headlines...by halloapp

10-13-2023

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TECH

• The European Union has launched an investigation into social media platform X (formerly known as Twitter) over allegations of spreading illegal content, disinformation, and violent material related to the Israel-Hamas conflict. X has been given a deadline to respond to the EU’s questions and could face heavy fines for non-compliance. This investigation is the first under the EU’s new Digital Services Act, which aims to regulate Big Tech and ensure online safety. X’s CEO, Linda Yaccarino, has stated that the company has removed accounts and content linked to terrorism and violence.

• Taiwan Semiconductor (TSMC) is set to release its third-quarter earnings results, and despite recent challenges, the author believes the company is ready for an upward move. TSMC has received an extension on its waiver to supply U.S. chip equipment to its factories in China. TSMC is planning to increase production at its plant in Japan. Taiwan is determined to maintain its supremacy in the semiconductor industry amidst global competition and geopolitical tensions. Apple played a role in luring TSMC to build a chip plant in Arizona.

• A federal judge in Montana has expressed skepticism over the state’s ban on TikTok, questioning its legality and lack of evidence. The judge criticized the ban as “paternalistic” and suggested alternative steps could have been taken. TikTok is challenging the ban, arguing it violates free speech rights. The judge is expected to issue a ruling soon. Montana is the first state to ban TikTok, while other states have imposed targeted bans on government devices. Republican-led states have passed laws regulating social media content moderation.

• Atlassian, a software company, has acquired video messaging platform Loom for $975 million. The acquisition aims to enhance team collaboration and communication. Atlassian plans to integrate Loom into its suite of products and leverage AI-powered features. The deal is expected to close in the third quarter of 2024.

• Microsoft is facing a potential tax bill of $28.9 billion from the IRS over alleged unpaid taxes from 2004 to 2013. The dispute revolves around transfer pricing and the use of tax havens. Microsoft plans to appeal the claims and believes the tax bill should be reduced by up to $10 billion. The case could lead to a lengthy legal battle.

• Google plans to fight against the European Union’s attempt to break up its ad business, which the EU accuses of hindering fair competition. This adds to Google’s ongoing clash with the US Justice Department and state attorneys general. The US antitrust trial against Google has highlighted its annual payments to ensure search dominance, increased ad prices, and potential advantages in artificial intelligence. Additionally, Google’s payments to Apple for default search engine status are at risk due to a lawsuit, which could impact both companies’ revenue and stock performance.

• A new study shows that 81% of enterprise companies have internal generative AI teams, with smaller companies leading adoption. Generative AI is expected to be used in writing and coding assistance. OpenAI reports $1.3 billion in annual sales, driven by subscriptions to its chatbot. However, customer retention is a challenge for OpenAI and its competitors.

• The rise of AI presents opportunities for entrepreneurs who understand the industry, refine AI models, prioritize user-friendliness, and protect data privacy. AI in higher education requires critical thinking and human relationships. AI-augmented BI can enhance problem-solving and data analysis. Companies should appoint a CAIO to navigate AI implementation. CMOs should define their stance on AI and communicate it effectively. Leaders integrate AI by focusing on creativity, shedding bureaucracy, prioritizing learning, and addressing ethical implications.

• Google’s AI-powered search feature, SGE, now allows users to generate images using prompts and write drafts within the feature. The image generation feature has strict filtering policies and age restrictions. Google will defend users against copyright claims related to its generative AI systems.

• Qualcomm, the largest maker of smartphone chips, is cutting over 1,200 jobs in California due to weak demand for its products. The layoffs are part of the company’s efforts to reduce costs and streamline operations. Qualcomm’s revenue is expected to decline by 19% this fiscal year. The company is heavily reliant on the phone market, which has not recovered as quickly as anticipated, particularly in China.

• Instagram’s messaging app, Threads, is introducing an edit button that allows users to edit posts for free within a five-minute window. However, the lack of edit history raises concerns. The app is also adding voice posts and working on a trending topics feature.

• The California Institute of Technology (Caltech) has settled its patent lawsuit against Apple and Broadcom over Wi-Fi chips. The case, which resulted in a jury ordering Apple to pay $837.8 million and Broadcom to pay $270.2 million in damages, was overturned by a U.S. appeals court. The settlement details remain undisclosed. Caltech still has pending cases against Microsoft, Dell, and HP over its Wi-Fi patents.

