Headlines... by halloapp

10-12-2023

To provide feedback, please reply to this email.

Forwarded this email? Subscribe here for more.

TECH

• Amazon’s October Prime Day, also known as Prime Big Deal Days, offers discounts on AirPods, Apple Watches, TVs, laptops, vacuums, baby essentials, and more. The event ends soon, so shoppers are advised to act quickly.

• Thierry Breton, the European Union’s regulatory commissioner, has given Mark Zuckerberg and Elon Musk 24 hours to respond to concerns about misinformation and illegal content on their social media platforms. The EU’s Digital Services Act requires social companies to moderate and remove illegal and harmful content, with fines of up to six percent of revenue for non-compliance. The EU is particularly concerned about disinformation related to the Israel-Hamas conflict and the potential influence on elections. Both Meta (formerly Facebook) and X (formerly Twitter) have taken action to remove accounts and content related to Hamas, but critics argue that more needs to be done.

• A law student lost a job offer after blaming Israel for Hamas attacks, CEOs demand Harvard release names of students involved, backlash over doxxing and harassment.

• Shares of technology companies, including Samsung Electronics, rose as concerns over the Chinese-U.S. Cold War on chip technology eased. Samsung reported growth in Q3 sales and operating profit, raising hopes for an end to the chip industry downturn. The U.S. is expected to continue supporting Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing in maintaining their operations in China. Taiwan is awaiting a decision from the U.S. government on whether its chipmakers will be granted an extension to supply U.S. chip equipment to their factories in China.

• The IRS is seeking $28.9 billion in back taxes from Microsoft for the tax years 2004 to 2013. Microsoft plans to appeal the decision and believes newer tax laws could reduce the amount owed by $10 billion. The dispute revolves around how Microsoft allocated profits among different regions and whether it followed IRS rules. The appeals process is expected to take several years.

• The Google Pixel 8 and Pixel 8 Pro offer impressive features, including upgraded displays, powerful processors, and AI-powered camera systems. The Pixel 8 Pro has additional camera upgrades and software enhancements. Both phones have strong AI capabilities and software support for seven years. The Pixel 8 series also introduces innovative photo-editing tools and showcases Google’s AI capabilities. The camera performance of the Pixel 8 Pro is particularly impressive. However, there are concerns about the authenticity of generative photo technology. The Pixel 8 Pro is a solid device for photography and videography, but may not offer significant advancements over its predecessor. The Pixel 8 offers solid performance and design upgrades, making it a great entry-level flagship.

• Ericsson announced a $2.9 billion impairment charge related to its acquisition of Vonage. Despite this, operational results were in line with expectations, with a potential turnaround in the cloud software and services business. Ericsson reported a 39% decline in core profits and expects an operating margin of 7.3%. The stock has lost around 13% in 2023.

• Shares of Tata Consultancy Services (TCS) dropped after weak client spending led to second-quarter revenue missing estimates. The decline in revenue and headcount, along with a muted hiring outlook, indicated that demand recovery was not yet in sight. However, large deal wins could lead to better growth in the second half of the year. TCS is facing a potential slowdown as US enterprises reduce technology investments due to high interest rates and economic uncertainty. The company’s net profit for the second quarter exceeded expectations, driven by growth in its banking, financial services, and insurance segments. TCS has also approved a share buyback worth 170 billion rupees.

• Shares of Meta Platforms Inc. (**META**) reached a new 52-week high, outperforming competitors Apple, Microsoft, and Alphabet. The stock has a high short interest and a potential for a short squeeze. Meta and Alphabet’s stocks have been driving the rise of the Nasdaq Composite.

• Amazon stock gained 1.81% and outperformed competitors Apple, Microsoft, and Alphabet. C3.ai stock underperformed with lower trading volume. Alphabet stock rose 1.80% and hit a new 52-week high. Microsoft stock outperformed with a 1.23% increase.

• A survey by Piper Sandler reveals that US teens’ spending remains largely unaffected, with 87% owning an iPhone and 88% planning to buy one. TikTok is the favorite social platform, Apple Pay is the top payment app, and food and fashion are priorities for wealthier teens. Apple’s dominance among teens indicates strong loyalty, but Apple Music is less popular than Spotify.

• Google’s Pixel Watch 2 offers solid upgrades, including temperature and stress sensors, but has drawbacks such as shorter battery life and a less appealing design. It competes with Apple Watch and Samsung’s Galaxy Watch.

• Amazon’s October Prime Day sale offers discounts on Kindle e-readers, including the Kindle Paperwhite and Kindle Scribe. Various bundles and accessories are also available.

• The US Space Force has temporarily banned the use of web-based generative AI tools, such as ChatGPT, due to data security concerns. The ban affects at least 500 individuals using platforms like Ask Sage and will remain in place until formal approval is obtained. The Space Force aims to release new guidance on the responsible integration of AI within the next month.

