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☆ Western Alliance latest US bank to explore sale, Financial Times reports
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Western Alliance (WAL.N) is exploring strategic options including a potential sale of all or part of its business, the Financial Times reported on Thursday citing two people briefed on the matter. The Arizona-based bank has hired advisers to explore its options, the report added, saying the bank's deliberations were at an early stage and might not come to anything. Shares in Western Alliance had fallen 45% in volatile trading before being halted. Three U.S. regional banks have failed in the last two months, spurring widespread worries about the sector's stability and deepened concerns about lenders as nervous clients moved their money to bigger financial institutions. PacWest Bancorp (PACW.O) also said late on Wednesday it was in talks with potential partners and investors about strategic options.

☆ Shopify to lay off 20% of workforce, revenue tops expectations
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

Known as the e-commerce platform for small businesses, Shopify had ramped up its order fulfillment network, when it expected the pandemic-led e-commerce boom to persist. But by mid-2022, it said it had over overestimated growth levels and laid off 10% of its workforce in July. Revenue was $1.51 billion in the quarter ended March 31, topping analysts' estimates of $1.43 billion, according to Refinitiv data. The company also posted a surprise adjusted profit of 1 cent per share, compared with expectations for a 4 cent loss. Reporting by Chavi Mehta and Akshita Toshniwal in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

[1/4] A view of the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2013. REUTERS/Brendan McDermidMay 4 (Reuters) - Goldman Sachs Group Inc (GS.N) said in a filing on Thursday it is cooperating with government probes into collapsed Silicon Valley Bank. The Wall Street bank is "cooperating with and providing information to various governmental bodies in connection with their investigations and inquiries" into SVB, including the two companies' dealings in March. The Wall Street bank acquired a bond portfolio on which SVB booked a $1.8 billion loss, a transaction that preceded a failed SVB share sale where Goldman was an underwriter. Goldman was also among the underwriters named as defendants in a securities class action lawsuit related to several SVB share offerings in 2021 and 2022, it said in a regulatory filing.

☆ Alibaba's global online commerce arm weighs US IPO, Bloomberg reports
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Alibaba Group Holding Ltd's (9988.HK), international online shopping unit is exploring a U.S. initial public offering, Bloomberg News reported on Thursday citing people familiar with the matter. The e-commerce giant is in the early stages of consideration and the IPO's size is yet to be determined, the report added. The business group is in talks with banks that could potentially help prepare for the IPO next year, according to the report. However, in an emailed statement to Reuters, Alibaba Digital Commerce Group said, "Currently, there is no IPO plan". Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ TSMC, partners plan to invest up to $11 billion in German fabrication plant, Bloomberg reports
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

May 3 (Reuters) - Taiwan Semiconductor Manufacturing Co (2330.TW) is in talks with partners to invest as much as 10 billion euros ($11.04 billion) to build a chip fabrication plant in Germany, Bloomberg News reported on Wednesday, citing people familiar with the matter. The venture between TSMC, NXP Semiconductors NV (NXPI.O), Robert Bosch GmbH and Infineon Technologies AG (IFXGn.DE) will have a budget of at least 7 billion euros, including state subsidies, but is likely to end up closer to 10 billion euros, according to the report. TSMC is still evaluating the possibility of building a fab in Europe, the company told in an emailed statement to Reuters, but declined to comment further. Infineon and Robert Bosch declined to comment, while NXP did not immediately respond to a Reuters request for a comment. ($1 = 0.9061 euros)Reporting by Nilutpal Timsina in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ NYSE to delist First Republic Bank shares
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +1 min

May 2 (Reuters) - The New York Stock Exchange said on Tuesday it will delist shares of First Republic Bank (FRC.N), the lender that was seized by regulators before JPMorgan Chase & Co (JPM.N) acquired most of its assets. Apart from the company's common stock, seven different types of its preferred stock will also be delisted. Trading in all the shares will be suspended immediately, the exchange said. First Republic was acquired by Merrill Lynch in 2007. California regulators on Monday seized First Republic and put it into Federal Deposit Insurance Corp receivership, marking the third major U.S. bank failure in two months and the largest since Washington Mutual in 2008.

