Read Sunday
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Welcome to Read Sunday☕️

Welcome to Read Sunday☕️

Written by William Lemanske

William Lemanske
March 24, 2024 • Estimated Reading Time: 12 minutes

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.

Market Recap

This Week’s Headlines

Economy & World News

The Bank of England maintained its key interest rate at a 16-year high, just hours after Switzerland became the first wealthy nation to cut interest rates since central banks began their aggressive campaign two years ago to control high inflation. The Swiss National Bank's decision, along with recent remarks from Federal Reserve and European Central Bank officials, suggests that borrowing costs are likely to decrease across advanced economies in the upcoming months, even though inflation has shown some signs of persisting more than anticipated. (WSJ)
President Joe Biden signed legislation on Saturday that funds the government through September, according to the White House. He thanked Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, and other members for their leadership. The Senate had earlier passed a $1.2 trillion government funding bill with a 74-24 vote after intense last-minute negotiations, narrowly avoiding a government shutdown. (NBC)
Vladimir Putin secured six more years as Russia's president with a landslide win in an uncontested election. He now faces significant challenges ahead. (REU)
Torbjörn Törnqvist, CEO of Gunvor Group Ltd., estimates that Ukrainian drone strikes have disabled approximately 600,000 barrels of Russia's daily oil-refining capacity. These attacks, which targeted multiple plants in Russia, including some deep inside its borders, have caused diesel futures to rise for four consecutive sessions and gasoline futures to increase for six sessions. (BBN)
The Bank of Japan has ended the world's last negative interest rate and its aggressive monetary stimulus program. The new policy rate range is set between 0% and 0.1%. The bank also scrapped its yield curve control program but will continue buying long-term government bonds as needed and ended purchases of exchange-traded funds. (BBN)
China Evergrande Group's founder, Hui Ka Yan, faces increased legal trouble due to an alleged $78 billion revenue overstatement. The company's onshore unit was fined 4.18 billion yuan ($581 million) for inflating revenue by recognizing sales in advance, contributing to one of the biggest financial fraud cases in history. (BBN)
Saudi Arabia plans to create a $40 billion artificial intelligence fund, with the Public Investment Fund discussing partnerships with U.S. venture capital firm Andreessen Horowitz and others. (REU)
Russia's central bank kept its key interest rate at 16%, citing persistent high inflationary pressure and the need for tight monetary conditions to achieve its 4% inflation target. Although the tightening cycle may have ended, the central bank hasn't found room to lower borrowing costs, hindered by robust consumer demand and inflationary effects of widespread labor shortages. (REU)

Public Markets

Apple is in talks with Google to incorporate Google's Gemini AI engine into the iPhone, potentially transforming the AI industry. The negotiations focus on licensing Gemini for new iPhone features. Apple has also explored using OpenAI's model in discussions. (BBN)
Longi Green Energy Technology Co., the world's largest solar manufacturer, is reducing its workforce by up to 30% to cut costs amid industry challenges like overcapacity and intense competition. The company had about 80,000 employees at its peak last year. The layoff plans, which are not public, were disclosed by sources familiar with the matter. (BBN)
Unilever announced it will spin off its ice cream unit, which includes brands like Magnum and Ben & Jerry's, and cut 7,500 jobs as part of a new cost-savings program. The news was well received by investors, with Unilever's shares rising nearly 6% at one point. (REU)
George Lucas, renowned filmmaker and Hollywood legend, is supporting Walt Disney CEO Bob Iger in the contentious proxy fight initiated by activist investor Nelson Peltz. Lucas is the largest individual investor in Disney, a fact confirmed by multiple sources to CNBC. His endorsement is significant due to his shareholder position and his prominence in Hollywood. (CNBC)
Super Micro Computer Inc. is launching a public offering of 2 million shares, aiming to raise up to $2 billion. The company's stock has surged nearly 1,000% in the past year due to AI enthusiasm, boosting its market cap to $56 billion. Recently, it was added to the S&P 500 Index, expanding its investor base. (BBN)
Nvidia Corp. CEO Jensen Huang introduced new Blackwell processors at the GTC conference, designed to enhance the company's dominance in AI computing. These chips are significantly faster at handling AI models, including both development and execution stages. (BBN)
Kering's shares fell 14% after warning of a 20% drop in Gucci sales and a 10% decrease in overall group revenues for Q1 2024, due to weaker Asian transactions. The news dragged down other European luxury stocks like LVMH, Christian Dior, Hermes, and Burberry. (CNBC)
Intel Corp has recently been awarded billions of dollars in grants and loans from the U.S. government as part of President Joe Biden's initiative to boost domestic semiconductor production. This award is part of a series of grants and loans given to various semiconductor companies, with more expected to be announced in the coming weeks and months. (REU)
Boeing Co. forecasts a cash outflow of $4 billion to $4.5 billion in Q1 due to issues with its 737 Max jetliner. The company's full-year free cash flow is expected to be in the low-single-digit billions, below the $5 billion predicted by analysts. (BBN)
The Michigan Senate, divided on the issue, voted late Tuesday to reintroduce targeted tax incentives for job creation after a four-year break. Additionally, they approved a significant modification to the state's main economic development program and supported the establishment of a research-and-development tax credit. (CRAIN)
Advisers of Celsius Network LLC's bankruptcy are requesting major customers, who withdrew over $2 billion before its bankruptcy, to return the funds to avoid lawsuits. This effort aims to recover assets to repay creditors who didn't withdraw their funds. (BBN)
The U.S. Justice Department, along with 16 states and the District of Columbia, has filed an antitrust lawsuit against Apple. The lawsuit accuses Apple of violating antitrust laws by engaging in practices that keep customers tied to their iPhones and restrict competition from other companies and smaller firms, ultimately harming consumers. (NYT)