• The UK’s Competition and Markets Authority (CMA) is investigating the potential impact of the Vodafone and CK Hutchison merger on competition, customer options, prices, and network investment. The merger would create a £15 billion mobile operator with 28 million subscribers. Startups and tech companies may face challenges in negotiating service deals. The CMA has requested comments from interested parties and has not announced a timeline for completion.

MEDIA

• Disney is raising ticket and annual pass prices at its theme parks in California and Florida, with increases ranging from 4% to 21.5%. The price hikes aim to manage crowd levels and offset challenges faced by Disney’s streaming and TV businesses. Disney plans to invest $60 billion in its parks division over the next decade.

• Taylor Swift’s concert film, “Taylor Swift: The Eras Tour,” premiered ahead of schedule due to high ticket demand. The film is expected to break records with projected ticket sales of $105 million to $140 million in the US and Canada. It has already generated over $100 million in ticket pre-sales and could earn Swift approximately $60 million. The success of the film is seen as positive for the struggling movie theater industry.

• Australian journalist Cheng Lei has been released from detention in China after being held on national security charges for over three years. Her release is seen as a positive development for Australia-China relations, but analysts believe it is unlikely to lead to a shift in Australia’s policies towards China. The relationship between the two countries remains strained, with Australia strengthening military ties with allies and China raising doubts about Australia’s reliability as an economic partner. Cheng’s release follows the completion of legal processes in China and comes amid tensions between Australia and China.

• A lucky Powerball player in California won the $1.73 billion jackpot, the second-largest lottery prize in history. The winning ticket was sold at Midway Market & Liquor in Frazier Park. The odds of winning are 1 in 292.2 million.

• The Atlanta Braves face elimination against the Philadelphia Phillies after losing Game 3, while the Arizona Diamondbacks make history with four home runs in one inning to sweep the Los Angeles Dodgers. The Houston Astros advance to the AL Championship Series, and the Phillies dominate the Braves with a 2-1 lead.

• Comcast and Walt Disney stocks underperformed, while Netflix stock fell and is expected to report lower earnings.

• The UK’s competition regulator, the CMA, is investigating television production companies including the BBC and ITV over potential breaches of competition law in relation to the use of freelance workers. The investigation will focus on the purchase of services from freelancers and employment practices. Other companies being investigated include Hat Trick, Tiger Aspect, Hartswood Films, Red Planet Pictures, and Sister Pictures. ITV has confirmed receiving a case initiation notice and is committed to complying with competition law. The BBC has not yet responded.

• Contract negotiations between Hollywood studios and the SAG-AFTRA actors’ union have been suspended after the union presented a proposal that the studios claimed would create an economic burden of over $800 million per year. The union went on strike in July, demanding higher wages, residual pay from streaming TV, and restrictions on the use of artificial intelligence (AI) in entertainment. Both parties hope to resume negotiations in the future.

• Paris-based advertising group Publicis Groupe has raised its guidance for 2023 after reporting better-than-expected organic growth in Q3. The company expects organic net revenue growth of 5.5% to 6% this year, attributing its strong performance to market-share gains, new-business wins, and its Epsilon and Sapient units. Publicis has also raised its 2023 profitability target to an operating margin of 18%.

• Former NFL player Sergio Brown has been arrested in connection with his mother’s death, ruled a homicide. He was apprehended in San Diego after being deported from Mexico.

• The Washington Post plans to cut 240 jobs through voluntary buyouts, aiming to right-size expenses and address declining readership and revenue. Other media organizations have also faced layoffs.

• Former Formula One boss Bernie Ecclestone, 92, has pleaded guilty to fraud for making dishonest representations to Britain’s tax authority regarding the establishment of a trust for his daughters. His plea came just before his scheduled trial.

• The Boston Bruins defeated the Chicago Blackhawks 3-1 in their season opener, with rookie Connor Bedard scoring his first career NHL goal. The Toronto Maple Leafs came back twice to defeat the Montreal Canadiens in a shootout. The Carolina Hurricanes won 5-3 against the Ottawa Senators with crucial goals in the third period.

• Jada Pinkett Smith and Will Smith have been living separate lives since 2016, functioning as a divorced couple without legal papers. They have been open about their struggles, including Jada’s ”entanglement” with August Alsina. Despite their separation, they remain committed to each other. Jada’s memoir, “Worthy,” will provide more details about their relationship.

• A new documentary series, “**Messi** Meets America,” explores soccer star Lionel Messi’s move to the MLS and his impact on American soccer. The series provides behind-the-scenes footage and highlights his influence on record-breaking viewing figures, merch sales, and ticket sales. It is now streaming on Apple TV+.

CONSUMER

• Fast Retailing, the parent company of Uniqlo, reported a second consecutive record-breaking full-year operating profit of 28%, thanks to a recovery in China and the depreciation of the yen. The company plans to open more Uniqlo stores globally and expects further earnings growth.

