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10-17-2023

TECH

• Microsoft’s LinkedIn is planning to lay off 668 employees from its engineering, product, talent, and finance teams, affecting over 3% of its workforce. This comes after LinkedIn cut 716 jobs in May. The layoffs are part of a broader restructuring effort due to slowing revenue growth.

• Chinese tech giant Baidu has announced its AI model, Ernie 4.0, which it claims matches OpenAI’s GPT-4, showcasing its capabilities in solving math problems, writing novels, and providing video and audio responses. Baidu aims to compete with Alibaba and Tencent in the Chinese AI market.

• Cybersecurity company NetScout reported lower-than-expected Q2 profit and revenue, leading to an 18% drop in shares. ServisFirst Bancshares also reported a decline in net interest income.

• Apple’s iPhone 15 is selling poorly in China compared to the iPhone 14, with sales down 4.5% and a double-digit percentage decline. Huawei’s Mate 60 Pro has surpassed Apple’s flagship in sales. Weak consumption and economic challenges in China are attributed to the decline.

• Private equity firm KKR has made a binding offer to acquire Telecom Italia’s fixed line business, valuing it at over €20 billion. The offer includes taking on extraordinary costs, sustaining a 20-year supply contract, and potentially acquiring Telecom Italia’s subsea cables subsidiary. The bid aims to help Telecom Italia reduce its debt, which currently stands at over €26 billion.

• Apple is rumored to be announcing three new iPad models, including an updated iPad Air, iPad mini, and regular iPad. There are conflicting reports about the likelihood of this announcement, with some industry insiders expressing doubts. The new iPads may come with spec upgrades and improved performance.

• Former UniCredit CEO Jean-Pierre Mustier has been appointed as the chairman of Atos to revive the struggling company. Atos plans to sell its IT outsourcing unit, and Mustier will ensure a smooth separation and secure a deal with Czech tycoon Daniel Kretinsky. Atos Chairman Bertrand Meunier stepped down amid opposition from minority shareholders and investor Sycomore Asset Management.

• Health payments software maker Waystar has filed for an IPO, revealing a net loss of $44 million on revenue of $705 million in 2022. The company plans to list its common stock on Nasdaq under the symbol “WAY” and reported total sales of $196 million for the three months ending June 30. The IPO filing did not disclose the proposed size or the expected price range.

• Snap’s stock rose by 12% after CEO Evan Spiegel announced a target of 20% revenue growth. Leaked data revealed that Snap’s user count was higher than anticipated, leading to a surge in stock price. Spiegel also sent an optimistic note to staff about the company’s financial outlook for 2024, targeting over 20% growth in ad revenue and more than 14 million

• Taiwan Semiconductor Manufacturing (TSMC) has scrapped plans for an advanced chip facility in northern Taiwan due to protests from local residents. The company will work with the government to find alternative sites for semiconductor fabs. TSMC is a leading manufacturer of integrated circuits and wafer semiconductor devices.

• The Biden campaign has joined former President Donald Trump’s social media platform, Truth Social, to reach conservative voters and counter misinformation. The decision was made in a lighthearted manner and the campaign has posted clips of GOP candidates criticizing Trump.

• Settlement talks have failed between Meta (formerly Facebook) and Kenyan content moderators who sued for unfair dismissal after organizing a union. The moderators claim they were blacklisted and that negotiations collapsed due to Meta’s insincerity. The moderators are now seeking a contempt of court case against Meta. Additionally, African content moderators have formed the continent’s first union for better working conditions.

• Microsoft’s stock rallied 1.9% after positive analyst notes on its Copilot feature. The AI market is growing, with Apple and Microsoft making strides. Loop Capital initiated coverage of Microsoft with a buy rating and $425 price target. Tech stocks, including Nvidia, saw a rise in stock prices. Microsoft, The Trade Desk, and Synopsis are recommended software stocks for long-term growth. AI stocks

• Chinese AI startup Baichuan has raised $300 million in funding from investors including Alibaba, Tencent, Xiaomi, and other investment firms. Baichuan, founded by Wang Xiaochuan, aims to develop generative AI models and compete with large language models like Microsoft-backed OpenAI. The company has released open-source language models, is working on proprietary platforms, and was one of the first companies in

• Tech leaders are boycotting the Web Summit conference in Europe after CEO Paddy Cosgrave criticized Israel for war crimes. Israel’s ambassador and tech companies have withdrawn from the conference.

