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☆ Goldman’s Marcus is a lesson in self-made failure
▼ + stars: | 2023-02-02 | by ( John Foley | ) www.reuters.com time to read: +7 min

Being a consumer bank was a good idea when Goldman’s leaders cooked it up eight years ago. Fast forward to 2023, and consumer banking is still highly lucrative. The practice of working through the night is common in the investment banking division Solomon once headed but rare in consumer banking. For example, Goldman’s engineers had to fight to host consumer banking systems on the cloud rather than on the bank’s own servers. That year, nobody from the consumer bank was promoted to the firm’s prestigious partner level.

☆ Macau casino revenues surge in Jan after COVID rules lifted
▼ + stars: | 2023-02-01 | by ( Farah Master | ) www.reuters.com time to read: +3 min

Still investors took cheer, sending shares in Macau casinos up between 3% to 5%, while executives and analysts said it was an encouraging sign of a solid recovery to come. A special administrative region of China, Macau has seen a resurgence of tourists from the mainland since Jan. 8 after the territory dropped all COVID-19 testing requirements for inbound travellers from the mainland, Hong Kong and Taiwan. January's revenues were the first for Sands China (1928.HK), Wynn Macau (1128.HK), MGM China (2282.HK), Galaxy Entertainment (0027.HK), MGM China (2282.HK) and SJM Holdings (0880.HK) under new 10-year contracts. Visitors pose for photos outside the Grand Lisboa casino operated by SJM Holdings during Lunar New Year in Macau, China, January 24, 2023. REUTERS/Lam Yik/File PhotoThe new contracts, with more government oversight and control, were struck after COVID-19 restrictions decimated Macau's gambling revenues and sent net debt soaring.

☆ Dutch, Japanese curbs on chip equipment to China may not be tough enough -industry group
▼ + stars: | 2023-02-01 | by ( Karen Freifeld | ) www.reuters.com time to read: +3 min

Feb 1 (Reuters) - A chip industry group is warning that if U.S. allies do not adopt curbs on semiconductor manufacturing equipment to China that are comparable to U.S. controls, they will not be effective. However, in a lengthy comment dated Jan. 31 on the October regulations, the group expressed concern that the allies' curbs would not be nearly as restrictive as the U.S. controls. It noted that U.S. equipment companies' share of the Chinese market has eroded for the past two years, as Chinese companies anticipated the new curbs. The U.S. Department of Commerce, which issued the October rules and has been working with allies, had no immediate comment. SEMI has over 2,500 members worldwide, including leading U.S. equipment makers Lam Research and Applied Materials.

"AMD remained resilient and even made gains in their datacenter chips...against Intel," said Wayne Lam analyst at CCS Insight. Chief Executive Lisa Su said she was confident AMD will keep gaining market share this year and that the second half would be stronger than the first. "First quarter should be the bottom for us in PCs and then grow from there into the second quarter and then into the second half," Su said on the earnings call. Analysts on average were expecting revenue of $5.50 billion, according to Refinitiv data. Analysts on average expected revenue of $5.48 billion, according to Refinitiv data.

☆ Hong Kong is criminalizing CBD as a ‘dangerous drug’ alongside heroin
▼ + stars: | 2023-01-31 | by ( Jessie Yeung | ) edition.cnn.com time to read: +7 min

Hong Kong CNN —Two years ago, cannabidiol was booming in Hong Kong. CBD cookies at the Found cafe in Hong Kong on August 11, 2022. And while CBD products could avoid this trace amount by using a pure form of CBD, most manufacturers mix other compounds for higher potency. From 2019 to early 2022, Hong Kong authorities launched nearly 120 “operations” seizing and testing CBD products from restaurants and shops to warehouses, Secretary for Security Tang Ping-keung said last year. Now “there’s less choice for consumers in Hong Kong.

☆ Here are Tuesday's biggest analyst calls: Apple, Alphabet, Ford, Lucid, AMD, Uber & more
▼ + stars: | 2023-01-31 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Tuesday's biggest calls on Wall Street: Barclays reiterates Apple as equal weight Barclays said it sees a miss when the Apple reports earnings Thursday. Deutsche Bank reiterates Disney as buy Deutsche Bank said it's standing by shares of Disney heading into earnings on Feb. 8. Bank of America reiterates Alphabet as buy Bank of America said Alphabet continues to pull the right "cost levers in a tough environment." Mizuho reiterates Uber as buy Mizuho said it's "constructive" on Uber shares heading into earnings on Feb. 8. Deutsche Bank reiterates PayPal as buy Deutsche said it's staying bullish heading into PayPal earnings in early February.

