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MEF BUSINESS NEWS 23 MAY 2024 Nvidia shares surged after a strong sales forecast and better-than-expected first-quarter results, driven by growth in its data-center division. The chipmaker at the center of an artificial intelligence boom, anticipates second-quarter revenue of $28 billion, surpassing analysts’ predictions. Nvidia’s stock, already up 92% this year, rose 7.8% in extended trading, breaking $1,000 for the first time. Nvidia’s market value exceeds $2.3 trillion. CEO Jensen Huang highlighted the AI boom as a new industrial revolution. The company announced a 10-for-1 stock split and a 150% increase in its quarterly dividend. ———————————— BHP shares dropped nearly 3% in Australia after its latest £38.6bn all-share offer for Anglo American initiated another week of takeover talks. Anglo American rejected the bid over structural concerns but agreed to continue discussions. Analysts criticized the offer, citing excessive synergy and execution risks. The decline in BHP’s share price impacted the bid’s value. ——————————— Pound volatility surged as traders prepared for an early UK election on July 4, announced by Prime Minister Rishi Sunak. Implied volatility rose over 20 basis points, the most since mid-April. With polls favoring Labour leader Keir Starmer, this market reaction shows election preparations. The pound, outperforming all G-10 currencies except the dollar this year, gained earlier after slower-than-expected April inflation at 2,3% — potentially delaying Bank of England rate cuts. —————————— Capital Group, known for its American Funds, is partnering with private-equity giant KKR to enter the private investments market. They plan to launch hybrid funds investing in both public and private assets, with the first two strategies debuting next year. Targeting mass-affluent clients with investments between $100,000 and $1 million, the new funds aim to tap into the significant assets held in wealth accounts, marking a new venture for alternative asset management. ————————— The EU plans to tighten sanctions on Belarus, closing a loophole that allowed Russia to import luxury cars and other banned Western goods via its ally. Previous sanctions on Belarus were weaker, enabling it to act as a conduit for goods amid the Ukraine war. The new measures will ban exports of military-use technology and liquefied natural gas to and through Belarus, and halt imports of Belarusian diamonds, mirroring a ban on Russian stones. —— —— MEF MOBILE NEWS 23 MAY 2024 Singtel annual profit more than halved on a 2.3 billion dollar impairment charge linked to its troubled Australian unit Optus. The drop was 64 per cent. Excluding the one-time charge, net profit rose 10 per cent, boosted by higher contributions from regional associates including Airtel and Advanced Info Service. ————————- Globe Telecom fintech app GCash may go public in the Philippines next year, with CEO Ernest Cu expressing openness to new investors and even an oversea listing. Cu, who chairs the holding company of GCash, mentioned a target timeframe of 2025 for the IPO. While the preference is for Philippine, a dual listing is being considered, possibly in the US, to leverage liquidity advantages. ——————— Swedish gear maker Ericsson is evaluating the possibilities to export telecom network equipment from the Indian market, the Economic Times reported citing a senior company executive. Under the “Make in India” programme, Ericsson earlier used to export 5G-ready telecom equipment from its manufacturing facility in Pune, Maharashtra, to markets in Southeast Asia. ————————— At the 6G Global Summit in London, regulatory authorities from various markets discussed their expectations and challenges in deploying the next generation of mobile network technology. One key requirement highlighted was the ability to share spectrum with incumbent services. Representatives from the US, UK, Japan, India, Bahrain, and the European Union participated in sessions where ambitions for 6G varied. However, there was consensus on 6G being a network of networks incorporating space-based technology and emphasizing environmental sustainability. The UK and US emphasized the need to share spectrum bands with existing services in their assessments of the 6G era. —————————— AT&T’s network chief, Chris Sambar, advocated for the replacement of copper lines with fiber in certain US states during a forum in Washington DC. Sambar highlighted the varying regulatory frameworks across states. As a carrier of last resort in states like California, AT&T requires permission to retire copper-based landline service. The California Public Utilities Commission issued a proposal rejecting AT&T’s request, to be voted on in June. Sambar acknowledged the regulatory hurdles faced by providers like AT&T and Verizon in retiring copper lines across multiple states. —— —— MEF TECH NEWS 