• The UK’s Competition and Markets Authority (CMA) will conduct an in-depth investigation into Arcelik’s acquisition of Whirlpool’s appliances business in Europe. The CMA is concerned about reduced choices and competition in the domestic appliances market.

• UK building merchant Travis Perkins has downgraded its annual profit forecast by up to 27% due to a slowdown in the construction sector, weakness in the housing market, reduced consumer spending, and deflation in commodity prices. The company now expects operating profits for the year to be between £175mn and £195mn, down from the previously forecasted £240mn. Shares in the company have fallen 12-13%.

• Tupperware’s stock has surged by 37.3% after extending its credit agreement and delivering positive financial statements. The stock has seen a remarkable 188.7% climb in the last three months, outperforming the S&P 500 index. Despite previous concerns, the company’s stock has been performing well and its former CEO has announced plans to resign.

• Nike Inc. is expected to benefit from post-pandemic demand and growth in China, with successful direct-to-consumer strategies and strong brand momentum. However, challenges include global economic conditions and increased competition. The stock is rated as a “Hold” and a “Buy” by different authors.

• Amazon’s Prime Day offers discounts on cameras like the Canon EOS R100 and GoPro Hero10. Other notable deals include Sony’s A6600, Canon’s EOS R3, and Panasonic’s Lumix S5. It’s a good time for photographers and vloggers to upgrade their equipment.

• MercadoLibre’s fintech business is facing concerns, but the stock is undervalued and presents an attractive investment opportunity. The company’s profitability and potential for growth are highlighted, along with its strong presence in the Latin American fintech market. Despite challenges, the long-term outlook for the company is promising. The company has shown consistent growth and profitability, with optimized business operations and expansion in various areas such as credit, marketplace performance, and ads business. The author values MercadoLibre using an inverse DCF model and sees potential for significant growth. However, there are risks to consider. Overall, the author considers MercadoLibre a strong buy.

• Wayfair, an e-commerce platform specializing in home goods, has shown consistent financial performance and effective growth strategies. It is undervalued compared to its peers, but with positive adj. EBITDA and successful cost management strategies, its valuation is expected to increase. Caution is advised, and it is recommended to wait for the stock to drop before considering a buy position.

• Consumer electronics company VOXX International Corp reported a decline in sales in Q2 2024, with both the automotive and consumer segments seeing decreases. However, the company experienced modest improvements and took actions such as restructuring and transitioning manufacturing to Mexico. VOXX expects growth and profitability in the second half of the year, focusing on new product launches and a strategic investment from Gentex Corporation.

• TJX Companies has seen favorable returns for investors, with a share price increase of 58% in the last five years. The company’s Q2 2024 results were exceptional, prompting a raised FY2024 guidance. However, the stock’s valuation is no longer attractive, and investors are advised to wait for a pullback before buying.

• Polar has released the Vantage V3 fitness watch with features like Training Load Pro, Wrist-Based Running Power, and Energy Sources. It also includes biosensors for measuring cardiovascular activity, body temperature, and more. Available for pre-order at $600.

• Kingfisher PLC, a home improvement company, has a consistent dividend payment record with a dividend yield of 5.80%. However, the dividend payout ratio of 0.74 suggests sustainability concerns. The company’s profitability and growth prospects are ranked 7 out of 10. Share price has declined, but earnings per share improved by 34% annually. Insiders have shown confidence through significant purchases. Total shareholder return for the past three years was -20%. Investors should consider market conditions and other factors before investing.

• Next, the clothing giant, is in talks to acquire fashion chain FatFace for over £100 million. Next has been expanding its business through acquisitions. FatFace was taken over by lenders during the pandemic.

• Victoria’s Secret has raised its third-quarter outlook, expecting a smaller loss due to stronger sales and better-than-expected international sales. The company plans to address challenges in the market and reveal a strategic plan on October 12th.

• The fashion industry’s lack of diversity and gender imbalance in leadership positions is highlighted. The industry perpetuates homogeneity and biases, hindering the entry of diverse candidates. A shift towards embracing diversity and new perspectives is needed.

REAL ESTATE

• Real estate groups urge the Federal Reserve to halt interest rate hikes and the sale of mortgage-backed securities to stabilize the housing market. Mortgage rates have dropped, leading to an increase in adjustable-rate mortgage (**ARM**) applications. ARM rates are volatile but may decrease in the coming months. High mortgage rates and inventory scarcity pose affordability barriers for homebuyers. The article emphasizes the importance of considering factors like income and credit score when determining affordability. It also provides an overview of current mortgage refinance rates and suggests now may be a good time to refinance. The demand for ARMs has increased due to high mortgage rates impacting homebuyers’ ability to purchase houses.

