sized vehicles.

Harbinger will also offer a “strip chassis,” without a cab for the driver, that can serve as a foundation for vehicles like delivery vans. Harris noted that unlike existing strip-chassis options, Harbinger’s won’t require upfitters to work around an internal-combustion engine – allowing for more cargo room and a more comfortable environment for the vehicle’s driver.
And because they’re expected to serve for up to 20 years, both of Harbinger’s chassis will include the hardware and redundant systems needed for autonomous driving. Harbinger, though, has no plans to develop its own self-driving software in-house.
What isn’t clear yet is how the company plans to manufacture its chassis. Harbinger’s headquarters has tooling and equipment to build prototypes, and can produce electric motors and related parts, but it’s not equipped to build complete chassis at scale.
Harris told CNBC that Harbinger has selected a manufacturing partner and will announce details soon. Harbinger currently expects to make its first deliveries in late 2023 and to begin volume production in 2024, he said.
Harbinger was founded in July 2021 by Harris, who worked at EV startups Faraday Future and Xos Trucks; Phillip Weicker, who serves as Harbinger’s chief technology officer and worked at QuantumScape and Canoo, where he was a cofounder; and Will Eberts, chief operating officer, who worked with Harris at Faraday Future and with Weicker at Canoo.
The company received early funding from Tiger Global Management and “other highly specialized investors with deep experience” in electric vehicles, Harris said.
Harbinger plans to show off its EV truck chassis at the North American International Auto Show in Detroit later this week.

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Outgoing Starbucks CEO Howard Schultz says that he’ll never return to the top job after the coffee giant announced Laxman Naramsimhan as its new incoming chief executive.
Schultz, 69, served as CEO from 1986 to 2000 and again from 2008 to 2017.

Outgoing Starbucks CEO Howard Schultz says that he’ll never return to the top job after the coffee giant announced a new succession plan last week.
“I’m never coming back again, because we found the right person,” he said on CNBC’s “Squawk Box” on Wednesday.

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Laxman Naramsimhan, who is currently the CEO of Lysol owner Reckitt, will join the coffee company in October and take the reins in April. Schultz will remain on Starbucks’ board after Naramsimhan succeeds him and act as an advisor.
Schultz, 69, returned to Starbucks for his third stint as CEO in April after Kevin Johnson retired. Despite speculation from Wall Street and industry insiders, Schultz held firm to his promise that his current stretch would just be temporary.
When Johnson announced his retirement, Schultz said he previously had no plans to return to Starbucks. He served as CEO from 1986 to 2000, growing the Seattle coffee chain into an industry giant, and again from 2008 to 2017. He also publicly weighed a potential run for president ahead of the 2020 elections.
While Naramsimhan hasn’t officially joined Starbucks yet, Schultz told CNBC’s Andrew Ross Sorkin that he’s gotten to know his successor “very well” over the last few months. Before leading a turnaround at Reckitt, Naramsimhan held different roles at PepsiCo and consulting firm McKinsey.
Naramsimhan’s appointment received a muted reaction from Wall Street. Schultz’s prior departure announcement in late 2016 resulted in a double-digit decline for the stock price.
Starbucks will hold an investor day in Seattle on Tuesday, when the company is expected to unveil more details about its reinvention plan crafted by Schultz.

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Target CEO Brian Cornell agreed to stay in the role for about three more years, as the board eliminated the company’s retirement age of 65.
Cornell, who is 63, has been Target’s chief executive since 2014.

Brian Cornell, Chairman and Chief Executive Officer of the Target Corporation.
Anjali Sundaram | CNBC

Target CEO Brian Cornell has agreed to stay on in his role for about three more years, as the retailer announced Wednesday that it’s scrapping its retirement age of 65.
“We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company’s strong financial performance during his tenure,” Monica Lozano, lead independent director of Target’s board of directors, said in a news release.