☆ As lithium miners gear up for Q1 earnings, investors focus on tumbling prices
▼ + stars: | 2023-05-02 | by ( Arshreet Singh | ) www.reuters.com time to read: +2 min

Strong demand for EVs and limited supply of the metal pushed lithium prices to record levels in November last year, soaring more than ten-fold from early 2021. But a slump in demand for electric vehicles in China, the world's biggest market, left a stockpile of the metal and drove prices down. Lithium prices have fallen by at least a third in the first quarter, according to an index tracked by Benchmark Mineral Intelligence, raising concerns miners will see a hit to their bottomline. Though falling spot prices have raised red flags for investors over the long-term outlook of lithium miners, analysts believe spot prices will rise again as we get closer to the end of the year. In the long run, supply will continue to fall short of demand, which will help the miners, he added.

☆ Nikola, Voltera partner to set up 50 hydrogen fueling stations in N. America
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: 1 min

May 2 (Reuters) - Electric-vehicle startup Nikola Corp (NKLA.O) said on Tuesday it has partnered with charging facilities operator Voltera to develop up to 50 HYLA-brand hydrogen fueling stations in North America over the next five years. The agreement underpins Nikola's previously announced plan to develop 60 stations by 2026. "Our partnership with Voltera will bring substantial capital and expertise to support Nikola's plans to build refueling infrastructure to support its customers," said Carey Mendes, President of Nikola Energy. Voltera will build, own and operate the stations, while Nikola will supply the hydrogen fuel and provide technical expertise, the EV company said. Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Quotes: Fed plans broad revamp of bank oversight in wake of SVB collapse
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +11 min

The assertion in the introduction that the Fed should focus on large bank capital requirements is disconnected from the report's conclusions. AMERICAN BANK ASSOCIATION PRESIDENT AND CEO ROB NICOLS"We take any bank failure seriously, and we will review the findings and proposed policy changes in these reports carefully, including where the conclusions may differ. JONATHAN MONDILLO, HEAD OF NORTH AMERICAN FIXED INCOME AT ABRDN"We're likely to see higher capital requirements. What that means for the overall markets is that the devil is in the details: how stringent those capital requirements will be. A potential First Republic Bank failure could similarly present a risk to the long-term investment strategy of high net-worth individuals."

☆ First Republic most likely headed for FDIC receivership - CNBC
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: 1 min

April 28 (Reuters) - First Republic Bank (FRC.N) is most likely headed for Federal Deposit Insurance Corp (FDIC) receivership, CNBC reported on Friday citing sources. Shares of First Republic were down 19%. The bank did not immediately respond to a Reuters request for comment. Earlier on Friday, Reuters reported U.S. officials are coordinating urgent talks to rescue the bank. Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ US Fed plans broad revamp of bank oversight in wake of SVB collapse
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +7 min

Many commentators linked the lessons learned from the earlier crisis to the ongoing concerns about First Republic Bank. INSTITUTE OF INTERNATIONAL BANKERS CEO BETH ZORC"The IIB commends the Federal Reserve's timeliness of producing its report on SVB. "There are similarities between SVB's situation and what is happening with First Republic Bank: both are affected by the rapid movement of very large sums of money." A potential First Republic Bank failure could similarly present a risk to the long-term investment strategy of high net-worth individuals." "It feels isolated, than the rest of the regional bank system, feels like it's in a different place than where FRC is."

☆ Microsoft signs 10-year deal with Spain's Nware after UK blocks Activision bid
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +2 min

The agreement marks the latest effort by Microsoft to ease fears its purchase of Activision would hinder competition in cloud gaming, which was the reason cited by the Competition and Markets Authority to veto the biggest deal in gaming. In its decision on Wednesday, the CMA said Microsoft had an estimated 60%-70% of global cloud gaming services as well as competitive advantages including owning Xbox, PC operating system Windows and cloud provider Azure. The Activision deal is the biggest involving technology companies the regulator has blocked. Microsoft shares were slightly lower in U.S. premarket trading, while those of Activision ticked up 0.2%. Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra ELuriOur Standards: The Thomson Reuters Trust Principles.

☆ Domino's Pizza beats quarterly sales estimates on price hikes, steady demand
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

April 27 (Reuters) - Domino's Pizza Inc (DPZ.N) beat Wall Street estimates for first-quarter U.S. same-store sales on Thursday, boosted by higher prices as well as new promotional offers and menu items that helped draw more customers. Analysts have said the company's new menu item "Loaded Tots" that serves oven-baked potato tots with cheese and toppings in three varieties has helped boost sales during the January-March period. The world's largest pizza chain's U.S. same-store sales rose 3.6% in the first quarter, compared with analysts' estimate of a 1.96% increase, according to Refinitiv data. However, total revenue rose 1.3% to $1.02 billion but missed analysts' estimate of $1.04 billion hurt by a strong dollar. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ CME profit rises as volatility spurred risk hedging
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

