Welcome to Read Sunday, your essential source for a concise and impactful weekly Business & Finance recap. Dive into the pivotal market highlights from the week, distilled for your convenience, and stay tuned for the thought-provoking editor's piece that rounds off your Sunday with insightful perspectives.

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Market Recap

This Week’s Headlines

Economy & World News

• BLS Revises Job Growth Downward by 30%, Largest Cut Since 2009: The Bureau of Labor Statistics' preliminary annual benchmark revisions revealed that actual job growth was nearly 30% less than initially reported. This -0.5% revision to total payrolls marks the largest downward adjustment since 2009. The most significant reduction occurred in the professional and business services sector, where job growth was revised down by 358,000 jobs. (CNBC)

• Société Générale Withdraws from LME’s Open-Outcry Trading Floor, Sparking Future Uncertainty: Société Générale SA’s UK branch is exiting the London Metal Exchange’s traditional open-outcry trading floor effective August 27, though it will remain a clearing member. This departure leaves only seven members on the iconic "Ring" and highlights ongoing debates about its relevance in the electronic trading era, as the floor’s role in setting global metal prices continues to decline. (BBN)

• Sam Altman Faces Global Pushback on Worldcoin Project Amid AI Concerns: Sam Altman, CEO of OpenAI, is facing resistance to his Worldcoin initiative, which aims to scan the eyeballs of every person on Earth to distinguish humans from AI and reward them with cryptocurrency. While Altman’s OpenAI develops increasingly advanced models, Worldcoin is under scrutiny, having been raided in Hong Kong, blocked in Spain, fined in Argentina, and investigated in Kenya. The project's future in the European Union is also uncertain, with a ruling pending on its operations. (WSJ)

• EU to Impose 9% Tariff on Teslas Imported from China: The European Union announced plans on Tuesday to introduce a 9% tariff on Teslas imported from China, as part of its efforts to counter Beijing's subsidies to the electric vehicle industry. The EU notified automakers of its draft decision, with the definitive tariffs expected to be implemented by November, pending a vote by member states. Officials stated they will continue consulting with manufacturers before finalizing the decision. (BBN)

• Federal Court in Texas Overturns Government's Noncompete Ban: A federal court in Texas has nullified the government's ban on noncompete agreements, which was set to take effect on September 4. Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled that the federal agency exceeded its authority in approving the ban. (NPR)

Public Markets

• Uber and GM’s Cruise Partner to Offer Driverless Rides Starting Next Year: Uber Technologies and GM's Cruise have entered a multi-year partnership to offer driverless rides to Uber users, potentially starting as soon as next year. This move comes as Cruise seeks to revive its robotaxi business, which was halted following an incident in October 2023. (CNBC)

• FDA Approves Updated Covid Vaccines from Pfizer and Moderna Amid Virus Surge: The Food and Drug Administration has approved updated Covid vaccines from Pfizer and Moderna, targeting the KP.2 strain, a descendant of the omicron subvariant JN.1. These vaccines are expected to be available to most Americans in the coming days as Covid cases rise. The CDC recommends that everyone over 6 months old receive the updated vaccine this year. (CNBC)

• GM Lays Off Over 1,000 Employees in Software and Services Division: General Motors is laying off more than 1,000 salaried employees globally, including around 600 at its tech campus near Detroit, as part of a move to streamline its software and services division. The layoffs represent about 1.3% of GM's global salaried workforce, which totaled 76,000 at the end of last year. (CNBC)

• Carl Icahn and Icahn Enterprises Settle with SEC Over Undisclosed Margin Loans: Carl Icahn and his company, Icahn Enterprises, have settled with the SEC for $2 million over allegations of failing to disclose up to $5 billion in personal margin loans backed by his stock. The settlement, in which Icahn and IEP neither admitted nor denied wrongdoing, comes amid increased scrutiny from another activist short seller in 2023. (CNBC)

• Eli Lilly's Weight-Loss Drug Zepbound Reduces Diabetes Risk by 94% in Long-Term Study: A three-year study found that patients taking Eli Lilly's weight-loss drug Zepbound were 94% less likely to develop diabetes, highlighting the long-term health benefits of treating obesity. The study, the longest continuous research on Zepbound to date, involved over 1,000 patients with obesity and prediabetes, who were randomized to receive either the drug or a placebo and followed for just over three years, according to the company's statement on Tuesday. (BBN)