• Canada’s news publishers, represented by News Media Canada (NMC), have expressed support for Google’s proposed changes to the country’s Online News Act. Google has raised concerns about financial liability, payment structure, and limitations on supporting the news industry. NMC agrees with Google on issues such as establishing a firm financial liability ceiling and including non-monetary measures in remuneration. The Canadian government is reviewing submissions received during public consultation for the draft rules.

• Israeli cybersecurity professionals are offering free services to protect Israeli businesses from cyber attacks and hacktivist activity related to the conflict in Gaza. Hackers are infiltrating smart billboards, sending threatening messages, and using crypto scams. The Israel Tech Guard is using online posts to search for missing people and secure applications.

• Tech giants Google, Amazon, and Cloudflare have been targeted by denial-of-service (DoS) cyberattacks, potentially part of larger, more sophisticated attacks. Hackers are using phishing tactics to gain access to platforms and servers of larger companies. The surge in cyberattacks extends beyond big tech companies, with other organizations falling victim. Cybersecurity firms may benefit from the increasing threats.

• An executive at Chinese smartphone maker Vivo has been arrested in India as part of a money laundering investigation, raising concerns about a crackdown on Chinese businesses. The allegations include visa violations and siphoning off $13 billion. Vivo and its Indian affiliates are accused of concealing employment when seeking visas and visiting sensitive areas. This comes amid rising tensions between India and China over business activities. The arrest of the Vivo executive complicates the situation, prompting concerns about protectionism and damage to China’s reputation among foreign investors.

• NetApp CEO George Kurian, Ansys CEO Ajei Gopal, and Synopsys Chief Accounting Officer Sudhindra Kankanwadi have all recently sold shares in their respective companies. These insider transactions raise questions about the companies’ valuations and future prospects. Investors should consider valuation metrics and monitor insider trends before making investment decisions.

• Google has released its Pixel 8 lineup, featuring improved cameras and AI software capabilities for photo editing. The Pixel 8 Pro is praised for having the most powerful smartphone camera, but comes at a higher price. Other news includes California passing a right to repair law, concerns about misinformation on Facebook, NASA’s discovery on the Bennu asteroid, and Microsoft facing a tax bill dispute.

• October Prime Day is offering great deals on laptops, monitors, and gaming accessories, with discounts ranging from 20% to 41% off. Readers are advised to act fast as the best deals often sell out quickly.

• TikTok commits to addressing compliance concerns raised by the Malaysian government, organizing meetings with regulators to resolve issues.

• The Biden administration is considering closing a loophole that allows Chinese companies to access American AI chips through overseas subsidiaries. The move aims to prevent Chinese companies from evading export restrictions and acquiring advanced AI technology. The US has been working to limit China’s access to AI technology.

• Swedish telecoms company Ericsson has written off $2.9 billion from its acquisition of Vonage due to poor judgment and lack of strategic synergies. Ericsson’s recent performance reflects muted prospects, with a 10% decline in organic sales. However, the company’s operational results were in line with expectations, including a surprise core profit in its cloud software and services business. Ericsson’s shares have lost around 13% in 2023.

• Palantir Technologies stock had a strong performance, driven by potential contracts with the UK’s National Health Service and the US Army. However, some analysts are concerned about increasing competition. The company reported strong Q2 earnings and raised their guidance for 2023, with CEO Alex Karp noting high demand for their AI platform. Palantir’s stock is undervalued and has been on its longest winning streak in over a year due to government associations.

• Amazon’s Prime Day event is over, but there are still extended deals on Kindle e-readers, including discounts on bundles and popular books. Kindles offer a paper-like display, digital note-taking, and access to free e-books from libraries and websites like Project Gutenberg.

• Zhihu Inc., a Chinese Q&A platform, has a diverse ownership structure with individual investors holding the largest stake at 32% and institutions holding 22%. Tencent is the largest shareholder with a 12% stake. Cheche Group Inc. has seen a 24% decline in CEO Lei Zhang’s holdings. The largest shareholders are individual insiders with a 40% stake. Hedge funds have no significant investment. The top four shareholders control 53% of the company. General public, private companies, and public companies hold stakes in both Zhihu and Cheche Group Inc.

