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Welcome to Read Sunday☕️

Welcome to Read Sunday☕️

Written by William Lemanske

William Lemanske
February 25, 2024 • Estimated Reading Time: 13 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

Goldman Sachs predicts an 8% rise in S&P 500 profits this year, driven by a stronger U.S. economy and mega-cap margins. The firm expects global GDP growth and a weaker dollar to support earnings, with lower rates and oil prices as minor drags. Mega-cap stocks, especially the "Magnificent 7," are expected to boost overall profits, with artificial intelligence and consumer strength driving revenue and margin growth. (REU)
Thousands of farmers from across Greece gathered in Athens' central square on Tuesday, parking tractors in front of parliament in their largest protest yet over rising costs. Police estimate that at least 8,000 farmers with 130 tractors participated in the protest on Syntagma square, echoing similar grievances seen in demonstrations in France, Belgium, the Netherlands, Poland, and Italy. A 53-year-old farmer named Grigoris said, "This is our answer to the Greek government. We're not afraid, and we won't retreat." (REU)
China has prohibited major institutional investors from selling stocks at the opening and closing of trading sessions, in a bid to support the country's $8.6 trillion stock market. The China Securities Regulatory Commission, under new Chairman Wu Qing, issued the directive to asset managers and brokerage trading desks, according to sources. Additionally, a task force has been established to monitor short selling and warn firms profiting from such bets. (BBN)
The Biden administration plans to invest billions in domestic cargo crane manufacturing to address national security concerns about the use of China-built cranes at U.S. ports. This is part of a broader effort to improve maritime cybersecurity, including new regulations for foreign-built cranes and cybersecurity standards for U.S. port networks. (WSJ)
Bonds from state-owned Petroleos de Venezuela SA (PDVSA) fell after New York State's top court ruled that Venezuelan law will determine the validity of the debt. The 2020 notes experienced a 17-cent drop over two days, trading at around 72 cents on the dollar, according to anonymous traders. (BBN)
Japan's benchmark stock average reached a record high for the first time in 34 years, primarily due to strong corporate profits. Japanese companies are generating significant earnings and distributing a substantial portion to their shareholders, unlike the situation 3½ decades ago when the Nikkei Stock Average's record highs were driven by bubbles and speculative thinking. (WSJ)
For almost a year, U.S. natural gas producers have reduced production due to falling prices. However, continuous increases in output, including from oil companies that produce gas as a byproduct, have led to record supplies. In the competition between oil and gas, gas producers are at a disadvantage. Some are closing wells, canceling projects, or selling to rivals to avoid losses. Natural gas prices have dropped to a 30-year low of $1.59 per thousand cubic feet, adjusted for inflation, benefiting consumers like utilities but harming producers who are selling at very low prices, similar to those during the COVID-19 downturn. (REU)
The private Odysseus lander, built by Houston-based Intuitive Machines, has landed on the lunar surface, but not as planned. The 14-foot-tall spacecraft apparently settled on its side during its historic touchdown on February 22. However, the mission team has confirmed that the pioneering spacecraft is still operational. (SPACE)

Public Markets

Arkhouse Management has initiated a proxy fight at Macy's, nominating nine directors to the department store's board. This move comes after Macy's rejected an unsolicited offer from Arkhouse to take the retailer private at $21 per share. Arkhouse had previously indicated that it would consider taking its bid directly to shareholders if Macy's management did not engage with the firm. (CNBC)
Apple Inc. has made changes in the leadership of its hardware team responsible for audio features on AirPods, Macs, and other products, appointing a new leader for this increasingly important business. Gary Geaves, the company's long-serving vice president in charge of acoustics, is stepping down from his role. He will be replaced by his top deputy, Ruchir Davé, according to sources familiar with the matter. (BBN)
FuboTV has filed an antitrust lawsuit against Walt Disney, Fox, and Warner Bros Discovery, alleging that their planned joint sports streaming platform will harm competition and increase prices for consumers. Warner Bros Discovery, Fox, and ESPN (part of Disney's sports division) declined to comment on the matter. (REU)
Walmart's recent stock split led to a reshuffling of the Dow Jones Industrial Average, with Amazon being added to the index and Walgreens Boots Alliance being removed. This adjustment will give investors increased exposure to consumer retail, as well as other sectors like advertising and cloud computing. (CNBC)
TripAdvisor Inc. has been allowed by a Delaware Chancery Court judge to move its incorporation from Delaware to Nevada, although it will still need to address a shareholder lawsuit challenging the move as unfair. The judge, J. Travis Laster, denied TripAdvisor's motion to dismiss the lawsuit but did not block the move, indicating that a monetary award could be arranged if the court rules against the company. This case is similar to the relocation being considered by Elon Musk for Tesla Inc. (BBN)
Apple Inc. is enhancing the security of its iMessage app to protect against potential future threats from advanced quantum computing attacks. The company announced that the upgrades would be part of a new system called PQ3, which employs a more advanced type of encryption designed to resist attacks from quantum computers. These computers, still in early development, have the capability to perform calculations much faster than traditional machines, posing a potential threat to current encryption standards. (BBN)
Intel announced that Microsoft plans to use its services to manufacture a custom computing chip. Intel also expects to surpass its biggest rival, Taiwan Semiconductor Manufacturing Co (TSMC), in advanced chip manufacturing before its internal deadline of 2025. The company provided new details on how it intends to maintain a lead over TSMC into 2026 and beyond. (REU)
Boeing is replacing the head of its 737 Max program, Katie Ringgold will succeed Ed Clark, following an incident where a panel blew out midflight on an Alaska Airlines 737 Max 9. The change comes as Boeing continues to address challenges following fatal crashes of its 737 Max 8 model. (CNBC)
A cyberattack on a division of UnitedHealth Group Inc. has led to a nationwide outage of a computer network that facilitates data transmission between healthcare providers and insurance companies. As a result, some pharmacies are unable to process prescriptions, according to the company and reports from affected organizations. (BBN)