☆ McDonald’s finds inflationary happy place
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Jan 31 (Reuters Breakingviews) - McDonald’s (MCD.N) is having a good time at the bottom of the price food chain. The Chicago-based burger purveyor on Tuesday said that same-store sales rose 12% year-over-year in the last three months of 2022. That has helped restaurants grow, but McDonald’s is particularly benefitting. That’s despite McDonald’s touting the benefit of “strategic menu price increases” this quarter; the company previously said its U.S. prices should be up over 10% for the full year. How long this can continue probably depends on other options staying pricier – but for now, the nugget-maker has found its happy place.

☆ Big oil can be lean and not mean
▼ + stars: | 2023-01-31 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

The $460 billion firm said on Tuesday that it earned $13 billion in the fourth quarter, while Chevron said last week it earned over $6 billion. Oil demand growth has peaked, and may start to decline soon, according to BP’s 2023 Energy Outlook released on Monday. It’s conceivable both could have more cash than debt at the end of the year if the price of oil rises. Big oil can be lean, but not mean. The oil company retired $7.2 billion of debt in 2022.

☆ Stocks making the biggest moves midday: GM, McDonald's, UPS, Pulte, International Paper and more
▼ + stars: | 2023-01-31 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

The company reported an adjusted $2.12 per share on $43.11 billion in revenue. Analysts surveyed by Refinitiv were looking for $1.69 in earnings per share on $40.65 billion in revenue. Smith — Shares skyrocketed 13.7% after the manufacturing company reported earnings of $0.86 per share, beating consensus estimates. UPS also raised its dividend and sanctioned a new $5 billion stock repurchase plan. Pentair — Shares of Pentair surged 9.2% after the water treatment company reported earnings that topped Wall Street estimates for earnings and revenue.

☆ Jeff Smith makes for a substitute Warren Buffett
▼ + stars: | 2023-01-30 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

With markets sagging and deals drawing opposition, such imprimaturs have a value - and at Ritchie Bros Auctioneers (RBA.TO), it’s the turn of Starboard Value’s Jeffrey Smith to play rescuer. Heavy equipment auctioneer Ritchie Bros ran into both problems in its $7 billion bid to buy salvage-car portal IAA (IAA.N). Announced in November, it quickly drew opposition from IAA shareholder Ancora and Ritchie investor Luxor Capital. Shareholder opposition is expected in market turmoil. As part of the deal, Starboard Value agreed to invest $500 million in Ritchie Bros, with fund boss Jeffrey Smith taking a seat on Ritchie’s board if the IAA deal succeeds.

☆ Goldman cuts Solomon, and his pay, down to size
▼ + stars: | 2023-01-27 | by ( John Foley | ) www.reuters.com time to read: +2 min

Or at least that is the apparent message Goldman Sachs (GS.N) is trying to send by slashing boss David Solomon’s pay by a third for 2022, to $25 million. Measured by Goldman’s performance last year, Solomon actually did fairly well. Goldman also grew its book value – accounting-speak for shareholders’ claim on the lender – by a respectable 6%. It would have been hard to reward Solomon at a time when employees are feeling the chill, and hot on the heels of 3,200 layoffs. Solomon’s humble pie may taste good to his Goldman colleagues, but it could present a different flavor profile to shareholders.

☆ Goldman Sachs cuts Solomon, and his pay, down to size
▼ + stars: | 2023-01-27 | by ( John Foley | ) www.reuters.com time to read: +2 min

Or at least that is the apparent message Goldman Sachs (GS.N) is trying to send by slashing boss David Solomon’s pay by a third for 2022, to $25 million. Measured by Goldman’s performance last year, Solomon actually did fairly well. Goldman also grew its book value – accounting-speak for shareholders’ claim on the lender – by a respectable 6%. Solomon’s humble pie may taste good to his Goldman colleagues, but it could present a different flavor profile to shareholders. loadingCONTEXT NEWSGoldman Sachs said its board had awarded Chief Executive David Solomon compensation of $25 million for his work in 2022, compared with $35 million the previous year.