MEDIA

• Hollywood actors’ strike continues as negotiations between SAG-AFTRA and studios break down over streaming revenue and AI use.

• Protests and tensions have erupted on US college campuses over the Israel-Hamas conflict, leading to harassment and assaults. Universities like Harvard and the University of Pennsylvania face criticism for their positions on Israel and alleged antisemitism. Calls to release the names of students involved in controversial letters have drawn backlash. Doxxing and targeting of students have occurred, prompting concerns about freedom of speech and intimidation. The conflict has sparked debates on campuses across the US, with some student groups distancing themselves from controversial statements.

• The UK’s Competition and Markets Authority (CMA) has approved Microsoft’s acquisition of Activision Blizzard after concessions were made, including selling cloud gaming rights to Ubisoft. The deal, valued at $69 billion, is expected to benefit players and the gaming industry globally. The approval marks a significant win for Microsoft, although challenges from the US Federal Trade Commission still remain.

• Taylor Swift’s ”Eras Tour” concert film is premiering a day earlier due to overwhelming demand, with sold-out IMAX showings worldwide. The film is expected to have a significant opening, potentially setting a record for a concert film. AMC and Cinemark are set to benefit from the film’s success. Swift’s impact on the economy, her potential movie project, and her relationship with the NFL player Travis Kelce are also discussed. The premiere of the film brought excitement to Hollywood, with surprise appearances by Beyoncé.

• A lucky individual from California has won the second-largest lottery jackpot in history, estimated at $1.77 billion in the Powerball drawing. Over 150 players across the US won lower-tier prizes. The winner has the option to receive the prize as a lump sum or annual payments. A resident from New Hampshire also won a $1 million prize. The winning ticket was sold at Midway Market & Liquor in Frazier Park, California. The jackpot is the world’s second-largest lottery prize. The odds of winning the Powerball jackpot are one in 292,201,338.

• AMC Entertainment CEO Adam Aron was targeted in a blackmail plot involving false allegations about his personal life. He reported the matter to law enforcement, and the perpetrator was caught, convicted, and sentenced. Aron disclosed the incident to AMC’s board, stating that the matter is closed. AMC is preparing for the release of the Taylor Swift: The Eras Tour film.

• The Los Angeles Dodgers were swept by the Arizona Diamondbacks in the NLDS, struggling with offense and poor pitching. The Diamondbacks hit four home runs in one inning, a postseason first. The Philadelphia Phillies defeated the Atlanta Braves in Game 4 of the NLDS, advancing to the NLCS. Bryce Harper led the Phillies to a 10-2 victory with two home runs.

• The UK Competition and Markets Authority (**CMA**) is investigating television producers and broadcasters, including BBC and ITV, over potential breaches of competition rules regarding the employment of freelancers. The investigation focuses on the purchase of services and potential cartel-like behavior. The companies could face fines of up to 10% of their global turnover. This investigation expands on a previous one launched in July.

• A guide to safely view the solar eclipse includes using solar eclipse glasses, viewers, projectors, and pinhole cameras. Live streaming is also recommended.

• Bernie Ecclestone, the former chief executive of Formula One, has admitted to tax fraud and agreed to pay a record-breaking settlement of £652 million ($793 million). His 17-month prison sentence has been suspended due to his age and clean record. The case highlights the importance of tax compliance and transparency for all individuals.

• Digital World Acquisition Corp. (DWAC) will return $533 million to investors after $467 million of commitments were canceled, casting doubt on the merger with Trump Media & Technology Group (TMTG). TMTG’s funding and future operations are uncertain. DWAC has faced regulatory scrutiny and investigations.

• Disney has increased the price of annual passes, parking fees, and the Memory Maker package at its theme parks. The price hikes range from 3% to 10%. Critics argue that these increases make Disney parks unaffordable for many families. However, starting from October 24, the price for children will be reduced to $50 to encourage more families to visit. Despite legal battles and streaming issues, Disney’s parks division remains profitable, reporting a 13% increase in revenue in the third quarter.

