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11-09-2023

- Arm Holdings, a chip designer, gave a disappointing sales forecast due to a smartphone slump and uncertainty over licensing deals. Shares dropped.

- Ofcom, the UK's communications regulator, is prioritizing child safety and tackling illegal content under the new Online Safety Act. They aim for cooperation with the EU to avoid conflicting standards.

- An adviser to the EU's top court recommends that Apple's legal victory in a tax dispute be set aside, potentially reinstating a $14-15 billion tax bill.

- Apple co-founder Steve Wozniak has been hospitalized in Mexico City, with conflicting reports suggesting it may be due to a possible stroke or vertigo.

- Google's AI-powered search feature, Search Generative Experience (SGE), is expanding to 120 countries and adding support for Spanish, Portuguese, Korean, and Indonesian. The expansion includes new features like improved follow-up questions and clarification of ambiguous translations.

- Nvidia is launching three new chips for the Chinese market due to US restrictions on selling chips to Chinese companies.

- OpenAI's ChatGPT faced intermittent outages due to a suspected DDoS attack, causing disruption to its services and developer tools.

- The rise of AI is leading to an increase in legal risks, with over 100 AI-related lawsuits currently in progress. The rapid proliferation of AI poses a threat to democracy and could disrupt elections. In the workplace, safeguarding against exploitation and ensuring human values are prioritized is crucial.

- Samsung has unveiled Gauss, a generative AI model for smartphones, announced Galaxy AI with a translation feature, and is developing an AI chatbot for the Galaxy S24.

- Optus, one of Australia's wireless carriers, is facing a government review and Senate inquiry after a 14-hour nationwide outage that disrupted essential services.

- Google, Meta Platforms, and TikTok have successfully challenged an Austrian law on hate speech deletion, with the European Court of Justice ruling it contrary to EU rules.

- Meta, the parent company of Facebook and Instagram, will require political ads to disclose if AI was used in their creation or manipulation starting in 2024.

- China's top chipmaker, Semiconductor Manufacturing International Corp (SMIC), reports Q3 revenue of $1.62B, down 15% YoY, and net income of $94M, down 80% YoY, missing estimates. SMIC raises annual capital expenditure forecast to $7.5B.

- Fair Isaac Corporation (FICO) reported strong Q4 earnings, with record annual revenues of $1.514 billion, and expects double-digit growth in fiscal year 2024.

MEDIA

- Former President Donald Trump is expected to speak at a rally in Florida before the Republican debate. He did not attend the debate and instead held a rally nearby. The debate focused on issues such as Israel, abortion, and the economy. Nikki Haley and Ron DeSantis emerged as top contenders. Democrats celebrated victories in abortion rights campaigns. The debate saw clashes between candidates, including personal attacks. Abortion rights groups are preparing for ballot fights in swing states. The debate did not include Donald Trump, and there were challenges for Ron DeSantis in his bid for the No. 2 spot in the GOP. The 2023 state elections showed the power of abortion rights as a motivating factor for voters.

- The Hollywood actors' strike has ended with a tentative agreement between SAG-AFTRA and studios, addressing pay and streaming issues.

- Efforts to negotiate the release of hostages by Qatar and Egypt from Hamas have stalled due to lack of assurance from the US and Israel. The World Health Organization warns of increased disease risk in Gaza due to Israeli air bombardments. Israeli forces are advancing towards Gaza City, exacerbating the humanitarian crisis. Thousands of Palestinians are fleeing northern Gaza as fighting intensifies. Negotiations are underway for a potential ceasefire in exchange for the release of hostages. Israeli strikes continue as ground forces battle Hamas militants. Tens of thousands flee northern Gaza as Israeli troops clash with Hamas. Reuters journalists witness Israel's invasion in Gaza City. Fierce fighting continues as Hamas uses tunnels to ambush Israeli forces. Israeli military escorts journalists into northern Gaza, revealing destruction. Chickenpox and other diseases surge in Gaza. Israel surrounds Gaza City, preparing for a ground assault. Hamas loses control in northern Gaza, leading to mass migration. Aid conferences in Paris discuss humanitarian aid and ceasefire. The dire situation in Gaza calls for an immediate ceasefire. US diplomats meet in Cairo to discuss humanitarian aid. Israel urges Gazans to move south to protect civilians. Israel uses technology to detect and destroy Hamas's tunnels. Qatar and Egypt negotiate with Hamas for the release of hostages.