• Apple CEO Tim Cook visited China, praising Tencent’s game Honor of Kings and meeting a farmer and students using iPads. This comes at a challenging time for Apple in China as demand for the iPhone 15 is slowing, while Huawei reported growth. Cook’s visit also highlights the importance of China as Apple’s largest international market amidst rising tensions between the US and China.

• Jio Financial Services, a subsidiary of Reliance Industries, has launched lending and insurance businesses in India. It offers personal loans through its MyJio app and 300 stores, and has partnered with 24 insurance firms. JFS plans to expand its loan products to include auto, home, business, and merchant loans. Additionally, JFS reported a doubled profit of 6.68 billion ru

• AI is expected to drive 45% of the global economy by 2030, assisting marketing by analyzing data, optimizing strategies, and personalizing experiences. However, AI is not the solution for strategic decision-making and building authentic relationships. (20 words)

Brands can strategically leverage AI to drive**customer**r engagement by analyzing data, personalizing engagement, automating tasks, and leveraging predictive intelligence. Ethical

• Vodafone and CK Hutchison’s proposed £15 billion merger in the UK aims to benefit consumers, infrastructure, and jobs. They plan to invest £11 billion in building a 5G network. However, trade union Unite warns of potential higher bills and job cuts, while also expressing concerns about national security.

• The Colorado Supreme Court has upheld a search warrant that allowed police to access Google users’ keyword history in a fatal arson case. The warrant required Google to provide IP addresses of individuals who searched for the address of the home that was set on fire, resulting in deaths. The court ruled that the search was permissible and did not violate the Fourth Amendment.

MEDIA

• A federal judge has imposed a limited gag order on former President Donald Trump, preventing him from publicly attacking court staff members, specific prosecutors, and witnesses involved in the federal case over his efforts to overturn the 2020 election. The order aims to prevent Trump from engaging in a “smear campaign” against those involved in the case. Trump’s attorneys argued against the restriction, citing First Amendment rights.

• Taylor Swift’s concert film, “Taylor Swift: The Eras Tour,” has had a successful debut, earning $92.8 million domestically and $123.5 million worldwide. It is the highest-grossing concert film of all time and accounted for 70% of the domestic box office over the weekend.

• Qatari banker Sheikh Jassim withdraws takeover bid, causing Manchester United’s stock to drop. Jim Ratcliffe may acquire a 25% stake.

• South Africa’s success in the Rugby World Cup is attributed to lessons learned from their loss to France last year. England is preparing for a tough match against South Africa in the semi-finals. The losing teams in the quarter-finals made the weekend memorable. France’s hopes of winning the World Cup on home soil came to an end, with fans expressing sympathy for the players. The Southern Hemisphere teams dominate the semi

• London-listed music investor, Hipgnosis Songs Fund, has halted its interim dividend proposal due to a significant decrease in retroactive royalty payments. The company’s expected earnings from a retrospective agreement on streaming rights were reduced from $21.7 million to $9.9 million. The fund’s proposed sale of a portion of its music rights catalogue is facing shareholder rejection. Asset Value Investors (AVI

• Netflix is set to report its third-quarter earnings on October 18. Analysts are watching for net subscriber adds, average revenue per membership, and the potential for a price increase. The crackdown on password-sharing has resulted in a surge of approximately 6 million subscribers. Despite receiving price-target cuts, Netflix’s stock has performed well. The company is considered a “strong buy” and could generate significant revenue

• Australian cricket captain Pat Cummins played a crucial role in Australia’s five-wicket victory against Sri Lanka in the World Cup match. Cummins took important wickets, including a run-out, lifting Australia off the bottom of the standings. Spinner Adam Zampa also performed well, taking four wickets. Sri Lanka had a strong start with a 125-run opening stand, but collapsed and lost all

• Cricket, flag football, squash, lacrosse, and baseball/softball have been approved and will be included in the 2028 Los Angeles Olympics.

• ”Marvel’s Spider-Man 2” is a highly recommended action-adventure game that allows players to experience being Spider-Man in an open-world rendition of New York City. The sequel introduces Miles Morales as the second Spider-Man and features larger maps, new gameplay mechanics, and a gripping narrative. Players can switch between Peter Parker and Miles Morales, each with their own abilities. The game introduces Kraven the

• Microsoft has completed its $69 billion acquisition of gaming company Activision Blizzard, overcoming legal challenges and regulatory hurdles in the US and UK. The deal makes Microsoft the third largest gaming company by revenue and secures its position as a leader in the gaming industry. The UK competition watchdog approved the acquisition, with Microsoft selling the cloud gaming rights to Ubisoft Entertainment. The acquisition includes popular gaming franchises like Call of Duty

• Analogue is developing the Analogue 3D, a modern version of the Nintendo 64 console. It will use FPGA technology to ensure compatibility and bypass input lag, support 4K resolution, and offer wireless controller connectivity. The console is expected to be released in 2024.

