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11-18-2023

TECH

- OpenAI has fired CEO Sam Altman due to a lack of consistent communication with the board. Mira Murati will serve as interim CEO.

- Elon Musk faces criticism and backlash for endorsing an anti-Semitic conspiracy theory on his social media platform, X. Major advertisers, including Apple, Disney, and IBM, have suspended advertising on the platform due to concerns about anti-Semitic content. The White House has condemned Musk's actions, calling them "unacceptable."

- Amazon is cutting hundreds of jobs in its Alexa unit to prioritize generative AI and align with shifting business priorities.

- Small businesses are adopting AI tools to improve efficiency and compete with larger companies, but downsides include lack of creativity and high cost. Generative AI is growing in demand and transforming software development. Investment in AI is increasing, creating job opportunities. Compute resources, talent, data, and distribution are key factors for AI investment opportunities.

- Palantir Technologies' stock has surged over 29% due to increased demand and strong Q3 results, reaching a 52-week high. Analysts recommend caution.

- Samsung Electronics Co. Executive Chairman Jay Y. Lee denies wrongdoing as South Korean prosecutors seek a five-year jail term for accounting fraud and stock manipulation related to a 2015 merger.

- Apple has filed a legal challenge against the European Commission's Digital Markets Act, objecting to its designation as a "gatekeeper" and the requirement to support rival app stores.

- Figma is reviewing the EU's objections to Adobe's $20 billion bid for the cloud-based designer platform over competition concerns.

- Apple plans to integrate support for the RCS messaging standard into future software releases, allowing iPhone users to have a more uniform messaging experience with Android users. The move may address antitrust concerns and appease European lawmakers. The adoption of RCS in 2024 will bring improved media sharing and group chat functionality to iPhones. The distinction between blue and green bubbles in iMessage will still exist, with blue representing iMessage and green indicating texting Android users over RCS.

- Cisco stock dropped 11-13% after reporting strong quarterly results but lowering earnings outlook due to weak product orders and pandemic fallout.

- Optus CEO admits 228 customers couldn't connect to emergency services during outage, carries Telstra and Vodafone SIMs for backup. No crisis plan in place.

- Despite a pending share sale and drop in stock price, Alibaba's Jack Ma remains positive and will continue holding shares.

- Billionaires Eric Schmidt, Xavier Niel, and Rodolphe Saadé have invested €300 million in Kyutai, a nonprofit AI research lab in Paris. The lab aims to develop multimodal models and share its research with the public.

- The global AI market in cybersecurity is expected to reach $154.8 billion by 2032, while the automotive cybersecurity market is projected to reach $7.6 billion by 2030. Additionally, the AI market in healthcare is projected to reach $6.1 billion by 2023.

- Coursera Inc's Chief Revenue Officer, Leah Belsky, and Director, Andrew Ng, sold shares, raising concerns about the company's future. Meanwhile, HubSpot Inc's CFO, Kathryn Bueker, also sold shares.

- The Consumer Financial Protection Bureau (CFPB) has proposed a rule to regulate payments and smartphone wallets provided by Big Tech companies like Apple and Google. The rule aims to subject them to the same oversight and consumer safeguards as traditional banks. The proposal has received support from progressives and the banking industry but faces opposition from Republicans and tech industry groups. The rulemaking process will continue until 2024, and legal challenges may arise.

MEDIA

- Acclaimed British novelist A.S. Byatt, known for her intellectual and ambitious works including "Possession," has passed away at 87.

- British billionaire Sir Jim Ratcliffe is reportedly close to acquiring a 25% stake in Manchester United for $1.36 billion.

- Sean "Diddy" Combs and ex-girlfriend Cassie settle abuse lawsuit, terms undisclosed. Cassie accused him of physical abuse, sexual slavery, and rape.

- Donald Trump's gag order is temporarily lifted, allowing him to criticize a law clerk involved in his civil fraud trial.

- Rapper Snoop Dogg surprises fans by announcing on Instagram and X that he is quitting smoking, sparking speculation about his decision.

- Australia aims to quiet the loud Indian crowd in the World Cup final by performing well and embracing the challenge.

- Elton John's Broadway musical "Tammy Faye," with lyrics by Jake Shears, will debut in 2024, exploring the life of Tammy Faye Bakker.

- The Latin Grammys were held in Seville, Spain for the first time, with powerful women like Karol G, Shakira, and Natalia Lafourcade winning awards.