• Businesses are embracing employee relocation for productivity and retention. Remote and hybrid work arrangements are effective for recruitment and retention. Companies that forced employees back to the office lost morale and top talent. Remote work improves retention, productivity, and access to a broader talent pool. The percentage of remote workers in the US is predicted to rise to 37% by 2030. Numerous career opportunities are available for remote and hybrid jobs. The remote job market is competitive, and candidates need key qualities to succeed.

• Goldman Sachs finds that the current housing market is worse than the 2008 crash in terms of affordability. Despite concerns, they predict slow price growth due to low inventory and high mortgage rates. The US property market remains resilient due to low supply and homeowners’ reluctance to move. Goldman Sachs believes another major housing market blowup is unlikely, citing low mortgage refinancing rates and decreased risky lending practices. The housing market is expected to rise modestly with support from a strong labor market and low borrower delinquency rates.

• UK outsourcing company Mitie Group has set new financial targets for 2025-2027, aiming for high single-digit revenue growth, a 5% operating profit margin by 2027, and over £300 million in earnings before interest, taxes, depreciation, and amortization. The company plans to achieve these targets through disciplined investment, technology-led transformation, and strategies such as focusing on key accounts, upselling to existing customers, and mergers and acquisitions. Mitie has also raised its guidance for fiscal 2024 adjusted profit and announced a £25 million share buyback.

• Bidding wars for rental apartments have become common in cities like New York, Chicago, Boston, and Austin due to the COVID-era housing market and shortage of inventory. Landlords and brokers use tactics like underpricing units to drive up prices. The rental market has slowed down, but fear remains if new construction doesn’t meet demand. Renters face limited options and difficult choices.

• UK house prices have dropped by 13.4% in real terms since March 2022, with some regions yet to recover to 2007 levels. The Bank of England’s decision to pause interest rate hikes provides hope for the housing market, but sales and prices are still expected to decline. The rental market, however, is thriving with strong demand and predictions of almost 5% growth in rental prices.

• Former FDIC chair Sheila Bair warns of a potential housing bubble due to high prices, limited inventory, and low mortgage rates. However, she believes a crash would be less severe than in 2008. Other experts share concerns, but some on Wall Street expect prices to continue rising. Tight supply and excessive demand are causing social inequity.

• Chinese property developers are facing worsening conditions in the real estate sector, with high default rates and reduced debt restructuring terms. The real estate crisis is impacting the country’s economy and leading to concerns of a potential financial sector contagion.

• A survey by Owl Labs reveals that returning to the office costs workers an average of $51 per day. Hybrid workers spend $36 more per day than those working from home. Some workers expect a pay increase if they have to return to the office full time. Commuting costs are a major reason why workers are hesitant to give up remote work privileges. Providing incentives such as commuting reimbursements, food and beverage subsidies, and on-site daycare services can motivate workers to come in. Despite the costs, 94% of workers are willing to return to the office if their financial concerns are addressed.

• Elanor Commercial Property Fund cancels sale of Nexus Centre property in Brisbane to Quantana due to inability to raise capital.

• A retired Deutsche Bank official testified that Donald Trump obtained fraudulent loans worth hundreds of millions of dollars for his properties. Trump’s finance chief admitted the financial statements were inaccurate. The testimony is part of a fraud lawsuit against Trump and his company.

• Carnival Corp. stock fell by 1.94% and closed $6.90 below its 52-week high. Royal Caribbean Group outperformed competitors with a 0.15% decline and closed $23.75 below its 52-week high.

• The article discusses the volatility of the US housing market in 2023, with a decline in home values due to high mortgage rates. It highlights initiatives by companies like Amazon and BH Properties to address the affordable housing crisis. Various states are implementing rental assistance programs and subsidized housing units. Grants are given to organizations in Wyoming for affordable housing and community development initiatives.

• KE Holdings Inc, a major player in China’s real estate industry, has seen a 16.19% surge in its stock price in the past three months. The company’s innovative online and offline platform, Beike, has revolutionized the industry. KE Holdings Inc has demonstrated strong profitability and growth, with notable investors like Jim Simons and Baillie Gifford. However, it faces competition from other real estate companies.

• The metaverse is gaining interest due to opportunities it presents, such as the Sphere venue in Las Vegas. Global adoption of 3D holographic imaging and LED displays is increasing, and luxury brands are investing in immersive metaverse strategies. Rules-based ETF strategies may be preferred by investors. New technologies are driving demand in the metaverse.

TRAVEL

• Winter travel sales in Germany have exceeded pre-pandemic levels, but the number of travelers is still below pre-crisis levels. Demand for holidays with tour operators is promising, but bookings are down by 20%. Holiday spending and prices have increased by 27%. Politicians are urged to combat inflation and provide relief to ensure affordable vacations. Summer revenues were also above pre-COVID-19 levels.

