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☆ The long-running crisis at Japan's Toshiba
▼ + stars: | 2023-03-23 | by ( Makiko Yamazaki | ) www.reuters.com time to read: +5 min

Faced with more than $6 billion in liabilities linked to Westinghouse, Toshiba decides to put prized chip unit Toshiba Memory up for sale. Nov. 2021 - Toshiba says it will split into three companies, one for energy, one for infrastructure and the third to manage its Kioxia stake. Feb. 2022 - Toshiba announces a new plan to split into two, spinning off only its devices unit. April 2022 - Toshiba sets up a special committee to resume a strategic review that could see it taken private. Under pressure from shareholders, Toshiba announces a special dividend of some $545 million.

☆ Toshiba board agrees to accept JIP's $15.3 bln buyout proposal -Nikkei
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Toshiba Corp is seen at the company's facility in Kawasaki, Japan June 10, 2021. REUTERS/Kim Kyung-Hoon/File PhotoTOKYO, March 23 (Reuters) - Toshiba Corp's (6502.T) board on Thursday agreed to accept a buyout proposal worth around 2 trillion yen ($15.3 billion) from a consortium led by private equity firm Japan Industrial Partners (JIP), the Nikkei business daily reported. The JIP consortium last month submitted a binding buyout proposal backed by $10.6 billion in loan commitments from major banks. It has taken weeks for the board to proceed with a vote on JIP's proposal as some board members were dissatisfied with its offer price, sources have said. "If the early reports are correct, this ends months of uncertainty regarding whether a deal was coming and years of uncertainty regarding Board understanding of the right price," said analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma.

☆ Toshiba board accepts Japan Industrial Partners' $15 billion buyout proposal
▼ + stars: | 2023-03-23 | by ( ) www.cnbc.com time to read: +3 min

Toshiba Corp's board has accepted a buyout offer from a group led by private equity firm Japan Industrial Partners, valuing the company at 2 trillion yen ($15.2 billion), the company said on Thursday. A successful deal would see the scandal-ridden industrial conglomerate taken private and firmly in domestic hands after much tension with overseas activist shareholders. Some 20 Japanese companies including financial services firm Orix Corp, chipmaker Rohm Co <6963.T> and Chubu Electric Power plan to take part in the deal, sources have said. Toshiba started an auction process about a year ago, receiving eight initial buyout proposals as well as two offers for capital alliances. The JIP consortium last month submitted a binding buyout proposal backed by $10.6 billion in loan commitments from major banks.

[1/2] Microsoft Corp's Bing search engine is seen on a computer in this illustration picture taken January 24, 2019. While Bing AI has been available to most users around the world since February, Google began the public release of its chatbot Bard only on Tuesday. "Bing has less than a tenth of Google's market share, so even if it converts 1% or 2% of users it will be materially beneficial to Bing and Microsoft," Luria said. App downloads for Bing have also jumped eight times globally after AI integration, according to app research firm Data.ai. Downloads for the Google search app fell 2% in the same period, the data showed.

☆ Departing Intel exec to focus on loosening Nvidia's grip on AI for movies, games
▼ + stars: | 2023-03-21 | by ( Stephen Nellis | ) www.reuters.com time to read: +2 min

New software tools can generate fresh imagery from just a text prompt and hold great promise for fields like visual effects and video games, Koduri said. Koduri, a veteran of Advanced Micro Devices (AMD.O) and Apple Inc (AAPL.O), joined Intel five years ago. But Koduri, who has worked on nearly two dozen generations of computer graphics chips, has also had a long interest in movies. "Because to truly democratize AI computing for everybody, we have got to get the cost down dramatically." Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and Alison WilliamsOur Standards: The Thomson Reuters Trust Principles.

