Global Markets
Canada:
Canada’s main stock index, the S&P/TSX Composite Index, rose by nearly 0.5% today. The positive movement was driven by two primary factors: a move higher in gold prices, and increasing optimism among investors regarding potential further interest rate cuts by the Bank of Canada.
United States:
The American market advanced, across the board, attributed from optimism stemming from political developments. Cryptocurrencies, in particular, saw significant gains as market participants reacted to the news of increased odds of Donald Trump securing a second term in the White House.
UK:
The UK stock market dropped nearly 1%, on the back of a profit warning from Burberry Plc, one of the UK’s most iconic luxury fashion brands, which rattled investor confidence.
Europe:
European markets also moved lower. The decline was primarily driven by disappointing corporate earnings updates, which dampened investor sentiment across the continent. Several major companies reported earnings that fell short of expectations, raising concerns about the economic outlook and the potential impact on future corporate profitability.
China:
China’s stock markets closed higher. This upward movement was fueled by growing hopes for additional government stimulus measures. The optimism came after data revealed that the country’s economy had slowed more than anticipated in the second quarter, with GDP growth at 4.7 percent. Investors are betting that the Chinese government will introduce new policies to support economic growth and counteract the slowdown, providing a boost to the market.
Japan:
The Japanese stock market, the Nikkei 225 index fell by 2.5% today. This drop comes amid a notable appreciation of the Japanese yen, which reached its highest level in several weeks. The sudden strengthening of the yen is primarily attributed to government intervention aimed at stabilizing the currency.
Corporate Stock News
Airbus:
Airbus has initiated a comprehensive cost-cutting program and implemented a freeze on overall headcount to enhance performance at its core aircraft manufacturing business starting in 2024 and beyond. This strategic move comes just weeks after Airbus was compelled to revise its jet production targets downward. The company aims to optimize efficiency and maintain competitiveness amidst a challenging market environment. Industry sources indicate that this decision is a proactive measure to ensure long-term sustainability and operational excellence.
Shell:
Shell has successfully replaced the liquefied natural gas (LNG) volumes it lost following its exit from Russia in 2022. The replacement was achieved through a series of strategic deals, reinforcing CEO Wael Sawan’s confidence in the growing demand for LNG. This strategic shift underscores Shell’s reallocation of focus from renewable energy towards LNG, capitalizing on its market potential and aligning with global energy demand trends.
Novo Nordisk:
Democratic U.S. Senate aides are scheduled to meet with Novo Nordisk executives to discuss the repercussions of the company’s decision to cease selling one of its long-acting insulins in the United States. This meeting, involving aides for Senators Jeanne Shaheen, Raphael Warnock, and Elizabeth Warren, follows concerns raised by the lawmakers regarding the discontinuation of Levemir by the end of 2024. While Novo Nordisk’s spokesperson denied the scheduled meeting, the company emphasized that the decision to discontinue Levemir was not influenced by the success of newer medications like Wegovy and Ozempic.
Cleveland-Cliffs and Stelco Holdings:
Cleveland-Cliffs has announced its acquisition of Canadian peer Stelco Holdings in a cash-and-stock deal valued at approximately $2.5 billion. The offer includes C$60.00 in cash and 0.454 shares of Cleveland-Cliffs common stock per Stelco share, totaling C$70.00 per share, significantly higher than Stelco’s last closing price of C$37.36. This acquisition has received backing from David McCall, international president of the United Steelworkers union, and is expected to finalize in the fourth quarter.
Filo Corp and Lundin Mining Corp:
Lundin Mining Corp and BHP Group are contemplating a joint bid for Filo Corp, according to sources familiar with the matter. These early-stage discussions revolve around the potential merger of Lundin Mining’s Josemaria project with Filo’s Filo del Sol project. Combining infrastructure between these mines could incur costs ranging from $5 billion to $8 billion. The Lundin family and BHP hold significant stakes in Filo Corp, indicating a strong interest in consolidating resources to enhance operational efficiency and output.
BlackRock Inc:
BlackRock, the world’s largest asset manager, reported a record high of $10.65 trillion in assets under management (AUM) in the second quarter, driven by rising client asset values and robust investor inflows into the company’s ETFs. The firm recorded total net inflows of $81.57 billion, slightly surpassing the $80.16 billion from the previous year. ETFs captured the majority of these flows, marking the best start to a year for BlackRock. Total revenue for the quarter increased by 8%, reaching $4.81 billion.
Cleveland-Cliffs and Stelco Holdings:
As mentioned earlier, Cleveland-Cliffs’ acquisition of Stelco Holdings is valued at around $2.5 billion, with the deal including a cash offer of C$60.00 and 0.454 shares of Cleveland-Cliffs common stock per Stelco share.
