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☆ Banks Are Risky. Silicon Valley Bank’s Risk Officer Was AWOL.
▼ + stars: | 2023-03-23 | by ( Ben Cohen | ) www.wsj.com time to read: 1 min

James Lam had just been hired by a new financial division of GE Capital when he walked into his boss’s office with a problem: He was ordering business cards and had no idea what to put on them. Since his position didn’t really exist, it also didn’t have a title, so he was given permission to invent one. He called himself a chief risk officer. Thirty years later, as he followed the spectacular implosion of Silicon Valley Bank, there were few people more qualified than Mr. Lam to ask two simple questions.

☆ Ford’s path to electric glory requires rocket fuel
▼ + stars: | 2023-03-23 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

NEW YORK, March 23 (Reuters Breakingviews) - Ford Motor (F.N) has set itself a destination: to be a leader in electric vehicles. The U.S. auto manufacturer disclosed the losses generated by its EV business, now called Ford Model e. Investors can now better see how ambitious this journey is. Model e generated an operating loss of $2.1 billion in 2022, steeper than 2021’s hit of roughly $900 million. The automaker reiterated guidance that its electric car business, known as Ford Model e, will generate 8% operating profit margins by late 2026, from a margin of negative 41% in 2022. The company expects to reach run-rate production of 2 million electric vehicles by the end of 2026, from 96,000 last year.

☆ Spooked dealmakers scurry back into their foxholes
▼ + stars: | 2023-03-23 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +8 min

NEW YORK, March 23 (Reuters Breakingviews) - Jonathan Kanter, a lawyer by training, has become something of a magician. Pay closer attention, however, and Kanter is methodically rewriting a decades-old regulatory playbook. Last year, these breakup charges reached their highest level in a decade, at an average 4.5% of deal prices. The Department of Agriculture partnered with the DOJ on the case, another feature of Kanter’s plan of attack. As legal weaknesses emerge, dealmakers should be in position to better structure transactions and defend themselves at trial.

☆ Pharma delivers, for others
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

The progressive lung disease, which commonly crops up in heavy smokers, is the third biggest cause of death globally. A 30% reduction in exacerbations and significant lung function improvement means the drug should spin more profit. Deloitte estimates projected returns on drug development for the biggest pharma firms were 1.2% last year. Writ large, the world might be getting too good of a bargain. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Hong Kong heiress sues gallery owner Pearl Lam over Banksy painting
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, March 22 (Reuters) - An heiress of the Hong Kong beverage giant Vitasoy International (0345.HK) is suing prominent gallery owner Pearl Lam, saying she has paid 500,000 pounds ($613,000) for a Banksy painting that was never delivered, according to a court writ filed this week. The 2005 painting by the British artist is a "remix" of a masterpiece by Impressionist painter Claude Monet. It was sold at a Sotheby's auction in October 2020 for more than 7.5 million pounds, far above an estimated sale price of 3 million pounds to 5 million pounds. Lam is one of more than 170 gallery owners participating in Art Basel Hong Kong this week. Reporting by Farah Master and Anne Marie Roantree; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

☆ All’s fair in love and stablecoins
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 22 (Reuters Breakingviews) - If a stablecoin isn’t first, it’s last, as Circle has learned this month. The company that issues USDC lost its peg to the dollar earlier this month because of worries about the $3.3 billion it held at Silicon Valley Bank. Though Circle recovered the funds from the bank, customers pulled $6 billion from it, according to Bloomberg. Circle Chief Executive Jeremy Allaire, in contrast, does regular rounds in Washington and has argued for regulation. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Nike outruns its competitors
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

Its challenges include unsold goods it has to shift, an 8% drop in year-on-year sales in China, and falling gross profit margins. Nike is nonetheless in a relatively enviable position. Nike is also sporting a five-year total shareholder return of 105%, where Adidas and Under Armour’s are both negative. Even with blips, that shows it has been a better long-term run for investors. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Benefits of US political accord accrue to TikTok
▼ + stars: | 2023-03-21 | by ( Jennifer Saba | ) www.reuters.com time to read: +3 min

NEW YORK, March 21 (Reuters Breakingviews) - TikTok has one incentive to keep American politicians united. As Chief Executive Shou Zi Chew goes in front of Congress this week, he might remember that benefits can accrue to him if representatives remain cooperative. TikTok will be working to persuade American politicians that citizens’ data is protected, but in reality it will be difficult for the country to ban the app outright. So in some ways, political cohesion is good for TikTok. TikTok may not want to cause trouble in Washington, but it benefits so long as Democrats and Republicans agree.

☆ U.S. seeks to prevent China from benefiting from $52 billion chips funding
▼ + stars: | 2023-03-21 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

[1/2] Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/IllustrationWASHINGTON, March 21 (Reuters) - The U.S. Commerce Department on Tuesday released proposed rules to prevent $52 billion in semiconductor manufacturing and research funding from being used by China and other countries deemed of concern. This measure covers chips "including current-generation and mature-node chips used for quantum computing, in radiation-intensive environments, and for other specialized military capabilities." The Commerce Department plans to begin accepting applications in late June for a $39-billion semiconductor manufacturing subsidy program. The Commerce Department on Tuesday said it would reinforce those controls by aligning prohibited technology thresholds for memory chips between export controls and CHIPS national security guardrails and include "a more restrictive threshold for logic chips than is used for export controls."