• Paris has become a vibrant art scene with the presence of galleries, fairs, and exhibitions. High Art gallery represents international artists and aims for long-term support. Paris+ par Art Basel and Paris Internationale are prominent art fairs showcasing diverse works. Design Miami is debuting in Paris due to Brexit’s impact on London’s design hub. Art Basel’s Paris edition is expanding with a citywide program and growing art market.

• Publicis Groupe, the Paris-based advertising group, exceeded revenue growth expectations in Q3, with organic net revenue up 5.3%. The company raised its 2023 guidance for organic growth, profitability, and cash generation, and expects organic net revenue growth of 5.5% to 6% this year. Publicis attributed its success to market-share gains, new-business wins, and investments in data and tech. The advertising industry has experienced a slowdown, but Publicis remains confident in its ability to achieve its upgraded guidance.

• Take-Two Interactive, AT&T, Netflix, and Verizon all experienced consecutive days of stock losses, underperforming the market. Trading volume was higher than their respective 50-day averages.

• Argentina makes lineup changes for World Cup quarter-final against Wales, while Wales coach simplifies preparations. New Zealand’s Mo’unga aims to prove himself against Ireland, and All Blacks coach selects Fainga’anuku as power winger.

• The Japanese government is seeking to revoke the legal status of the Unification Church due to manipulation of followers, extensive ties to conservative politicians, and financial harm caused by excessive donations. The church has criticized the decision as biased and based on distorted information.

• The Boston Bruins defeated the Chicago Blackhawks 3-1 in their season opener, while the Toronto Maple Leafs came back to beat the Montreal Canadiens 6-5 in a shootout. The Carolina Hurricanes won 5-3 against the Ottawa Senators.

• Netflix plans to open physical retail destinations called Netflix House in 2025, offering merchandise, dining, and live experiences based on its popular shows. The first two locations will open in the US, aiming to create immersive experiences and build fandom. Netflix is also restructuring its animation operation, including job cuts and shutting down two films in pre-production.

• Sony has developed an accessibility controller kit for the PlayStation 5 in collaboration with accessibility experts. Logitech has announced an accessory kit for the controller, and Sony has shared a first look at the controller’s accessible packaging. The kits aim to enhance accessibility for players with disabilities and encourage inclusivity in gaming.

CONSUMER

• German sandal maker Birkenstock had a disappointing IPO debut, with its stock falling 12-13% below its offering price. The underwhelming performance follows weak showings from other companies like Arm and Instacart. The high valuations and timing of the IPOs are seen as possible factors contributing to the decline. Despite the drop, Birkenstock still has a market capitalization of around $7-8 billion.

• Amazon’s Prime Day event offered discounts on vacuums, Apple products, tech gadgets, and more. Competitors struggled to keep up with Amazon’s deals. Some shoppers raised concerns about artificially raised prices. The event saw increased participation from Prime members and surpassed last year’s sales. Remaining deals are still available, but popular items may sell out. Insider Reviews recommended deals on various products.

• Fastenal Company reported a 4% growth in daily sales and an EPS increase of 4.1% in Q3 2023. The company’s Onsite and FMI installed bases, e-commerce business, and safety business contributed to its sales growth. Fastenal aims to expand its Onsite presence and achieve a digital footprint of 60% by the end of the year. The company’s net income of 52 cents per share beat analysts’ estimates. Despite market challenges, Fastenal saw an increase in net sales and earnings compared to the same period last year. The company’s success is attributed to higher unit sales, particularly at its Onsite locations. Fastenal’s revenue for the quarter rose 2.4% to $1

• LL Flooring Holdings, formerly known as Lumber Liquidators, has received a cash offer of $5.85 per share from Live Ventures. The offer represents a 100% premium to LL Flooring’s closing price and could make Live Ventures one of the top five flooring retailers in the US. LL Flooring’s stock price surged following the offer, which comes after the company’s struggles with losses and failed buyout attempts. LL Flooring’s board will review the offer.

• Fast Retailing, the owner of Uniqlo, reported a record annual net profit of ¥296.23 billion ($1.98 billion), driven by strong global sales. The company plans to open more Uniqlo stores overseas and expects a 4.6% increase in net profit and a 10% rise in revenue for the new fiscal year. The growth was attributed to the recovery in China and the depreciation of the yen. Fast Retailing aims to increase its focus on North America and Europe and expects operating profit to reach another record of 450 billion yen.