☆ Intel is becoming accidental ad for friendshoring
▼ + stars: | 2023-01-27 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

Its plan to catch up to rival Taiwan Semiconductor Manufacturing (2330.TW) in technology and manufacturing prowess, always ambitious, now looks implausible. If the U.S. government is keen to nurture a domestic chip industry, Intel is becoming an accidental advertisement for friendshoring. And as the building of data centers has cooled, revenue at the Intel unit that makes chips for them declined 33%. The bigger problem for Chief Executive Pat Gelsinger is that its chief rival TSMC is still making strides, and producing smaller chips, at just 3 nanometers. Intel estimated first-quarter revenue would be between $10.5 billion and $11.5 billion.

"Everything hinges on the PC market recovery. Meanwhile, the data center market has also slowed from double-digit growth as businesses cut costs to ride out an economic slowdown. The company forecast first-quarter revenue in the range of about $10.5 billion to $11.5 billion. The company expects an adjusted loss of 15 cents per share versus expectations of a 24 cents per share profit. Revenue in the fourth quarter fell 32% to $14 billion.

"Everything hinges on the PC market recovery. AMD isn’t immune to this either," said Wayne Lam, an analyst at CCS Insight about Intel rival Advanced Micro Devices Inc (AMD.O). Shares of other microchip companies fell as well, with AMD down 2.4% and Nvidia Corp (NVDA.O) down 2%. PC shipments fell 16.5% to 292.3 million units in 2022, per data from research firm IDC, forcing chipmakers to cut back production and slash revenue forecasts. Meanwhile, the data center market has also slowed from double-digit growth as businesses look to cut costs to ride out an economic slowdown.

☆ Why retail bankers are beating dealmakers: podcast
▼ + stars: | 2023-01-26 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

LONDON, Jan 26 (Reuters Breakingviews) - JPMorgan, Citigroup and Goldman Sachs’ earnings revealed that the basic business of lending money is thriving, while investment banking is not. In this Viewsroom podcast, Breakingviews columnists debate what this says about the U.S. economy and what to expect from the Europeans. Listen to the podcastFollow @aimeedonnellan on TwitterloadingEditing by Sharon Lam and Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Factbox: What is a chip making tool?
▼ + stars: | 2023-01-26 | by ( ) www.reuters.com time to read: +3 min

WHAT ARE CHIP-MAKING TOOLS? A single chip factory can contain 1,000 or more tools, each tuned to a different step in the process. The biggest and most sophisticated lithography machines require three Boeing 747s to carry them in sections and can cost as much as $160 million. The raft of measures, if effective, could hobble China's chip manufacturing industry by forcing American and foreign companies that use U.S. technology to cut off support for some of China's leading factories and chip designers. But to be effective, the United States needs the Netherlands and Japan to jump on board with similar restrictions.

NEW YORK, Jan 26 (Reuters Breakingviews) - Morgan Stanley (MS.N) is embracing the Pottery Barn rule: You break it, you pay for it. The original breach was one revelation in what makes Wall Street tick; Morgan Stanley’s response, or the idea that it’s an outlier, is another. What’s good for the pottery store sounds good for Wall Street too. Morgan Stanley was one of 11 banks fined by the U.S. Securities & Exchange Commission and the Commodity Futures Trading Commission in September 2022. At the time, the SEC noted that Morgan Stanley had financially penalized and terminated some staff for violating its policies.