Yandex NV:
A deal to split the assets of Russian technology company Yandex has been finalized. A Russian consortium of investors acquired the bulk of Yandex’s businesses in a cash-and-shares transaction worth approximately $5.4 billion. Yandex NV (YNV) sold its remaining 28% stake, receiving $2.8 billion in cash and 162.5 million YNV class A shares. Post-transaction, YNV shares are now exclusively listed on Nasdaq, where trading remains halted.
Aquaron Acquisition Corp:
Hydrogen energy firm Huture plans to go public in the U.S. through a merger with blank-check firm Aquaron Acquisition Corp. This deal values the combined entity at $1 billion. Following the merger, which is anticipated to conclude later this year, the company will trade on the Nasdaq. Huture’s current shareholders will retain a majority stake in the combined company.
Alphabet Inc:
Google’s parent company, Alphabet Inc., is reportedly in advanced talks to acquire cybersecurity startup Wiz for approximately $23 billion. If finalized, this deal would be Alphabet’s largest acquisition to date, primarily funded in cash.
Apple Inc:
Apple has reported a 33% increase in sales in India, reaching a record of nearly $8 billion for the year ending in March. iPhone sales accounted for over half of this revenue, indicating strong market performance in one of the world’s fastest-growing economies.
Boeing Co:
Boeing has commenced certification flight testing for its long-delayed 777-9 aircraft with U.S. aviation regulators. The U.S. Federal Aviation Administration (FAA) confirmed the initiation of this thorough certification process, which typically spans several months. The 777-9, part of Boeing’s 777X project, has faced multiple delays since its inception in 2013.
Cigna Group:
The estate of artist Chuck Close has settled a lawsuit against Cigna, accusing the insurer of failing to cover substantial medical costs in Close’s final years. Both parties reached an agreement in principle, with the settlement expected to be finalized within 45 days.
DaVita Inc and Fresenius Medical Care AG:
The U.S. Federal Trade Commission (FTC) is investigating DaVita and Fresenius Medical Care for allegedly hindering competition in the U.S. dialysis market. The inquiry focuses on the companies’ practices that purportedly prevent physicians from starting new businesses or joining competitors.
Deutsche Bank AG:
Deutsche Bank is projected to report a loss for the second quarter due to a 1.3 billion euro charge related to a longstanding lawsuit over its acquisition of Postbank. The bank’s earnings will be published on July 24.
Enhabit Inc:
Institutional Shareholder Services (ISS) recommended that Enhabit shareholders elect three director candidates from AREX Capital Management to the company’s board. ISS supports AREX’s case for new directors to enhance expertise in home health, hospice, and financial reporting, while not advocating for a complete overhaul of the board.
Goldman Sachs Group Inc:
Goldman Sachs aims to raise $2 billion for its first Asia Pacific-focused private equity fund, targeting investments primarily in Japan, with additional focus on India, South Korea, and Australia. The bank is also appealing the results of the latest Federal Reserve stress test, which requires it to hold more capital.
InterDigital Inc and Tesla Inc:
InterDigital and Avanci have successfully dismissed a London lawsuit by Tesla, which sought a patent license for launching 5G vehicles in the UK. However, Tesla’s claim to invalidate three of InterDigital’s patents will proceed.
JPMorgan Chase & Co:
A federal judge dismissed a lawsuit accusing the FDIC of blocking former First Republic Bank employees from accessing $150 million in retirement funds. JPMorgan Chase acquired First Republic’s assets and deposits.
Meta Platforms Inc:
Meta is rolling back some restrictions on former President Donald Trump’s Facebook and Instagram accounts, emphasizing the importance of political expression in democratic processes.
Novo Nordisk A/S:
As previously mentioned, Democratic Senate aides are set to meet with Novo Nordisk executives regarding the company’s decision to stop selling Levemir in the U.S.
Pactiv Evergreen Inc:
Suzano, a Brazilian pulpmaker, has agreed to acquire two paper plants from Pactiv Evergreen for $110 million. The plants in Pine Bluff, Arkansas, and Waynesville, North Carolina, produce paper for cups and food and beverage packaging.
Paramount Global:
Gabelli Funds, holding nearly 4.9 million Class-A voting shares in Paramount, seeks more transparency on the valuation of National Amusements assets, potentially challenging a recent entertainment industry deal.
VinFast Auto Ltd:
VinFast is delaying the launch of its $4 billion North Carolina factory to 2028 and reducing its delivery forecast for this year by 20,000 units. The company now expects to deliver 80,000 vehicles in 2024, down from the initially projected 100,000, amidst global EV market uncertainties. Despite this, VinFast’s sales rose 24% in the second quarter compared to the previous three months.
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