April 26 (Reuters) - CME Group Inc (CME.O) on Wednesday posted first-quarter profits that beat Wall Street expectations, as traders turned to the exchange operator's hedging products to navigate market volatility related to worries about the banking sector and slowing macroeconomic growth. Overall average daily volumes were up 4% at 26.9 million contracts. The beat was driven in part by higher-than-anticipated revenue per contract, which benefited clearing and transaction fees, Piper Sandler analyst Richard Repetto said in a client note. Clearing and transaction revenues in the quarter were up 5.5% at $1.2 billion. Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ CME Group's quarterly profit rises as high volatility spurred risk hedging
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: 1 min

April 26 (Reuters) - CME Group Inc (CME.O) on Wednesday reported higher first-quarter profits, as traders turned to the exchange operator's products to hedge against market volatility amid a banking crisis and worries over slowing macroeconomic growth. On an adjusted basis, net income for the quarter was $882 million, or $2.42 per share, compared with $766 million, or $2.11 per share a year earlier. Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Carrier to buy German firm Viessmann's unit in $13.17 bln deal
▼ + stars: | 2023-04-25 | by ( ) www.reuters.com time to read: +1 min

April 25 (Reuters) - Air conditioner maker Carrier Global Corp (CARR.N) said on Tuesday it would buy German industrial firm Viessmann Group's unit that makes heating boilers and heat pumps in a 12 billion euros ($13.17 billion) cash-and-stock deal. Under the deal, Viessmann Chief Executive Max Viessmann would join Carrier's board. The deal has been approved by the board of both companies and is expected to close by 2023 end. The company said the deal is expected to be modestly impact its adjusted profit in 2024 and would add to earnings in 2025. Separately, Carrier reported a 2% drop in its first-quarter profit, excluding items.

First Republic reported a more than $100 billion plunge in deposits in the quarter in the aftermath of the biggest turmoil to hit the banking sector since 2008. Regional bank PacWest Bancorp (PACW.O) fell 9%, Western Alliance Bancorporation (WAL.N) 6%, Zions Bancorp (ZION.O) 5% and brokerage Charles Schwab Corp (SCHW.N) was down 4%. First Republic said on Monday it was "pursuing strategic options" to quickly strengthen the bank, without providing details. Options include an asset sale of up to $100 billion, a source familiar with the situation said on Tuesday. "So it's tough to even describe it as good asset and bad asset," Chiaverini said.

☆ Apple supplier Corning rides on price hikes to beat profit estimates
▼ + stars: | 2023-04-25 | by ( ) www.reuters.com time to read: +2 min

April 25 (Reuters) - Specialty glass maker Corning Inc (GLW.N) beat profit estimates for the first quarter on Tuesday as price hikes more than made up for higher raw material costs and a demand slowdown. Corning's core sales fell 10% to $3.37 billion in the first quarter, but they were better than estimates of $3.34 billion. Revenue from its optical communications division fell 6% during the quarter, while sales in specialty materials business, which makes Gorilla glass, declined 18%. Corning said it expects net sales between $3.4 billion and $3.6 billion for the second quarter, compared with analysts' estimate of $3.58 billion. Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ S&P sees brighter outlook for UK credit rating as budget risks recede
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

April 21 (Reuters) - Ratings agency S&P Global revised up its outlook for Britain's sovereign credit rating on Friday, removing the "negative" label which it applied after September's "mini-budget" under then-Prime Minister Liz Truss. "The government's decision to abandon most of the unfunded budgetary measures proposed in September 2022 has bolstered the fiscal outlook for the UK," S&P said. S&P maintained its AA rating for British government debt and now has a "stable" outlook for the rating. Lower energy prices have brightened Britain's economic outlook - with the International Monetary Fund revising up its forecasts last week - although the squeeze on consumer spending from continued high inflation means the IMF still forecasts Britain's economy will contract by 0.3% in 2023. S&P said it expected British economic output to fall by 0.5% this year before growing by an average of 1.6% a year between 2024 and 2026.

April 19 (Reuters) - IBM Corp (IBM.N) missed Wall Street expectations for first-quarter revenue on Wednesday, hurt by shrinking corporate spending on IT services and a strong dollar. IBM cut its full-year consulting revenue growth forecast to 6%-8% from earlier expectations of high single-digit percentage growth. IBM, which receives over 75% of its revenue from its software and consulting business units, said its consulting revenue rose 8.2% at constant currency to $4.96 billion in the quarter ended March 31. Accenture signaled to a wider slowdown last month, when it decided to slash about 19,000 jobs and trimmed revenue growth and profit forecasts. Total revenue in the first quarter rose 4.4% at constant currency to $14.25 billion, compared with analysts' estimate of $14.35 billion.