23 MAY 2024 Nvidia’s robust earnings report — I gave you the details in our previous bulletins — led to a more than 7% surge in its stock during after-hours trading, dispelling worries about a slowdown in data-center spending. Asian semiconductor suppliers like SK Hynix and Taiwan Semiconductor Manufacturing saw notable gains in Asia’s stock markets. In the US, hardware stocks, including server makers and chipmakers such as Super Micro Computer, Dell Technologies Broadcom, Marvell Technology and Advanced Micro Devices also experienced significant increases in after-hours trading. —————————- Lenovo reported its third consecutive quarter of better-than-expected profit, with net income more than doubling to $248 million for the March quarter, exceeding analyst estimates. Sales also surpassed expectations at $13.8 billion. The Beijing based company’s infrastructure solutions group achieved record revenue driven by increased AI investment from customers, despite an operating loss and supply shortages in AI accelerators and other server equipment. Lenovo saw a nearly 8% increase in PC shipments in the March quarter, though challenges persist in the Chinese market. ———————- Snowflake has surpassed sales estimates for the current quarter, indicating potential growth acceleration driven by new AI-oriented products. The data cloud company forecasts product revenue of $805 million to $810 million, exceeding analysts’ expectations. Snowflake also raised its fiscal year product sales forecast. However, concerns persist about slowing revenue growth and uncertainty regarding customer consumption in the second half of the year. ——————— News Corp. has struck a deal with OpenAI, allowing the use of content from its publications like the Wall Street Journal and Barron’s in OpenAI’s products. The partnership follows OpenAI’s recent agreements with other media companies. News Corp. will also provide journalistic expertise to maintain high standards. The deal, estimated at over $250 million over five years, marks a significant collaboration in content sharing and journalism standards. ——————— The US fund KKR has reportedly secured a loan of around 200 million Australian dollar for MYOB, an Australian accounting software firm acquired by the private equity firm in 2019, Bloomberg reports. The loan, arranged with private credit lenders, includes a payment-in-kind element, allowing the borrower to capitalize interest costs by adding them to the principal amount. —— ——
MEF BUSINESS NEWS 23 MAY 2024 Nvidia shares surged after a strong sales forecast and better-than-expected first-quarter results, driven by growth in its data-center division. The chipmaker at the center of an artificial intelligence boom, anticipates second-quarter revenue of $28 billion, surpassing analysts’ predictions. Nvidia’s stock, already up 92% this year, rose 7.8% in extended trading, breaking $1,000 for the first time. Nvidia’s market value exceeds $2.3 trillion. CEO Jensen Huang highlighted the AI boom as a new industrial revolution. The company announced a 10-for-1 stock split and a 150% increase in its quarterly dividend. ———————————— BHP shares dropped nearly 3% in Australia after its latest £38.6bn all-share offer for Anglo American initiated another week of takeover talks. Anglo American rejected the bid over structural concerns but agreed to continue discussions. Analysts criticized the offer, citing excessive synergy and execution risks. The decline in BHP’s share price impacted the bid’s value. ——————————— Pound volatility surged as traders prepared for an early UK election on July 4, announced by Prime Minister Rishi Sunak. Implied volatility rose over 20 basis points, the most since mid-April. With polls favoring Labour leader Keir Starmer, this market reaction shows election preparations. The pound, outperforming all G-10 currencies except the dollar this year, gained earlier after slower-than-expected April inflation at 2,3% — potentially delaying Bank of England rate cuts. —————————— Capital Group, known for its American Funds, is partnering with private-equity giant KKR to enter the private investments market. They plan to launch hybrid funds investing in both public and private assets, with the first two strategies debuting next year. Targeting mass-affluent clients with investments between $100,000 and $1 million, the new funds aim to tap into the significant assets held in wealth accounts, marking a new venture for alternative asset management. ————————— The EU plans to tighten sanctions on Belarus, closing a loophole that allowed Russia to import luxury cars and other banned Western goods via its ally. Previous sanctions on Belarus were weaker, enabling it to act as a conduit for goods amid the Ukraine war. The new measures will ban exports of military-use technology and liquefied natural gas to and through Belarus, and halt imports of Belarusian diamonds, mirroring