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10-25-2023

TECH

• Qualcomm introduces new Snapdragon 8 Gen 3 flagship SoC with improved AI capabilities and enhanced GPU performance. The chip supports 5G connectivity and features a 1+5+2 core configuration and a 4 nm process. It also offers on-device generative AI capabilities and “Snapdragon Seamless” for cross-device experiences.

• Microsoft and Alphabet report earnings. Meta (formerly Facebook) faces lawsuits from 42 attorneys general over addictive features targeting young users.

• Apple has announced a “Scary Fast” event on October 30 to unveil new Mac computers, possibly featuring the new M3 chip.

• Apple is showing support for a U.S. right-to-repair law by providing parts, tools, and documentation to consumers and independent repair shops nationwide.

• China is investigating Foxconn, a major Apple supplier, over tax and land use, possibly due to Foxconn founder Terry Gou’s political ambitions in Taiwan.

• Kokusai Electric, a chip equipment maker, saw its shares surge 28-32% in its Tokyo market debut after a $724 million IPO.

• Amazon Web Services (AWS) is launching the AWS European Sovereign Cloud, an independent cloud for Europe with its first region in Germany. It will comply with EU privacy regulations and have separate billing and usage systems.

• Online education company Stride Inc (NYSE: LRN) reported strong Q1 2024 earnings, with record revenue of $480.2 million and positive net income, driven by increased demand and enrollment growth. Shares rose 11%.

• SiFive, a chip design startup, has laid off around 20% of its staff, or about 130 people, as it undergoes a strategic refocusing. The company builds chip designs based on the open chip architecture RISC-V and competes against Arm Holdings. The layoffs come amid strain in the semiconductor sector.

• The AI safety forum, supported by OpenAI, Microsoft, Google, and Anthropic, has appointed its first director, Chris Meserole, and plans to establish an advisory board. The forum aims to address risks posed by “frontier AI models” and has committed over $10 million to an AI safety fund.

• US President Biden has ordered Nvidia to halt the sale of AI computer chips to China, Russia, and Iran, ahead of trade talks with China.

• United Microelectronics Corporation (UMC) reported a decline in Q3 revenue but expects demand to stabilize in Q4 due to rush orders for PCs and smartphones. The company is focusing on enhancing its product mix and technology differentiation to maintain competitiveness.

• Google is working on developing new ad formats for its generative AI-powered search experience to customize ads for different stages of the search journey. Additionally, Google is shifting its sales strategy to target middle-tier advertisers with its AI-powered product, Performance Max.

• Motorola revealed a flexible phone at Lenovo Tech World ‘23 that can be worn as a bracelet or watch and transforms into a stand.

• The Internet Watch Foundation warns that AI-generated child sexual abuse images are increasing and could overwhelm law enforcement.

MEDIA

• Apple has raised the prices of its TV+, Arcade gaming, and News+ subscriptions, with TV+ increasing to $9.99 per month.

• Manchester United’s 1-0 win against FC Copenhagen in the Champions League was praised for their team spirit and goalkeeper André Onana’s performance.

• The Writers Guild of America (WGA) apologizes for its silence on the Israel-Palestine conflict and condemns Hamas atrocities. Some writers resign.

• Boyd Gaming Corp Q3 2023 revenues of $903 million, up 3%, but missed earnings expectations due to a slowdown in retail play. Shares fell 8%.

• Former lawyer for Donald Trump, Jenna Ellis, pleads guilty to felony charge in Georgia’s 2020 election-challenge case, expressing “deep remorse” for pushing false claims.

• Actor Richard Roundtree, famous for his role as Shaft, passes away at 81 from pancreatic cancer, leaving behind a lasting legacy.

• British police officer Lewis Edwards sentenced to life in prison for grooming and abusing over 200 girls on Snapchat.

• Hollywood actors on a 100-day strike face financial struggles, take up other jobs, and rely on grants. Negotiations continue.

• Bill Kenwright, the chairman of Everton FC and renowned theatre producer, has died at 78 after battling cancer. He was deeply connected to the club and Liverpool.

• Apple is revamping its TV app in December to consolidate its video offerings, discontinuing dedicated apps and adding new features.

• Leaders of Hamas, Hezbollah, and Islamic Jihad met in Beirut to discuss strategies and plans for achieving victory in the ongoing conflict in Gaza.

• Bud Light has signed a historic sponsorship deal with UFC worth over $100 million, becoming the promotion’s biggest sponsor.

• Gabriel Jesus shines with a goal and assist as Arsenal defeat Sevilla 2-1 in the Champions League, securing their group lead.

CONSUMER

• Kering shares drop 4% as Q3 sales decline 9%, with Gucci sales falling 7%, impacting the luxury sector.

• Armstrong World Industries reports strong Q3 2023 results, with 19% increase in adjusted EBITDA and 7% increase in net sales.

• Zara’s owner, Inditex, will invest €70 million in US start-up Ambercycle to purchase recycled polyester for its clothing products.