☆ Lam Research forecasts lower quarterly revenue as China export curbs weigh
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +1 min

April 19 (Reuters) - Chip-making equipment supplier Lam Research Corp (LRCX.O) forecast lesser-than-expected June-quarter revenue on Wednesday, as U.S. restrictions on sale of certain technology to China and weakness in the semiconductor market weigh on the business. Wafer fabrication equipment (WFE) makers Lam Research, KLA Corp (KLAC.O) and Applied Materials Inc (AMAT.O), have said their 2023 revenue projections are likely to be hit between $600 million and $2.5 billion due to the export restrictions. Lam Research, whose shares dropped 2.2% after-market, forecast June-quarter revenue at $3.1 billion, plus or minus $300 million, lower than analysts' projection of $3.47 billion, according to Refinitiv. Lam Research cut 7% of its workforce in January and had projected WEF spending is likely fall to mid-$70 billion range this year from mid-$90 billion in 2022. Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Western Alliance deposits stabilize, profits beat, shares rise after hours
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +2 min

April 18 (Reuters) - Western Alliance Bancorp (WAL.N) on Tuesday posted profits that surpassed estimates and said its deposits stabilized after the March banking crisis, news that sent its shares soaring 15% in after-hours trading and also lifted shares of other U.S. regional banks. The company said some 73% of its deposits were insured and immediately available liquidity exceeds uninsured deposits, it said. Its proportion of insured deposits was well above industry norms among the 50 largest U.S. banks. Western Alliance and other regional lenders came under pressure recently, with consumers moving money into bigger banks after the failure of two U.S. lenders triggered worries about a broader crisis and funding costs. Last month, Western Alliance affirmed its full-year deposit growth forecast of 13% to 17%.

☆ No more red envelopes: Netflix to end DVD-by-mail business
▼ + stars: | 2023-04-18 | by ( Dawn Chmielewski | ) www.reuters.com time to read: +2 min

April 18 (Reuters) - Netflix Inc (NFLX.O) is winding down its DVD-by-mail business, the company said in a blog post on Tuesday, ending the service it started around 25 years ago. The company said its DVD rental business had been shrinking and it will not be able to continue to offer quality service. "Those iconic red envelopes changed the way people watched shows and movies at home - and they paved the way for the shift to streaming," Netflix Co-CEO Ted Sarandos said in a blog post announcing the DVD service had entered its "final season." "Betting on DVDs was a risk," Randolph wrote in his book, "That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea." When Netflix attempted in 2011 to split its DVD rental business from online streaming into a separate service called Qwikster, it provoked howls of protest from consumers.

☆ Western Alliance beats quarterly estimates on gains from interest income
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +2 min

April 18 (Reuters) - Western Alliance Bancorp (WAL.N) beat Wall Street estimates for the first quarter on Tuesday, as the lender reaped gains from interest income on the back of a slate of rate hikes by the U.S. Federal Reserve. While higher cost of borrowing roiled several asset classes and curtailed dealmaking, it helped lenders charge higher interest from borrowers. Still, the lender reported a 5% decline in net interest income from the previous quarter due to an increase in average balances of short-term borrowings and interest bearing deposits. Regional lenders such as Western Alliance came under pressure after the closure of two smaller lenders triggered worries about deposit flight and funding costs. Shares of Western Alliance shot up 16% in extended trading to $37.97 after it closed 0.9% lower on Tuesday.

☆ Transport Canada says Hyundai Auto Canada guilty of safety violation
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +1 min

April 18 (Reuters) - Transport Canada said on Tuesday Hyundai Auto Canada Corp pleaded guilty to six different counts of criminal charges for violating the Motor Vehicle Safety Act. Hyundai Auto Canada failed to send out notices of safety defect within the prescribed time period of 60 days, the statement said, and the company will pay a fine of $360,000. "It is alarming that Hyundai failed to notify vehicle owners of a recall in a timely manner on six different occasions," Transport Minister Omar Alghabra said. Some of these recalls were safety risks related to possible vehicle fires, reduced braking performance and sudden loss of engine power. "Hyundai Canada recognized that during the COVID pandemic, it was not meeting the precise timing requirements identified in the applicable regulations in a limited number of instances.

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