☆ Ryan Reynolds flexes as corporate convert
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 20 (Reuters Breakingviews) - For Hollywood star Ryan Reynolds, dealmaking may be more lucrative than Deadpool. One more transaction like this, and Reynolds could find that he has a real future outside of the acting biz. For Mint, Reynolds has described the marketing strategy as “scrappy”, and he has done some catchy things, like appearing alongside T-Mobile’s chief executive in a video announcing the deal and leaving voicemails for customers. Showing success outside of the lifestyle category – in mobile – is validation for the actor, but a differentiating factor might have been Reynolds’ ownership stake in Mint. Converting that stake into a lucrative deal, twice, suggests that Reynolds could be more than just a pretty face.

☆ Credit Suisse bump trade looks over-optimistic
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 20 (Reuters Breakingviews) - Investors in Credit Suisse’s bombed-out stock are getting a little ahead of themselves. At that level, they’re 7% above the implied value of UBS’s offer, and a wider 13% using the lenders’ U.S.-listed shares, which trade until later in the day. That deal, like UBS’s rescue of Credit Suisse, was also a government-arranged attempt to prop up an ailing bank. Unlike Credit Suisse, Bear Stearns’ shareholders got a vote, giving them leverage to argue for a higher price. Credit Suisse shareholders have little left but hope.

☆ These 74 stocks across 5 categories of AI are the top picks from the sector's leading fund managers.
▼ + stars: | 2023-03-18 | by ( Laila Maidan | ) www.businessinsider.com time to read: +11 min

These 74 stocks are picked by AI ETF managers. What she believes is unique about her fund is its heavy focus on quantum computing technology, making up 41.22% of the fund. While big data is used for different technologies, it enables AI to work with massive data sets in its machine-learning process. TipRanks, a financial technology website that uses AI to analyze financial data, created a stock list for what they deem are the best AI stocks based on popularity. TipRanks' list of nine of the best AI stocks have large market caps and are likely to remain relevant for a long time.

☆ GM CEO meets with senators on self-driving cars
▼ + stars: | 2023-03-17 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

[1/2] The Cruise Origin autonomous vehicle, a Honda and General Motors self-driving car partnership, is seen during its unveiling in San Francisco, California, U.S. January 21, 2020. REUTERS/Stephen Lam/File PhotoWASHINGTON, March 16 (Reuters) - General Motors (GM.N) CEO Mary Barra met with two key senators on Thursday as the Detroit automaker pushes for legislation to speed deployment of self-driving vehicles on U.S. roads. He added that Barra discussed with the lawmakers "the future of mobility -- including autonomous vehicles." GM wants to deploy its Origin vehicle, which has subway-like doors and no steering wheels. NHTSA said it received notices of incidents in which self-driving Cruise vehicles "may engage in inappropriately hard braking or become immobilized."

☆ 8 million Chinese youths sat for a test in the style of an 'imperial examination' — all for a job that pays about $7,000 a year
▼ + stars: | 2023-03-17 | by ( Aditi Bharade | ) www.businessinsider.com time to read: +6 min

A record 7.7 million Chinese youths sat for an intense test to try to secure one of 200,000 government jobs. The modern-day civil service tests are not far off the mark from their ancient iterations. In spite of the tough tests required to secure these jobs, civil service jobs are not high paying. "In general, civil service jobs could bring with them benefits for the whole family, like connections to positions of power," Wu said. For those who want to be active participants in the workforce, civil service jobs continue to be a solid option.

☆ FedEx delivers, for now
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 17 (Reuters Breakingviews) - FedEx (FDX.N) is delivering a timely package to investors. FedEx is expecting to cut its U.S. headcount by some 25,000 year-over-year, by the end of this fiscal year. This division is also the largest by revenue, but it benefits greatly from scale. Operating margins dropped in the quarter to 1% from 4.6% as sales fell. Despite the fact that revenue fell in both the Freight and Ground divisions, those groups' operating margins grew.

[1/2] The Tesla factory is seen in Fremont, California, U.S. June 22, 2018. California state judges typically issue tentative rulings ahead of hearings, but can make changes to those rulings when issuing final decisions. If the agency did not adequately probe certain claims against Tesla before suing, the electric carmaker could seek to have them removed from the case. The agency claims that Tesla's Fremont, California, plant is a racially segregated workplace where Black employees have been harassed and discriminated against in job assignments, discipline and pay. “You don’t get to inquire into the most minute details,” Grillo said.

☆ Goldman’s new strategy gets baptism of fire
▼ + stars: | 2023-03-15 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +4 min

NEW YORK, March 15 (Reuters Breakingviews) - The collapse of Silicon Valley Bank is providing a slightly awkward showcase for Goldman Sachs’ (GS.N) manifold talents. It’s true to the new unified “One Goldman Sachs” strategy expounded by Chief Executive David Solomon, dampened by the client not living to tell the tale. The investment bank Solomon now leads scrambled throughout the financial crisis to help panicked clients shore up their finances. SVB’s financial models had to be revised on the fly and approved by its board as the situation deteriorated. There also was no soothing imprimatur from Buffett, or a rich Silicon Valley grandee such as Larry Ellison, Steve Ballmer or Larry Page.

