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12-13-2023

TECH

• Google has been found guilty in an antitrust case brought by Epic Games, with a federal jury ruling that the company operates an illegal monopoly in its Android app store. The verdict may lead to changes in the app store ecosystem and could have broader implications for the tech industry. Google plans to appeal the ruling.

• Kyivstar, Ukraine’s largest mobile network operator, is working to restore services after a cyber attack, the largest since Russia’s invasion in February 2022.

• HubSpot aims to continue growing by targeting smaller businesses and developing new AI tools, while Salesforce is recommended as a buy with accelerated top-line growth potential. Nvidia and Alphabet are attractive options for AI investment, with Nvidia dominating the AI chip market and Alphabet excelling in software and cloud computing. Advanced Micro Devices (AMD) and CrowdStrike are also recommended stocks for investors looking to capitalize on the AI trend. Nvidia and Palantir Technologies have seen significant gains due to their AI-related efforts, with Nvidia projected to continue strong growth in 2024. Salesforce, Snowflake, and AMD are well-positioned to benefit from the growing demand for AI technologies.

• Apple has offered rivals access to its tap-and-go mobile payments systems to settle EU antitrust charges and avoid fines.

• Apple has introduced Stolen Device Protection in the iOS 17.3 beta, adding extra security measures to prevent theft and protect sensitive information.

• Elon Musk’s social network, X (formerly Twitter), is expected to generate $2.5 billion in ad revenue in 2023, a significant decrease due to content moderation concerns.

• Big Tech companies, including Google and Meta, have formed the Coalition for Open Digital Ecosystems (CODE) to promote open platforms and systems in Europe and navigate EU regulations on competition. The group aims to achieve digital openness and implement the European Union’s Digital Markets Act.

• The FCC has denied Starlink’s request for $885M in rural broadband subsidies, citing its failure to meet program requirements.

• The Motley Fool recommends buying Alphabet and Apple stocks for their strong financials, market positions, and long-term potential. JP Morgan also favors Alphabet with a raised price target.

• Google has introduced Gemini, a new AI model that is multimodal and can handle text, image, video, and code prompts. It outperforms ChatGPT in various test categories.

• Meta Platforms, parent company of Facebook and Instagram, is being sued by authors for using copyrighted books without permission to train its AI models.

• Zscaler’s stock saw a 20% rise, with an upgrade from Macquarie due to increased cybersecurity threats and new regulations, potentially leading to growth.

• Foxconn has been granted approval to invest an extra $1 billion in its iPhone plant in India, bringing its total investment to around $2.7 billion.

• Apple has updated its policy to require a judge’s order for providing push notification data to law enforcement, aligning with Google.

• AI technology advancements require businesses to prioritize employee well-being, provide AI training, and embrace AI in HR functions.

• Apple has shut down the Beeper Mini app that allowed Android users to access iMessage due to privacy and security concerns.

• Meta, the parent company of Facebook, is adding AI capabilities to its Ray-Ban smart glasses, including visual search and language translation.

• Artificial intelligence (AI) can enhance human skills in the corporate world, but cannot replace creativity and intuition. It is transforming online education but concerns about accuracy and plagiarism remain. AI can transform PR but lacks the human element and reliability.

• Warren Buffett’s Berkshire Hathaway has cut its stake in HP by nearly 60% due to declining demand and underperforming shares.

MEDIA

• Netflix’s first-ever engagement report reveals that 60% of the programming released between January and June 2023 made it to the platform’s Top 10 list. The most-watched show was ”The Night Agent” with 812 million viewing hours.

• The E3 gaming convention, one of the largest in the world, has been permanently canceled due to declining interest and disruptions caused by the COVID-19 pandemic.

• Andre Braugher, known for his roles in “Brooklyn Nine-Nine” and “Homicide: Life on the Street,” has died at 61.

• Sirius XM Holdings and Liberty Media are merging to form a new publicly traded company called SiriusXM, with Liberty shareholders owning 81%.

• Disney and Reliance Industries are planning to hold talks in London next week to merge their Indian media operations, with Reliance owning at least 51% of the merged entity.

• Jette Nygaard-Andersen has resigned as CEO of Entain following a £600m settlement for alleged bribery, Stella David will serve as interim CEO.

• Indhu Rubasingham, the artistic director of the Kiln theatre, will be the first woman and person of color to lead the National Theatre in the UK.

• Global news publisher Axel Springer has partnered with OpenAI to provide summaries of its content on the ChatGPT chatbot. The summaries will include subscription-based material and aim to drive traffic and subscriptions. OpenAI will pay for the content used to train its language models. This is OpenAI’s second deal with a major news publisher, following a similar agreement with the Associated Press.

• Fantasy author Cait Corrain’s book deal was canceled after she confessed to using fake accounts for “review bombing” on Goodreads.

• Virginia Governor Glenn Youngkin has reached a tentative agreement with Monumental Sports & Entertainment to move the Washington Wizards and Washington Capitals to a new $2 billion sports and entertainment district in northern Virginia. The project is expected to generate $12 billion in economic impact and create 30,000 jobs.