• Former President Donald Trump has filed a lawsuit in a London court against Christopher Steele and Orbis Business Intelligence over the controversial Steele dossier. Trump claims the dossier caused him damage and distress. He is willing to testify and seeking damages for reputational harm caused by Orbis sharing the dossier. The dossier alleged links between Trump and Russia and contained unverified allegations. Trump denies all the allegations and is pursuing the lawsuit

• Goldman Sachs CEO David Solomon has decided to end his DJing sideline, where he performed under the name DJ D-Sol, due to concerns from the bank’s board that it would distract from his main job. Solomon has not performed publicly in over a year and his appearances at music festivals were criticized as a distraction and source of criticism from disgruntled bankers.

• The Philadelphia Phillies won Game 1 of the NLCS against the Arizona Diamondbacks 5-3, with home runs from Schwarber, Harper, and Castellanos. Pitcher Zack Wheeler had a strong performance.

• UK subprime lender Amigo Holdings is in talks to enter the music and film streaming market, exploring potential transactions to provide value for shareholders. The company is winding down its operations and has entered into an exclusivity agreement with investor Craven House Capital. The proposed acquisitions include various streaming services and could result in significant dilution for existing shareholders.

CONSUMER

• Vista Outdoor Inc. plans to sell its sporting products business in a $1.9 billion deal with Czechoslovak Group a.s. The sale, expected to close in 2024, comes after a decline in stock price and a profit warning. Vista Outdoor will separate into two entities, with its outdoor products business becoming an independent publicly traded company called Revelyst.

• Birkenstock’s stock had a disappointing IPO, with shares dropping by 12.9% on the first day and 21% in after-market trading. Three major investors were committed to purchasing shares.

• Walmart and other top US retailers are cautious about the economy and not hiring as many seasonal workers for the upcoming holiday season. Walmart has been hiring throughout the year to meet customer demands. Other retailers cite factors such as high food prices and depleted savings.

• Global e-commerce company THG (The Hut Group) reported a 4.4% decline in Q3 group revenue, but saw a return to revenue growth in September. The company’s beauty division revenue fell 4.4%, while THG maintained its full-year revenue guidance. THG remains optimistic about its performance for the rest of the year.

• UK sportswear group Frasers, formerly known as Sports Direct, is set to acquire SportScheck, a leading German sports retailer. The deal, expected to be finalized in Q1 2024, will see Frasers purchase the chain, which operates 34 stores and generates around €350 million ($369 million) in annual revenue. This acquisition will help Frasers expand its presence in the

• Frasers Group, a retail giant owned by Michael Murray, has increased its stake in both ASOS and Boohoo. They now own almost 23% of ASOS shares and over 15% of Boohoo shares. Frasers Group’s rapid increase in stakes has raised questions about a potential takeover, but major shareholders and competition concerns may pose obstacles.

• Hedge fund JAT Capital has acquired a 9.1% stake in Overstock.com and is urging the company to sell assets and make management and compensation changes. Overstock.com’s stock initially dropped to a three-year low but then rose by nearly 9% after the filing. JAT Capital plans to engage with the board of directors and provide recommendations for long-term value.

• Dierig Holding AG’s stock price has declined by 1.8% in the past three months, but its return on equity (ROE) is at 5.3%, indicating decent financial prospects. Dinkelackerer AG’s stock price has fallen by 10% in the past three months, but its strong fundamentals are reflected in a 12% return on equity (ROE

• Davide Renne, former head designer at Gucci, will replace Jeremy Scott as the new creative director of Moschino starting November 1. Renne will oversee women’s and men’s lines and accessories.

• Macy’s shareholders have seen a decline in share price over the past three months, but the company has delivered a 23% compound annual growth rate over the past three years. Despite recent challenges in sales and profits, Macy’s has made changes to its business and improved shipping options. The company’s financial outlook is uncertain, causing investor concerns.

• Goldman Sachs upgraded Dollar Tree’s rating to Buy, citing new customers, improved cash flow, earnings growth potential, market share gains, and lower freight costs. The stock rose 2% and marked its third consecutive day of gains. However, it closed $60.26 below its 52-week high.