• Disney Names James Gorman to Lead Search for CEO Bob Iger's Successor: Walt Disney Co. has appointed James Gorman, former CEO of Morgan Stanley, to head the committee tasked with finding a successor to CEO Bob Iger. Gorman, who joined Disney's board earlier this year, previously oversaw succession at Morgan Stanley, where he remains executive chairman, according to a statement released by Disney on Wednesday. (BBN)

• Ford Shifts Focus to Smaller Vehicles for EV Profitability, Incurring $1.9 Billion in Costs: Ford Motor is prioritizing smaller vehicles, expanding its hybrid models, and developing more affordable electric vehicles to compete with Chinese automakers as part of its strategy for EV profitability. However, this shift, which includes canceling a large three-row electric SUV, will result in up to $1.9 billion in expenses and write-downs for the Detroit automaker. (CNBC)

• Italy Pressures Stellantis for Battery Plant Commitment, Threatens to Redirect Funds: Italy's industry minister announced on Thursday that he expects a firm commitment from Stellantis regarding its plan to build a battery plant in the country "within hours." If Stellantis fails to commit, the government may redirect public funds for the project elsewhere. Stellantis, through its battery joint venture ACC, has plans for three gigafactories in Europe. However, the company recently put on hold the projects in Italy and Germany as it shifts to lower-cost batteries amid slowing EV demand. (REU)

Real Estate

•  U.S. Home Sales Edge Up in July, But Market Remains Weak: U.S. home sales rose 1.3% in July, ending a four-month decline, according to the National Association of Realtors. Despite the slight uptick, the housing market remains sluggish, with sales stuck at low levels all year. High mortgage rates and near-record prices continue to make home-buying unaffordable for many. July's sales volume of 3.95 million was the lowest for any July since 2010, and existing-home sales fell 2.5% year-over-year. (WSJ)

• U.S. Mortgage Rates Drop to New Yearly Low at 6.46%: Mortgage rates in the U.S. have continued to decline, with the average 30-year fixed loan dropping to 6.46%, down from 6.49% last week, according to Freddie Mac. This decrease, from rates that topped 7% earlier this year, is boosting purchasing power and encouraging more potential buyers to enter the market. As a result, sales of previously owned homes rose in July for the first time in five months, according to the National Association of Realtors. (BBN)

• Metro Detroit Entrepreneur Launches Discount Store Featuring Target Overstock: Mario Kiezi, owner of MKiezi Investments, is expanding his business portfolio with a new venture aimed at offering deep discounts on Target overstock and returned items. Partnering with Kelsey Bashi, Kiezi will open the Red Tag store in Macomb Township, selling items like clothing, electronics, and home goods at prices up to 90% off. The store, located at 45300 Hayes Road, aims to save customers money while generating profit from discounted inventory. (CRAIN)

• French Data Software Company Relocates North American Headquarters to Detroit: A2Mac1 LLC, a data software company headquartered in France, is moving its North American headquarters to Newlab at Michigan Central in Detroit, effective September 2. This relocation follows the company's closure of its U.S. location in Belleville two months ago, which resulted in 70 layoffs. (CRAIN)

• Farmington's Maxfield Training Center Demolished for New Housing Development: The long-vacant Maxfield Training Center in downtown Farmington is being demolished to make way for "missing-middle" housing. The $16 million Hillside Townes project, led by Bloomfield Hills-based Robertson Brothers Homes, will redevelop the roughly 3-acre site located just north of Grand River Avenue and east of Farmington Road. Demolition began on Monday. (CRAIN)

• Historic Detroit Condo in Ransom Gillis House Returns to Market at $2.5 Million: A condo in Detroit's historic Ransom Gillis house in Brush Park is set to hit the market Thursday, just over two years after its last sale. The 4,000-square-foot, three-level unit is listed at $2.5 million, representing a 43% premium over its September 2022 purchase price, according to public records. (CRAIN)