☆ Even bad news is good news for Rupert Murdoch
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Jan 25 (Reuters Breakingviews) - A remarkable thing about Rupert Murdoch is that the wily media mogul makes out OK even when his plans fall apart. Despite abandoning the idea to recombine his Fox (FOXA.O) and News Corp (NWSA.O) empires, simply proposing and studying the idea helped uncover some hidden value. In any case, he’s likely try to unite them again someday anyhow. Both Fox and News Corp conceded on Tuesday that a merger wasn’t a good idea for shareholders “at this time.” It suggests that Murdoch, who tends to get his way, will eventually try again. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Juul is worth at least one more puff
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +2 min

Philip Morris International (PM.N), Japan Tobacco (2914.T) and Altria (MO.N) may want to buy Juul, the Wall Street Journal reported on Wednesday. There’s a big regulatory cloud hanging over the smokeless trailblazer, but there are reasons to spark up a deal. Juul stands accused by the U.S. Food and Drug Administration of marketing its product to underage users, prompting the agency to seek removal of its products from shelves. Juul would need to hawk some $250 million of e-cigs annually to justify today’s imputed $1 billion valuation, based on the multiple of sales the Altria enterprise fetches. At a big discount, it makes the business worth one more puff.

☆ Tourists swarm gambling hub Macau over Lunar New Year after COVID curbs dropped
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +2 min

Macau has seen a resurgence of tourists from mainland China since Jan. 8 after the special Chinese administrative region dropped all COVID-19 testing requirements for inbound travellers from the mainland, Hong Kong and Taiwan. Macau welcomed more than 71,000 visitors on Monday, the highest single day record since the pandemic, its government said in a statement late on Tuesday. It was lifeless during lockdown and not very good," said a man surnamed Lam, who travelled to Macau from Jiangmen in nearby Guangdong province in southern China. More than 94% of visitors to Macau over the first three days of the Lunar New Year, Jan. 21-23, came from mainland China and neighbouring special administrative region Hong Kong. Local residents said they hoped the rise in visitors would bring a permanent boost to the city's beleaguered economy.

☆ ASML CEO expects steady China sales in 2023 despite restrictions
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies ASML sees 2023 China sales around 2022 level of 2.2 bln eurosChinese orders make up about 15% of ASML backlogChinese chipmakers are simply shifting investment -CEOAMSTERDAM, Jan 25 (Reuters) - ASML Holding NV's (ASML.AS) exports to mainland China will likely hold at last year's level in 2023 despite ongoing U.S-Dutch government talks over new restrictions on the company's sales to the country, CEO Peter Wennink said on Wednesday. The company still sends older DUV machines to China, although these are now a focus of the U.S.-Dutch talks. Such sales totalled around 2.16 billion euros ($2.35 billion), or 14% of total revenue, last year, down marginally from 2.17 billion in 2021. "They just become very practical," he said, adding that Chinese customers are investing in 20 nanometre chips and larger - those considered cutting edge before the year 2014. ($1 = 0.9175 euros)Reporting by Toby Sterling; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Morning bid: Cloudy outlook
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +4 min

And deep in the weeds of the fourth-quarter corporate earnings season, Microsoft's (MSFT.O) overnight rollercoaster probably defines the uncertainty. Microsoft stock surged almost 5% in after-hours trading on Tuesday after its bottom line beat the Street consensus. The mixed earnings picture dampened early week enthusiasm surrounding tech stocks and chipmakers. The chance it may force the Reserve Bank of Australia to lift interest rates again boosted the Aussie dollar. Key developments that may provide direction to U.S. markets later on Wednesday:* Bank of Canada policy decision.

☆ Thrive Capital kicks off bestie race
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Jan 24 (Reuters Breakingviews) - Josh Kushner is getting some help from friends. Thrive sold that same small stake to Goldman Sachs (GS.N) in mid-2021, then bought it back last December. If Kushner has trouble raising capital down the road, it’ll help having wealthy friends with an established rolodex. As the venture market faces a downturn the likes of Kushner haven’t seen, a seasoned set of confidants will be needed. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Microsoft’s revenue sniffles are tech’s flu
▼ + stars: | 2023-01-24 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

NEW YORK, Jan 24 (Reuters Breakingviews) - Microsoft’s (MSFT.O) revenue growth rarely falters. Microsoft’s revenue from computer manufacturers for installing the Windows operating system fell 39%. And companies looking to cut costs will delay, or kill, IT projects, which will hit even Microsoft’s fastest-growing units. Microsoft’s revenue sniffles, however, probably signal bigger problems for tech firms that sell less essential goods to consumers and firms. Follow @rob_cyran on TwitterloadingCONTEXT NEWSMicrosoft said on Jan. 24 that revenue for the quarter ending Dec. 31 was $52.7 billion.

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