☆ First Republic's future to be discussed as major bank CEOs meet, sources say
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 21 (Reuters) - Major bank chief executives are gathering in Washington for a two-day scheduled meeting starting on Tuesday, with the future of First Republic Bank (FRC.N) to be discussed, sources familiar with the matter said. The quarterly meeting of the Financial Services Forum will include JPMorgan Chase & Co.'s (JPM.N) Jamie Dimon and Bank of America Corp's (BAC.N) Brian Moynihan, the sources said. First Republic Bank is among the banks that have been speaking to peers and investment firms about potential deals in the wake of U.S. regulators taking over Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) this month amid a flight of depositors, sources have said. Two sources familiar with the matter previously said that all options are on the table for First Republic, which could include a sale or equity infusion. JPMorgan Chase & Co (JPM.N) is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ Stocks making the biggest premarket moves: Tesla, First Republic, UBS, Foot Locker and more
▼ + stars: | 2023-03-21 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Check out the companies making the biggest moves in premarket trading:Tesla — The electric vehicle maker rose 2% after Moody's assigned it a Baa3 rating and removed its junk-rated credit. First Republic — The beleaguered bank jumped nearly 19% in premarket trading, following a 90% plunge so far this month as investors focused on its large amount of uninsured deposits. Regional banks — Regional banks were also higher on the heels of First Republic's rise and as investors continued to digest the likelihood of expanded federal insurance. UBS — U.S.-listed shares of the Swiss-based bank were up 4%, a day after gaining 3.3% following its agreement to buy Credit Suisse for $3.2 billion. Foot Locker — Its shares rose more than 4% after Citi upgraded the retailer to "buy" from "neutral."

☆ Microsoft's EU remedies target only cloud streaming rivals, sources says
▼ + stars: | 2023-03-20 | by ( Foo Yun Chee | ) www.reuters.com time to read: +1 min

BRUSSELS, March 20 (Reuters) - Microsoft Corp's (MSFT.O) remedies to address European Union antitrust concerns over its $69 billion acquisition of Activision (ATVI.O) focus only on cloud gaming services, with no mention of rival Sony (6758.T), people familiar with the matter said on Monday. The U.S. software giant has been trying to allay the Commission's concerns that the deal may reduce competition for console and personal computers, PC operating systems and cloud game streaming services. However, the absence of a Sony solution suggests the Commission no longer has concerns about competition in the console market. The sources said Microsoft has offered 10-year licensing deals for cloud gaming services, citing Nvidia, Ukraine-based cloud gaming provider Boosteroid and Japan's Ubitus as examples. Microsoft's EU offer is narrower than that to the UK competition agency, which includes licensing deals to cloud gaming services and a 10-year deal with parity on content and quality for Activision's Call of Duty franchise to critic and PlayStation owner Sony.

☆ Picking up the pieces in the wake of SVB's collapse
▼ + stars: | 2023-03-20 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

It's just over a week from Federal regulators announcing they would be bailing out depositors of Silicon Valley Bank and Signature Bank. Now, the FDIC said Sunday that New York Community Bancorp's Flagstar Bank will take on nearly all of Signature Bridge Bank's deposits. Credit Suisse, whose problems long preceded SVB's downfall, to be fair, is getting acquired by Swiss rival UBS. Silicon Valley Bank was the bank for tech. The people backing venture capitalists, known as limited partners, share their thoughts on how VCs handled the crisis at Silicon Valley Bank.

☆ WeWork reaches deals to cut debt, extend maturities
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

Under the deals announced Friday, key investor SoftBank Group Corp's (9984.T) $1.0 billion unsecured notes would be converted to equity. The Japanese company held a stake of about 46% in WeWork before the restructuring was announced, as per Refinitiv data. About $1.9 billion of pro-forma debt will now mature in 2027, WeWork said, adding that it would have less than $2.0 billion in net debt once the deal closes. WeWork, which went public in 2021 after a two-year struggle, is yet to post a quarterly profit. PJT Partners LP advised WeWork on the debt restructuring, while Houlihan Lokey advised SoftBank.