Mergers & Acquisitions

• AMD to Acquire ZT Systems for $5 Billion to Challenge Nvidia in AI: AMD will buy ZT Systems, a data-center equipment designer, for nearly $5 billion to bolster its AI capabilities against Nvidia. ZT, with $10 billion in annual sales, designs infrastructure for AI systems like ChatGPT. AMD plans to keep ZT’s system-design business but will sell its manufacturing operations after the deal. (WSJ)

• Circle K Operator Alimentation Couche-Tard Proposes $31 Billion Takeover of 7-Eleven Owner: Alimentation Couche-Tard Inc., operator of Circle K, has made a preliminary, non-binding offer to acquire Seven & i Holdings Co., the much larger owner of 7-Eleven, in what would be the largest foreign takeover of a Japanese company. A merger would create the world’s largest operator of around 100,000 convenience stores. Following news of the proposal, Seven & i shares surged 23% on Monday. A special committee of independent directors will review the offer, according to Seven & i. (BBN)

• Venture Funds Struggle to Distribute Capital: Only 9% of U.S. venture funds raised in 2021 have returned capital to limited partners three years after launching, according to a report from Carta. This is significantly lower than the 16% of 2020 funds and nearly 25% of 2019 funds that had made distributions at the same stage in their life cycle. (WSJ)

• Skydance Media Accuses Paramount of Breaching Deal Terms in Letter: Skydance Media has accused Paramount’s special committee of directors of breaching their deal by extending the period to engage with other bidders, according to a letter viewed by The Wall Street Journal. While Skydance is not currently terminating the Transaction Agreement, the company reserved the right to do so in the future, as stated in the letter sent on Thursday. (WSJ)

• Judge Dismisses Lawsuit Against Alaska Airlines' $1.9 Billion Acquisition of Hawaiian Airlines: A U.S. judge has dismissed a lawsuit aimed at blocking Alaska Airlines' $1.9 billion acquisition of Hawaiian Airlines. The plaintiffs argued that the deal would reduce routes and increase prices, but Chief U.S. District Judge Derrick Watson in Hawaii ruled on Monday that the airline passengers lacked legal standing to sue, stating they failed to show any personal connection to the airlines that would establish concrete harm. (REU)

• Alex Cooper Signs $125 Million Deal with SiriusXM: "Call Her Daddy" host Alex Cooper has signed a $125 million, three-year deal with SiriusXM, doubling her previous $60 million Spotify contract. The popular podcast, launched in 2018, became a hit for its candid discussions on sex and relationships. After a split with cohost Sofia Franklyn in 2020, the show moved to Spotify, where it became the second most popular podcast worldwide in 2023. (CNBC)

• Wells Fargo Sells Majority of Commercial Mortgage Servicing Business to Trimont LLC: Wells Fargo & Co. has agreed to sell most of its commercial mortgage servicing business to Trimont LLC, relinquishing its position as the largest U.S. commercial and multifamily mortgage servicer. Trimont will acquire Wells Fargo’s non-agency third-party commercial mortgage servicing portfolio, which includes about $475 billion in loans. The terms of the deal were not disclosed, but the transaction is expected to be completed early next year. (BBN)

• Johnson & Johnson to Acquire V-Wave for Up to $1.7 Billion: Johnson & Johnson announced plans to acquire privately held V-Wave for up to $1.7 billion, marking its second heart disease device market expansion this year. The deal includes a $600 million upfront payment, with additional payments of up to $1.1 billion contingent on meeting regulatory and commercial milestones. (REU)

• Walmart Sells JD.com Stake for $3.6 Billion, Ending Eight-Year Partnership: Walmart Inc. has raised approximately $3.6 billion by selling its stake in Chinese e-commerce firm JD.com Inc., concluding an eight-year partnership as the Chinese tech landscape faces increasing challenges. The U.S. retailer sold 144.5 million shares at $24.95 each, representing an 11% discount to Tuesday’s closing price. (BBN)

• Oaktree Capital in Talks to Acquire Majority Stake in B. Riley Units, Shares Surge 65%: Oaktree Capital is in exclusive discussions to acquire a 51% to 55% stake in two businesses owned by B. Riley Financial Inc., leading to a significant 65% rise in B. Riley's shares. The deal, which involves B. Riley’s appraisal and valuation services arm and its retail, wholesale, and industrial solutions unit—formerly known as Great American Group—values the units at approximately $380 million, according to sources familiar with the matter. (BBN)

Earnings

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