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10-15-2023

TECH

• The US National Labor Relations Board has filed a complaint against X Corp, formerly known as Twitter, for illegally firing an employee who criticized Elon Musk’s return-to-work policy. The NLRB accuses X Corp of violating federal labor law by interfering with employees’ protected rights. This is the first formal complaint against X Corp by the NLRB.

• Dozens of stalking victims have joined a lawsuit against Apple, claiming that AirTags are being used for stalking and abuse. The lawsuit now has 37-38 plaintiffs and alleges that AirTags are easily concealed and used to track victims’ locations. There have been other complaints about theft and murder. Apple has implemented safety measures but is accused of negligence.

• Microsoft is positioned to lead in the AI market with its vast reach and diverse AI ventures. CEO Satya Nadella’s strategic moves, including investment in OpenAI and the introduction of Copilot, have proven successful. The company’s acquisition of Activision Blizzard solidifies its position in gaming. Challenges include a tax dispute with the IRS.

• The European Commission has warned Google and YouTube about the spread of graphic content and misinformation during the Israel-Hamas conflict. They emphasized the need for content moderation and protecting minors. Possible penalties may be imposed if Google fails to comply. Alphabet, YouTube’s parent company, has removed harmful videos and terminated channels related to the conflict.

• Nvidia, a leading tech company valued at over $1 trillion, is allowing its 26,000 employees to work remotely indefinitely. They prioritize employee flexibility and balance, unlike other companies insisting on office returns.

• Investment firm Needham maintains buy recommendation for SMART Global Holdings (SGH) with a potential 158.24% increase in price. SGH projected to have 35.16% revenue increase and non-GAAP EPS of 2.89. Number of funds and institutions reporting positions in SGH increased by 5.87%. SGH has a low ROE of 4.2% and high debt to equity ratio of 3.45, cautioning investors.

• Apple is set to announce new iPad models this week, including updates to the iPad Air, iPad mini, and base model iPad. The iPad Air may receive the M2 chip, while the iPad mini could feature the A16 Bionic chip. The base model iPad’s chip is uncertain. The iPad Pro lineup will remain unchanged for now. Rumors suggest that major updates to the iPad Pro, iPad mini, and iPad Air will be released in 2024, so it is advised to wait before

• Generative AI is growing rapidly, offering productivity and information generation benefits, but data privacy and ethical concerns persist. The legal landscape is struggling to keep pace with AI advancements, necessitating companies to balance progress with risk mitigation. Lawsuits against AI giants underscore the need for responsible data handling and adherence to regulations.

• China is considering stricter regulations for generative AI services, focusing on data security, copyright infringement, and authorized data processing.

• The iPhone 15 Pro Max is experiencing multiple problems including overheating, screen burn-in, power drain, and display issues. Other reported problems include speaker crackling, Apple Pay issues, camera lens flares, and UI glitches.

• Apple’s new requirement for Chinese app developers to obtain government licensing will close a censorship loophole but hinder access to banned foreign apps.

• China’s Digital Silk Road is driving the Belt and Road Initiative, promoting its technology leadership and global influence.

• Israeli cybersecurity executives, Gil Messing and Avi Shua, downplay the threat of cyberattacks, but over 100 attacks have targeted public services and media outlets in Israel. Shua emphasizes the need to protect children from harmful messages, and Israeli smart home technologies have also been targeted.

• Mustafa Suleyman, co-founder of DeepMind, criticizes Google for contributing to internet decline with clickbait-filled search results. He aims to rival Google’s dominance with his own conversational chatbot.

• C3.ai (NYSE: AI) has experienced volatility in its share price, currently trading at US$24.75. The stock has a high beta, offering potential buying opportunities during market downturns. The company’s outlook is positive, with expected profit growth.

• Workday stock closed at $214.89, down 0.4%, with shares decreasing by 11.97% over the last month. Analysts expect earnings growth of 41.41% in the forthcoming report.

• This article outlines alternatives to Google Analytics 4, including upgrades, data privacy concerns, and other web reporting tools.

