Smaller Company Shares Gain
Shares of smaller companies and those in cyclical industries, such as materials and energy, saw gains in a quiet trading session on Tuesday ahead of the release of U.S. inflation data. The S&P 500 (SPI:SP500) remained nearly unchanged, while the Russell 2000 index climbed 0.8%, marking the second consecutive session of outperformance by smaller companies. Notable gainers included flooring firm Mohawk Industries (NYSE:MHK), which rose 5.7%, and appliance maker Whirlpool (NYSE:WHR), which was up 3.8%. Fertilizer producers CF Industries (NYSE:CF) and Mosaic (NYSE:MOS) also posted gains of over 4.4%.
UMG Urges AI Music Restrictions
Universal Music Group (AMS:UMG), one of the world’s largest music companies, has instructed streaming platforms like Spotify (NYSE:SPOT) and Apple (NASDAQ:AAPL) to block artificial intelligence (AI) services from scraping melodies and lyrics from their copyrighted songs. UMG, which controls about a third of the global music market, is increasingly concerned about AI bots using their songs to train themselves and produce music that mimics popular artists. AI-generated songs have been appearing on streaming services, and UMG has been sending takedown requests to remove them. The company is urging streaming companies to restrict access to their music catalogue for developers using it to train AI technology.
Harita Nickel Valued at $5.5 Billion
Harita Nickel, the biggest initial public offering (IPO) in Indonesia this year, experienced a successful debut, reaching a valuation of over $5.5 billion. This puts Indonesia on track to potentially surpass the U.S. IPO market in terms of equity fundraising this year. Shares of Harita Nickel rose more than 4% to Rp1,305 ($0.09) on its debut in Indonesia on Wednesday, bringing the company’s market value to over Rp82 trillion. This successful listing has solidified Jakarta’s position as one of the world’s hottest IPO destinations this year, with over $2 billion raised so far, making it the fourth-most active market globally, according to data from Dealogic.
EY Abandons Advisory-Audit Split
EY, a global accounting and consulting giant, has abandoned plans to separate its advisory and audit services into distinct firms under a proposal known as Project Everest. The plan aimed to free both entities from conflict-of-interest rules. However, opposition from partners in EY’s American business, which accounts for 40% of the firm’s global revenue, has led to the plan being scrapped.
Michael Jordan Sneakers Fetch $2.2 Million
A pair of Nike (NYSE:NKE) Air Jordan 13 sneakers worn by basketball legend Michael Jordan during the NBA Finals in 1998 was sold at auction for a record price of $2.2 million, setting a new benchmark for sports footwear. Demand for Michael Jordan’s memorabilia remains high, with a jersey he wore during the first game of the 1998 finals selling for $10.1 million last year.
iShares Converts ETF to Active Management
iShares, a leading provider of exchange-traded funds (ETFs), is set to convert its $707 million MSCI Frontier and Select EM ETF to active management, according to a regulatory filing. The fund will continue to be managed by BlackRock Fund Advisors, but will no longer track the MSCI Frontier and Emerging Markets Select Index, and will drop “MSCI” from its name. The change is expected to provide greater flexibility and liquidity in various market conditions, according to iShares.
De La Rue Revises Forecasts
De La Rue (LSE:DLAR) has revised down its full-year forecasts and initiated discussions with lenders due to declining demand for banknotes, reaching a 20-year low, coupled with rising interest rates that increase its debt servicing costs. De La Rue’s board anticipates full-year adjusted operating profit for 2024 to be in the range of “low £20mn”, compared to earlier estimates of £40.1mn. The company is in talks with lenders to seek an amendment to its banking covenants and has requested a deferral of its next deficit repair contribution of £18.75mn from the trustees of its defined benefit pension scheme. The downgrade has resulted in nearly a 30% drop in the company’s shares in early Wednesday trading in London, bringing the decline over the past 12 months to over 67%.
Deutsche Bank Winds Down Russian Tech Centres
Deutsche Bank (NYSE:DB) is winding down its remaining software technology centres in Moscow and St. Petersburg as it ends its two-decade-long reliance on Russian IT expertise following the country’s invasion of Ukraine. At the start of the conflict, Deutsche Bank employed 1,500 people in its Russian technology centre, who were responsible for developing and maintaining software for its global trading business and main corporate banking system.
Carlyle Group Abandons Cotiviti Investment
Carlyle Group (NASDAQ:CG) has abandoned its long-planned investment in healthcare analytics company Cotiviti, dealing a blow to the private equity firm as it grapples with raising cash for buyouts after internal upheaval. The collapse of the deal surprised investors across Wall Street as Carlyle had secured $5.5bn in debt and an additional $1bn preferred stock investment to finance the transaction.
HSBC Recruits Ex-SVB Bankers
HSBC (NYSE:HSBC) has recruited over 40 investment bankers who were previously employed by Silicon Valley Bank (SVB), marking the latest move by the British lender to acquire parts of the failed tech-focused bank. This comes a month after HSBC acquired SVB’s UK subsidiary for £1, and the bank is now hiring several dozen of its US bankers from First Citizens (NASDAQ:FCNCA), which recently acquired a significant portion of SVB in an auction handled by the Federal Deposit Insurance Corporation.