Cornell, who is 63, has been Target’s chief executive since 2014. Under his leadership, the company has expanded its customer base and built on its reputation as a discounter with unique and fashion-forward merchandise. But more recently, Target has grappled with huge shifts in shopping habits with sales slowing and unwanted merchandise piling up.
The company cut its forecast twice, and its quarterly profit fell nearly 90% in the three-month period ended July 30 as it tried to sell off that excess inventory with deep discounts.
Shares of the company are down about 29% so far this year.
Separately on Wednesday, Target said Arthur Valdez, chief supply chain and logistics officer, will retire. He will be succeeded by Gretchen McCarthy, an 18-year Target veteran who is currently senior vice president of global inventory management. She will report to Target’s COO, John Mulligan, effective immediately, as Valdez will serve in an advisory role through April.
Led by Cornell, Target has launched numerous private brands, including for grocery, activewear and home decor. It struck partnerships with prominent national brands, turning parts of its stores into mini shops for Disney, Levi Strauss and most recently, Ulta Beauty. And it launched e-commerce options, including curbside pickup, and turned the back of its stores into fulfillment centers that handle the vast majority of online orders.

Those investments paid off during the Covid pandemic, as Target remained open as an essential retailer and drew shoppers to its website and stores.
Before joining the retailer, Cornell was CEO of PepsiCo Americas Foods, Walmart-owned Sam’s Club and Michaels Stores.

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Chinese electric vehicle maker Nio lost $409.8 million in the second quarter, representing significantly widening losses.
The company’s vehicles deliveries surpassed year-ago levels and exceeded its own guidance.
CEO William Bin Li said in a statement Wednesday that the second half of 2022 is a “critical period” for the company.

Employees stand next to a ET7 sedan at a NIO Inc. dealership in Shanghai, China, on Wednesday, June 8, 2022.
Qilai Shen | Bloomberg | Getty Images

Chinese electric vehicle maker Nio had a loss of $409.8 million in the second quarter, representing significantly widening losses, despite deliveries that surpassed year-ago levels and exceeded its own guidance.
Here are the key numbers from Nio’s second-quarter earnings report.

Revenue: $1.54 billion, vs. $1.31 billion in the second quarter of 2021.
Adjusted loss per share: 20 cents, vs. 3 cents in the second quarter of 2021.
Cash at quarter-end: $8.1 billion, down slightly from $8.4 billion as of March 31.

The company’s gross margin for the period was 13.0%, significantly lower than the 14.6% gross margin it reported last quarter and the 18.6% it saw in the second quarter of last year.
Its net loss for the period of $409.8 million marked an increase of 50.4% from the first quarter and an increase of 316.4% from the same period last year.
Nio’s shares were down 5% in premarket trading Wednesday as investors digested the report.
The company was affected by “cost volatilities” as it and its suppliers scrambled to keep production running through Covid shutdowns in April and May, Chief Financial Officer Steven Wei Fang said in a statement.
Those cost pressures, plus increased spending on its recharging and service networks, dented Nio’s gross margin.

The company previously announced it delivered 25,059 vehicles in the second quarter, slightly fewer than in the first quarter but above its own guidance.
Nio was only able to deliver about 12,000 vehicles in April and May combined as Covid shutdowns hampered its production and supply lines. But the company said in May that it expected improvements in June, and guided for deliveries between 23,000 and 25,000 vehicles for the quarter.
The company delivered 21,896 vehicles during the second quarter of last year.
CEO William Bin Li said in a statement Wednesday that the second half of 2022 is a “critical period” for the company. Deliveries of Nio’s new SUV, the ET7, hit full speed last month, he said, and production of the new ET5 sedan is on track to begin at the end of September.
With production back to normal, Nio expects to deliver between 31,000 and 33,000 vehicles in the third quarter and to generate revenue between $1.9 billion and $2 billion in the period.

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European economies are facing an energy crisis and soaring prices over the coming months.
There have been concerns in some quarters that the increasing cost of charging an EV will disincentivize uptake among consumers.
“The cost advantage for electric vehicles versus a gasoline car is fast diminishing here in Europe, and I’m really wondering to what degree that will begin to impact sales for EVs,” Saxo Bank’s Peter Garnry tells CNBC.

