UBS Anticipates Cash Boost
UBS (NYSE:UBS), the Swiss bank, anticipates receiving a substantial cash boost from its acquisition of Credit Suisse, a former competitor, amounting to billions of dollars. The combined firms’ negative goodwill, resulting from the purchase of a rival below tangible book value, has reached $34.8 billion as of the end of 2022. However, the merger will also bring an increase in UBS’s legal and regulatory costs, projected to reach $4 billion over the course of 12 months.
Volkswagen Explores Huawei Partnership
Volkswagen (ETR:VOW3) has engaged in discussions with Huawei to incorporate their software into their vehicles in China, aiming to revitalize their efforts in capturing a larger share of the world’s biggest electric-vehicle market. Sources familiar with the matter revealed that Volkswagen has explored the use of Huawei technology in their vehicles, and similar talks have taken place with other Chinese groups.
HSBC Drops UK Pension Market Plan
HSBC (NYSE:HSBC) has abandoned its plans to enter the UK’s £62 billion annual workplace pension market after failing to convince employers to participate in a new scheme they spent four years developing. The London-based banking giant aimed to expand beyond its core UK banking services by offering its own-branded pension scheme, managing retirement funds for other companies and their employees. However, operators of these multiemployer pension plans, known as “master trusts,” generate revenue through investment and management fees from employee contributions.
BlackRock Requires Office Workdays
BlackRock (NYSE:BLK), following the trend of curtailing work-from-home policies implemented during the Covid-19 pandemic, will require its employees to work at the office for at least four days a week. The New York-based asset manager, with a global presence and over 20,000 employees, announced in an internal memo that starting from September 11, staff will have the option to work remotely only one day per week.
Verizon Simplifies Mobile Plans
Verizon (NYSE:VZ), the largest wireless carrier in the United States, is taking steps to simplify its offerings and reduce costs in an effort to retain customers it has been losing to competitors. The company is streamlining its lineup of unlimited mobile plans, decreasing the options from six to two, to provide customers with clearer choices. Verizon’s new mobile plans, called Unlimited Welcome and Unlimited Plus, will be priced at $30 and $45 per line respectively for four lines. For individual lines, the prices will be $65 and $80 per line.
Raine Group to Earn from WWE-UFC Merger
Raine Group, a US merchant bank leading the sale of Manchester United football club, is poised to earn a significant payout if the merger between World Wrestling Entertainment and Ultimate Fighting Championship successfully concludes. The group, founded by former Goldman Sachs banker Joe Ravitch and former UBS (NYSE:UBS) and Morgan Stanley (NYSE:MS) banker Jeff Sine in 2009, stands to make $65.5 million from the deal, with the majority of fees payable upon its completion.
ETF Issuers File for Ether Futures
Last week, five ETF issuers filed applications to launch ether (COIN:ETHUSD) futures ETFs, leading analysts to speculate about a potential “winner-take-most” scenario. Grayscale initiated the action by filing on May 9 to introduce the Grayscale Ethereum Futures ETF, based on the world’s second-largest cryptocurrency, following bitcoin. Subsequently, Direxion, Roundhill Investments, and Bitwise followed suit with their own versions, while Valkyrie submitted its application on May 12.
ServiceNow Launches Share Buyback
ServiceNow (NYSE:NOW), a cloud computing firm, announced its plans on Tuesday to initiate its inaugural share buyback program, with a budget of up to $1.5 billion. The company’s board authorized this repurchase program, aiming primarily to manage the potential dilution caused by future employee equity grants and employee stock purchase programs.
JD Sports Reports Profit Drop
JD Sports (NASDAQ:JD) reported a significant drop in its full-year profit, decreasing by nearly a third, following a £550 million charge. Despite this decline, the company has optimistic expectations of surpassing the £1 billion milestone for the first time this year, fueled by the enthusiastic demand from young shoppers for its trainers and hoodies. Pre-tax profits for the 12-month period ending on January 28 declined to £440 million from £654 million in the previous year.
Tesla Launches First-Ever Advertising
In a surprising revelation, Elon Musk announced on Tuesday that Tesla (NASDAQ:TSLA), the company founded two decades ago, will launch its first-ever advertising campaign for its electric vehicles. Although the automotive industry is known for its substantial advertising expenditures, Tesla has predominantly relied on unconventional marketing strategies, such as word of mouth and incentivized referrals, rather than traditional advertising methods.