Benzinga before the bell: Amazon waging price war on Tesco, Biden’s campaign promise to free cannabis prisoners, H&M exits Russia and other major financial stories Monday July 18

Reuters

GSK completes spin-off of its consumer healthcare business

  • GSK plc GSK completed the spin-off of the Consumer Healthcare business to form the Haleon Group.
  • Reuters reported that shares of Haleon began trading at 330 pence on Monday morning, giving the company a market valuation of around £30.5 billion ($36.4 billion).
  • The company’s initial price was in line with market expectations, according to two bankers involved in the deal. However, Haleon’s current valuation is below expectations.

Airbus CEO expects engine delivery delays to peak mid-year

  • Airbus SE EADSY Chief Executive Guillaume Faury expects engine supply delays that prevented aircraft deliveries from peaking in the middle of the year, Reuters reported.
  • Airbus has been forced to build several A320 narrow-body neo-family jets without engines to keep assembly lines running.
  • “It’s going to peak probably in the middle of the year, and then we think we’ll have more engines in the second half,” Faury told Flightglobal in an interview.

the wall street journal

Boeing ‘very close’ to delivering 787 Dreamliner after 2 years – provides update on 737 MAX status

  • Boeing Company BA is reportedly nearing the end of regulatory hurdles to resume deliveries of its 787 Dreamliner after a nearly two-year hiatus over some production flaws.
  • The US aircraft maker is “very close” to resuming deliveries of the jumbo jet, its commercial aircraft chief Stan Deal said at a press conference ahead of the Farnborough International Airshow near London, according to a Wall Street Journal report.
  • There will be no “additional rounds added” when it comes to Federal Aviation Administration (FAA) reviews for the 787 Dreamliner, Deal reportedly said.

Here’s why Stellantis is looking to end its joint venture in China

  • Stellantis SA STLA is set to end the joint venture responsible for manufacturing and distributing its Jeep brand in China and focus on selling imported Jeep vehicles in the country.
  • It would recognize a non-cash impairment charge of 297 million euros in its first-half results as a result of its decision.
  • Stellantis justified the lack of progress in its plan to acquire a majority stake in the joint venture with the Chinese Guangzhou Automobile Group Co,Ltd GNZUY.

Bloomberg

This Tesla and Ford supplier weighs 2 sites in Mexico for a $5 billion battery factory

  • Tesla, Inc. TSLA Battery supplier Contemporary Ameprex Technology Co. Ltd. (CATL) aims to build a manufacturing plant in Mexico at a project cost of $5 billion.
  • The Chinese company is considering two sites – Ciudad Juarez in Chihuahua and Saltillo in Coahuila, according to the report, citing people familiar with the matter. Both sites are near Texas, where Tesla has one of its newest Gigafactories.
  • Ciudad Juarez could be a relatively more attractive option, given its proximity to the San Jeronimo-Santa Teresa port of entry in the US state of New Mexico, Bloomberg said. This would provide CATL with a “route around the Texas border crossings,” he added.

FinancialTimes

TSMC overtakes Samsung in chip race by capitalizing on latter’s strengths

  • Taiwan Semiconductor Manufacturing Company Ltd. TSM reversed Samsung Electronics Co.,Ltd SSNLF within three years after the latter swore to become the first chip manufacturing foundry.
  • “We will be the world’s number one non-memory business” by 2030, Vice President Lee Jae-Yong, Samsung’s de facto chief, said in 2019. Since then, TSMC has added about eight points to its lead .
  • TSMC’s growing market share at the expense of Samsung prompted the latter to undergo a management restructuring.

PwC rejects audit and advisory split, forecasts record $50 billion annual revenue

  • The global chairman of PricewaterhouseCoopers said the company will post record revenue of around $50 billion this year as he defended against opting for an audit and advisory spinoff.
  • In an interview with the Financial Times, Bob Moritz said keeping the auditing and consulting industries together was key to attracting staff. The benefits of the model outweighed the difficulty of managing the risk of conflicts of interest between the two divisions.
  • The biggest constraint to expanding the business was being able to hire the right people rather than having access to capital or conflict-of-interest rules, Moritz said.

Benzinga

Dogecoin (DOGE) Daily Transactions Reach Highest Level in a Year

  • On Sunday, the number of daily transactions on the Dogecoin DOGE/USD blockchain hit a one-year high of 74,986.
  • According to BitInfoCharts blockchain data shared by Dogecoin creator Billy Markus on Twitter, the number of DOGE transactions saw a massive spike on July 17.
  • Some users attributed the sudden increase in daily DOGE transactions to the integration of posting memes on the MyDoge self-custodial wallet.