☆ WeWork reaches deal to convert $1 billion of SoftBank's debt to equity
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - WeWork Inc (WE.N) said on Friday it had reached a deal to convert about $1 billion of key investor SoftBank Group Corp's (9984.T) unsecured notes into equity, in an effort to restructure its finances. Shares of the company rose 2.2% to $1 before the bell. Last month, WeWork forecast weak current-quarter revenue in a sign that its business was feeling the heat of mass layoffs, as companies reduce their real estate footprint. In January, the New York-based company also planned to eliminate about 300 roles across countries after announcing last year that it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar. Reporting by Kannaki Deka and Priyamvada C in Bengaluru; Editing by Maju Samuel and Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Four regional bank stocks for the brave to buy, according to UBS
▼ + stars: | 2023-03-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

The selloff in regional banks is overdone, with four names looking especially attractive at these levels, according to UBS. While bank stocks moved higher on Thursday, volatility has risen this week. Regional banks were particularly hard hit. Investors also need to remember that not all regional banks are equivalent, she added. "Thus, we believe that investors should not look at unrealized securities losses in a static manner," Najarian wrote.

☆ Americans are wary of bailouts as banking concerns mount -Reuters/Ipsos
▼ + stars: | 2023-03-15 | by ( Jason Lange | ) www.reuters.com time to read: +3 min

Stock markets have swooned around the world since Silicon Valley Bank collapsed on Friday as worried customers pulled their deposits. In a 2012 Reuters/Ipsos poll, only 20% of Republicans and 53% of Democrats said they supported bailouts. About half of respondents to the Reuters/Ipsos poll said they had heard at least a fair amount about Silicon Valley Bank's implosion. The Reuters/Ipsos poll showed broad bipartisan support for Washington backing bank deposits. The Reuters/Ipsos poll, conducted online, surveyed 1,004 people nationwide and had a credibility interval of about 4 percentage points in either direction.

☆ Sierra Space taps veteran Boeing lobbyist to helm new government strategy
▼ + stars: | 2023-03-15 | by ( Joey Roulette | ) www.reuters.com time to read: +1 min

WASHINGTON, March 15 (Reuters) - Sierra Nevada Corp's space unit, Sierra Space, has tapped Boeing's former top lobbyist to lead a new, more aggressive government relations shop as the company courts government customers for its planned commercial space station. Tim Keating, a veteran political strategist who pushed Boeing through numerous procurement campaigns for over a decade, joined Sierra in early March as its Chief Strategy Officer and Senior Vice President of Global Government Operations, Keating told Reuters. Sierra Space, owned by billionaire couple Fatih and Eren Ozmen, is one of a handful of space industry players attempting to build a private space station that NASA hopes will replace the two decade-old International Space Station by 2030. "It wasn't really the emphasis, and now we're going to build out a team," Keating, who was also senior vice president of global government relations at Honeywell, said in an interview. Partnering with billionaire Amazon.com founder Jeff Bezos' Blue Origin, Sierra sees NASA and other countries' space agencies as crucial early customers for its planned space station, a massive orbital research lab and tourist destination dubbed Orbital Reef.

☆ Stocks making the biggest moves premarket: Credit Suisse, Lennar, PacWest & more
▼ + stars: | 2023-03-15 | by ( Pia Singh | ) www.cnbc.com time to read: +2 min

Axel Lehmann, chairman at Credit Suisse Group AG, speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, on Friday, Oct. 14, 2022. Credit Suisse — Shares of Credit Suisse were down 21.5% after the firm's biggest backer, Saudi National Bank, said it won't provide it with further financial help. Credit Suisse and several other European banks, including Societe Generale , Italy's Monte dei Paschi and UniCredit , were halted from trading as prices plummeted. Bank of America , Morgan Stanley , Wells Fargo — Shares of larger financials were in lower early Wednesday as the Credit Suisse tumble sent ripples across the global banking sector. Bank of America lost 2.9%, Morgan Stanley dropped 3.2% and Wells Fargo declined by nearly 4.2%.