- Galaxy Entertainment's 3Q revenue quadrupled to HK$9.65B ($1.23B) due to Macau gaming business recovery after Covid-19 restrictions lifted. MGM Resorts International reported record net revenues in Q3 2023 despite a cybersecurity issue, and expects insurance reimbursements. MGM Resorts International faces debt, cybersecurity issue, but benefits from brand power, expansion opportunities in Japan and Macau. MGM Resorts International reported record net revenues in Q3 2023, despite a cybersecurity issue. Insurance to cover losses. MGM Resorts reported Q3 revenue of $3.97 billion, a 16.3% YoY increase, and profitable EPS compared to a loss last year. MGM Resorts reports profitable quarter for online gaming joint venture, BetMGM, and expects growth and expansion. MGM Resorts International beats Q3 profit and revenue estimates due to rebound in China travel and easing entry restrictions.

- British Prime Minister Rishi Sunak expresses concern about a pro-Palestinian march on Armistice Day, while UK Home Secretary Suella Braverman accuses police of bias.

- Flutter Entertainment, the parent company of FanDuel, saw shares fall by 9.4% after missing sales estimates and plans to list on the NYSE.

- AMC Entertainment's Q3 revenue exceeds $1.4 billion, beating estimates, with attendance up 38.4% and profit boosted by successful movies.

- Amazon is laying off employees in its music division in Latin America, North America, and Europe, but has not disclosed the number of job cuts.

- Roblox Corp (RBLX) reports Q3 2023 revenue increase to $713.2 million, up 38% YoY, with a net loss of $277.2 million.

- Digital ad agency S4 Capital, founded by Martin Sorrell, has experienced a decline in sales and lowered profit forecasts due to a slowdown in the advertising sector. Job cuts have been implemented.

- SiriusXM launches a new streaming app with a rebranded logo and lower-priced plans to attract more subscribers on December 14.

CONSUMER

- Topgolf Callaway Brands experiences a decline in sales and earnings due to a slowdown at its entertainment venues and decreased demand for golf balls.

- San Francisco-based footwear company Allbirds announces weak Q4 guidance, plans to boost sales with discounts and reduced inventory.

- Early Black Friday deals are already live at retailers like Amazon, Best Buy, Walmart, Samsung, Target, Lululemon, and Ulta Beauty. Walmart offers a 47% discount on Apple's 2nd Generation AirPods.

- The ODP Corporation's Q3 2023 revenue was $2 billion, down 8% YoY, but adjusted operating income increased to $95 million.

- Shares in Tod's fell 4.5% as the luxury company reported a sales slowdown in Greater China and Europe, despite overall sales growth.

- Tapestry Inc.'s stock fell 1.7% after missing revenue estimates and offering weak guidance for fiscal Q1. However, analysts expect a rebound.

- Insiders at ThredUp, Anywhere Real Estate, and PetMed Express have all acquired stock, showing confidence and optimism in their respective companies.

- Target has requested the dismissal of a shareholder lawsuit alleging it ignored risks of offering LGBTQ-themed merchandise for Pride Month.

REAL ESTATE

- Ashford Hospitality Trust and Apple Hospitality REIT both reported strong Q3 2023 performance with RevPAR growth and positive operating fundamentals. Ashford is focused on paying off financing and selling assets, while Apple is underwriting acquisitions and adjusting annual guidance. Ryman Hospitality Properties also reported strong earnings in Q3 2023.

- WeWork files for bankruptcy, aiming to cut $3 billion in debt by renegotiating leases and canceling some. Questions about its business model arise.

- Average mortgage rates for 30-year fixed-rate, 15-year fixed-rate, and 30-year jumbo mortgages range from 7.19% to 8.03%. Refinance rates have risen. Mortgage rates have dropped, leading to increased demand and a rise in mortgage applications.

- Taylor Wimpey, a UK housebuilder, expects strong profits at the top end of its forecast range despite market challenges.

- Starwood Property Trust reported Q3 distributable earnings of $158 million, with a net income of $47 million, while maintaining strong liquidity.

TRAVEL

- Airbnb is leveraging AI to enhance its room service with transparent reviews and host upgrades for improved guest experience.

- Tripadvisor's Q3 2023 revenue reached $533 million, marking a 16% YoY growth, with Viator seeing a significant 41% YoY revenue increase.