• “**Revenge** travel” trend loses momentum as travel numbers decline and high prices and stress deter travelers. Gen Z surpasses millennials in booking travel. Lack of international travelers from China hurts US business growth. Wellness travel expected to be the fastest-growing industry.

• Seattle is a top city for a fall getaway with stunning foliage, Mount Rainier views, diverse culinary scene, luxurious accommodations, and cultural events. Unique sushi, Laotian cuisine, French fare, and inventive soul food are recommended. There are also options for comfort food, low-intervention wine, and Eastern European-style dumplings. Beer enthusiasts should visit Métier Brewing Company. The city also offers diverse and thought-provoking art exhibits.

• This article suggests four non-skiing winter vacations in Europe: walking the Camino de Santiago, visiting Tivoli Gardens, outdoor adventures in Tromsø, and hiking in Verbier.

• This article is about a 140-mile stretch of Highway 200 in Jalisco state, Mexico, offering budget and luxurious accommodation options along the west coast. It highlights various overnight options, towns like Mismaloya and Pérula, the largely undiscovered Costa Alegre, and the upscale resort community of Costa Careyes. It also mentions the Four Seasons Tamarindo, a new luxury resort with various activities.

• Active cruises, combining biking and hiking with a cruise experience, are gaining popularity due to convenience, flexibility, and the opportunity to visit multiple countries. Luxury cruise lines partnering with active travel companies ensure a comfortable and enjoyable experience.

• Heathrow Airport in London experienced a 22% increase in passenger numbers in September, surpassing 2019 levels. CEO John Holland-Kaye will be replaced by Thomas Woldbye.

• The article highlights various glamping resorts across the United States that offer a unique way to experience fall foliage. The resorts mentioned include Your Glamping Adventure in Tennessee, a family-run glamping village in New Hampshire’s White Mountains, Huttopia’s location camps in multiple states, a lodging and camping area in the Cuyahoga Valley National Park near Cleveland, Firelight Camps in the Finger Lakes region, Sky Ridge Yurts in the Smoky Mountains, Camp Long Creek in the Missouri Ozark Mountains, and a luxury retreat in Virginia near Shenandoah National Park. Each resort offers different accommodations and amenities, such as domes, custom-built homes and cabins, canvas or wood framed tents, and yurts. Activities and attractions near these resorts include waterfalls, wineries, railroad trips, hiking trails, bike paths, and national parks.

• The article discusses fall foliage destinations outside of the U.S., including Japan’s maple leaf hunting tradition and Finland’s ruska celebration.

• Specialized travel advisors cater to ultra-wealthy clients, fulfilling extravagant requests like recreating train journeys and securing private access to exclusive locations.

• The article highlights 25 ski trips that can be booked now, including various destinations worldwide and information about each destination.

ECONOMIC

• The United States Congress is facing dysfunction and challenges as the House Republicans struggle to select a new speaker, leaving the House unable to pass important legislation. Steve Scalise is the front-runner for the position but faces doubts about his ability to unify the party and secure the necessary votes. There are divisions within the Republican Party, with factions supporting different candidates. The leadership vacuum has hindered progress on issues such as aid for Israel and Ukraine and passing spending bills.

• Goldman Sachs has filed a lawsuit against Malaysia in a UK court over a settlement dispute related to the 1MDB scandal. Malaysia denies allegations and claims Goldman Sachs mischaracterized the government’s conduct. The dispute revolves around recovered assets and an interim payment.

• The Biden administration and the Federal Trade Commission (FTC) are proposing a rule to ban hidden and misleading ”junk fees” in various industries, such as ticket sales, banking, and travel. The aim is to promote transparency, protect consumers, and save them billions of dollars annually. The proposed rule would require businesses to disclose all fees upfront and face penalties for non-compliance. The Consumer Financial Protection Bureau is also taking actions to prevent excessive fees by banks.

• Goldman Sachs is selling its stake in fintech firm Greensky to a consortium led by Sixth Street Partners. The deal will result in a significant earnings hit for the bank. The sale is part of Goldman Sachs’ strategy to focus on core businesses and divest from non-core assets. The buyer consortium includes KKR, Bayview Asset Management, and CardWorks. The transaction is expected to close in the first quarter of next year.

• Sri Lanka has reached a debt restructuring agreement with China’s Exim Bank, covering $4.2 billion of its outstanding debt. This is seen as a crucial step towards unlocking the second installment of an IMF package. Sri Lanka hopes to improve tax administration and crack down on tax evasion to aid its economic recovery. The agreement with China is expected to help secure the release of the second tranche of IMF funds. The country’s debt restructuring is crucial for achieving fiscal targets set by the IMF. Talks on sovereign debt restructuring at the IMF annual meeting have hit a deadlock due to disagreements among global creditors.