The uptake of electric vehicles has increased in recent years, as countries around the world attempt to reduce the environmental effects of transportation.
Simonskafar | E+ | Getty Images

Recent comments from Elon Musk about the need for more oil and gas reflect a broader concern that the uptake of electric vehicles will be hampered by rising electricity prices, according to the head of equity strategy at Saxo Bank.
Speaking to CNBC’s “Street Signs Europe” on Tuesday morning, Peter Garnry said car manufacturers would face headwinds going forward.

“We see that in the 12 month trailing auto sales figures coming out of the U.S. and Europe — they’re coming down and they’re coming down pretty hard in Europe.”
On the electric vehicle front, Garnry noted that while the segment was “still expanding, expanding rapidly” there were also areas of potential concern.
“I don’t think it was a coincidence that you had Elon Musk in Stavanger, in Norway, talking about ‘please don’t decommission any more nuclear power plants’, you know … ‘we need oil and gas to do the clean transition, we need that bridge.'”
“And I think he’s very well aware that you cannot sell a lot of electrical vehicles with electricity prices going through the roof right now.”
“I mean, the cost advantage for electric vehicles versus a gasoline car is fast diminishing here in Europe, and I’m really wondering to what degree that will begin to impact sales for EVs.”

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Garnry’s remarks refer to a recent interview Musk gave at the ONS 2022 Conference in Norway, in which he offered up his opinion on fossil fuels and the wider energy transition.
“I, actually, am not someone who would tend to, sort of, demonize oil and gas, to be clear,” Musk said. “This is necessary right now, or civilization could not function.”
“And … at this time, I think we actually need more oil and gas, not less, but simultaneously moving as fast as we can to a sustainable energy economy,” the Tesla chief went on to state.
Musk, who also stressed the importance of renewables such as hydro, solar, geothermal and wind, later described himself as “pro nuclear” and said “we should really keep going with the nuclear plants.”
With European economies facing an energy crisis and soaring prices over the coming months, there have been concerns in some quarters that the increasing cost of charging an EV will disincentivize uptake among consumers.
In the U.K., at least, many discussions about the cost of charging an electric vehicle have taken place in recent weeks, especially after regulator Ofgem hiked the energy price cap.
The U.K.’s new Prime Minister, Liz Truss, is set to announce a support package to address the cost-of-living crisis imminently, meaning that the overall effect of Ofgem’s decision is still uncertain.
In the days following the announcement of the new price cap, a spokesperson for motoring organization the RAC sketched out the current state of play.
“Despite recent falls in the price of petrol [gasoline] and diesel, the cost of charging at home is still good value compared to paying for either fuel, but again underlines just how the rising cost of electricity is affecting so many areas of people’s lives,” Rod Dennis said.
“We’re also aware that public chargepoint operators are having no choice but to increase their prices to reflect the rising wholesale costs they’re faced with, which will heavily impact drivers who have no choice other than to charge up away from home,” Dennis added.

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In the U.K., the current state of play when it comes to EVs makes for interesting reading.
On Monday, the Society of Motor Manufacturers and Traders said new registrations for battery electric vehicles in the U.K. hit 10,006 in August 2022, a year-on-year jump of 35.4%.
The SMMT nevertheless noted that “growth in this segment is slowing, with a year-to-date increase of 48.8%.” Comparatively, it said that “at the end of Q1, BEV registrations had been up by 101.9%.”
When it came to a longer term outlook, Saxo Bank’s Garnry cautioned there would be bumps in the road.
“If you look from mid-2008 to late 2020, that was a 12 year long bull market for intangible driven industries — so software, health care, media and entertainment, etcetera.”
“Since the vaccines were announced in November 2020, we have seen the tangible world come back,” Garnry said. This included car manufacturers and commodity companies.  
“They sit in the physical world … and we think the next eight years will … mean a lot of positive tailwind[s] for these tangible companies,” he added.
Medium to long term, this would be a positive for carmakers, “but there will be a pretty, pretty nasty adjustment period going ahead for this industry, unfortunately,” he added. More

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 5.94% last week from 5.80% the previous week, according to the Mortgage Bankers Association.
Mortgage applications to refinance a home loan fell another 1% for the week and were 83% lower than the same week one year ago.
Mortgage applications to purchase a home dropped 1% for the week and were 23% lower than the same week one year ago.

