China Bans Micron
China’s Cyberspace Administration announced a ban on operators of key infrastructure from purchasing products from US chipmaker Micron Technology (NASDAQ:MU), citing “serious network security risks.” The move marks China’s first major action against an American semiconductor group, with Micron identified as posing risks to the country’s critical information infrastructure supply chain.
Ryanair Exceeds Profit Expectations
Ryanair (NYSE:RYAN) exceeded profit expectations with €1.4bn ($1.5bn) for the fiscal year ending in March, benefiting from the recovery in air travel following the Covid-19 pandemic. The Irish budget airline aims to double its annual passenger traffic to 300 million by 2034. In an interview with the Financial Times, Michael O’Leary, the airline’s assertive CEO, expressed confidence in surpassing other European airlines.
Meta Fined €1.2bn by EU
Meta (NASDAQ:META), the parent company of Facebook and Instagram, received a €1.2bn ($1.3bn) fine from the EU for non-compliance with privacy regulations and was instructed to halt the transfer of user data to the United States. This penalty represents the largest imposed on a major tech firm within the EU. The Irish Data Protection Commission, one of the EU’s privacy watchdogs, claimed that Facebook inadequately safeguarded European users’ data against American surveillance programs.
Mizuho Acquires Greenhill & Co
Mizuho (TYO:8411), one of Japan’s largest financial institutions, has agreed to acquire Wall Street investment bank Greenhill & Co (NYSE:GHL) in a $550 million deal. This move aims to accelerate Mizuho’s expansion in the United States. The Japanese financial services group will pay $15 per share for Greenhill, more than double the closing price of the US boutique investment bank on Friday.
PacWest Sells $2.6bn Loan Portfolio
PacWest (NASDAQ:PACW), a California-based bank, has reached an agreement to sell a $2.6bn loan portfolio to real estate investment group Kennedy Wilson (NYSE:KW). This decision aligns with PacWest Bancorp’s strategy to focus on its core community banking business. The sale involves 74 loans and may expand to include an additional six loans worth $363 million.
JPMorgan Raises Earnings Outlook
JPMorgan Chase (NYSE:JP) revised its earnings outlook for the year, raising expectations for its lending business following the recent acquisition of First Republic. This bucks the trend of shrinking profits among US banks due to deposit withdrawals. JPMorgan’s investor day presentation increased its 2023 target for net interest income (NII), excluding its trading division, to around $84bn from the previous $81bn, attributing this improvement to the First Republic deal.
Applied Materials Invests $4bn in California
Applied Materials (NASDAQ:AMAT) plans to invest up to $4 billion in a new California facility dedicated to semiconductor research, supported by federal government subsidies. This initiative adds to the growing number of chip-industry projects in the United States. The Santa Clara-based company, known for manufacturing advanced chip-making machinery, aims to collaborate with chip makers and universities at the facility, which is expected to be completed by 2026.
Chevron Acquires PDC Energy
Chevron (NYSE:CVX) has agreed to acquire independent oil-and-gas company PDC Energy (NASDAQ:PDCE) in a $6.3 billion stock swap. This strategic move enhances Chevron’s position in crucial US production basins. Chevron will exchange 0.4638 shares, valued at $72 based on Friday’s closing price, for each share of Denver-based PDC. The deal, including PDC’s debt, has a total enterprise value of $7.6 billion and provides Chevron with a 10% increase in oil-equivalent proved reserves.
Ford Secures Lithium Agreements
In an effort to secure the crucial materials required for electric vehicle manufacturing, Ford Motor Co. (NASDAQ:FORD) has successfully reached a series of agreements to purchase lithium from projects spanning Canada to Chile. Ford has partnered with Albemarle Corp. (NYSE:ALB), the leading global producer, as well as Chile’s SQM (NYSE:SQM) and Canada’s Nemaska Lithium (TO:NMX), as announced separately on Monday. These deals coincide with the second day of an investor event centered around Ford’s ambitious $50 billion plan for electric models.
Disney’s Linear TV Decline
Disney’s (NYSE:DIS) most recent financial quarter witnessed a significant decline in operating income from its linear TV segment, plummeting by 35% to $1.8 billion. This represents the sharpest year-over-year decline in at least three years. Remarkably, operating income from Disney’s parks, experiences, and products division has surpassed that of its linear TV business for two consecutive quarters, marking a noteworthy shift since the inception of Disney’s streaming business.