a ban on Russian stones. —— —— MEF MOBILE NEWS 23 MAY 2024 Singtel annual profit more than halved on a 2.3 billion dollar impairment charge linked to its troubled Australian unit Optus. The drop was 64 per cent. Excluding the one-time charge, net profit rose 10 per cent, boosted by higher contributions from regional associates including Airtel and Advanced Info Service. ————————- Globe Telecom fintech app GCash may go public in the Philippines next year, with CEO Ernest Cu expressing openness to new investors and even an oversea listing. Cu, who chairs the holding company of GCash, mentioned a target timeframe of 2025 for the IPO. While the preference is for Philippine, a dual listing is being considered, possibly in the US, to leverage liquidity advantages. ——————— Swedish gear maker Ericsson is evaluating the possibilities to export telecom network equipment from the Indian market, the Economic Times reported citing a senior company executive. Under the “Make in India” programme, Ericsson earlier used to export 5G-ready telecom equipment from its manufacturing facility in Pune, Maharashtra, to markets in Southeast Asia. ————————— At the 6G Global Summit in London, regulatory authorities from various markets discussed their expectations and challenges in deploying the next generation of mobile network technology. One key requirement highlighted was the ability to share spectrum with incumbent services. Representatives from the US, UK, Japan, India, Bahrain, and the European Union participated in sessions where ambitions for 6G varied. However, there was consensus on 6G being a network of networks incorporating space-based technology and emphasizing environmental sustainability. The UK and US emphasized the need to share spectrum bands with existing services in their assessments of the 6G era. —————————— AT&T’s network chief, Chris Sambar, advocated for the replacement of copper lines with fiber in certain US states during a forum in Washington DC. Sambar highlighted the varying regulatory frameworks across states. As a carrier of last resort in states like California, AT&T requires permission to retire copper-based landline service. The California Public Utilities Commission issued a proposal rejecting AT&T’s request, to be voted on in June. Sambar acknowledged the regulatory hurdles faced by providers like AT&T and Verizon in retiring copper lines across multiple states. —— —— MEF TECH NEWS 23 MAY 2024 Nvidia’s robust earnings report — I gave you the details in our previous bulletins — led to a more than 7% surge in its stock during after-hours trading, dispelling worries about a slowdown in data-center spending. Asian semiconductor suppliers like SK Hynix and Taiwan Semiconductor Manufacturing saw notable gains in Asia’s stock markets. In the US, hardware stocks, including server makers and chipmakers such as Super Micro Computer, Dell Technologies Broadcom, Marvell Technology and Advanced Micro Devices also experienced significant increases in after-hours trading. —————————- Lenovo reported its third consecutive quarter of better-than-expected profit, with net income more than doubling to $248 million for the March quarter, exceeding analyst estimates. Sales also surpassed expectations at $13.8 billion. The Beijing based company’s infrastructure solutions group achieved record revenue driven by increased AI investment from customers, despite an operating loss and supply shortages in AI accelerators and other server equipment. Lenovo saw a nearly 8% increase in PC shipments in the March quarter, though challenges persist in the Chinese market. ———————- Snowflake has surpassed sales estimates for the current quarter, indicating potential growth acceleration driven by new AI-oriented products. The data cloud company forecasts product revenue of $805 million to $810 million, exceeding analysts’ expectations. Snowflake also raised its fiscal year product sales forecast. However, concerns persist about slowing revenue growth and uncertainty regarding customer consumption in the second half of the year. ——————— News Corp. has struck a deal with OpenAI, allowing the use of content from its publications like the Wall Street Journal and Barron’s in OpenAI’s products. The partnership follows OpenAI’s recent agreements with other media companies. News Corp. will also provide journalistic expertise to maintain high standards. The deal, estimated at over $250 million over five years, marks a significant collaboration in content sharing and journalism standards. ——————— The US fund KKR has reportedly secured a loan of around 200 million Australian dollar for MYOB, an Australian accounting software firm acquired by the private equity firm in 2019, Bloomberg reports. The loan, arranged with private credit lenders, includes a payment-in-kind element, allowing the borrower to capitalize interest costs by adding them to the principal amount. —— ——
MEF