Oil soars as Joe Biden’s visit to Saudi Arabia ends without any solid commitment on increased production

  • Oil soared on Monday after falling 7% last week after US President Joe Biden concluded his historic visit to Saudi Arabia without any firm commitment to an increase in production in the oil-producing country. The weakness of the dollar also contributed to the rise in oil prices.
  • Although US energy envoy Amos Hochstein is convinced that producers in the Persian Gulf will increase production after the US president’s visit to Saudi Arabia, local ministers have argued that policy decisions will be based on market logic and within the OPEC+ coalition, which includes Russia, Bloomberg reported.
  • Benzinga’s take: At a time when US inflation was above 9%, any decline in oil prices is a win-win situation for the Biden administration. A rise in output would have further boosted US efforts to control inflation.

Amazon is waging a price war against Britain’s biggest supermarket chain: takeaways

  • Amazon.com, Inc. AMZN UK grocery aims to match prices of everyday items to API Tesco TSCDYintensifying rivalry with Britain’s biggest supermarket chain, reports the Business Times.
  • Amazon chose to fight Tesco’s Clubcard loyalty initiative in the produce, meat and fish categories.
  • Amazon has expanded its UK grocery business under its Amazon Fresh banner, reaching 19 stores, including one outside London in the town of Sevenoaks.

Liquid Ethereum Staking Solution Grows 200% Weekly As Merger Gets Tentative Date

  • Lido DAO LDO/USD, a staking solution for Ethereum ETH/USD +10.9%, is up 215% over the past week.
  • According to data from Benzinga Pro, LDO rose from a weekly low of $0.58 on July 12 to a high of $1.83 on July 17. Merge.

H&M begins to exit Russia citing operational difficulties

  • Swedish fashion giant Hennes & Mauritz AB HNNMY said he would leave Russia, citing operational challenges and an unpredictable future.
  • H&M has been present in Russia since 2009.
  • H&M said it could not conduct business under the current circumstances and many colleagues were affected.
  • As part of its liquidation process, the company plans to temporarily reopen physical stores for a limited period to sell remaining stock in Russia.

Biden says he’s ‘working on’ campaign promise to free cannabis prisoners

  • President Joe Biden told reporters Saturday night upon returning to the White House from Saudi Arabia that his administration was “working” to fulfill its campaign pledge to free nonviolent prisoners from cannabis, Marijuana Moment reported.
  • “I don’t think anyone should be in jail for using marijuana,” the president said, reiterating the campaign promise.
  • Biden told New York Post reporter Steven Nelson that “we’re working” on the matter. Apparently, the full answer was hard to fathom above the whirring Marine One helicopter that had just landed on the White House lawn.

Hong Kong’s Swire Pacific acquires Coca-Cola’s bottling operations in Vietnam and Cambodia

  • Hong Kong-based business conglomerate Swire Pacific Ltd said its wholly owned subsidiary, Swire Coca-Cola Limited, plans to acquire the packaging and distribution business of Coca-Cola Co KO in Vietnam and Cambodia.
  • The company will acquire Coca-Cola Indochine for $1.02 billion in cash.
  • The transactions will be Swire Coca-Cola’s first investments in Southeast Asia.

Coinbase gets regulatory approval in Italy

  • Coinbase Global Inc. PIECE OF MONEY has obtained approval from Italian regulators to provide continued crypto services to its resident, the cryptocurrency exchange said in a blog post.
  • The new requirement put in place by the Organismo Agenti e Mediatori (OAM) required that all companies offering crypto trading, custody or other services meet set criteria. COIN is among the first companies to meet these criteria.

More powerful MacBooks to come? Apple could launch models with M2 chips this fall

  • Apple Inc. AAPL MacBook Pro laptops with M2 Pro and M2 Max processors could arrive within months.
  • The Tim Cook-led tech giant has a fast schedule for both processors, according to Apple watcher Mark Gurman, AppleInsider reported.
  • The M2 Pro and M2 Max chips could arrive in 14-inch and 16-inch MacBook Pro models as early as fall or as early as 2023.

Coinbase customers withdraw $248 million worth of stablecoins amid liquidity fears

  • Coinbase Global Inc. PIECE OF MONEY clients recently withdrew a significant portion of their holdings after rumors of a potential “liquidity crunch” began circulating on social media.
  • On-chain data from CryptoQuant, first reported by CryptoSlate, revealed that $248 million worth of stablecoins left Coinbase on July 15. Essentially, the exchange lost 50% of its stablecoin reserves on Coinbase Pro in a single day.
  • Comparatively, exchanges like Binance only saw 1% of stablecoin reserves withdrawn on the same day.

Photo via Wikimedia Commons

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