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Market Highlights
U.S. stocks ended sharply lower on Friday as chipmakers dropped on concerns about weak consumer demand while rising Treasury yields pressured Amazon and other mega-cap growth companies.
Chip equipment makers Applied Materials, Lam Research, and KLA Corp all dropped more than 4%after Reuters reported TSMC had asked its major vendors to delay deliveries.
Nvidia dropped 3.7%, Advanced Micro Devices lost 4.8% and Broadcom and Micron Technology each fell over 2%, pulling down the Philadelphia Semiconductor index down about 3% for the session.
Treasury yields edged higher ahead of the Federal Reserve policy meeting next week, with the central bank facing a strong U.S. economy with inflation that remains above target.
With the expiry of quarterly derivatives contracts tied to stocks, index options, and futures, volume on U.S. exchanges was heavy, with 16.9 billion shares traded, compared to an average of 9.8 billion shares over the previous 20 sessions.
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STRIKE!!!!!
Why Stellantis could face a longer strike than Ford or GM
The United Auto Workers labor union launched targeted strikes against the three Detroit automakers early Friday morning. The stoppages affect three plants that make popular models such as the Ford Bronco, Chevrolet Colorado, and Jeep Wrangler.
It’s the first time in history that the UAW has struck all three of the Detroit automakers at once. But while the strikes began at the same time, they may play out very differently in the days to come — with Stellantis potentially facing a tougher road to a deal than its crosstown rivals Ford Motor and General Motors.
Stellantis has a problem that its local rivals don’t. The company, formed in early 2021 from a merger between Fiat Chrysler Automobiles and French automaker Peugeot, has more production capacity around the world than it needs. Stellantis has signaled that it intends to close or sell 18 of its U.S. facilities, including factories and parts depots. The company has a total of about 35 factories and parts distribution centers in the U.S. now.
That’s a plan that the union is unlikely to accept willingly.
Hollywood is paying a steep price for never really figuring out the streaming model.
Picket signs have lined the gates of Hollywood’s studios for nearly five months, as the industry’s writers and actors rally for AI protections, better wages, and a cut of streaming profits.
The problem is streaming isn’t yet profitable for many studios.
Sparked by the creation of Netflix’s direct-to-consumer platform in 2007, streaming has upended the economics of the media industry. Yet, it’s still unclear whether it’s a sustainable business model for the future.
Google Sheds Hundreds of Recruiters in Another Round of Layoffs.
Google conducted another round of layoffs on Wednesday, telling its recruiters that by the end of the day, hundreds of them would be losing their jobs, three people with knowledge of the layoffs said.
Google’s recruiting group, which at one point had more than 3,000 employees, has already been hit hard by layoffs this year.
The cuts are an indication that Google and its parent company, Alphabet, will continue the belt-tightening that began at the Silicon Valley company this year, even as it doubles down on investments in artificial intelligence.
Instacart IPO Is an Expensive Lesson for Venture Firms
The grocery delivery company is set to deliver significant paper losses to many of the private investors who piled on late. By Sept. 16, 2023, 5:30 am ET Share Listen (2 min) Instacart in its coming IPO is targeting a valuation far lower than where it was when startup funding peaked two years ago.
When Instacart lists in the coming week, it will leave many of its later investors with significant paper losses—a sign of the pain venture capitalists are facing after years of fast-and-loose spending.
Chinese AI firm Fourth Paradigm leads Hong Kong IPO surge to raise $280 million
Three Chinese firms, led by AI software company Beijing Fourth Paradigm, are aiming to raise up to $280 million in Hong Kong's initial public offerings launched on Monday.
Beijing Fourth Paradigm, an AI startup, is aiming to raise up to $144 million by selling 18.4 million shares in a price range of HK$55.60 to HK$61.16 each, according to its regulatory filings.
Three cornerstone investors, headed by New China Capital Management, have subscribed for about $96.8 million worth of stock, which equates to 70.6% of the IPO, the filings showed.
UBS sounds out investors over first AT1 sale since Credit Suisse rescue
UBS has begun sounding out investors over issuing a type of bond that was wiped out as part of its rescue of Credit Suisse six months ago — a writedown that damaged confidence in the market and triggered a wave of lawsuits.
Executives at UBS have been on an investor roadshow after reporting quarterly results last month. During the discussions, they suggested changes to the terms of future additional tier 1 securities to make them more palatable to bondholders, according to people familiar with the matter.
UBS is under pressure to replace up to $17bn of Credit Suisse AT1 bonds in the coming years to improve the efficiency of the enlarged bank’s capital structure and free up funds for shareholder returns and potential acquisitions.
Foxconn aims to double jobs and investment in India over the next 12 months
Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
Shares closed nearly 16% lower in the wake of the announcement, hitting a 52-week low.
Rondeau’s departure appears sudden, and it’s not clear what triggered the decision, especially after a stronger-than-expected second-quarter earnings report last month.
Planet Fitness said it is searching for its next chief both internally and externally. Craig Benson, a former governor of New Hampshire and a member of the company’s board, will serve as the interim CEO. He’s a franchisee of both Planet Fitness and Dunkin’ Donuts and has been on Planet’s board for six years.
Naspers & Prosus CEO steps down, M&A chief Ervin Tu is the successor
Dutch-listed technology investor Prosus NV and its South African parent Naspers said on Monday that Bob van Dijk has stepped down as chief executive officer from both companies.
The companies named investment chief Ervin Tu, a previous VisionBank manager and Goldman Sachs technology banker, as interim CEO.
The companies did not provide a reason for Van Dijk's departure. However, it coincides with the unwinding Monday of a cross-structure between Prosus and Naspers.
Riddle
Question: In each row, place a word beginning with ‘H’ to fit the clue given.
When completed, a musical instrument will be read down the third column of letters.
What is it?
_ _ _ _ CONCEAL _ _ _ _ CAUSE PAIN _ _ _ _ PERIOD OF TIME _ _ _ _ RELIGIOUS SONG
Any other business
Climate Change
California sues oil giants for downplaying risks posed by fossil fuels
The state of California has sued major oil companies including Exxon Mobil Corp, Shell PLC, and Chevron Corp, accusing them of playing down the risks posed by fossil fuels, according to a court filing on Friday.
The lawsuit, which also targets BP and ConocoPhillips, alleges the energy giants' actions have caused tens of billions of dollars in damages and accuses them of deceiving the public, the filing in a superior court in San Francisco showed.
The American Petroleum Institute, an industry trade group, has also been listed as a defendant in the case, according to the filing.
California governor says he will sign climate bill on companies and carbon footprints
California Governor Gavin Newsom said on Sunday he would sign legislation that would require large companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators on managing corporate climate risks.
Asked at the start of "Climate Week" in New York, a week of events coinciding with the U.N. General Assembly, whether he would sign the bill, Newsom replied: "Of course I will sign that bill."
Trump says it was his decision to persist with 2020 election challenges
Former U.S. President Donald Trump said he dismissed the views of his own lawyers in continuing to challenge his 2020 defeat because he did not respect them, saying in an interview aired on Sunday that he had made up his own mind that the election had been "rigged" - a false claim that he continues to make.
Trump, the front-runner for the Republican nomination to take on Democratic President Joe Biden in the 2024 election, is now facing four concurrent criminal prosecutions, including two involving his attempts to overturn his 2020 loss to Biden.
Riddle Answer: Drum. The words are HIDE, HURT, HOUR and HYMN
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