• Dollar General has reappointed former CEO Todd Vasos to restore stability and confidence in the company. The discount retailer faces declining consumer demand and has revised its profit and sales forecasts for 2023. Vasos previously led the company from 2015 to 2022 and is expected to be aware of the challenges facing the business. Dollar General’s stock rallied after the announcement.

• Onto Innovation’s and Hanesbrands’ declining returns on capital employed (ROCE) indicate potential business decline. STV Group’s ROCE has also decreased despite reinvestment, while Sopheon’s ROCE has fallen but shows growth potential. Amazon.com’s lower ROCE is offset by revenue and capital growth, with investors remaining optimistic.

• Givaudan, a Swiss fragrance and flavor company, reported lower sales due to a challenging market environment and weaker volumes. The taste and wellbeing segment was the largest contributor to sales, but lower than the previous year. Givaudan plans to implement price increases to offset higher input costs.

• BofA analysts have upgraded Target Corp. to a buy rating, citing potential for increased foot traffic, improved margins, and new product launches. They believe trends of lower prices and weaker customer traffic are fading, and expect a recovery in discretionary spending to benefit Target. Concerns about violence in stores and theft incidents remain.

• Chinese e-commerce retailer JD.com’s shares hit a record low in Hong Kong due to downgraded outlook and concerns about sluggish consumption growth. Pessimism on Wall Street, regulatory scrutiny, and restrictions on US investments also impacted the stock. However, some argue that JD.com is undervalued with strong financial health and potential for high returns.

• Luxury market leader LVMH’s growth has slowed, with organic growth reaching only 9% in Q3 2023. The decline in affluent consumers’ financial confidence suggests a pause or decline in the luxury industry. LVMH’s results showed mixed performance, with Fashion & Leather Goods remaining flat and Watches & Jewelry declining. Bernard Arnault’s wealth is declining as luxury shoppers reduce spending. LVMH’s results are seen as a bellwether for the industry. Investors are shifting focus from luxury goods to big tech stocks, leaving the US market vulnerable.

• Olaplex Holdings CEO JuE Wong is stepping down after facing challenges and criticism, including a decline in share price and consumer backlash. Amanda Baldwin will replace her as CEO in early 2024.

• IKEA’s owner, Ingka Group, is committed to China as a key growth market despite its slipping revenue ranking. The company sees China’s size and potential as outweighing concerns about the country’s macroeconomics. Additionally, China is seen as a crucial market for new retail technologies.

• Private companies and institutions hold significant ownership stakes in PWO AG and Winpak Ltd., indicating positive sentiment. Hedge funds have minimal investments. The top shareholders have considerable influence, while insider ownership is unclear. The general public holds a stake that may impact company policy.

• VOXX International Corporation reported improved Q2/FY2024 results, expects a return to revenue growth and profitability, but faces challenges with a large arbitration award. Automotive supplier Gentex Corporation has purchased a stake in the company.

REAL ESTATE

• Former President Donald Trump is facing allegations of inflating the size of his penthouse, attending his civil fraud trial, and facing a potential confrontation with his former fixer, Michael Cohen. The trial revolves around allegations of asset value inflation and exaggerating net worth. Trump’s former CFO, Allen Weisselberg, testified and received a $2 million severance package. The trial seeks penalties and a ban on Trump doing business in New York. Cohen is a key witness.

• Experts, including former FDIC head Sheila Bair, warn of a potential housing bubble due to supply-demand imbalance and high prices. However, they don’t expect a crash like 2008 due to stricter lending standards and limited supply. A modest decrease in prices would benefit the market.

• Kimco Realty Corp., Regency Centers Corp., and Realty Income Corp. all experienced declines in their stock prices, underperforming the overall market.

• Housing industry trade groups have written letters to the Biden administration and Federal Reserve, urging them to narrow the mortgage spread and halt interest rate hikes. They argue that the spread is too high and rate hikes have worsened housing affordability, potentially leading to a housing downturn and recession. The trade groups call for the Fed to maintain its stock of mortgage-backed securities and provide market certainty.

• UK housing demand and sales volumes declined in September due to interest rates impacting mortgage availability. House prices have fallen in real terms, with some regions yet to recover to 2007 levels. The Bank of England’s interest rate hikes have also dampened housing market demand.