• Investors may be undervaluing Pembina Pipeline Corporation by 36% according to a DCF model analysis. Darden Restaurants’ intrinsic value is potentially 32% higher, Republic Services’ intrinsic value is fair value at a 3.2% discount, Carlisle Companies’ intrinsic value is fair value at a 6.1% discount, N-able’s intrinsic value is close to its current share price, Auction Technology Group is undervalued at a 43% discount, Apple appears to be around fair value, Betamek Berhad is trading around fair value, ADENTRA Inc. appears expensive compared to its current share price, and KLA Corporation’s fair value estimate is 18% lower than the analyst price target.

• - Genting Singapore Limited: Share price dropped 11% in the last quarter, but EPS growth of 39% per year over three years.

• - Hutchison Port Holdings Trust: Total return of 4.0% over five years, share price dropped 31% over five years.

• - Far East Orchard Limited: Shareholders experienced a 20% loss in the last five years.

• - Singapore Technologies Engineering: Shareholders earned a 23% return over the past year, but stock price only 6.6% higher than three years ago.

• - Asian Pay Television Trust: Impressive EPS growth of 29% over three years, but dip in revenue.

• - Singapore Exchange Ltd: Consistent dividend payment record, but lower growth metrics and profitability rank.

• - Sunsuria Berhad: Loss of 38% over five years, recent 23% gain in share price.

• - Sarine Technologies: Significant loss of 27% over five years, recent 17% drop in share price.

• - SIA Engineering: Share price increased 37% over three years, decline in EPS but revenue growth of 8.4% annually.

• The UK economy experienced a modest rebound in August, driven by the services sector, but concerns remain over high inflation and borrowing costs. The Bank of England may hold interest rates and there are doubts about future performance and the possibility of a recession.

• Russia’s central bank endorses reintroduction of currency controls to stabilize the rouble, requiring exporters to sell foreign currency earnings in exchange for rubles. The move aims to increase transparency, reduce speculation, and ensure an adequate supply of foreign exchange. The rouble strengthens against the dollar, aided by rising oil prices. Concerns remain about the potential impact of further rate hikes and a slowdown in the economy.

• ClearBridge Investments’ ClearBridge Large Cap Value Strategy outperformed the Russell 1000 Value Index in Q3 2023. Stocks like United Parcel Service (UPS), UnitedHealth Group, McKesson Corporation, Sempra, and Intel Corporation were mentioned in the investor letter. The ClearBridge Dividend Strategy underperformed but highlighted Apollo Global Management and Gilead Sciences.

• Former Barclays CEO Jes Staley has been fined £1.8 million and banned from holding a senior management role by the UK’s financial regulator, the Financial Conduct Authority (**FCA**). The FCA found that Staley “recklessly” approved a letter containing misleading statements about his relationship with Jeffrey Epstein. Staley has appealed the decision, and the Bank of England has expressed support for the FCA’s ruling. Barclays has also decided that Staley should forfeit bonuses and long-term incentives totaling £17.8 million.

• New York Republicans are rallying to expel Rep. George Santos from the House of Representatives following a superseding indictment that accuses Santos of stealing the identities of campaign donors. All six of Santos’ fellow New York freshmen GOP lawmakers have expressed support for the effort to expel him. Expulsion requires a two-thirds supermajority, making it uncertain if the move is more than a messaging exercise. Santos plans to seek reelection but faces challenges from both Republicans and Democrats.

• European companies, including French software group Planisware, are delaying their plans to go public on local stock exchanges due to concerns over market conditions. This is a blow to Europe’s stagnant market for new offerings, which has reached its lowest level since the 2008 financial crisis. In contrast, the market for tech IPOs in the US is performing better. Planisware had initially planned to have the largest IPO on Euronext Paris in the last two years, but has now postponed its listing due to “extremely cautious” investors and a recent deterioration in the market environment.

• The German government has revised its economic forecast, predicting a 0.4% contraction in output this year due to major structural challenges, including a shortage of workers. The revisions align with forecasts from institutions like the IMF and the OECD. The government aims to address Germany’s scarcity of workers and the aging population through immigration. However, concerns about a recession have arisen due to weakness in the industrial sector and high interest rates. The government expects a rebound in the economy in 2024 and 2025, with growth rates of 1.3% and 1.5% respectively.

• American International Group (AIG) has appointed David McElroy as chairman of general insurance, Don Bailey as CEO of North America insurance, and Jon Hancock as CEO of international insurance to improve underwriting performance. AIG’s general insurance underwriting income dropped 26% in Q2 due to catastrophe-related charges. The new appointments will be effective from January 1st and all three executives will report to AIG chief Peter Zaffino. The appointments aim to drive profitable growth and strengthen AIG’s leadership team.

CRYPTO

• The trial of Sam Bankman-Fried, the founder of FTX, continues with Caroline Ellison, the former CEO of Alameda Research, testifying against him. Ellison revealed details of fraudulent activities, including using customer funds to repay debts and make investments, as well as Bankman-Fried’s ambitions of becoming the US president. Bankman-Fried’s defense includes claims of utilitarian beliefs and concerns about Alameda’s financial instability. Ellison’s testimony is crucial in the prosecution’s case.