• UK Technology Secretary, Michelle Donelan, urges social media companies to stop spreading “vile, repugnant” content from Hamas after recent attack.

• Startup Ripcord is looking to raise $20-25 million in funding, with Alphabet’s GV, Lux Capital, and MUFG in talks to participate. This would value the company at $110 million pre-money and bring its total raised to around $150 million. Ripcord has secured a deal with the IRS for tax document processing.

• AIXTRON SE’s market cap has dropped by €327 million, impacting institutional investors the most. However, one-year returns may have mitigated losses. No single shareholder has significant control.

MEDIA

• The Rugby World Cup quarter-finals saw Argentina stage a remarkable comeback to defeat Wales and secure a spot in the semi-finals. Despite facing challenges, Wales showed improvement throughout the tournament. Argentina defied expectations by reaching the quarter-finals after a learning experience from their initial loss. Wales coach Warren Gatland expressed disappointment with the referee change and committed to staying in his role. Argentina’s coach, Michael Cheika, praised his team’s hard work and highlighted their tight-knit nature.

• Ireland’s disappointment in their loss to New Zealand in the Rugby World Cup quarter-finals. New Zealand’s resilience and dominance in the match. Ireland’s lingering questions and doubts about their ability to become world champions. New Zealand’s strong defense and commitment in their victory. The end of Johnny Sexton’s career and retirement.

• France and South Africa are set to face off in a closely contested Rugby World Cup quarter-final. Both teams have made surprising team selections, with South Africa opting for a playmaker and France including a deadly accurate marksman. Former France captain Thierry Dusautoir expressed concerns about the physicality of the match but believes France has the tools to win. France coach Fabien Galthié is inspiring his team with a sense of World Cup destiny. South Africa’s coaches have engaged in intense debates

• Qatari group led by Sheikh Jassim Bin Hamad J.J. Al Thani withdraws £5 billion bid to buy Manchester United, leaving British billionaire Jim Ratcliffe as potential buyer. The Glazer family rejected the Qatari offer.

• Taylor Swift’s concert film ”The Eras Tour” is receiving rave reviews and a perfect audience score. It is expected to have a domestic opening of $100 million, potentially becoming the highest-grossing concert film in history. The film showcases the close bond between Swift and her fans and offers a concert-like atmosphere. It has generated unprecedented pre-sales and is providing a much-needed cash injection for the cinema industry.

• Rohit Sharma’s exceptional six-hitting skills and India’s versatile bowling attack led to a comprehensive victory over Pakistan in the World Cup. Pakistan collapsed after a promising start, while Rohit surpassed Chris Gayle’s sixes record. India has a perfect 7-0 record against Pakistan in World Cup matches.

• Olympic champion Mary Lou Retton is making remarkable progress in her recovery from pneumonia, with her breathing becoming stronger and reliance on machines decreasing. A fundraising page has received over $400,000 in donations.

• The IOC will decide on the host city for the 2036 Olympics in 2026 or 2027. India, Poland, Mexico, and Indonesia are interested in bidding.

• The Washington Capitals suffered a 4-0 loss to the Pittsburgh Penguins, raising doubts about their performance. The Penguins secured a 5-2 victory against the Calgary Flames with strong performances from Bryan Rust and Alex Nedeljkovic. The Penguins are hoping to continue their winning momentum against the Flames.

• Germany’s new coach, Julian Nagelsmann, had a successful debut as they defeated the United States 3-1 in a friendly match. Christian Pulisic scored for the US, but Germany equalized and secured the win with goals from Guendogan, Fuellkrug, and Musiala.

• India dominated the highly anticipated cricket match against Pakistan, with a record-breaking crowd at Narendra Modi Stadium. Visa restrictions limited Pakistani fans’ attendance. The upcoming Cricket World Cup match is expected to have a massive turnout, but few Pakistani supporters will be present. The rivalry is overshadowed by political tensions between the two nations.