☆ We expect to reach 70% of passenger flight capacity by the end of the year, Cathay Pacific CEO says
▼ + stars: | 2023-03-15 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe expect to reach 70% of passenger flight capacity by the end of the year, Cathay Pacific CEO saysRonald Lam, Cathay Pacific CEO, says the airline is already at 50%.

☆ Cathay's CEO outlines the risks the airline faces as Hong Kong moves out of Covid restrictions
▼ + stars: | 2023-03-15 | by ( Emily Tan | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCathay's CEO outlines the risks the airline faces as Hong Kong moves out of Covid restrictionsChief Executive Ronald Lam says the Hong Kong carrier has been "working really, really hard" to increase the supply of flights, especially to popular routes like London, Singapore, and mainland China.

☆ These stocks benefit the most when short-term rates slide, according to Jefferies
▼ + stars: | 2023-03-15 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

As short-term rates slide on the back of the banking crisis, a handful of stocks — including chip names —will emerge winners, according to Jefferies. The strategist noted the steep drop in the 2-year yield is pointing to worsening economic conditions. Indeed, the names Jefferies highlighted are largely tech and growth stocks – that is, companies that suffered the most when interest rates rose and slashed their valuations. Semiconductor stocks Lam Research and Advanced Micro Devices were also included in the list. Paycom Software and aerospace name TransDigm Group were also highlighted in Jefferies' report as beneficiaries of a falling 2-year Treasury yield.

☆ Cathay's CEO wants to turn the airline back to profitability, but faces manpower constraints
▼ + stars: | 2023-03-14 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +1 min

Cathay Pacific hopes to be profitable again in 2023, but returning to its pre-pandemic capacity remains one of the airline's "biggest risks," its CEO told CNBC. "But I'm hopeful that this year we can turn around the business and be back in profit overall." However, the airline swung to an annual operating profit of HK$3.5 billion last year — the first since 2019, according to Refinitiv data. "We need to have manpower in the air manpower on the ground. We also need the airport workers to be ready to take on flights both in Hong Kong and overseas."

☆ Here are Monday's biggest analyst calls: Apple ,Tesla, First Republic, Roku, Sunrun, JPMorgan Chase & more
▼ + stars: | 2023-03-13 | by ( Michael Bloom | ) www.cnbc.com time to read: +19 min

Baird upgrades Truist to outperform from neutral Baird said it sees an attractive risk/reward for the regional bank. "Regional bank risk/reward trade-off improving, and we would get more aggressive on the regional bank side, upgrading TFC to Outperform." Bank of America reiterates Alphabet as buy Bank of America said it's bullish on Alphabet's entry into AI. Bank of America reiterates Roku as buy Bank of America said it's standing by the stock in the wake of the Silicon Valley Bank collapse. "Regional bank risk/reward trade-off improving, and we would get more aggressive on the regional bank side, upgrading TFC to Outperform."

☆ Pfizer’s $43 bln deal is a pricey pipeline fix
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 13 (Reuters Breakingviews) - Pfizer (PFE.N) has found a partial, costly replacement for waning sales of Covid-19 vaccines. The $225 billion pharmaceutical giant said Monday it had agreed to shell out $43 billion for oncology specialist Seagen (SGEN.O), inclusive of net debt. Snag is, Pfizer’s return will probably be low, and the deal may not even receive antitrust approval. Add estimated savings of $1 billion and the result is $1.2 billion of operating profit after tax, assuming the statutory corporate rate. That’s about a 3% return on the purchase price, similar to what Breakingviews estimated when news of talks leaked in February.

Apple, Google, Cisco, Intel Corp (INTC.O) and Edwards Lifesciences Corp (EW.N) sued the PTO in the California federal court in 2020 over the rule. They argued it undermined the role inter partes review plays in "protecting a strong patent system" and violated federal law. Companies including Tesla, Honda, Comcast and Dell filed briefs at the Federal Circuit in support of the plaintiffs. The California court dismissed the case in 2021, citing U.S. Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed. The case is Apple Inc v. Vidal, U.S. Court of Appeals for the Federal Circuit, No.

☆ Where Paul Wick, seasoned tech stock investor, is raising his bets now
▼ + stars: | 2023-03-12 | by ( Sarah Min | ) www.cnbc.com time to read: +9 min

So when a position opened up at the Seligman Communications and Information fund, the firm's then-chief investment officer asked Wick to take it over. Today, the Columbia Seligman Technology and Information fund (CCIZX) that Wick began running on New Year's Day in 1990, has $8.5 billion in assets under management. "It's really hard to guess how will the technology industry change in five years. By now, Wick has relationships going back decades in the tech industry. As of January, the Technology and Information fund held 2.96% of its assets in Bloom, up from 2.36% in October.

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