- The US Education Department is investigating multiple schools, including Ivy League colleges, for alleged discrimination against Jewish and Muslim students.

- A 23-year-old Taylor Swift fan died in Rio de Janeiro due to sweltering conditions and lack of water at her concert.

- André 3000, from Outkast, releases a 17-minute instrumental track called "Dreams Once Buried Beneath the Dungeon Floor Slowly Sprout Into Undying Gardens." He also released his first solo album in nearly two decades, featuring wordless melodies played on a digital flute titled "New Blue Sun." The album is being released as a "cinematic listening experience" in select theaters in NYC, LA, and Atlanta.

- Midwich Group, Pebble Group, and Sif Holding have all experienced stock declines, but their financial indicators show potential for long-term growth.

- Three music publishers, including Universal Music and Concord Music Group, seek to stop Anthropic from using copyrighted song lyrics in its AI models without permission.

- House Speaker Mike Johnson will release 44,000 hours of video footage from the January 6 Capitol attack, fulfilling a promise to Republicans.

CONSUMER

- Ross Stores reported strong Q3 results, with revenue exceeding expectations and gross margin surpassing estimates. However, its earnings forecast for the next quarter fell short of expectations due to expected decelerating same-store sales growth.

- U.S. retailers cautiously prepare for Black Friday amid concerns about the economy and mixed signals in the retail sector.

- Shares of Spectrum Brands (SPB) dropped 7.9% after reporting weaker revenue guidance for fiscal year 2024 due to lower consumer demand and foreign-exchange rates.

- Retail sales in the UK declined by 0.3% in October, with volumes at their lowest level since February 2021. The slump is attributed to high interest rates, poor weather, and a cost of living crisis.

- Walmart and Amazon are both offering early Black Friday deals on a wide range of products including electronics, home appliances, and more.

- Alternative Wellness Health, Inc. (EXMT) has expanded its CBD product line, launched new products, and improved packaging for distribution.

- Buckle Inc's net income for Q3 2023 decreased to $51.8 million from $61.4 million in the same period last year. Net sales also decreased by 8.7% to $303.5 million. The decline was attributed to decreased consumer spending.

- The Children's Place, Inc. reported Q3 earnings of $3.22 per share, missing expectations of $3.56 per share. E-commerce sales were up.

- Destination XL Group Inc reported lower-than-expected Q3 2023 sales of $119.2 million, down from $129.7 million, due to declining traffic. The company plans to focus on controlling merchandise margins, inventory levels, and payroll, as well as drive traffic and collaborate with other brands. They expect Q4 2023 sales to be a mid- to high-single-digit negative comp. DXLG also plans to open 10 new stores in 2024 and work on collaborations to increase market share.

- EZCorp, a pawn loan business, reported record annual revenues and earnings, with a 14% YoY growth in Pawn Loans Outstanding and a 16% YoY increase in revenues, reaching a total of $261.4 million in Q4 2023.

REAL ESTATE

- Despite declining sentiment, home builders anticipate a 5% increase in single-family housing starts in 2024. In October, housing starts exceeded expectations, increasing by 1.9% to 1.372 million.

- Mortgage rates are declining for the third week in a row, with the average 30-year fixed rate at 7.44%.

- The Canadian government is investing millions of dollars in new rental homes in British Columbia, Quebec City and Lévis, and Winnipeg.

- Nationwide has seen an increase in mortgage arrears due to higher interest rates, while profits rose to £1.3bn. Low-income households are struggling to keep up with payments.

- CrossCountry Mortgage offers mortgage options, down payment assistance, and has positive reviews and high customer satisfaction. Truist Mortgage offers low down payment programs, competitive rates, and good customer service. Guild Mortgage offers home loans with down payment assistance, positive reviews, but below-average satisfaction.

- Golden Land Berhad shareholders are unlikely to approve a CEO pay rise due to the company's poor performance. Similarly, Resource Development Group Limited shareholders may reject a pay rise for the CEO due to share price struggles and losses.

TRAVEL

- Expedia stock jumps 5.05% to hit 52-week high after analyst upgrades rating to Outperform and raises price target.

- Forbes lists the top 10 all-inclusive honeymoon resorts, including Jade Mountain Resort in St. Lucia and Kudadoo Maldives. They also feature the 12 best all-inclusive resorts in the Caribbean.

- Startups like Storylines, offering residential cruise ships, face delays in their launch, causing a customer to cancel a $1 million condo deposit.