• England’s rugby team aims to win back fans and recognition, facing Fiji in the World Cup quarter-finals. Apathy among supporters and lack of representation in world XV selections need to be addressed. Both teams are eager to progress, with Fiji showing improvement in basic aspects. England must not underestimate Fiji and focus on their strong kicking game and set piece.

• Chelsea’s Sam Kerr scores in her return to the Women’s Super League, helping secure a 2-0 win against West Ham.

• Russia has proposed a UN Security Council vote on a resolution for a humanitarian ceasefire in the Israel-Hamas conflict. The resolution condemns violence, calls for the release of hostages, and emphasizes humanitarian aid and safe evacuation. The vote is expected on Monday.

• Bobby Kotick will remain as CEO of Activision Blizzard until the end of 2023 after Microsoft’s acquisition. Microsoft plans to bring Activision Blizzard games to Xbox Game Pass. Kotick is expected to retire in 2024. Game workers are unionizing in response to industry layoffs.

CONSUMER

• LEM Holding, a Swiss company, has seen its share price climb 78% over the past five years, transitioning from a loss to profitability. Hong Leong Industries Berhad delivered a notable 41% return to investors over the past three years. Hup Seng Industries Berhad experienced a 9.1% loss over the past five years, with a focus on future earnings growth.

• National Vision Holdings, a retail company, has low return on capital employed (ROCE) of 2.4% compared to the industry average of 13%. The company’s ROCE has fallen from 5.4% in the past five years, causing investor skepticism. Lifetimeme Brands, a consumer durables company, has a low absolute ROCE of 5.1% but has steadily increased it by 161% over the past five years. Despite a decline in stock value,

• A coalition of eight menstrual product brands is offering sales tax refunds on period products to eliminate the ”tampon tax” in the United States. Customers can submit receipts for reimbursement within 10 days of purchase. Amazon purchases are not eligible.

• Toy marketers are developing MESH toys to address children’s mental health issues caused by the pandemic. These toys aim to teach emotional resilience and problem-solving skills. Certification of MESH toys is planned for mid-2024, but there are concerns about potential marketing gimmicks.

• Luxury brands like LVMH are facing a decline in sales due to weaker revenue growth and decreased luxury fashion spending. China’s economic troubles and a potential reversal in American spending habits are believed to be the main causes. However, the US tech sector may benefit from this decline.

• Chinese e-commerce platform Weidian has ordered merchants to replace ”Tibet” with ”Xizang” in product translations or risk removal. This aligns with China’s official translation and previous calls to use “Xizang.”

• Happy Pappys Action Figure Extravaganza, a popular toy store in Canton, Ohio, has moved to Plain Township due to the expansion of the Canton Palace Theatre. The store offers a variety of action figures and nostalgic toys, attracting customers seeking childhood memories. The owner, Clifton Boggs, preferred to stay downtown but faced financial burdens. Despite online shopping challenges, Boggs continues to run the store.

• Hong Kong shopping malls are using social media to drive sales and attract customers. Euromonitor predicts social e-commerce in Asia-Pacific will reach $312.55 billion by 2026. Malls are creating events and photo spots to encourage shoppers to share selfies on social platforms.

• Best Buy and CVS are undervalued retail stocks with strong dividends and financials. Best Buy maintains its bottom line despite slowing sales, while CVS faces challenges as a pharmacy benefit manager. Both stocks are attractive for value investors.

• Small businesses in Grand Forks, ND prioritize customer service and community engagement to compete with big-box stores. Well-informed employees and personalized service are key to building customer loyalty. Brick-and-mortar stores still dominate retail sales despite e-commerce growth.

• eBay is a prominent e-commerce platform with $74 billion GMV in 2022, operating in 190 global markets with millions of buyers and sellers.

• Under Armour’s share price has dropped 64% in the past five years, despite the company becoming profitable. Revenue has increased, but shareholders have experienced a 5.2% loss in the last year.