• Brands like Walmart and Wakefern are using free samples to attract consumers and boost sales. Walmart is rolling out samples to 1,000 locations, while Wakefern is adding vending machines for samples to 95 locations. Free samples have become popular among smaller brands and are seen as a more effective marketing tactic than traditional advertising. Online ads are becoming less effective due to factors like user privacy settings and digital

REAL ESTATE

• China’s largest property developer, Country Garden, is at risk of defaulting on its $15 million coupon payment, which could trigger cross defaults in other bonds. The company has appointed advisers to carry out an offshore debt restructuring and negotiations with bondholders are expected to take several months. A default by Country Garden could worsen China’s real estate crisis and strain onshore lenders.

• Mortgage refinance rates have increased, with the average rate for a 30-year fixed mortgage at 8.11%. Student loan refinance rates have also increased, with the average fixed interest rate on a 10-year loan at 7.50%. Personal loan interest rates are around 6%, and mortgage rates are expected to remain above 7% for the rest of 2023

• UK homebuilder Bellway has reported a decline in revenues, profit, and housing completions due to weak demand and high mortgage rates. The company warned of ongoing challenges in the housing sector. Bellway’s underlying pre-tax profit for the year ended July 31 was £532.6 million, slightly below analysts’ expectations.

• WeWork has appointed David Tolley as its new CEO, replacing Sandeep Mathrani. Tolley, a former Blackstone executive, has been a board member since February 2023 and interim CEO since May 2023. WeWork has faced challenges since its failed attempt to go public in 2019.

• Gemdale, a major property developer in China, experienced a significant drop in stocks and bonds after the resignation of chairman Ling Ke due to health reasons. The company’s onshore bonds maturing in 2024, 2025, and 2026 plummeted 25%, 21%, and 20% respectively, and two bonds were suspended from trade. Investors are concerned about Gemdale’s

• Choice Hotels has made a $7.8 billion offer to acquire Wyndham Hotels & Resorts for $90 per share, comprising $49.50 in cash and 0.324 shares of Choice Hotels’ common stock for each Wyndham share. Wyndham’s shares rose by approximately 22% following the announcement.

TRAVEL

• Booking Holdings Inc. (BKNG) saw a 0.56% increase in stock price, ending a two-day losing streak, but underperformed the S&P 500 and Dow Jones Industrial Average.

• Booking holiday travel in mid-to-late December should be done about 10 weeks in advance to avoid rising prices in November. Traveling on Christmas Eve or Day can save money, as well as taking a long trip during Thanksgiving week. Total costs, including accommodation and other expenses, should be considered when planning.

• Travel credit cards can offer discounts and rewards for travelers. There are two types: general travel cards and co-branded airline and hotel cards. General cards offer flexibility, while co-branded cards have specific loyalty program benefits.

• Las Vegas hotels have secret, invitation-only suites reserved for high-rolling gamblers, like the Villas and Palaces at Crockfords Las Vegas and the Chairman’s Suite at Bellagio Casino & Resort.

ECONOMIC

• The European Central Bank is monitoring oil prices due to potential inflation risks from the Israel-Hamas conflict. Retail diesel prices in the US have reached their lowest level since August 2021. Johnson & Johnson has raised its adjusted earnings outlook for the year after reporting higher third-quarter revenue. Goldman Sachs reported higher-than-expected profit and sales for the third quarter. Bank of New York Mellon reported better-than-

• Rep. Jim Jordan, a staunch conservative and ally of former President Donald Trump, is vying to become the next Speaker of the House. However, he is facing resistance from fellow Republicans, with at least 55 Republicans indicating they would not support him. Jordan needs to secure 217 Republican votes to win the speakership.

• The Bank of England’s chief economist, Huw Pill, believes that the central bank may need to consider another interest rate rise to control inflation. Wage growth in the UK has slowed down, easing pressure on the Bank of England to raise interest rates. Average weekly earnings increased by 8.1% in the three months to August, down from 8.5% in July. However, annual

• Philadelphia Fed President Patrick Harker believes the central bank should not raise interest rates further, as it would create additional pressures on the economy. He expects inflation to decrease next year. Harker expressed concern about high interest rates impacting the housing market, making it difficult for first-time home buyers to enter. Producers of metals and raw materials saw a rise in stocks following comments suggesting another rate increase is unlikely.

• US Treasury Secretary Janet Yellen emphasizes the need for a coordinated approach with Europe in implementing investment restrictions on China to prevent evasion. Yellen also assures European leaders of US support for Ukraine and Israel despite opposition in Congress. She states that the US can afford to support both countries due to the strong state of the American economy. Yellen also mentions that it is too early to speculate on the economic consequences of

• Former President Donald Trump is facing a civil fraud trial in New York, where he is accused of inflating his net worth to secure favorable loan terms. Testimony from Trump’s finance executive confirms his involvement in the alleged conspiracy. The trial is brought by the New York Attorney General, seeking the recovery of $250 million. The trial has entered its third week, and Trump’s appearance will not coincide with

• Savings account and certificate of deposit (CD) rates are increasing, with the highest rates currently at 4.26% for savings accounts and 5.67% for CDs. Online banks and credit unions offer the best rates. Money market accounts have a highest rate of 5.13%.