• Amber Griffiths, a military wife, shares her experience of moving to a US military base in South Korea with short notice. She highlights the positive aspects like punctual trains, kindness of strangers, affordability of food, and support from organizations. However, she also mentions challenges such as language barriers, pollution, and inconvenience of language limitations. She expresses her love for South Korea but uncertainty about future assignments.

• China’s property market turmoil has sparked public anger towards developers like Evergrande, accused of taking prepayments but not delivering homes. The government’s lack of intervention and unsuccessful measures to stimulate the market have deterred buyers. The real estate sector’s troubles have led to an economic downturn, with concerns of debt payment defaults and significant declines in sales and equity markets.

• Stacie DaPonte downsized to a tiny house near Toronto during the pandemic, but her cost of living increased. She paid 70% upfront and took out a line of credit. Monthly expenses, including land rent, were higher than in the city. DaPonte faced challenges finding land and navigating zoning requirements. Despite this, she enjoys the community and connection to nature.

• Amazon.com plans to demolish office towers in Virginia and build data centers, focusing on AI and data centers. AI in knowledge work could have an economic impact of $17.1 trillion to $26.5 trillion. AI chatbots streamline customer support and AI software engineering changes the role of software engineers. Amazon’s move aligns with the trend of big tech companies using AI to increase productivity. Investors are advised to consider buying Amazon.com shares.

• Home ownership has become increasingly difficult for average Americans due to skyrocketing home prices and mortgage rates. In the third quarter, median-priced homes were less affordable in 99% of counties compared to historical averages. The typical portion of average wages required for home ownership expenses has reached 35%, the highest level since 2007. The increase in mortgage rates, which have risen from less than 3% in 2021 to over 7%, has contributed to the affordability crisis. This could potentially lead to a reduction in demand and upward pressure on prices.

TRAVEL

• Genting Berhad’s stock on KLSE has seen significant price movements, currently trading at RM4.10. It may be undervalued, priced 16% below intrinsic value, with low volatility. Earnings are expected to double, but financial strength and share price already reflect future growth. Potential investors may wait for a price drop.

• Luxury travel company Black Tomato introduces “See You in the Moment,” a collection of bespoke group travel experiences with personalized itineraries, aiming to create unforgettable moments without the usual challenges of group travel.

• The author criticizes hidden resort fees that consumers face during online purchases, calling it deceptive and unfair.

• Montreal, Quebec is a multicultural city known for its French Canadian identity, diverse immigrant communities, vibrant LGBTQ scene, and growth in areas like Griffintown. The Plateau and Mile End areas are known for art and music scenes. Despite limited time, visitors can enjoy delicious meals, Mont-Royal views, and the city’s creative spirit.

• Despite a decrease in travelers, German travel sales for this winter have surpassed pre-pandemic levels by 6%. However, 20% fewer people have booked holidays with tour operators, and holiday spending and prices have increased by 27%. DRV president calls for action to combat inflation and make vacations affordable.

ECONOMIC

• Former Barclays CEO Jes Staley has been fined and faces a ban from the City of London for misleading statements about his ties to Jeffrey Epstein. Sam Bankman-Fried, founder of FTX, is on trial for fraud, with his ex-partner Caroline Ellison testifying against him. Ellison revealed the alleged fraudulent activities at FTX, including diverting customer funds and bribing Chinese officials. The trial also exposed the personal dynamics and downfall of Bankman-Fried’s close social group.

• House Republicans are facing internal divisions and struggles in electing a new speaker, leaving the chamber leaderless for an extended period. Representative Steve Scalise has withdrawn from the race due to the party’s inability to resolve its divisions. The Republican Party’s dysfunction is hindering aid to Israel and causing concern about the government shutdown deadline. Scalise’s health condition and past controversies have also been raised as concerns. The inability to choose a leader is affecting the functioning of the House and raising doubts about the party’s ability to govern effectively.

• Social Security benefits will increase by 3.2% in 2024, but critics argue it may not be enough to cover rising prices and taxes. The increase is based on the cost-of-living adjustment (COLA) and is lower than previous years. Inflation rates and the need for adjustments to income tax thresholds and COLA calculations are highlighted. The increase in benefits is crucial for retirees, but there are concerns about the long-term stability of Social Security. Rising Medicare Part B premiums and a potential financing shortfall are also mentioned.