REAL ESTATE

• Goldman Sachs forecasts rising US home prices despite high unaffordability, with a 1.8% increase in 2023 and 3.5% by 2024. Moody’s lists top cities for home-price appreciation, expecting a 4% national decline due to low affordability and high mortgage rates. However, limited supply and low willingness to sell will prevent a larger decline.

• Homebuyers in the US are making larger down payments, with the median amount reaching $30,434, the highest since 2013. Strategies to save for a down payment include investing, automating savings, seeking assistance programs, and cutting back on expenses.

• Retiring on a budget of $2,000 per month is possible in cities like Costa Rica, Portugal, Panama, Thailand, and Puerto Rico. In Europe, Valencia, Spain is the top city for retirees on a $2,500 per month budget. Other cities include Porto, Portugal and Klaipeda, Lithuania.

• REITs experience slight gains ahead of Q3 earnings season, with positive fundamentals and compelling stock valuations. Income-oriented investors have a rare opportunity to buy REITs before a potential shift from underperformance to outperformance.

• Financial expert Dave Ramsey advises potential homebuyers to not wait for mortgage rates to go down before purchasing a house. Despite high rates, Ramsey suggests buying now to lock in prices and refinance later when rates decrease.

• The Pueblo real estate market in Colorado continues to decline, with decreased home listings, pending sales, and residential home sales. Median home prices have fallen, and new home construction permits are significantly down.

TRAVEL

• Carnival Corporation director buys $4.5M worth of shares, increasing holding by 39%, signaling optimism despite recent lack of profitability.

• Kyoto, Japan, has introduced a code of conduct for tourists to combat over-tourism and promote sustainable practices. The code includes suggestions like carrying litter back to hotels and refraining from taking photos in prohibited areas. It aims to raise awareness and create a more respectful tourism experience.

• The JetBlue Plus Card offers a welcome bonus of 40,000 points, 6 points per dollar on JetBlue purchases, and other benefits.

ECONOMIC

• President Biden and Secretary of State Blinken have been engaging in diplomatic efforts to address the Israeli-Palestinian conflict and the humanitarian crisis in Gaza. They have called for the protection of civilians, urged countries to condemn Hamas, and sought assistance from China. Biden emphasized the need to prevent further escalation and expressed unwavering support for Israel. China called for a ceasefire and condemned Israel’s actions. Saudi Arabia has called for an urgent meeting to address the deteriorating conditions in Gaza.

• Christopher Luxon, former CEO of Air New Zealand, is set to become New Zealand’s prime minister-elect, leading a center-right government. Luxon plans to address inflation and debt by cutting spending and narrowing the central bank’s mandate. The election reflects a global trend of voters turning away from ruling parties. Luxon will negotiate with the ACT Party to form a majority government. The Labour Party, led by Jacinda Ardern, faced declining support due to rising living costs and the COVID-19 pandemic

• The International Monetary Fund (IMF) annual meetings in Morocco focused on global economy, wealth inequality, and climate change. IMF members pledged to review quota funding and expressed support for an increase. China wants a realignment of IMF shareholding to reflect economic weights. The IMF successfully raised $3 billion for its concessional trust fund to support the world’s poorest countries.

• JP Morgan CEO warns of dangerous time due to Israel-Gaza conflict; potential impacts on energy prices, trade, and interest rates.

• Poland’s parliamentary election is underway, with the ruling Law and Justice party seeking a third term. The main opposition, led by Donald Tusk, presents a different vision for Poland’s future. The election will determine Poland’s stance on issues such as the rule of law and EU membership. The outcome will have ramifications for the country’s democracy, LGBTQ+ rights, and foreign alliances. The election is closely watched by the EU and Washington due to concerns over democratic checks and balances.

• The International Monetary Fund (IMF) sees no need for Japan to intervene in the currency market to support the yen, as the depreciation is driven by interest rate differentials and economic fundamentals. Japan’s Finance Minister warns of possible responses to excessive movements in the currency market.

