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10-21-2023

TECH

• Investors eagerly await Q3 earnings reports from Meta Platforms, Alphabet, Microsoft, and Amazon, looking for insights into business spending and AI monetization.

• Apple CEO Tim Cook met with China’s Vice Premier Ding Duexiang to discuss supporting supply chain partners and investing in China’s digital economy.

• The Supreme Court has lifted restrictions on the Biden administration’s ability to contact tech platforms about content moderation.

• Meta Platforms Inc. (META) stock slipped 1.33% but outperformed Apple, Microsoft, and Alphabet. Cummins Inc. and NIO Inc. also outperformed the market. Sony Group Corp. (SONY) experienced a 0.78% loss but outperformed competitors. Nokia Corp. ADR declined 0.93% but outperformed BlackBerry, Apple, and Motorola Solutions.

• Elon Musk’s social media platform, X, will introduce two new subscription tiers, including a cheaper option and an ad-free version.

• Brazilian police arrest two intelligence officials from Abin for illegal surveillance using phone hacking tools purchased from an Israeli firm.

• AT&T’s Q3 earnings exceeded expectations, causing a 7% stock jump. Despite concerns about debt and declining revenues, there is potential for growth in fiber adoption.

• ASML Holding reports Q3 results slightly below expectations, projects 30% revenue growth in 2023, faces competition from Canon’s nanoimprint system.

• Amazon managers can now terminate employees who refuse to work in the office for at least three days a week.

• Republican senators on the U.S. Senate Commerce Committee and the European Commission have requested information from tech companies about their content moderation policies during the Israel-Hamas war. They are seeking to preserve a documentary history of Hamas’s atrocities.

• Klaviyo’s stock falls below IPO price, following a trend of underperforming high-profile IPOs. Shares closed at $29.30, an 8% loss.

• Organizations are adopting AI at scale by involving domain experts and data scientists, managing expectations, and prioritizing people.

• Zhipu AI, a Chinese AI startup, raised $340 million in funding from investors including Alibaba, Tencent, and Xiaomi. They recently open-sourced their bilingual conversational AI model to compete with Microsoft-backed OpenAI’s ChatGPT.

• Chinese regulators may delay approval for Broadcom’s $69 billion acquisition of VMWare in response to US chip sales controls.

• Google is updating its suite of Android tablet apps with features like drag and drop and side-by-side file opening. The Gmail app on foldable devices now allows for improved multitasking capabilities, including split-screen viewing of links.

• Nvidia CEO Jensen Huang admits that starting a company was more challenging than anticipated and he wouldn’t do it again due to personal toll and fear of disappointing employees.

• US intelligence report shared with 100 countries reveals Russia’s use of spies, state-run media, and social media to undermine global elections.

• Baby boomers are catching up to Gen Z in AI skills, with 50% of boomers having the right skills compared to 35% of Gen Z employees.

• Intel is projected to announce a decrease in Q3 revenue due to competition and geopolitical uncertainty, while Dow Inc expects lower profit and revenue due to price pressure and uneven demand in China.

• The WOW career expo in North Florida had 3,000 ninth-grade students and 10 industry sectors, while Alabama’s expo had 50 businesses for eighth graders.

MEDIA

• Apple releases Martin Scorsese’s ”Killers of the Flower Moon” in theaters, competing with specialty films. The film may also stream on Apple TV+.

• Interpublic Group of Companies reported disappointing Q3 results, with a decrease in organic revenue and underperformance in the tech and telecom client sector. The company plans to assess structural solutions to improve its growth profile.

• New Zealand’s All Blacks reach Rugby World Cup final after defeating Argentina 44-6, with Will Jordan scoring a hat-trick.

• Taylor Swift’s ”The Eras Tour” concert film has become the highest-grossing concert film of all time, earning $92.8 million since its debut. It had the biggest opening weekend, earning $123.5 million globally. The film is already breaking records and is expected to gross $1.4 billion.

• Italian Prime Minister Giorgia Meloni ends her 10-year relationship with TV anchor Andrea Giambruno after his sexist comments were broadcast.

• GameSquare Holdings acquires Faze Clan, a once $1 billion esports company, in a $17 million all-stock deal backed by Jerry Jones.

• The Arizona Diamondbacks tie the NLCS against the Philadelphia Phillies with a late comeback and a pinch-hit home run.