Real Estate

The Detroit Golf Club members have approved a $16 million renovation of their course, which hosts the Rocket Mortgage Classic PGA Tour tournament, along with improvements to the club's fire suppression system. The plan received over 57% support from 436 member votes. (CRAIN)
Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy protection but will keep its 850 stores in 49 states and website operational, ensuring no disruption in services for customers, vendors, and other trade creditors. (NBC)
Gotion Inc., a Chinese battery manufacturer, is suing Green Township, Michigan, where it intends to construct a $2.4 billion electric vehicle battery factory. The lawsuit, filed in the U.S. District Court Western District of Michigan, alleges that the township breached contractual obligations for the project, which were established in 2023. (CRAIN)
Bill Ford and his wife, Lisa, have launched a campaign to raise at least $10 million for 10 youth-serving nonprofits in metro Detroit, coinciding with the reopening of Ford's Michigan Central Station. The campaign has already raised about $7.5 million, with the Fords making a personal contribution. (FREEP)
Henry Ford Health and Michigan State University are set to begin construction this spring on the first phase of a $3 billion development in Detroit's New Center area. While specific dates are yet to be confirmed, land clearing for the $400 million joint research building, which will house the Nick Gilbert Neurofibromatosis Research Institute, is scheduled to start this spring, according to Bob Riney, President and CEO of Henry Ford Health and Crain's Newsmaker of the Year. (CRAIN)

Mergers & Acquisitions

Authentic Brands Group, owner of Sports Illustrated, has licensed the magazine's publishing rights to Minute Media, a sports-focused digital media company. This deal aims to resolve recent issues and continue the print edition. (NYT)
Selena Gomez has engaged advisers to explore offers for her cosmetics company, Rare Beauty. The company has brought in bankers to handle interest from potential investors or buyers. While bankers have met with potential suitors, Gomez has not. Regardless of the outcome, Gomez, 31, plans to stay involved with the business. (BBN)
Philanthropist MacKenzie Scott recently announced $9 million in donations to Michigan nonprofits. This is part of her latest round of $640 million in new donations, responding to an open call for grant proposals from organizations aiding those in greatest need in the U.S. Since 2020, Scott's donations to Michigan-based or active nonprofits have exceeded $228.5 million. (CRAIN)
Apollo Global Management has proposed an $11 billion bid for Paramount Global's Paramount Pictures film studio, according to a source familiar with the offer. Paramount Pictures, known for its extensive library of classic films and blockbuster franchises like "The Godfather," "Mission: Impossible," and "Transformers," is considered a prized asset within the Paramount media conglomerate and has attracted interest from various potential buyers over the years. (REU)