Morning Reads
- Higher Oil Prices to Fund Its Grand Plans
- Giorgia Meloni Seeks to Cement Power by Remaking Corporate Italy
- Australia’s Central Bank Hikes Rates by 25 Basis Points, Defies Expectations
- China’s State Banks Told to Lower Cap on Dollar Deposit Rates
- SEC’s Lawsuit Against Binance Strikes at Heart of Ailing Crypto Sector
- SEC’s Regulatory Net Now Covers $115 Billion of Crypto After Lawsuit Against Binance
- UBS Expects Agreement on Credit Suisse Loss Guarantee by June 7
- Big Banks Could Face 20% Boost to Capital Requirements
- Is the Bear Market Over? It Depends
- Bond Bulls Bet Fed Is Right in Anticipating Low Rates to Return
- Citi Quants Say the AI-Driven Tech Rally Has Legs
- Startup Instabase Notches $2 Billion Valuation, Incorporates New AI
- West Coast Port Labor Issues Persist from Los Angeles to Seattle, with Supply Chain Frustration Mounting
- Interest-Only Loans Helped Commercial Property Boom. Now They’re Coming Due
- What Happens When Cities Run Out of Money
- Apple’s $3,499 Vision Pro Headset Will Test Marketing Might
- Sequoia Splits Into Three Entities, Makes China Standalone Firm
- Microsoft to Pay $20 Million to Settle US Charges for Violating Child Privacy
- Bud Light Sales Keep Slipping. But It Remains America’s Top-Selling Beer
- Companies’ New Cause: Dodging the Culture Wars
- Screen Actors Guild Authorizes Union to Call a Strike if Needed as Tension Rises in Hollywood
- Investors Have Soured on China’s Stocks, Renewing Fears About Economy
- The Fed’s Inflation Fight Faces a New Challenge: A Dry Panama Canal
- Debt-Limit Deal Clears Congress, Ending Threat of US Default
- When Markets Melt Down, These Traders Cash In
- ESG Fund Manager Beats 99% of Peers With Giant Bet on Nvidia
- AI Frenzy Is Driving Record Inflows Into Tech, BofA Says
- Hedge Funds at War for Top Traders Dangle $120 Million Payouts
- Oil Prices Rise After U.S. Debt Deal, All Eyes on OPEC Meeting
- Exxon, Chevron Near Deals to Drill in Gas-Rich Algeria
- Why Your Steak Is Getting Pricier
- What’s Behind All This ‘Shrink’?
- Macy’s and Costco Sound a Warning About the Economy
- Apple Is Stepping Into the Metaverse. Will Anyone Care?
- Netflix Shareholders Vote to Reject Executive Pay Packages
- Meta Tells Office Workers to Come In Three Days per Week This Fall
- Will a Dollar General Ruin a Rural Crossroads?
- Volkswagen Reboots Its Groovy 60s-Era VW Bus. This Time It’s Faster, Roomier and Electric
- Americans Cash In on a Pickleball Obsession
- How Adidas Uncanceled Yeezy
- There’s More Bad News for Disgruntled Bud Light Consumers
Todays Open Interest Change
PREMIUM
Prepper
The drama in Hollywood is heating up just as there appeared to be a breakthrough for the creative industry. On Sunday, the Directors Guild of America inked a tentative three-year contract with major studios and streamers, though the Writers Guild of America and Screen Actors Guild are still holding out. In fact, the former has been on strike for six weeks, while the latter just authorized a potential strike if an agreement cannot be reached by June 30.
What are the fights about? At issue are wages and benefits, as well as royalty payments like global streaming residuals. Artificial intelligence is also at play, with the unions fighting for protections so that AI won't replace its members. Writers additionally say that tech companies like Netflix (NFLX) are hiring for shorter stints and lower wages, which is hindering the creative process. It comes as many studios absorb heavy losses associated with streaming, making them think twice about their bottom line during the negotiations.