• Shares of Reckitt dropped 7% as the consumer goods group missed revenue expectations, despite launching a £1bn buyback program.

• Beiersdorf, the maker of Nivea, raises 2023 sales guidance after reporting 11.2% increase in organic group sales in first nine months, now expects low-double-digit growth.

• Tractor Supply Co. and T. Rowe Price Group Inc. stocks underperformed the market, closing below their 52-week highs. Take-Two Interactive Software Inc. also underperformed.

• Gap’s stock rose 5.7% after Wells Fargo upgraded it to overweight and raised the price target to $16, citing improved cost controls and new management.

• Frasers Group, led by Mike Ashley, has raised its stake in online fashion retailers Boohoo Group and ASOS as their share prices remain low. The stake in Boohoo is now 16.5%.

REAL ESTATE

• Chinese property developer Country Garden Holdings has defaulted on a US dollar bond, putting the company at risk of defaulting on its $11 billion of outstanding offshore bonds.

• U.S. mortgage rates reach highest level since September 2000, leading to a decline in mortgage applications and homebuyer demand.

• US new home sales in September rose by 12.3%, reaching a seasonally adjusted rate of 759,000 units, despite rising mortgage rates.

• Blackstone Mortgage Trust reported Q3 2023 net income of $30 million and distributable earnings of $0.78 per share. They also increased their credit loss reserve to $477 million. KKR Real Estate Finance Trust reported Q3 2023 net income of $21.4 million and distributable earnings of $17.4 million.

• CoStar Group’s Q3 2023 revenue reached $625 million, a 12% YoY growth, with strong performance in its commercial and residential businesses.

• China Evergrande’s founder, Hui Ka Yan, has lost 98% of his wealth due to the company’s debt crisis, leaving him with a net worth of $979 million.

TRAVEL

• Flight bookings to Egypt, Jordan, and Lebanon have seen significant declines since the Israel-Hamas conflict, with drops of 26%, 49%, and 74% respectively.

ECONOMIC

• Citizens Community Bancorp Inc. reported Q3 earnings of $0.24 per share, with an increased tax rate due to Wisconsin budget changes.

• Gulf markets rise despite Middle East conflict and falling oil prices. Gold prices steady, oil prices tick up amid supply concerns.

• Michael Cohen testifies in a New York fraud trial against Trump, revealing financial manipulation and inflated asset values.

• The Bank of Canada has decided to keep its key overnight interest rate at 5% due to weak growth and persistent inflation. The Toronto Stock Exchange slipped 0.08% as a result. The Bank of England is also expected to keep interest rates steady despite concerns about a recession and high inflation.

• Russia opposes a U.S.-led UN resolution condemning Hamas and supports a humanitarian ceasefire, while the UK supports specific pauses for aid in the Israel-Hamas conflict.

• Shares of French payments company Worldline plunged over 50% after it cut its full-year sales forecast due to an economic slowdown, specifically in Germany.

• Hong Kong Chief Executive John Lee’s second policy address focuses on stimulating the economy, strengthening national security, attracting overseas talent, and cutting taxes on home purchases and stock trades to revive the property market.

• Israel-Hamas conflict could cause global recession, $150 oil prices, and 20% stock drop, warns economist and IMF chief. Middle East economies at risk.

• The US Federal Reserve plans to review fees charged by banks to retailers for debit card transactions, potentially leading to a court battle. The fees generated $24.31 billion for lenders in 2019.

• Germany’s IFO Business Climate Index for October exceeds expectations, indicating robust economic sentiment and potential strength for the Euro.

CRYPTO

• FTX founder Sam Bankman-Fried will testify in his own defense as his criminal fraud trial over FTX’s collapse nears its end. He faces charges of fraud, money laundering, and conspiracy.

• BlackRock’s iShares Bitcoin Trust ETF was added to the DTCC’s eligibility file in August, but this does not guarantee regulatory approval. Bitcoin’s price has surged due to expectations of SEC-approved Bitcoin ETFs.

• The UK’s FCA has criticized crypto firms for not properly informing consumers about risks, issuing alerts and imposing restrictions.

• Crypto lender Genesis Global may propose a “no deal” bankruptcy plan in response to a New York civil fraud lawsuit, potentially leading to a bankruptcy liquidation. The lawsuit alleges that Genesis Global and its parent company, Digital Currency Group, defrauded investors of over $1 billion.

HEALTH

• Teladoc Health’s stock falls 5.08% after reporting lower-than-expected Q3 revenue, but expects improved performance in Q4 and updates revenue outlook.

• Johnson & Johnson’s stock hits a 52-week low due to broader troubles in the healthcare sector and company-specific issues.

• IDEAYA Biosciences shares dropped 10% after a $125 million public offering, Sonnet BioTherapeutics fell 35% after a $4.55 million offering, and Alphatec Holdings fell 14% after a $150 million offering.