• Bitcoin and other cryptocurrencies are experiencing a decline due to concerns over escalating violence in the Middle East. The price of Bitcoin has fallen to its lowest level this month, and if it consolidates below $27,000, it may drop further. The decoupling of cryptocurrencies from the stock market is observed, and investors are preparing for a potential pullback in Bitcoin due to geopolitical tensions. Other cryptocurrencies like Ether are also experiencing losses.

• A consortium of Japanese firms, including major banks, plans to launch a digital currency called “DCJPY” by July 2024. It will be backed by bank deposits through blockchain technology and used for clean energy certificate transactions. This move aligns Japan with other countries adopting digital currencies, potentially impacting the central bank’s plan for a digital yen. The consortium aims to build a common settlement infrastructure for digital payments.

• Hamas and the Palestinian Islamic Jihad (PIJ) received over $134 million in cryptocurrency, raising questions about how they organized and financed recent attacks on Israel. Israeli police froze cryptocurrency accounts linked to Hamas and a Barclays bank account used for soliciting donations.

• JPMorgan successfully conducts blockchain-based collateral settlement transaction with BlackRock and Barclays. Coinbase faces legal battle over unregistered exchange status. Former CEO of Alameda Research testifies to committing fraud at the direction of FTX exchange founder.

• Fidelity Investments researchers argue that Bitcoin is a superior form of money and a store of value, setting it apart from other digital assets. They believe investors are overestimating the downsides of Bitcoin compared to other tokens. The report emphasizes that Bitcoin’s breakthrough was as a superior form of money, not just a payment technology. It suggests that Bitcoin should be considered separately from other digital assets and can serve as an entry point for traditional investors.

• Jim Cramer, former hedge fund manager, expresses bearish stance on Bitcoin due to expected price declines, in contrast to Paul Tudor Jones’ support. Cramer sold most of his Bitcoin holdings following China’s crackdown.

• In morning trading, Ripple’s XRP dropped 2%, while Uniswap increased 1.38%. Other cryptocurrencies had mixed performance. Coinbase and other crypto-related companies saw declines, while Tesla and PayPal saw increases. ETFs and Grayscale Bitcoin Trust also experienced slight drops.

• NFT production on Ethereum hit an all-time low in September, with a 12.4% decrease from August. Blue-chip NFT collections like Bored Ape Yacht Club and CryptoPunks have seen significant drops in value. The overall NFT market slump is attributed to a loss of investor interest. To revive the market, experts suggest innovation beyond digital art and collectibles. However, globally recognized brands like Starbucks are still adopting NFTs for promotions.

• The sustainability of Ethereum’s proof-of-stake (PoS) consensus mechanism is uncertain as reports show increased electricity consumption and CO2 emissions since the Merge. Comparing metrics with Bitcoin is challenging, and the MEV industry’s energy consumption raises concerns. A holistic view of the blockchain ecosystem is needed.

• Applied Digital Corporation (NASDAQ:APLD) reported a Q1 2024 earnings miss, with EPS at $-0.1 compared to the expected $-0.02. The CEO discussed progress in blockchain hosting and AI cloud services, with plans for three operational facilities and a hosting capacity of 500 MW. The company expects additional GPUs for AI cloud services and is exploring financing options. Q1 2024 revenues were $36.3 million with a net loss of $9.6 million. Full-year guidance remains unchanged.

• Riot Platforms is facing challenges in the crypto industry due to rising energy expenses and scrutiny on exchanges. The upcoming halving event in 2024 is expected to push token prices higher but also requires increased energy consumption. Riot Platforms has been selling most of its monthly production to boost liquidity, but profitability depends on Bitcoin’s price rally. The company’s cash balance is strong, but its future valuation is uncertain. The author advises caution in investing in Riot Platforms until prices decrease.

• Cryptocurrencies like Bitcoin are seen as a solution in search of a problem, with the ongoing fraud trial of Sam Bankman-Fried highlighting the lack of understanding and skepticism surrounding them. The article suggests that cryptocurrencies have failed to effectively address real-world problems and have instead created confusion and skepticism.

• The UK Parliament report recommends banning fan tokens in sports due to concerns about transparency, exploitation, and the risks associated with cryptocurrency investments. The aim is to protect supporters and ensure awareness of the risks involved. The government has two months to respond.

• Over 7 million Americans have received updated COVID-19 vaccines targeting the Omicron subvariant, but demand has dropped significantly.

HEALTH

• EU antitrust regulators have ordered Illumina to sell cancer test maker Grail after completing the acquisition without approval. Illumina was fined €432 million for gun-jumping and the EU blocked the $7.1 billion deal due to competition and innovation concerns. Illumina is reviewing the divestment order and has sued the EU watchdog.