• The Oakmark International Fund, Oakmark International Small Cap Fund, Oakmark Global Select Fund, Oakmark Equity and Income Fund, Oakmark Select Fund, and Oakmark Fund have all reported positive returns for the fiscal year, outperforming their respective benchmarks. Top contributors to the funds’ performance include Fresenius, Kabi, Helios, Schibsted, Konecranes, Charter Communications, and Alphabet. Detractors include Worldline, Intesa, CNH Industrial, Credit

• Ecuador’s presidential election is taking place amidst a surge in drug-related violence and a struggling economy. The two main candidates, Daniel Noboa and Luisa González, have different proposals for addressing security issues. Crime rates and public safety are top concerns for voters.

• Wall Street mixed amid Israel-Gaza tensions. Financials gain on positive Q3 earnings. Crude oil spikes, Exxon Mobil announces deal. UAW strike causes layoffs. Retail inflation slows, rental costs surge. Volatile bond market, weak demand for Treasury bonds. Concerns about higher yields and global recession. Treasury market’s advance tested by inflation and weak demand. Negative impact on stocks due to high interest rate expectations. Signs of bond market sentiment reversal may lead to lower yields and stock rally.

• The Federal Reserve is expected to keep interest rates steady in November but is not ruling out future rate hikes. Inflation remains a concern, with potential risks from food prices, the housing market, and the Middle East. Recent data shows a resilient economy and higher-than-expected producer prices. The Fed wants to balance inflation risks and keep the option of future rate increases open.

• Major US banks, including JPMorgan Chase and Wells Fargo, may increase interest rates for depositors due to customer demands. Positive Q3 earnings for major banks show strength in net interest income and trading activity. Wells Fargo reports progress in financial performance.

• Institutional investors in BlackRock (BLK) experienced a 3.2% loss in the past week but have seen a 17% one-year return. The largest shareholders are institutions, including The Vanguard Group, Kuwait, and Capital Research. Institutional investors hold around 85% of Baker Hughes (BKR) shares, with a 56% one-year return. The largest institutional shareholder is unknown. Institutional investors own 56% of Zalando (ZAL), with the largest

CRYPTO

• Ferrari will accept cryptocurrency payments for its luxury cars in the US, with plans to expand to Europe. There will be no additional charges, and payments will be converted into traditional currency. The move is in response to customer demand and aims to reach a wider range of potential customers. Ferrari also emphasizes its goal of carbon neutrality by 2030 and believes cryptocurrencies contribute to reducing carbon footprint.

• The SEC will not appeal the court ruling allowing Grayscale to convert its Bitcoin trust into an ETF. Crypto market declines, fraudulent activity in the Sam Bankman-Fried trial, and restrictions on crypto-asset promotions by the UK FCA are also highlighted. BlockFi CEO testifies in the trial, discussing loans and losses.

• US officials are concerned about a Chinese-owned bitcoin mining operation in Wyoming due to potential national security risks. The operation’s proximity to a Microsoft data center and a military base raises worries about intelligence collection activities. Microsoft has submitted a report highlighting the risks.

• Sam Bankman-Fried, founder of FTX, is facing trial for alleged financial crimes. Witnesses testified about investment losses and missing customer cash.

HEALTH

• The European Union (EU) has postponed the approval of Novavax’s variant-specific COVID-19 vaccine due to additional information requested by the European Medicines Agency (EMA). Novavax is working to provide the necessary answers, and approval is expected within four weeks.

• Kaiser Permanente and health care worker unions have reached a tentative agreement, including minimum hourly wages, wage increases, and addressing staffing issues. California Governor Newsom signed a law raising the minimum wage for health care workers to $25 per hour, preempting local increases.

• Apontis Pharma has a cash runway of 4.6 years and analysts expect it to break even before that. Operating revenue dropped by 16% but future growth is optimistic. Raising more cash is possible but may result in dilution. Acrivon Therapeutics has a cash runway of 4.1 years, with increased cash burn indicating accelerated business development. The company may need to raise more cash in the future.

• Medigene faces concerns over falling revenue and potential dilution due to its cash burn rate, while Made Tech Group’s increased cash burn rate is not seen as a major worry with its ability to raise more cash.