ECONOMIC

- MSCI Inc. outperformed competitors with a 1.83% rally, while Masco Corp. and Starbucks Corp. also saw gains on a mixed trading day. Whirlpool Corp. broke its losing streak with a 1.07% rise. Carnival's stock rose 1.83% ahead of its earnings disclosure. Hasbro Inc. and T. Rowe Price Group Inc. snapped their losing streaks. Bank of New York Mellon Corp. and Morgan Stanley outperformed competitors. Allstate Corp. and News Corp Cl A experienced losses. Vornado Realty Trust, Xerox Holdings Corp., Exela Technologies Inc., and Qorvo Inc. underperformed. APA Corp., Loews Corp., Incyte Corp., and Expedia Group Inc. also saw losses. C.H. Robinson Worldwide Inc. and Align Technology Inc. ended their winning streaks. Synchrony Financial, F5 Inc., Juniper Networks Inc., Aptiv PLC, and United Rentals Inc. underperformed. Sysco Corp., Citizens Financial Group Inc., Huntington Bancshares Inc., and DuPont de Nemours Inc. experienced losses. Dave & Buster's Entertainment Inc., Travelers Cos. Inc., Archer Daniels Midland Co., and Exelon Corp. also saw losses. HCA Healthcare Inc. and CVS Health Corp. underperformed. Caterpillar Inc. and BorgWarner Inc. experienced losses. Apple Inc. and Amazon.com Inc. underperformed competitors, while Microsoft and Charter Communications Inc. Cl A outperformed. S&P Global Inc. underperformed compared to Moody's Corp.

- Ivanka Trump testified in her father's civil fraud trial, claiming little knowledge and denying involvement in financial statements.

- Cleveland Fed President Loretta Mester will retire in June 2024, and Take-Two Interactive's shares rise after positive earnings and GTA VI announcement. Take-Two reported net bookings of $1.44 billion for Q2 2024, exceeding expectations, and anticipates the release of a new Grand Theft Auto game. The Cleveland Federal Reserve has begun searching for a replacement for Mester.

- The Bank of Japan may end its negative interest rate policy as early as January 2022 if inflationary pressure increases. Former Bank of Japan executive Eiji Maeda suggests this and warns that unwinding the ultra-loose monetary policy will be a serious challenge. The chairman of a Japanese business lobby urges the bank to normalize monetary policy. The Bank of Japan may consider increasing its purchases of Japanese government bonds if the benchmark yield exceeds 1.0%. Japanese government bond yields have decreased due to better-than-expected demand.

- National Australia Bank (NAB) reports an 8.8% increase in annual cash profit to $7.7bn, but warns of strong competition and inflationary pressures affecting earnings. NAB's net interest margin shrank to 1.71%.

- Bank of England policymakers, including Governor Andrew Bailey, emphasize the need for restrictive monetary policy to control inflation, boosting the pound.

- Bank of America CEO Brian Moynihan predicts a soft landing for the US economy with a slowdown in consumer spending and commercial borrowing.

- The GOP-led House Oversight Committee has subpoenaed Hunter and James Biden as part of their impeachment inquiry into President Biden, alleging "influence peddling" in business dealings.

- Spain's Socialists have reached a controversial deal with Catalan separatists, granting them amnesty in exchange for political support.

CRYPTO

- Bitcoin surges to an 18-month high above $36,800, driven by increased institutional investor interest and optimism about SEC approving Bitcoin ETFs.

- Robinhood plans to expand its cryptocurrency trading services to the EU and launch brokerage operations in the UK, despite potential challenges.

- Cryptocurrency exchange FTX is considering three potential suitors, including ex-NYSE head Thomas Farley, to revive the company after bankruptcy.

- The Russian state will not be involved in organizing frozen asset exchanges, leaving it up to financial market players, according to the country's finance ministry.

HEALTH

- The FDA has approved Eli Lilly's weight loss drug, Zepbound (tirzepatide), which is expected to be a top-selling medicine.

- AstraZeneca's Q3 revenues increased by 5-6%, driven by growth in non-COVID drugs, particularly in oncology and cardiovascular therapeutics. The company also signed a $2B licensing deal for an obesity drug. Despite a lower Q3 profit, AstraZeneca raised its full-year guidance for core earnings per share and total revenue.

- Amazon Prime members can now get a $100 discount on One Medical healthcare service, with membership costing $99 per year instead of the usual $199.

- Supernus Pharmaceuticals exceeded revenue estimates but reported a Q3 loss, while Corteva reported a smaller loss due to higher seed sales. Cogent Communications missed revenue and EPS estimates. National CineMedia reported a Q3 loss due to restructuring expenses.

SPORTS

- Manchester United manager Erik ten Hag criticized the "harsh" red card given to Marcus Rashford in their 4-3 Champions League loss to FC Copenhagen. The team also made four changes to their starting lineup.

- Napoli's 1-1 draw with Union Berlin raises concerns about their Champions League qualification, while Real Madrid secures a 3-0 victory over Braga.

- Bukayo Saka leads Arsenal to a 2-0 victory over Sevilla in the Champions League, strengthening their position in the group.