• Pfizer, Booking Holdings, Ford, JetBlue, ServiceNow, Starbucks, Microsoft, Apple, Alphabet, IBM, Uber, Coca-Cola, Cisco, Adobe, and Amazon all experienced stock market performance, with some underperforming and others outperforming the overall market. Factors such as declines, consecutive losses, trading volume, and comparison to competitors were highlighted. Additionally, specific details about Adobe’s financial health and growth prospects, as well as Coca-Cola’s buying opportunity and growth potential, were mentioned.

• Goldman Sachs has filed for arbitration against the Malaysian government over a disputed settlement agreement related to the 1MDB scandal. Malaysia denies breaching the agreement and criticizes Goldman Sachs for initiating arbitration prematurely. The disagreement centers around an interim payment of $250 million and whether Malaysia has recovered at least $500 million by August 2022. The 1MDB scandal involved the theft of $4.5 billion and implicated high-level officials and Goldman Sachs staff.

• Zambia is close to signing a Memorandum of Understanding (MoU) on debt restructuring with official creditors, including China and France. The signing is a crucial step towards securing funding from the IMF. Sri Lanka’s private creditors have submitted a $12 billion debt restructuring proposal, including the issuance of sovereign bonds and Macro Linked Bonds (MLBs). China’s lending to Laos has led to a debt crisis, with Laos struggling to repay its debt to China. Sri Lanka has reached an agreement with China EXIM Bank to cover a portion of its outstanding debt.

• Senator Bob Menendez, a Democrat from New Jersey, is facing new charges of acting as a foreign agent for the Egyptian government. The indictment alleges that Menendez accepted bribes and provided sensitive information to the U.S. government. Menendez has pleaded not guilty and his trial is scheduled for May.

• The Monetary Authority of Singapore (MAS) will shift to quarterly meetings for assessing monetary settings from 2024, aligning with other central banks. MAS will maintain its current monetary policy, focusing on the exchange rate to control inflation. Singapore’s GDP grew by 0.7% in Q3 2022. MAS expects GDP growth to gradually improve in 2024 but acknowledges global economic uncertainty. The decision to switch to quarterly policy reviews aims to provide more frequent communication and reduce unpredictability for investors.

• Ecuador’s presidential candidates, Daniel Noboa and Luisa Gonzalez, are campaigning ahead of the election. Violence and security are major concerns. Noboa aims to strengthen intelligence and increase the military’s presence, while Gonzalez plans to purge corrupt police officers and enhance law enforcement. Both candidates face challenges in governing effectively. Noboa focuses on attracting foreign investment and job creation, while Gonzalez promises to bring back social spending.

• New Zealand is holding its national election, with the possibility of a rightwing coalition led by Christopher Luxon winning. The election highlights concerns over economic divisions, foreign policy differences, and domestic issues such as housing and inequality. The election outcome may lead to negotiations and a prolonged process of forming a government. The National Party is currently ahead in the polls but is unlikely to secure a majority. The New Zealand First Party is predicted to hold the balance of power.

• Argentina’s central bank has raised its benchmark interest rate to 145% in an attempt to combat triple-digit inflation. The Argentine peso continues to plummet, causing economic hardships and pushing two out of every five people below the poverty line. The upcoming general elections pose a difficult decision for voters.

• TransUnion, a credit reporting agency, has been fined $23 million by the CFPB and FTC for inaccurate rental background checks and mishandling consumer credit report locks and freezes. The fines include $15 million for inaccurate background checks and $8 million for misleading consumers about credit report freezes. TransUnion will make improvements to its reporting processes.

• Israel expresses disappointment in China’s lack of condemnation of Hamas attack. China calls for peace talks and condemns actions harming civilians. India condemns attack but supports independent Palestine. China reaches out to Palestinian Authority for ceasefire and supports two-state solution. China engages with various parties for peace talks and ceasefire.

• LendingClub is cutting 14% of its workforce (172 jobs) to reduce costs amid macroeconomic uncertainty and higher interest rates. The job cuts are expected to save $30-35 million annually. The company also expects a decline in third-quarter revenue and profit. Despite this, LendingClub remains optimistic and expects marketplace revenue to rebound.