A walkout by the Writers Guild of America has already shut down the final season of Netflix's Stranger Things, an HBO (WBD) prequel of Game of Thrones, and paused production on Disney's (DIS) Thunderbolts and Blade. A strike by actors would trigger a broader shutdown across Hollywood, while ramping up pressure on companies that need to support their streaming services and TV programming schedules. Other studios involved include Amazon (AMZN), Apple (AAPL), NBCUniversal (CMCSA), Paramount (PARA) and Sony (SONY) - under the umbrella of the Alliance of Motion Picture and Television Producers.
What's next? "For now, the studios/streamers aren't in a rush to be flexible because the strike could eventually allow them to shed unprofitable long-term deals," writes SA analyst The Entertainment Oracle, "but that's also a dangerous long-term game." If prolonged, studios could turn to reality or unscripted shows, and internationally produced content, but the financial impacts will eventually catch up. Moody's has warned that an extended strike could hurt the credit ratings of "weakly positioned" media companies, while Paramount CEO Bob Bakish has said that the situation will "ultimately depend on the duration of the strike." (16 comments)
Apple (AAPL) unveiled its mixed-reality headset at its annual Worldwide Developers Conference on Monday, ushering in a new era of what CEO Tim Cook called "spatial computing." Unlike joystick-powered rival devices like the Meta Quest (META), Apple's headset relies on hand tracking, with the user gesturing in midair to control the interface. However, the new super-premium device was priced at $3,499, and the overwhelming majority of WSB subscribers feel that the product is too niche for the market, with the stock closing down 0.8% after hitting a new all-time high. As previously mentioned, SA analyst Ash Anderson said WWDC would likely be a "sell the news" event for Apple following its biggest product launch in nearly a decade. (608 comments)
The SEC has sued cryptocurrency exchange Binance and its CEO Changpeng Zhao for allegedly violating U.S. securities regulations. The news pushed cryptocurrency prices lower, with Bitcoin (BTC-USD) down 3.8% at $25.78K today and ether (ETH-USD) 2.7% lower at $1.82K. Thirteen charges were filed against Binance and CZ, as he is known, including deceiving investors about the sufficiency of its systems to detect and control manipulative trading. The SEC also accused the platform of taking insufficient steps to prohibit U.S. investors from accessing its unregulated exchange. Binance is disputing the allegations, saying it is "disappointed" with the SEC suit and "will vigorously defend" its business. (45 comments)
New plans from General Motors (GM) will see it invest more than $1B in two of its manufacturing sites in Flint Michigan. The investment will bolster the Detroit automaker's U.S. manufacturing operations, which include more than 50 assembly, stamping, propulsion and component plants and parts distribution centers nationwide. It will also highlight the company’s commitment to continue providing customers a strong portfolio of ICE vehicles for years to come. The rapidly changing automotive market was recently discussed by SA analyst Manuel Paul Dipold, who takes a deeper dive into GM's future and market share. (16 comments)
Today's Markets
In Asia, Japan +0.9%. Hong Kong -0.1%. China -1.2%. India flat.
In Europe, at midday, London -0.2%. Paris -0.2%. Frankfurt -0.1%.
Futures at 7:00, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -2% to $70.74. Gold +0.3% to $19789.80. Bitcoin -3.6% to $25,790.
Ten-year Treasury Yield -3 bps to 3.66%
Today's Economic Calendar
No events scheduled
Companies reporting earnings today »
What else is happening...
Supreme Court rejects oil firms' challenge to California offshore fracking ban.
OPEC+ meeting failure? Saudi output cut fails to sustain oil price gains.
‘Forever chemicals’ trial delayed as 3M (MMM) negotiates a settlement.
Intel (INTC) to sell 35M Mobileye (MBLY) shares in secondary offering.
Taiwan Semiconductor (TSM) eyes 3%-6% price hikes starting 2024.
Apollo Global (APO) to invest $2B in AT&T's (T) wireless carrier unit.
Bed Bath & Beyond (OTCPK:BBBYQ) eyes sale of Buybuy Baby.
Elon Musk's Neuralink valued at $5B after private stock trades.
Spotify (SPOT) announces cuts at global podcast division.
Advertising watch: Twitter U.S. sales reportedly sink 59%.