The Daily Business Briefing: 23 October 2023

1. Government bond yields hit highest level since 2007

The yield on the 10-year U.S. Treasury note rose 11 basis points early Monday to 5.02%, the highest level since 2007. The increase fueled concerns about rising interest rates. Federal Reserve Chairman Jerome Powell said last week that as bond yields push up borrowing costs, the Fed may be able to hold off on another rate hike at its November meeting, although central bank policymakers remain open to another hike , if a resilient economy keeps inflation from falling. Stock futures fell early Monday as investors reacted to rising government bond yields. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.6 percent at 6:45 a.m. ET, while those on the tech-heavy Nasdaq were down 0.8 percent. Bloomberg, CNBC

2. Chevron to buy Hess in $53 billion deal

Chevron announced Monday it will buy rival oil company Hess in the latest bet on the future of the oil industry despite a global push for renewable energy. The $53 billion Hess deal will give Chevron greater access to shale production in Texas’ Permian Basin, where it is already a leader, as well as Hess’ core oil assets in Guyana, which should fuel Chevron’s growth over the next decade . The deal continued a wave of consolidation following Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, as smaller companies take advantage of high oil prices and team up with energy giants. Chevron said Hess would increase its oil and gas production by 10 percent. CNN, New York Times

3. Big tech leaders prepare to report quarterly earnings

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