• The upcoming parliamentary elections in Poland are becoming unpredictable due to policy U-turns, scandals, and weakened ruling party. Uncertainty in markets, concerns about EU ties, and potential impact on zloty, bonds, and stocks. Opposition leader Donald Tusk aims to win over female voters. Prime Minister warns of Islamic militants among migrants, anti-immigrant rhetoric, and referendum on migration. Struggle for democracy, criticism of ruling party’s actions, support from traditional values, alienation of young Poles, and patronage system.

CRYPTO

• Russia has reintroduced currency controls in an effort to stabilize the slumping ruble, which has lost a significant amount of value this year due to the war in Ukraine and high inflation. The controls require exporters to sell their foreign exchange earnings for rubles on the domestic market. The move has caused the ruble to strengthen against the dollar, but the effectiveness of the controls is still uncertain.

• The Federal Trade Commission (FTC) has permanently banned Voyager from handling consumers’ assets and is suing former CEO Stephen Ehrlich for falsely claiming accounts were FDIC insured. Voyager filed for bankruptcy, resulting in over $1 billion in lost crypto assets. The FTC is fining Voyager $1.65 billion. The Commodity Futures Trading Commission (CFTC) is also charging Ehrlich with fraud.

• Bitcoin’s price has been declining for the past week, reaching its lowest levels this month. The decline is attributed to global economic risks, increased tensions, and concerns about the use of cryptocurrencies by militant groups. Other cryptocurrencies like Ether have also experienced losses.

• The SEC has a deadline to challenge its loss in court to Grayscale Investments, potentially allowing the conversion of GBTC into an ETF. Approval could lead to gains and increased investment in Bitcoin. The recent court ruling in favor of GBTC eliminates the SEC’s basis for rejecting spot Bitcoin ETFs, potentially resulting in a flurry of approvals. GBTC’s discount is expected to disappear, offering upside. The ruling is seen as bullish for Grayscale and the cryptocurrency sector.

• Hamas and Palestinian Islamic Jihad (PIJ) received significant funds through cryptocurrency, with PIJ receiving up to $93 million and Hamas receiving $41 million. However, it is argued that crypto is not the main funding source for these groups, and Hamas has announced it will stop fundraising Bitcoin.

HEALTH

• Walgreens Boots Alliance Inc. (WBA) faces potential financial distress with a low Altman Z-score. The company plans to cut costs by $1 billion, including closing unprofitable stores. The appointment of Tim Wentworth as CEO aims to improve healthcare outcomes and lower costs. Walgreens forecasts lower profits for fiscal year 2024 due to declining COVID-19 sales. The company reported a narrower loss in Q4 with increased revenue from pharmacy and healthcare businesses. Walgreens’ stock has declined and its earnings outlook falls short of expectations.

• Novo Nordisk’s early termination of its kidney outcome trial has negatively affected Baxter and DaVita. Baxter is better positioned due to its diversified product base, while concerns about DaVita’s financial leverage are mentioned. The decline in dialysis companies, including Fresenius, is seen as an overreaction, and Fresenius remains a strong player in the field. The use of GLP-1 drugs may have a neutral impact on dialysis services. DaVita and Fresenius believe further trials are needed to confirm the study’s findings.

• Scientists have created a comprehensive atlas of human brain cells, identifying over 3,300 cell types and comparing human brains with those of other primates. The research aims to understand brain disorders and what sets human brains apart. The study provides unprecedented resolution for studying brain cells and sheds light on the inner workings of the brain. However, there is still much to learn about the complexity of the human brain.

• The European Union has ordered Illumina to reverse its $7.1 billion acquisition of Grail due to concerns about stifling competition and limiting consumer choice in the early cancer-detection market. Illumina was fined for completing the deal without EU approval and must now present a plan for divesting Grail.

• Eli Lilly’s drug mirikizumab has shown positive results in a Phase 3 trial for Crohn’s disease, achieving clinical response and remission. It demonstrated non-inferiority to ustekinumab for clinical remission but underperformed in endoscopic response. Mirikizumab’s safety profile was consistent with previous results, and marketing applications are expected in 2024.