• England’s defence coach Kevin Sinfield wants his team to give their all in the World Cup semi-final against South Africa. England is the only unbeaten team left.

• Jon Stewart’s Apple TV+ show, “The Problem With Jon Stewart,” is reportedly ending due to creative differences, including disagreements over controversial topics like China and artificial intelligence.

• Hollywood actors strike for 100 days, facing financial difficulties, but hopeful for a fair deal. A-list actors offer $150 million to union.

• Texas judge denies Alex Jones’ attempt to use bankruptcy protection to avoid paying $1.1 billion to Sandy Hook victim families.

• Haydn Gwynne, acclaimed stage and screen actor, known for her roles in “Drop the Dead Donkey” and “The Windsors,” has died at 66 after battling cancer.

• SAG-AFTRA warns striking actors against wearing Hollywood character costumes for Halloween to avoid promoting studios’ content during the strike.

• Jose Altuve’s ninth-inning three-run homer leads the Houston Astros to a 3-2 lead in the ALCS against the Texas Rangers.

• Disney CEO Bob Iger stated that ESPN is more financially significant than Disney’s entertainment business, but profits are declining.

CONSUMER

• Sensient Technologies Corporation’s Q3 2023 earnings show a decrease in local currency revenue and adjusted EBITDA, but increased revenue and operating income in its Asia Pacific Group.

• Italian luxury brand Brunello Cucinelli experiences a 29% increase in sales and raises revenue guidance to 20-22% growth for 2023.

• Dollarama has named Patrick Bui, current CFO of Transat AT, as its new CFO starting December 18, 2023. Bui will be leaving Transat AT on December 15.

• Ozon, a Russian e-commerce company, plans to delist its American depositary shares (ADSs) from Nasdaq after unsuccessful appeals.

• Public companies and individual investors own significant stakes in V-ZUG Holding AG and Aumann AG, with public companies holding the majority in both cases.

• Kohl’s stock rose 2.41% to $21.29, outperforming competitors despite an overall market decline. Kroger stock dropped 0.83% but outperformed Amazon, Walmart, and Costco.

• Rexel SA is a global distributor of electrical products and services, operating in 21 countries and offering a wide range of products.

• The fair value of Viad Corp (VVI) and Autoliv, Inc. stock is determined by earnings and growth rate, with estimated returns over 5 years.

• Holiday retail sales in the US are projected to rise by 3.8% to $1.6 trillion, as consumers prioritize promotions and pricing amidst inflation worries.

• WD-40 Company’s Q4 2023 net sales reached $140.5 million, an 8% YoY increase, in line with expectations. Fiscal year 2024 revenue growth is projected at 6-12%.

• Both articles provide lists of consumer staples stocks to buy, including Procter & Gamble, PepsiCo, Walmart, and General Mills.

• G-III Apparel Group stock fell 1.16% but outperformed S&P 500. It has dropped recently but risen 2.42% in the past month. Investors await earnings release.

REAL ESTATE

• Morgan Stanley predicts a potential 5% drop in home prices next year due to high mortgage rates and reduced demand. Existing-home sales have reached a 13-year low in September, with surging mortgage rates and low inventory levels contributing to the decline. The housing market is facing tough conditions, including high prices, low inventory, and declining affordability.

• Canada’s banking regulator, the OSFI, is implementing revised guidelines that will require lenders to hold more capital for negatively amortizing mortgages starting in 2024. This is in response to growing mortgage balances and spikes in interest rates.

• InterContinental Hotels Group (IHG) anticipates a robust financial performance in 2023 despite financing challenges and plans to return $1 billion to shareholders.

• The Council on American-Islamic Relations (CAIR) relocated its annual banquet after receiving multiple terror threats at a Virginia hotel.

• Rexford Industrial Realty’s Q3 2023 earnings showed a 12% growth in FFO per share and a 97.8% same-property occupancy rate. Firstst Industrial Realty Trust reported strong cash rental rate growth in Q3 2023, but tenants are cautious due to economic uncertainty. There is also expected new supply in the next year.

• Five Point Holdings reported Q3 2023 earnings of $14.2M and extended their credit facility, while Hilltop Holdings reported Q3 2023 net income of $37M.

TRAVEL

• Cruise lines are addressing the issue of expensive ”single supplement” fees by providing single-person cabins at no extra cost.

• Luxury hotels in Central America are hosting special events and experiences to celebrate the Day of the Dead.