☆ Shares of US regional banks attempt recovery after SVB-fueled rout
▼ + stars: | 2023-03-14 | by ( Medha Singh | ) www.reuters.com time to read: +2 min

March 14 (Reuters) - Shares of U.S. regional banks rose on Tuesday after suffering double-digit losses over the past few days following the biggest bank collapse since the 2008 global financial crisis. The collapse of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) sent shockwaves through global markets, despite assurances from U.S. President Joe Biden and other policymakers that banks and deposits were safe. First Republic Bank (FRC.N) rose 57% before trading was halted for volatility, a day after hitting an intraday record low of $17.53. The S&P 1500 regional banks sub-industry index (.SPCOMBNKS) advanced 7.7% after shedding 20% in the past three sessions. Big banks rose with JPMorgan up 1.6%, Wells Fargo (WFC.N) 6.6% and Bank of America (BAC.N) 4.2%.

☆ Stocks making the biggest moves premarket: Illumina, First Republic, Seagen and more
▼ + stars: | 2023-03-13 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

First Republic — Shares of First Republic cratered more than 64% before the bell, building on last week's losses. Shares led a decline in bank stocks despite plans from the government to backstop depositors of Silicon Valley Bank and Signature Bank. PNC — Shares lost nearly 5.2% early Monday morning after the bank decided against bidding on Silicon Valley Bank as regulators struggle to find buyers for the failed bank. The streaming and media company said in a Friday SEC filing that around $487 million, or 26%, of its cash reserves are stuck at Silicon Valley Bank. Petco Health and Wellness — Shares slipped less than 1% after the company was downgraded by Citi to neutral from buy.

WASHINGTON, March 12 (Reuters) - Earlier this month the U.S. Federal Reserve in a report to Congress gave what has become a standard reassurance: Banks were strong and the overall financial system in solid shape. Regulators on Sunday were working on a response to contain any fallout from the bank's collapse, including a sale to another institution able to make depositors whole. More broadly, the Fed has tools that are always available to shore up the financial system, including direct loans to banks with adequate collateral through its so-called discount window. Karim Basta, chief economist for III Capital Management, wrote on Sunday, mapping out the potential trail from SVB's collapse to broader macroeconomic implications. "Large banks continue to have ample liquidity to meet severe deposit outflows," the Fed report said.

☆ VIEW SVB meltdown triggers global drop in bank shares
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

March 10 (Reuters) - The failure of troubled tech-lender SVB Financial Group's (SIVB.O) efforts to raise capital through a stock sale rippled through global markets on Friday and sent shares of many banks tumbling. read moreShares of SVB, which does business as Silicon Valley Bank, were halted on Friday after tumbling as much as 66% earlier in premarket trading. The S&P 500 banks index (.SPXBK) dropped 0.63% on Friday after a 6.6% decline on Thursday, while the KBW Regional Banking index (.KRX) was down 2.3%. Europe's STOXX banking index (.SX7P) fell almost 5%, tracking toward its biggest one-day percentage slide since June 2022. If investors are concerned about deposit flow, why punish the stocks who have sticky, operational retail checking deposits?

☆ Australia's 'Big Four' banks to hike home loan rates to match RBA move
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

March 9 (Reuters) - Australia's so-called 'Big Four' banks said on Thursday they would pass on the central bank's latest quarter-percentage point interest rate hike in full to their home loan customers. Among the top four lenders, the Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX), and ANZ Group Holdings (ANZ.AX) will hike their rates from March 17, while Westpac Banking Corp's (WBC.AX) will hike its rates from March 21, the banks said in separate statements. Interest rates in the country have already gone up by 350 bps since last May, when they were at an all-time low of 0.1%. However, RBA Governor Philip Lowe said the central bank was closer to pausing its aggressive cycle of rate increases as policy was now in restrictive territory, and suggested a halt could come as soon as April. Reporting by Navya Mittal and Himanshi Akhand in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

