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11-08-2023

TECH

• Optus, Australia’s second-largest telecommunications provider, experienced a nationwide network outage, affecting millions of customers and causing disruptions to phone calls and train services in Melbourne. The cause of the outage is currently under investigation.

• Meta Platforms, the parent company of Facebook and Instagram, will require advertisers to disclose if their political ads have been altered or created using AI or other software starting in 2024. The policy aims to address concerns about deepfakes and misleading content.

• The US Consumer Financial Protection Bureau has proposed regulating digital wallets offered by tech giants like Apple, Google, and PayPal to ensure appropriate oversight and compliance with consumer protection laws. The proposed rule would subject these companies to bank-like supervision and inspections of privacy protections. The rule would cover about 17 companies that collectively handle over 13 billion payments annually. The proposal is open for public comment until early 2024.

• Amazon is investing in training a large language model called “Olympus” with 2 trillion parameters to rival models from OpenAI and Alphabet.

• Akamai Technologies reports strong Q3 earnings with revenue of $965 million, up 9% YoY, driving a 3.3% increase in stock.

• Datadog’s strong Q3 earnings and positive forecasts boosted Snowflake stock by 6.8%, indicating growing demand for cloud services.

• Former Meta employee, Arturo Béjar, testified before Congress about Meta’s failure to address harm and harassment faced by teens on Facebook and Instagram.

• TSMC cancels factory plans in Taiwan due to protests over land shortage, potentially impacting country’s economy and chip production.

• IBM has launched a $500 million venture fund to invest in AI companies and accelerate research and development in generative AI technology for the enterprise sector. The fund aims to drive the adoption of AI in businesses worldwide and fuel innovation through strategic partnerships.

• ByteDance, the parent company of TikTok, is offering to buy back shares from its employees outside the US for $160 apiece.

• Apple is halting the development of future software updates to fix bugs and improve performance in its devices.

• Apple releases HomePod software version 17.1.1 to fix slow or failed Siri requests. iOS 17.1.1 update resolves iPhone issues and urges immediate update. Possible iOS 17.1.1 release in the next week or two to address bugs and battery life.

• Rackspace Technology reported Q3 2023 earnings of $732 million, down 2% sequentially, with a focus on higher-value services and AI.

• Google and European carriers are urging the European Union to classify iMessage as a “core” service under the Digital Markets Act, arguing for interoperability with competitors.

• OpenAI introduces GPT Store, a platform for developers to create and discover custom versions of ChatGPT without coding.

MEDIA

• Nintendo plans to release a live-action film adaptation of The Legend of Zelda franchise, co-financed by Nintendo and Sony Pictures Entertainment. The film will be directed by Wes Ball and produced by Avi Arad.

• The US and G7 support “humanitarian pauses” in Israel-Hamas conflict, while UN calls for cease-fire. Israel rejects both.

• The third GOP primary debate for the 2024 presidential election will be held on November 8 in Miami, featuring five candidates. Former President Trump will not participate.

• Former CNN president Jeff Zucker believes cable television will remain relevant for the next decade, despite declining subscribers, and emphasizes the importance of good content. He also warns about the potential impact of the 2024 election on American democracy.

• Glenn Maxwell’s unbeaten 201 leads Australia to a three-wicket victory against Afghanistan in the World Cup, hailed as the greatest ODI innings.

• ITV’s shares hit a year-low due to warnings of Hollywood strikes impacting studio revenues, declining demand, and advertising downturn.

• Take-Two Interactive stock jumps 9% as reports hint at ”GTA VI” announcement this week, with quarterly earnings also expected.

• An OCCRP journalist in India was targeted with NSO spyware tool, Pegasus, in an infiltration attempt in August.

• Vivid Seats Inc. reports record Q3 2023 earnings of $999 million in marketplace gross order value (GOV) and acquires Vegas.com.

• Publisher Reach, owner of Mirror and Express newspapers, is cutting 450 jobs to reduce costs by 5-6% due to declining advertising revenues.

CONSUMER

• Marks & Spencer reports a 75% increase in first-half profit, plans to resume dividend payments, and warns of future challenges.

• eBay’s stock slumps as Q4 revenue forecast falls short of expectations, citing competition from larger rivals and weakening European business.

• Adidas sold €350 million ($373 million) worth of Yeezy stock in Q3 after ending its partnership with Kanye West, exceeding expectations. Despite the cancellation, Yeezy shoes generated significant sales. Adidas also reported a 23% decrease in inventory levels, leading to improved profit margins. However, the company experienced a 6.4% decline in revenue and a 25% decrease in net profit for the quarter.

• Coupang’s Q3 earnings miss with $0.05 per share, but still reports strong results with $6.2B net revenue and 21% YoY growth.

• Planet Fitness reports strong Q3 2023 earnings, with 8.4% same-store sales growth and over 18.5 million members. Changes to growth model announced.

• Jewellery maker Pandora exceeded Q3 profit expectations, raised sales forecast, and experienced growth in organic sales, leading to a rise in shares.

• Nature’s Sunshine Products Inc reported strong Q3 2023 financial results with net sales of $111 million, a 7% increase YoY.

• Olaplex Holdings (NASDAQ:OLPX) stock jumps 21-23% after strong Q3 earnings, stabilizing demand trends, and adjusted fiscal 2023 outlook.

• Inter Parfums reported Q3 earnings of $1.66 per share, beating estimates, with revenues of $367.97 million. IFF reported improved Q3 results and plans to sell Lucas Meyer Cosmetics.

REAL ESTATE

• WeWork has filed for bankruptcy protection in the US, seeking to cut $3 billion in debt and reduce its real estate footprint.