• The Bahamas offers local experiences like visiting the Educulture Junkanoo Museum, swimming with pigs, and trying local cuisine.

• From 2025, American travelers must register online and undergo face and fingerprint scans to enter Europe, according to new regulations.

ECONOMIC

• US Treasury yields may not decrease significantly until the market increases expectations for future rate cuts, according to SEB Research. Asian bonds experienced significant outflows in September due to a surge in US bond yields and a stronger dollar, which reduced returns for international investors. Foreigners sold bonds worth $3.7 billion from Malaysia, Indonesia, South Korea, and Thailand, the largest outflow since June 2022. The rise in US yields has made Asian government bonds less attractive compared to their US counterparts.

• Jim Jordan, a hardline Republican congressman from Ohio, is expected to make a third bid for the House speaker role despite opposition from fellow Republicans and Democrats. However, he is likely to fall short in the vote, leaving Republicans at an impasse.

• Labour secures historic victories in the Tamworth and Mid Bedfordshire by-elections, overturning large Conservative majorities and signaling potential shifts in UK politics.

• Economists warn of a ”retail recession” in the UK as September sales fell by 0.9% due to high living costs and warm weather. The Toronto Stock Exchange fell to a two-week low due to concerns over borrowing costs and a domestic economic slowdown. Canadian retail sales remained stagnant in September and August, reinforcing expectations of unchanged interest rates.

• The US budget deficit for fiscal year 2023 rose 23% to nearly $1.7 trillion due to increased Social Security and health costs, lower tax receipts, and rising interest rates. The deficit is the largest since the COVID-19 pandemic began, and interest payments on the debt could soon surpass defense spending.

• Javier Milei, a Trump-admiring libertarian, leads in Argentina’s presidential election polls, advocating for economic reform and dollarization.

• A Federal Reserve survey found that inflation and potential losses in commercial real estate are top financial stability concerns. The report also warns of growing geopolitical risks and economic weakness in China.

• US banking regulators have extended the comment period for proposed higher bank capital requirements until January 16, 2024, in response to industry pushback.

• Indian mobile commerce and payments FinTech Paytm sees 64% increase in financial services income, shrinking losses. Yes Bank reports 47% increase in net profit due to lower loan-loss provisions and healthy loan growth. Kotak Mahindra Bank reports 24% increase in Q2 net profit, meeting analysts’ estimates.

• S&P downgrades Egypt’s credit rating to “B-” due to funding pressures and delays in reforms, while upgrading Greece’s rating to investment grade.

• Nordea Bank’s Q3 results show a 34% increase in operating profit and a 41% increase in EPS, driven by improved margins.

• Husqvarnaa AB reports a decline in organic sales by 15% in Q3 2023 due to challenging market conditions.

• Tele22 AB releases its Q3 2023 results, to be discussed in an earnings call presentation.

• Bolidenn AB reports Q3 2023 earnings with a profit of almost SEK2 billion,

• China’s central bank has decided to keep its benchmark lending rates unchanged, injecting a record amount of short-term cash into the banking system. The move aims to stimulate the economy amid a lack of growth and a property downturn.

CRYPTO

• Bitcoin briefly surpasses $30,000 after rumors of SEC approving BlackRock’s Bitcoin ETF application, marking a victory for the cryptocurrency industry.

• Hamas and other militant groups used cryptocurrencies to raise millions for attacks in Israel, but authorities tracked and seized their funds. Calls for stricter regulations and crackdown on illicit crypto activity have emerged.

• FTX Founder Sam Bankman-Fried’s fraud trial and NY AG lawsuit are causing a potential fallout in the crypto industry. Testimony reveals illegal use of customer funds and extravagant spending.

• The SEC has dropped charges against Ripple executives in the ongoing lawsuit, causing a 7% surge in XRP’s value.

HEALTH

• CVS is removing over-the-counter cold and allergy medicines with ineffective phenylephrine after FDA findings and facing litigation.

• UK online pharmacy Rightangled defies government order by continuing to sell Novo Nordisk’s Ozempic for weight loss. Counterfeit versions of weight-loss drugs are on the rise globally.

• Merck signs a $5.5 billion deal with Daiichi Sankyo to jointly develop and sell three potential cancer drugs.

• Pfizer’s Penbraya vaccine has been FDA approved, protecting adolescents and young adults against five groups of meningococcal bacteria.