• The California Franchise Tax Board has extended the tax filing and payment deadline for most Californians to November 16, 2023, in line with the IRS’s announcement. The extension applies to taxpayers affected by winter natural disasters in 55 California counties.

• Citibank has won a wrongful dismissal lawsuit against former employee Szabolcs Fekete, who claimed expenses for meals shared with his partner during a business trip to Amsterdam. Fekete initially denied any wrongdoing but later admitted to misleading his supervisor.

• Indonesia’s constitutional court removed the minimum age requirement for presidential or vice-presidential candidates with regional posts, potentially allowing President Joko Widodo’s 36-year-old son to run. This decision has sparked concerns about the upcoming elections’ integrity and criticism of President Widodo’s alleged attempts to establish a political dynasty. However, the court later upheld the minimum age requirement, blocking the president’s son from

• Shares of Ameriprise Financial (AMP) rallied 1.78% to $330.70, rebounding after a two-day losing streak. A.O. Smith Corp. rose 2.33% to $71.90, marking its second consecutive day of gains. American International Group Inc. (AIG) rose 2.49% to $62.61, ending a two

• UK wealth manager, St. James’s Place, is making changes to its fee structure for investment bonds and pensions to comply with regulations. The revised structure will have an initial charge and ongoing charges, eliminating withdrawal fees and gestation periods. The changes aim to reduce charges, improve transparency, and address regulatory pressure.

CRYPTO

• Former cryptocurrency mogul Sam Bankman-Fried is facing damaging testimony and evidence in his fraud trial, accused of diverting customer funds. His defense team has been unsuccessful in raising doubts about the credibility of the witnesses. The government alleges that Bankman-Fried deliberately stole funds from FTX customers and secretly lent them to his crypto trading firm Alameda Research. Bankman-Fried’s lawyers argue that he did

• The Grayscale Bitcoin Trust (GBTC) is trading at a 14% discount to its underlying holdings, the lowest since 2021, as investors anticipate a Bitcoin ETF. The SEC denied the Winklevoss Bitcoin Trust ETF, citing concerns about fraud. Grayscale is ready to convert its trust into an ETF upon SEC approval. There are indications that the SEC may approve BlackRock’s spot

• The Basel Committee of global banking regulators has proposed a standardized format for major banks to disclose their holdings of cryptoassets starting from January 2025. The aim is to provide transparency to investors and support “market discipline.” The proposed rules require banks to disclose qualitative and quantitative information on their cryptoasset activities, as well as details of accounting classifications. The proposal is currently undergoing public consultation.

• Binance, a major cryptocurrency exchange, has stopped accepting new customers in the UK due to regulatory concerns and new rules regarding crypto promotions. The Financial Conduct Authority (FCA) revoked Binance’s permissions and blocked its attempts to reinstate services. Binance is working with the FCA to find an authorized firm for its financial promotions. The exchange has faced regulatory actions in multiple countries and has been accused

HEALTH

• Rite Aid, a major US drugstore chain, has filed for Chapter 11 bankruptcy due to high levels of debt and lawsuits related to the opioid crisis. The company plans to close stores and divest a segment of its operations. Rite Aid has secured $3.45 billion in financing to continue operations during the bankruptcy process.

• Pfizer, Moderna, and BioNTech stocks fell after Pfizer lowered its revenue guidance for the year due to lower-than-expected demand for COVID-19 products. Lululemon Athletica’s stock surged after it was announced that the company will join the S&P 500 index.

• A 6-year-old Muslim boy named Wadea Al-Fayoume was stabbed to death in Illinois in a suspected anti-Muslim hate crime. The incident has sparked outrage and mourning within the community and calls for justice. The attacker, identified as Joseph Czuba, has been charged with multiple counts, including a hate crime. President Joe Biden has condemned the killing and Muslim rights activists are calling for

• Merck’s cancer drug Keytruda has received FDA approval for treating certain types of non-small cell lung cancer (NSCLC) in combination with chemotherapy. The drug can be used as neoadjuvant treatment and post-surgical adjuvant. Keytruda has also received expanded approval in Europe for treating NSCLC and gastric cancer.