U.S. District Judge William Young in Boston was randomly assigned the case despite the Justice Department's contention that the lawsuit should be heard by another judge who is overseeing a separate antitrust case involving JetBlue. The Justice Department on Tuesday argued that Sorokin should hear the Spirit case as well because both involved "an assessment of JetBlue's network plans, aircraft orders and configurations, and pricing strategy." Sorokin, an appointee of Democratic former President Barack Obama, on Wednesday in a brief order said the Spirit case was wrongly assigned to him because it was "incorrectly marked as related and thus not randomly assigned." The Justice Department and JetBlue declined to comment. In the case filed on Tuesday, the Justice Department said the merger of JetBlue and Spirit would "combine two especially close and fierce head-to-head competitors."

☆ Silvergate in talks with FDIC officials on ways to salvage bank - Bloomberg News
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +2 min

March 7 (Reuters) - U.S. federal officials have been discussing with Silvergate Capital Corp's (SI.N) management to avoid a shutdown, Bloomberg News reported on Tuesday, citing people familiar with the matter. Shares of the cryptocurrency-focused bank rose about 5% in after-market trading. Last week, the bank warned it was delaying its annual report and said it was evaluating its ability to operate as a going concern. U.S. regulators have been sent to the headquarters of Silvergate as the company looks for a way to stay in business, the report said. One possible option involves lining up crypto-industry investors to help Silvergate shore up its liquidity, the report said.

☆ Microsoft tells UK it will license 'Call of Duty' to Sony for 10 years
▼ + stars: | 2023-03-08 | by ( Paul Sandle | ) www.reuters.com time to read: +2 min

Microsoft last month struck a similar deal with Nvidia Corp's (NVDA.O) gaming platform, dependent on it getting the go-ahead for the much-contested acquisition. Microsoft President Brad Smith had said he hoped that rival Sony - which has strongly opposed the takeover - would consider doing the same type of deal. Britain's Competition and Markets Authority (CMA) in February said the deal could weaken the rivalry between Microsoft's Xbox and Sony's PlayStation, and stifle competition in cloud gaming. It suggested that structural remedies could be needed to allay its concerns, including divesting the business associated with 'Call of Duty.' The biggest-ever deal in gaming, announced in January last year, is facing scrutiny in the United States and in Europe.

[1/3] Samples of rare earth minerals from left: Cerium oxide, Bastnaesite, Neodymium oxide and Lanthanum carbonate at Molycorp's Mountain Pass Rare Earth facility in Mountain Pass, California June 29, 2015. Australia's Lynas Rare Earths Ltd. (LYC.AX) slumped 6.8% on the news and has fallen further since. It hasn't helped the price of rare earths either, accentuating a sharp slide that began in February. Shanghai Metal Market rare earth assessmentsRARE EARTHS ROLLER-COASTERRare earths have been on a price roller-coaster over the last three years. There is also the lingering threat that China could weaponise its rare earths supply if relations with the West deteriorate.

☆ Analysis: US lawsuit to block JetBlue-Spirit merger casts chill over future airline deals
▼ + stars: | 2023-03-07 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

CHICAGO, March 7 (Reuters) - A U.S. federal lawsuit to block JetBlue Airways Corp's (JBLU.O) purchase of Spirit Airlines (SAVE.N) has raised hurdles for future airline deals, making it harder for companies to pursue growth and manage costs. Mergers and acquisitions are a time-honored way for companies to both boost revenue and profit through cost cutting. But the DOJ lawsuit could send a chill through airline boardrooms, said Addison Schonland, partner at consulting firm AirInsight. American Airlines (AAL.O), United Airlines (UAL.O), Delta Air Lines (DAL.N) and Southwest Airlines (LUV.N) control 80% of the domestic market. The lawsuit against the JetBlue-Spirit deal was widely expected because of the Biden administration's crackdown on large deals between publicly listed companies, analysts said.

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