Top Stories Tuesday, Aug 22: S&P Slashes Ratings Of 5 US Banks, SEC Fines Fintech Adviser Titan For Misleading Crypto Claims, Microsoft Modifies Activision Blizzard Proposal

Benzinga

S&P Slashes Ratings Of 5 US Regional Banks Facing Growing Challenges

• S&P Global Ratings has cast a spotlight on the challenges faced by several U.S. regional banks, resulting in a series of downgrades that have reverberated through the financial sector.
• According to the renowned rating agency, the Federal Reserve’s tight grip on monetary policy is now putting a strain on the funding, liquidity, and revenue of many U.S. banks.
• The impact of higher interest rates on borrowers is becoming evident through rising nonperforming assets, delinquencies, and charge-offs, approaching historical averages, according to S&P Global Ratings.

YouTube Sets A New Beat, Unveils Pioneering AI Music Principles With Universal Music Group

• Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube unveiled its inaugural AI music principles, underlining a deepened commitment to responsible innovation in the music arena, extending the video-sharing platform’s partnership with major players like Universal Music Group.
• The collaborative AI principles emphasize a shared vision, according to which both YouTube and its music industry partners aim to leverage AI’s transformative capabilities in the music domain responsibly. 

SEC Slaps Fintech Adviser Titan For Misleading Crypto Claims: A Look at the New Marketing Rule

• Titan Global Capital Management USA LLC, a New York-based fintech investment adviser, has agreed to pay over $1 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC). 
• The charges pertain to misleading statements made by Titan about performance metrics and the custody of clients’ crypto assets. 

Big Pharma Price-Fixing: Teva and Glenmark’s $255M Settlement Shines Light on Industry Issues

• Drugmaker Teva Pharmaceutical Industries Limited (NYSE:TEVA) has agreed to pay $225 million in criminal fines to settle charges related to price fixing of three medications, including a generic cholesterol drug, pravastatin.
• The U.S. Department of Justice announced the settlement on Monday. This fine is the largest ever for a domestic antitrust case.

US Appeals Court Upholds Dismissal of Lawsuit Against Spirit AeroSystems Over Boeing’s 737 MAX Production Claims

• A U.S. appeals court upheld the dismissal of a lawsuit targeting Spirit AeroSystems Holdings Inc (NYSE:SPR), a supplier to Boeing Co (NYSE:BA). 
• The lawsuit accused Spirit of concealing information from investors about 737 MAX production reductions after the tragic crashes in 2018 and 2019.

FDA Greenlights Pfizer’s RSV Vaccine: Moms Can Now Protect Babies Before Birth

• Monday, the FDA approved Pfizer Inc’s (NYSE:PFE) Abrysvo (Respiratory Syncytial Virus Vaccine), the company’s bivalent RSV prefusion F (RSVpreF) vaccine, to prevent the infection in infants from birth up to six months of age by active immunization of pregnant individuals at 32 through 36 weeks gestational age.
• First and only U.S. approval of a maternal vaccine to help protect infants at birth through six months of life from lower respiratory tract disease (LRTD) and severe LRTD due to RSV.

Apollo Funds Acquire Majority Stake In Composite Advanced Technologies For Undisclosed Sum

• Apollo Global Management Inc (NYSE:APO) said that Apollo-managed funds (the Apollo Funds) had acquired a majority interest in Composite Advanced Technologies Inc (CATEC). The financial terms were not disclosed.
• CATEC provides compressed natural gas (CNG), renewable natural gas (RNG), and hydrogen transportation and storage solutions in the U.S. 

 

New York Post

Trudeau Calls Out Mark Zuckerberg’s Facebook Amid Canada’s Burning Crisis

• Canadian Prime Minister Justin Trudeau has taken a stand against Mark Zuckerberg-led Meta Platforms Inc (NASDAQ:META), criticizing its decision to block news articles on Facebook at a time when Canada is grappling with devastating wildfires. 
• Due to a newly instituted law, the company’s recent action restricts Canadian users from accessing local news.

 

CNBC

Microsoft Modifies Activision Blizzard Purchase After UK Regulatory Setback

• Microsoft Corp (NASDAQ:MSFT) recently presented a revised proposal to purchase Activision BlizzardInc (NASDAQ:ATVI) after U.K. regulators quashed its original bid. 
• The updated terms come in response to regulatory challenges the tech titan encountered not only in the U.K. but also in the U.S. and Europe following its announcement of a whopping $69 billion acquisition bid in early 2022.

Gold Rush In Weight Loss Industry Impacts Retailers With Pharmacy Businesses

• Retailers with pharmacy businesses, including major players like Walmart Inc (NYSE:WMT), Kroger Company (NYSE: KR), and Rite Aid Corp (NYSE:RAD), are also seeing a boost in sales due to increased demand for prescription weight loss drugs.
• However, while this surge in popularity has the potential to drive foot traffic into stores, analysts noted that the profitability of these blockbuster treatments is rather minimal for retail pharmacies, and in some cases, they might even come with margin challenges.