CONSUMER

• Home Depot stock underperformed compared to competitors Amazon, Walmart, and Lowe’s despite a 0.56% increase.

• Zara removes controversial ad campaign resembling war in Gaza after backlash and calls for boycott, apologizes for unintended offense.

• Macy’s has received a $5.8 billion buyout offer from Arkhouse Management and Brigade Capital Management, focusing on the retailer’s real estate assets.

• Zara’s parent company, Inditex, reports a 14% increase in holiday sales and raises margin outlook, despite slower sales growth.

• Unilever is under investigation by the UK Competition and Markets Authority for potentially misleading environmental claims about its household products.

• Dollarama raises sales forecast due to strong demand for discounted goods, expects better same-store sales growth in fiscal 2024. Q3 profit surpasses expectations.

• Mama’s Creations Inc achieved strong Q3 2024 results, including double-digit revenue growth, improved gross margin, and increased net income.

• Macy’s stock dropped 3% as Citi downgraded it to sell, citing doubts about financing a potential buyout bid.

• Breitling, the Swiss luxury watchmaker, has acquired Universal Geneve for about 60 million Swiss francs in its first major acquisition to revive the fading brand and restore its prestige and heritage.

REAL ESTATE

• Country Garden Holdings, a Chinese developer, repaid an 800 million yuan bond in full, avoiding its first default.

• Refinance rates for 30-year, 20-year, and 15-year fixed mortgages have remained steady, with slight variations, as rates drop.

• Chinese billionaire Wang Jianlin has agreed to give up control of Wanda’s shopping-mall management unit to avoid a $4.2 billion redemption.

• Airbnb will pay $620.6 million to the Italian Revenue Agency to settle host income tax obligations for 2017-2021.

• A $3 billion development in Detroit’s New Center area receives preliminary approval for a Community Benefits package including affordable housing and scholarships. Another $3 billion development involving Henry Ford Health, Detroit Pistons, and Michigan State University seeks approvals for healthcare, apartment, and research projects.

• The Second Phase of the Sixth&Blanco mixed-use project in Austin will include a five-story building with housing, restaurants, retail, and a hotel, led by MML Hospitality and Riverside Resources.

ECONOMIC

• US intelligence suggests that Russia sees an advantage in a winter deadlock in the war in Ukraine, as it could drain Western support. President Putin still aims to conquer Ukraine despite military casualties. Ukrainian President Zelenskiy makes a surprise visit to Norway to discuss support for Ukraine’s defense against the Russian invasion. The US Congress is holding up urgently needed aid, and Western support for Kyiv is softening. President Zelenskiy’s plea for $61 billion in aid from the US remains stalled in Congress. President Biden approves $200 million in aid for Ukraine, but warns that without supplemental funding, the US may struggle to continue supporting Ukraine. Republicans reject Zelenskiy’s plea for more aid, insisting on border changes before passing any Ukraine aid bill.

• Argentina’s new government implements radical economic reforms, including a 50% devaluation of the peso and spending cuts to address the economic crisis.

• Business confidence among big Japanese manufacturers improved for the third consecutive quarter, reaching a near two-year high in December.

• Donald Tusk sworn in as Poland’s new Prime Minister, aiming to improve relations with the EU and support Ukraine.

• House Republicans oppose U.S. assistance to Ukraine, while Hungarian Prime Minister Viktor Orban blocks aid from the European Union. Orban opposes Ukraine’s EU membership bid due to corruption and treatment of ethnic Hungarians.

• Money market account rates for December 13, 2023, remain stable, with the average rate at 0.56% and the highest rate at 5.13%. Traditional and high-yield savings account rates have not changed, with the highest APY at 5.84%. The best CD rate is 5.87% for a 3-month CD. Some credit unions offer CDs with APYs of 6% or higher.

• Goldman Sachs’ top commodities trader, Ed Emerson, is retiring after earning $100 million in three years, to be succeeded by Xiao Qin and Nitin Jindal.

• The UK’s Payment Systems Regulator (PSR) has proposed a cap on cross-border interchange fees charged by Mastercard and Visa, citing excessive charges. The cap aims to protect businesses from overpaying and would be imposed on transactions made between the UK and the European single market. The PSR estimates that UK businesses paid an extra £150-200 million due to the fee increases.

• Citadel, led by Ken Griffin, to return $7 billion in profits to investors after strong performance with double-digit returns.

• German investor expectations rose unexpectedly in December, driven by improved economic outlook, expectations of ECB rate cuts, and declining inflation.

CRYPTO

• FTX founder Sam Bankman-Fried awaits sentencing after being found guilty of 7 counts of criminal fraud and money laundering. His lawyer describes him as the “worst” witness.

• KuCoin, a major cryptocurrency exchange, will pay $22 million in fines and refunds and ban users in New York as part of a settlement with the state’s attorney general.

• Bitcoin prices have slightly dropped, down less than 1%, to around $41,200 after a recent selloff, as traders anticipate the Federal Reserve’s policy decision.

• BlackRock updates its bitcoin ETF application to allow Wall Street banks like JPMorgan and Goldman Sachs to hold bitcoin and create new shares using cash.