• Ping An Insurance Group denies reports that Chinese authorities asked them to acquire a controlling stake in Country Garden Holdings.

• D.R. Horton, Inc. reported solid Q4 2023 earnings, with earnings per share of $4.45 and consolidated pre-tax income of $2 billion. The company closed a record number of homes and plans to repurchase $1.5 billion of its stock in 2024. The positive results have boosted home builder stocks.

• The US regulator, Federal Housing Finance Agency (FHFA), is planning to overhaul the Federal Home Loan Bank system to clarify its mission and structure. This includes limiting access to the banks during times of crisis, increasing federal oversight, and potentially consolidating them. The FHFA also wants banks to hold 10% of their assets in mortgage loans to maintain access to the banks.

• MFA Financial and Invesco Mortgage Capital both reported challenging Q3 results with declines in book value per share. MFA Financial also beat earnings expectations.

• Andrew Duxbury has resigned as Group Finance Director at Galliford Try to become the new Chief Financial Officer at Persimmon.

TRAVEL

• Booking Holdings Inc. saw a 1.36% increase in shares, while Expedia Group Inc. had a 5.79% rise, outperforming competitors.

ECONOMIC

• Stocks rise for the seventh straight session, led by technology stocks, as bond yields fall. S&P 500 and Nasdaq achieve longest winning streak in two years. Oil prices slump, impacting Wall Street stocks. US futures and European stocks slip as investors await comments from Federal Reserve Chair Jerome Powell. Gold prices remain steady as US bond yields decrease. Asian markets bounce back, supported by positive performance on Wall Street and lower US Treasury yields. The dollar gains strength ahead of Powell’s speech. Japanese stocks fall for second consecutive session. European shares decline, led by insurance and financial stocks.

• Advertisements in off-year elections are focusing on abortion rights for Democrats, while Republicans emphasize inflation, taxes, and economic uncertainty. The Virginia election results will impact abortion laws and Governor Youngkin’s agenda. Ohio voters passed an amendment protecting abortion rights. Democrats won victories in Ohio, Kentucky, Virginia, and Pennsylvania, highlighting the strength of their abortion-focused campaign. Ohio also legalized recreational marijuana.

• Fed Governor Christopher Waller calls the Q3 US GDP growth rate of 4.9% a “blowout” number that needs attention. Credit card debt in the US reaches a new high of $1.08 trillion in Q3, with delinquency rates rising, particularly among millennials.

• Banco BPM, an Italian bank, reported a higher-than-expected Q3 profit of €319 million and raised its yearly outlook.

• Euro zone bond yields fell due to Germany’s industrial downturn, and Portugal’s Prime Minister resigned amidst a corruption probe involving lithium projects.

• Ivanka Trump will testify in a civil fraud trial against her father and their family businesses in New York.

• China’s central bank will guard against yuan exchange rate risks as it has depreciated over 5% this year. IMF raises China’s growth forecast to 5.4% in 2023.

• The IMF warns Europe against premature rate cuts, urges ECB to keep rates at 4% to combat inflation. Euro zone retail sales decline indicates weak consumer demand. Inflation expectations rise to 4%. Bundesbank chief warns of tough phase in lowering inflation.

• TAT Technologies’ ROCE increased by 283,183% in 5 years, Jaycorp Berhad’s by 23%, Hiap Huat Holdings Berhad’s to 6.1%, and United Malacca Berhad’s is of interest to investors. Techbond Group Berhad’s ROCE is declining, Accent Group’s is stable at 16%, Teck Guan Perdana Berhad’s is growing, and HireRight Holdings’ increased by 109% in 3 years.

CRYPTO

• Michael Barr, Vice Chair for Supervision at the Federal Reserve, has warned about the risks of private crypto stablecoins and called for strong federal regulation to ensure financial stability. The Federal Reserve is also yet to make a decision on central bank digital currencies.

• HSBC will partner with Metaco to launch a custody service in 2024 for storing blockchain-based assets, excluding cryptocurrency.

• Spain’s stock market regulator, CNMV, investigates Spanish technology provider Miolos S.L. for potential violations of advertising rules on cryptoassets.

• Circle Internet Financial Ltd., the issuer of the USDC stablecoin, is considering an IPO in early 2024 after a failed attempt in 2022.

HEALTH

• Waters Corp reports stable Q3 2023 financial results with sales growth less than 1%, decline in China sales, and strong recurring revenue. Thermo Fisher Scientific underperforms. American States Water Co sees increased diluted earnings and announces new contracts.

• Bayer CEO considers job cuts and structural changes, ruling out a three-way split but considering splitting off Consumer Health or Crop Science.

• Eisai Co Ltd reports increased revenue and operating profit in Q2 2023, driven by LENVIMA and Dayvigo, with a six-fold increase in operating profit. Biogen’s Q3 results beat estimates despite the complex launch of Leqembi, with total revenue of $2.53 billion. However, Biogen has lowered its annual profit forecast due to increased costs from the acquisition of Reata Pharmaceuticals and the launch of Leqembi. Eisai expects Leqembi to generate $66.5 million in revenue by March 2024.

• Coherus Biosciences’ stock dropped 30% after reporting disappointing Q3 results, while Harvard Bioscience saw a 6% decrease in revenue.

SPORTS

• Erling Haaland scores two goals as Manchester City defeats Young Boys 3-0, advancing to Champions League last 16.

• Lindsey Vonn and Naomi Osaka emphasize the significance of enduring sports partnerships, mental health, and building a brand for financial sustainability.

• Australia’s women’s soccer team, the Matildas, have secured a new four-year collective bargaining agreement that includes pay increases of up to $80,000 per year and equal treatment to the men’s team. The deal rewards players based on revenue-sharing.