• Humana CEO Bruce Broussard will retire in the second half of 2024. Jim Rechtin, CEO of Envision Healthcare, will join as COO and eventually become CEO, bringing operational and industry expertise to accelerate Humana’s integrated care strategy.

• Walgreens Boots Alliance appoints Tim Wentworth as CEO amidst declining earnings and challenges in the pharmacy business. The company faces competition from online retailers, slow transition into healthcare services, and potential dividend cuts. Wentworth brings extensive healthcare experience. Pharmacy staff walkouts over working conditions add to industry-wide worker dissatisfaction.

• Pharmaceutical company GSK has settled multiple lawsuits in California over its discontinued heartburn drug Zantac causing cancer. The settlements include the Cantlay/Harper case and three breast cancer cases. GSK denies liability and faces about 79,000 Zantac-related cases in the US. The drug was pulled from the market in 2020 due to potential cancer-causing agents. GSK aims to settle all cases for approximately $5 billion in Q1 2024.

• Envision Healthcare, a provider of outsourced emergency department services, has received approval from a U.S. bankruptcy court to split into two companies, Envision Physician Services (**EVPS**) and AMSURG, in order to reduce its debt of over $7 billion. EVPS will focus on providing doctors to hospital emergency rooms, while AMSURG will operate outpatient surgery centers. The bankruptcy filing was prompted by rising interest rates, high labor costs, and payment disputes with health insurers, exacerbated by the recent U.S. ban on ”surprise” medical bills.

• Abbott Laboratories stock decreased, while Regeneron Pharmaceuticals and Gilead Sciences saw slight increases. Catalyst Pharmaceuticals outperformed competitors.

• Blood tests for Alzheimer’s disease are still in development and not yet accurate, approved, or reimbursed. Labcorp has launched a blood test that can detect Alzheimer’s hallmarks, but further testing is still needed. The transition to blood-based diagnostics is expected in the next two years.

• Astria Therapeutics has secured a licensing deal with Ichnos Sciences for the development of a potential treatment for atopic dermatitis. Astria will pay $15 million upfront and up to $305 million in milestone payments. The lead candidate, STAR-0310, will undergo an investigational new drug application by the end of 2024. A Phase 1a clinical trial is expected to begin in early 2025.

• Shares of Tempest Therapeutics surged by over 1,650% after positive study results for its liver cancer treatment, TPST-1120, were released. The drug showed clinical superiority when combined with other medications, and the company is now planning to move it into a pivotal trial. Tempest Therapeutics has also implemented a stockholder rights plan to protect against potential takeover threats.

• Shares of French care-home group Orpea plummeted after the company adjusted its expectations for the full year due to increased costs. Rising payroll costs, as well as expenses for energy procurement, food, and medical products, negatively impacted Orpea’s first-half results. The company’s Ebitdar fell 21% to EUR336 million, and its net loss widened to EUR371 million. Orpea cited an inflationary environment and limited capacity to raise tariffs to counter cost increases. The company’s occupancy rate increased overall, except in France, where reputational concerns linger. Orpea is awaiting a ruling in November on a shareholder appeal against a consortium’s control of the group.

• The Fortune Leadership Next podcast featured conversations from the 2023 Fortune CEO Initiative annual meeting. Johnson & Johnson CEO discussed the company’s “golden era” and research in robotics and AI. Treasury Secretary Janet Yellen discussed the economy, generative AI, and predictions for interest rates and job creation. Generative AI’s impact on business leaders’ minds was highlighted.

• Chinese precision oncology company, Genetron, plans to go private in a $126 million acquisition led by CEO Sizhen Wang and investors. The deal values Genetron at $1.36 per American Depository Share (ADS) and is set to be finalized in Q1 2024.

• AbbVie Inc and Abbott Laboratories, both pharmaceutical companies, have a long history of consistent dividend payments and annual increases since 1972. AbbVie has a dividend yield of 3.92% and a forward yield of 3.97%, while Abbott’s yield is 2.05% and expected to increase. AbbVie has a higher 5-year yield on cost at 8.20%, but its dividend payout ratio of 1.19 raises sustainability concerns. Both companies have strong profitability ranks and growth trajectories, making them attractive for dividend-seeking investors. However, investors should monitor AbbVie’s payout ratio and profitability.

• Teva Pharmaceutical expects minimal impact from Israel-Hamas conflict due to low reliance on Israeli sales and production. Backup manufacturing sites ensure business continuity.

• Baxter International Inc, a prominent player in the Medical Devices & Instruments industry, is facing potential headwinds that may limit its growth. The company’s financial strength, growth, and valuation rankings have diminished, indicating poor future outperformance potential. Concerning financial indicators, such as a low Altman Z-Score and high debt-to-equity ratio, suggest potential challenges and financial distress. Investors should exercise caution and conduct thorough research before investing.