Real Estate

The mystery date projected on Michigan Central Station has been revealed: the train station will reopen on June 6. This announcement comes over 30 years after its closure. The iconic 15-story building in Corktown, which opened in 1913 and originally served as office space, fell into disrepair after shutting down in 1988, symbolizing Detroit's downturn. (FREEP)
Mark Rieth, the former owner of Atwater Brewing, has acquired a majority stake in Lansing Brewing Company. Rieth, who is an alumnus of Michigan State University, expressed his enthusiasm about working with the current team at Lansing Brewing Company. He praised their work and mentioned plans to elevate the brewery, expanding their products throughout Michigan and beyond. (LSJ)
The U.S. Energy Department announced on Thursday that it has given preliminary approval for nearly $710 million in loans to electric vehicle (EV) technology manufacturing projects. Despite this, the Biden administration still has $221.8 billion in loan capacity available to fund clean-energy initiatives. South Korean company SK Siltron CSS is set to receive $544 million to expand its plant in Bay City, Michigan, which produces high-power silicon carbide wafers used in electric vehicles. These components are crucial for EV drivetrains, including inverters and electrical distribution systems, according to the department. (REU)
Electric vehicle startup Lucid Motors is planning to open a $10 million engineering and research office in Southfield, Michigan, in April, according to a source confirmed to The Detroit News. The California-based company will request a $6 million performance-based grant from the Michigan Economic Development Corp.'s Strategic Fund Board on Tuesday, as stated in the board's agenda. (TDN)

Mergers & Acquisitions

A Grand Rapids-based communications firm with offices in Detroit is being acquired by Madrid-based LLYC, a global consulting firm. LLYC has bought a 70% stake in Lambert Global, with the price based on the latter's performance over the next two years. The deal, finalized on Friday, included an advance payment of $18.2 million. (CRAIN)
Walmart and VIZIO have announced an agreement for Walmart to acquire VIZIO at $11.50 per share in cash. (WAL)
Some of the world's largest buyout firms, such as Advent International and Blackstone Inc., are showing interest in the consumer health division of French pharmaceutical giant Sanofi, ahead of a potential separation of the business. Bain Capital, CVC Capital Partners, EQT AB, and KKR & Co. are also reportedly interested, according to sources. The division could be valued at around $20 billion in any potential deal. (BBN)
The FTC and a group of states may sue next week to block Kroger's $24.6 billion deal to buy Albertsons. A lawsuit is expected before an agreement preventing the deal's closure expires on Feb. 28. Kroger insists the merger will benefit consumers by lowering prices and increasing choices. (REU)
AbbVie Inc. is planning to sell at least $13 billion in corporate bonds to fund its acquisitions of ImmunoGen Inc. and Cerevel Therapeutics Holdings Inc. The bond sale is expected to be announced soon, following investor calls. The final size of the offering will be determined on the day of the sale. (BBN)
Reddit, the social media company founded in 2005 by Alexis Ohanian and Steve Huffman, has filed to go public. This marks the first major tech initial public offering (IPO) of the year and the first social media IPO since Pinterest in 2019. Reddit has raised approximately $1.3 billion in funding and has a post-valuation of $10 billion, according to PitchBook. (CNBC)