Tuesday Morning Reads
- China’s Economy Moving Past Covid
- Top China Critic Becomes Its Defender
- Britain Is Getting Ready for Its Space Race
- Buy Your Used Car
- A Curveball Isn’t an Existential Threat
- Big Tech Was Their Enemy
- Puts It In ‘Tough’ Spot
- Is It Really Worth It?
A House antitrust subcommittee report due this week on big tech - Amazon.com (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Alphabet (GOOG, GOOGL) - is hinting toward breaking up the tech giants, according to a lawmaker in the GOP minority. “This proposal is a thinly veiled call to break up Big Tech firms. We do not agree with the majority’s approach,” says Republican congressman Ken Buck in a draft response seen by Reuters. He says he shares Democratic concerns about the companies' market power, but objects to requiring them to pursue a clear "single line of business."
Cisco (NASDAQ:CSCO) has been ordered to pay $1.9B in a patent infringement case. The U.S. district judge said the case was “not a close call,” ruling that Cisco infringed four patents belonging to Centripetal Networks but didn’t infringe on a fifth. The award includes $755.8M in actual damages, multiplied by 2.5 to reflect “willful and egregious” conduct from Cisco plus prejudgement interest. Cisco plans to appeal.
Warner Bros. (NYSE:T) delayed Dune until October 1, 2021 and shifted The Batman starring Robert Pattinson until March 4, 2022. The studio pulled Black Adam (starring Dwayne Johnson) and Minecraft from the release calendar. The newest sequel to The Matrix film series made the rare leap forward, from April 1, 2022 to Dec. 22, 2021. The Flash will move from June to November in 2022, and Shazam 2 leaves November 2022 for June 2, 2023.
Southwest Airlines (NYSE:LUV) is asking its union workers to accept pay cuts for the first time, to help the company avoid its first furloughs and/or layoffs. The company wants pay cuts on the table to avoid furloughs/layoffs through the end of next year. The passing of an Oct. 1 deadline tied to $25B the industry received in aid means struggling airlines are considering layoffs, and Southwest rivals United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) have gone ahead with more than 32,000 cuts.
Northern Star Resources (OTCPK:NESRF) has agreed to acquire smaller Australian rival Saracen Mineral Holdings (OTCPK:SCEXF) in a A$5.76B (US$4.14B) deal that will create a new top 10 global gold miner according to its ~A$16B in market valuation. Northern Star will own 64% of the combined entity and Saracen will own the remaining 36%. The deal comes after the two mining companies each acquired 50% stakes in Australia's giant KCGM operation, commonly known as the Super Pit, Australia's largest open cut gold mine.
What else is happening...
Halozyme (NASDAQ:HALO) expands license agreement with argenx (NASDAQ:ARGX) for Enhanze Technology.Oil pipeline operators offer new discounts as demand drops - Bloomberg.BHP (NYSE:BHP) buys Hess' (NYSE:HES) Shenzi oil field stake in $505M deal.Fortive (NYSE:FTV) spin-off Vontier (VNT) to join S&P 500.Iovance (NASDAQ:IOVA) pushes lifileucel's US application submission into next year.
Today's Economic Calendar
8:30 Goods and Services Trade
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:40 Powell: “Global Reset? Economics, Business and Policy in the Pandemic”
12:00 PM Fed's Harker: “Machine Learning”
1:00 PM Results of $52B, 3-Year Note Auction
2:00 PM Fed's Bostic Speech
6:00 PM Fed's Kaplan Speech
In Asia, Japan +0.5%. Hong Kong +0.9%. China closed. India +1.1%.
In Europe, at midday, London -0.5%. Paris -0.2%. Frankfurt -0.2%.
Futures at 6:20, Dow -0.1%. S&P -0.3%. Nasdaq -0.4%. Crude +0.9% to $39.59. Gold -0.2% to $1915.35. Bitcoin +