 

TechCrunch

Amazon’s Fire TV Channels App Ignites Rivalry With Netflix, Disney

• Amazon.Com Inc (NASDAQ:AMZN) has unveiled its latest offering, the Fire TV Channels app, aimed at providing Fire TV users with a comprehensive selection of over 400 free ad-supported TV (FAST) channels fueling rivalry with the likes of Netflix Inc (NASDAQ: NFLX) and Walt Disney Co (NYSE:DIS).
• The company initially launched the Fire TV Channels initiative in May. It offered a unified platform for users to seamlessly explore many live and on-demand titles, spanning various genres such as sports, entertainment, and cooking. 

Europe Dictates Digital Change: How Meta’s Latest Moves Comply with DSA

• Facebook and Instagram parent Meta Platforms Inc (NASDAQ: META) launched non-personalized content streams for users within the European Union. 
• This significant move aligns with the European bloc’s revamped digital mandate, the Digital Services Act (DSA).

 

Reuters

Healthcare Software Firm Waystar Goes IPO Way With Potential $8B Valuation

• Waystar Inc, a provider of financial management software for hospitals and medical practices, is reportedly making strides toward an initial public offering (IPO) that could value the company up to $8 billion.
• The IPO is anticipated to materialize later this year or early in the next, contingent upon favorable market conditions. The valuation Waystar ultimately attains will also be contingent on market dynamics.

 

Earnings

Baidu’s Q2 Earnings: Strong Growth, Beats Expectations, Says Well-Positioned To Capitalize on AI

• Baidu Inc (NASDAQ: BIDU) reported a second-quarter FY23 revenue growth of 15% year-on-year to $4.697 billion, beating the consensus of $4.570 billion. 
• Baidu’s Non-GAAP earnings per ADS of $3.11 beat the consensus of $2.32.

Macy’s Posts Q2 Earnings Above Street View; Stock Slides On Warning About Persisting Macro Uncertainty

• Macy’s Inc (NYSE: M) reported a second-quarter FY23 sales decline of 8.4% year-on-year to $5.13 billion, beating the analyst consensus of $5.09 billion.
• Adjusted EPS of $0.26 beat the analyst consensus of $0.13.
• The company’s FY23 sales outlook is unchanged at $22.8 billion – $23.2 billion, against the consensus of $23.17 billion.

BJ’s Wholesale Club Beats On Earnings, But Revenue Misses Reflecting Shift In Consumer Behavior

• BJ’s Wholesale Club Holdings Inc (NYSE: BJ) reported a second-quarter FY23 sales decline of 2.9% year-on-year to $4.96 billion, missing the analyst consensus of $5.15 billion.
• Adjusted EPS of $0.97 beat the analyst consensus of $0.90.
• BJ’s Wholesale expects FY23 EPS of $3.80-$3.92 versus the consensus of $3.87. The company previously expected EPS to remain approximately flat year-over-year, including the 53rd-week benefit of low-teens cents per share.

Medtronic Lifts Annual Forecast On Better Than Expected Q1 Performance Across All Categories

• Medtronic Plc’s (NYSE: MDT) reported Q1 FY24 sales of $7.7 billion, up 4.5% Y/Y as reported and 6% organic, ahead of expectations, beating the consensus of $7.57 billion.
• The adjusted EPS of $1.20 increased by 6%, exceeding the consensus of $1.11.
• Medtronic raised its FY24 revenue growth and EPS guidance, and it expects FY24 organic revenue growth of 4.5% versus the prior range of 4.0%-4.5%.

Lowe’s Clocks Mixed Q2 Performance, Stock Rises On Reaffirmed Annual Outlook

• Lowe’s Companies Inc (NYSE: LOW) reported a second-quarter FY23 sales decline of 9.17% year-on-year to $24.96 billion, marginally missing the analyst consensus of $24.99 billion. Comparable sales decreased 1.6%.
• EPS of $4.56 beat the analyst consensus estimate of $4.49.
• Outlook: Lowe’s reaffirmed its FY23 revenue outlook of $87 billion – $89 billion, against the Street view of $88.08 billion.

Dick’s Sporting Goods Shares Are Down On Q2 Earnings Miss

• Dick’s Sporting Goods Inc (NYSE: DKS) Q2 sales grew 3.6% Y/Y to $3.22 billion, missing the analyst consensus of $3.23 billion.
• Adjusted EPS of $2.82, down 23% Y/Y, missed the analyst consensus of $3.81.
• FY23 Outlook: DKS reduced the adjusted EPS outlook to $11.50-$12.30 from $12.90-$13.80 vs. the consensus of $13.49.