GP: Homes for sale
Brittany Murray Via Getty Images | Medianews Group | Getty Images

In June the average rate on the 30-year fixed shot over 6% briefly, and that was enough to turn the once-hot housing market on its heels. Rates pulled back in July and August, but the damage was already done. Now rates are heading past 6% yet again, causing already beleaguered mortgage demand to fall even further.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.94% last week from 5.80% the previous week, for loans with a 20% down payment, according to the Mortgage Bankers Association. That was the weekly average, but there were a few days when the rate rose above 6% on another survey from Mortgage News Daily.

“Mortgage rates moved higher over the course of last week as markets continued to re-assess the prospects for the economy and the path of monetary policy, with expectations for short-term rates to move and stay higher for longer,” said Mike Fratantoni, MBA senior vice president and chief economist.
As a result, mortgage applications to refinance a home loan fell another 1% for the week and were 83% lower than the same week one year ago. Mortgage rates were just below 3% one year ago and were at record lows for the better part of 2021, so there are very few people now who have not already refinanced to a much lower rate than is available today.
Mortgage applications to purchase a home dropped 1% for the week and were 23% lower than the same week one year ago. Given today’s higher rates, a person buying a $400,000 home would pay close to $700 more per month than they did a year ago.
“Recent economic data will likely prevent any significant decline in mortgage rates in the near term, but the strong job market depicted in the August data should support housing demand,” said Fratantoni, adding, “There is no sign of a rebound in purchase applications yet, but the robust job market and an increase in housing inventories should lead to an eventual increase in purchase activity.”
Mortgage rates shot even higher to start this week, as investors await a slew of speeches by Federal Reserve members that could give more insight into how large the next rate hike might be. Higher mortgage rates are already cooling home prices, but given how far they rose in the past few years, it will likely take significantly more cooling before affordability fully recovers.

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A Chelsea statement read: “As the new ownership group reaches 100 days since taking over the club, and as it continues its hard work to take the club forward, the new owners believe it is the right time to make this transition”

Chelsea sit sixth in the Premier League with 10 points.
Jurij Kodrun | Getty Images Sport | Getty Images

Chelsea have sacked head coach Thomas Tuchel six matches into the Premier League season.
Chelsea are expected to approach Brighton later on Wednesday for permission to speak to Graham Potter about their manager vacancy. Chelsea are also keen to speak to Mauricio Pochettino and Zinedine Zidane, who are both out of work.

Todd Boehly has axed Tuchel just three months after completing his takeover of the club. Boehly is still acting as sporting director having moved on director Marina Granovskaia, chairman Bruce Buck and technical and performance advisor Petr Cech this summer in a complete overhaul of the Roman Abramovich era.
Sky Sports News understands Chelsea have been considering this decision for some time and it is not a knee-jerk reaction to Tuesday’s Champions League defeat to Dinamo Zagreb.
The new ownership has had concerns for some time and has been looking at other options. Now they want a long-term appointment to move Chelsea forward.
Chelsea sit sixth in the Premier League with 10 points.
A club statement read: “On behalf of everyone at Chelsea FC, the club would like to place on record its gratitude to Thomas and his staff for all their efforts during their time with the club. Thomas will rightly have a place in Chelsea’s history after winning the Champions League, the Super Cup and Club World Cup in his time here.

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“As the new ownership group reaches 100 days since taking over the club, and as it continues its hard work to take the club forward, the new owners believe it is the right time to make this transition.
“Chelsea’s coaching staff will take charge of the team for training and the preparation of our upcoming matches as the club moves swiftly to appoint a new head coach.”
Tuchel said he was angry at himself for a ‘huge underperformance’ during the Dinamo Zagreb defeat – his 100th and last game in charge – and suggested his side are currently lacking hunger and determination.
Chelsea invested a one-window Premier League record £273m to revamp the squad this summer.

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