- Wall Street's top analyst downgrades Airbnb and upgrades Expedia, signaling a shift in investor sentiment towards the two travel companies.

ECONOMIC

- Boston Federal Reserve President Susan Collins remains optimistic that the central bank can lower inflation without damaging the job market. She emphasizes the importance of a patient approach to interest rate moves. Despite evidence of easing inflation, she is not ruling out more rate hikes if needed.

- Alphabet, Constellation Brands, L3Harris Technologies, Boston Properties, Pinnacle West Capital, MarketAxess Holdings, Cboe Global Markets, Progressive Corp, Microsoft, UDR Inc, Duke Energy, 3M Co, DTE Energy, and Dominion Energy stocks underperformed the market.

- President Biden signed a temporary spending bill to avert a government shutdown, but aid for Israel and Ukraine remains stalled.

- Catholic priests and groups in Argentina warn about dangers of potential presidency by libertarian economist Javier Milei. Argentina's upcoming election features a close race between Milei and center-left candidate Sergio Massa, with environmental issues not prioritized. Milei echoes Trump's fraud claims, casting doubt on electoral system ahead of presidential runoff in Argentina. Argentina's presidential election run-off to be held between Massa and Milei, determining the future of the economy. Argentina's economic decadence prompts radical change proposals by Milei, but balanced budget and central bank independence seen as superior alternatives. Exchange rates and economic plans at stake in Argentina's upcoming presidential election. Peronist candidate Massa works to retain support in Ciudad Evita amidst rising poverty and inflation.

- Eaton Corp. PLC stock rises 0.44% to $227.80, outperforming the market for the second consecutive day. Spirit Airlines (NYSE:SAVE) stock soars 19% despite ongoing financial issues and uncertainty surrounding a proposed acquisition by JetBlue Airways. American Airlines Group Inc. stock rises 0.82% to $12.29, closing $6.79 below its 52-week high. Shares of American International Group Inc. (AIG) rise 0.56% to $64.48, outperforming the overall stock market. General Electric's stock surges more than 80% in the past year, with raised revenue and earnings forecasts. General Electric (GE) shares on track for highest close in six years, possibly due to strong sales of Boeing's twin-aisle jets. General Electric (NYSE:GE) sees impressive shareholder returns, earning 167% in the past 5 years, outperforming the market.

- CEOs and CFOs of various companies, including Agiliti Inc, Flexible Solutions International Inc, PTC Inc, Fastly Inc, CNO Financial Group, RCM Technologies Inc, First American Financial Corp, and Livent Corp, have sold significant amounts of company stock, causing concerns about their future prospects among investors.

- Investors are pouring money into stocks, with equities recording the second-largest inflow of the year at $23.5 billion. Foreign investors sold $1.7 billion in U.S. Treasury debt in September, the first net outflow since May 2021.

- Congressman George Santos may be expelled from Congress after using campaign funds for personal expenses, including luxury brands and spa visits.

- DS Smith's ROCE is increasing, Amazon's is decreasing but reinvesting for growth, Alibaba's is below industry average, Ramaco Resources has higher than average ROCE but slowing rates, StarHub's is decreasing, Far East Holdings' is declining, and Creightons' is low and underperforming.

CRYPTO

- The SEC has postponed decisions on cryptocurrency ETF applications from Hashdex, Grayscale, Franklin Templeton, Global X, raising hopes for future approval.

- Block Inc. stock (SQ) rose 3.39% to $58.19, despite closing $31.78 below its 52-week high, indicating potential for future growth.

- Bitcoin's price drops 3% to $36,250 as traders anticipate regulatory decision on crypto funds, but experts foresee massive potential with a bitcoin ETF.

- Mastercard suggests that the widespread adoption of central bank digital currencies (CBDCs) may be challenging due to consumer preference for traditional forms of money.

HEALTH

- The World Health Organization expresses concern over disease spread in Gaza due to Israeli bombardments, overcrowded shelters, and lack of resources.

- China's President Xi Jinping agrees to crack down on fentanyl production, but experts doubt its effectiveness in addressing the US fentanyl problem.

- Pharmaceutical company Eli Lilly will invest $2.5 billion to build a manufacturing plant in Germany for diabetes and obesity drugs, employing up to 1,000 workers.

- Surgeon flees Gaza hospital due to lack of supplies and Israeli tank fire; Muslim paramedic describes aftermath of Hamas attack; Indonesian hospital in Gaza shuts down, leaving patients stranded.