EV Slowdown Hits LG Energy, Paramount-Skydance Merger, and More
LG Energy's Profit Drop, Paramount-Skydance Deal, and Texas Storms
Battery Maker LG Energy’s Profit Sinks on Global EV Slowdown - Bloomberg
LG Energy Solution Ltd. reported a 58% drop in Q2 operating profit from a year earlier, missing analyst estimates. Revenue dropped 30% to 6.2 trillion won. The company has been struggling with slowing sales of EVs and a drop in lithium prices tied to its selling prices. LG Energy has been losing share in the global EV battery market due to the growth of Chinese rivals. The price of batteries for EVs has fallen nearly $50 per kilowatt-hour from its high to around $100.
Skydance, Paramount to Merge (For Real This Time) - Bloomberg
Paramount Global board of directors has approved a merger with Skydance Media, with a deal expected to be announced within 24 hours
Shari Redstone is expected to cede control of her family’s media empire to David Ellison
Ellison revised his initial deal to placate other shareholders, reducing Redstone’s payday, but she still wants to sell to him
The deal will be subject to regulatory approval, which will take months at minimum
Redstone will have 45 days to shop for a better deal, with other bidders circling
Disguise, a technology company providing technology for Netflix and Amazon, commissioned more than half of all streaming TV shows in the first quarter of this year
Hollywood power players have withdrawn their support for Joe Biden, with Kamala Harris emerging as his most likely replacement
There is a case for optimism in Hollywood due to the extended contraction of the industry caused by Netflix’s slowdown and the dire state of the movie business
Some shareholders may still be unhappy with the valuation of Paramount and its new owners.
‘It’s All Hands on Deck’ as Beryl Bears Down on Texas Coast - Bloomberg
Tropical Storm Beryl is gaining strength and expected to become a hurricane before making landfall early Monday morning in south Texas.
The storm has top speeds of about 65 miles per hour and a hurricane warning is in effect for the Texas coast from Baffin Bay to San Luis Pass.
Beryl may bring up to 6 feet of water onto parts of the coast and cause a life-threatening storm surge of up to 10 inches of rain.
Samsung Union Steps Up Pressure Over Pay With Three-Day Strike - Bloomberg
Samsung Electronics workers are expected to walk off assembly lines on Monday, marking the biggest labor action in the South Korean conglomerate’s history.
The three-day walkout is an escalation from a single-day strike in early June and aims to disrupt production at Samsung’s semiconductor plants in Hwaseong, South Korea
Negotiations over pay and vacation time collapsed last month after a breakdown in pay talks
Samsung aims to convince Nvidia Corp. to use its high-end AI memory chips to staking a larger claim on a booming AI market
Union leaders have spent weeks encouraging members to join in the impending maneuver, and it is unclear how many workers will actually walk off the job
Any disruption in Samsung’s operations could have a ripple effect as it accounts for about 20% of the global DRAM market and around 40% of NAND flash, which is used in smartphones and servers
Analysts credit Samsung’s tight control of labor activism as a reason for its success in the electronics sector
What’s Next for the Apple Watch: Bigger Screens But a Similar Look - Bloomberg
Apple is planning notable changes to its original smartwatch line, including larger displays and thinner design.
The Series 10 and new Ultra 3 models will get a new chip, which could lay the groundwork for some AI enhancements down the road.
Apple has been developing technology to detect high blood pressure and sleep apnea that were slated for release this year, but the effort has run into some serious snags. The technology that measures hypertension hasn’t been as reliable as hoped during testing, and the blood-pressure feature hasn’t worked properly with the new Series 10 design. The feature is tied to a person’s blood oxygen saturation and can’t measure those levels due to an ongoing legal dispute with Masimo Corp.
Skydance Reaches Deal to Merge With Paramount - New York Times
Paramount has approved a deal to merge with Skydance, creating a new era for the company that owns CBS and the movie studio behind Paramount.
Many investors have opposed the deal, saying it would enrich Paramount’s chair, Shari Redstone, at the expense of other shareholders
The deal is a turning point for the Redstone family, whose fortunes have been intertwined with the rise and fall of the traditional entertainment industry
David Ellison will become the top power broker at Paramount, replacing the family that made its fortune in traditional entertainment largely replaced by one enriched by technology
National Amusements, the company holding Paramount’s voting stock in Paramount, will be acquired for roughly $1.75 billion in the merger
A tender offer will allow holders of Paramount’s nonvoting stock to cash out at roughly $15 per share
Investors who own voting stock will be able to sell at $23 per share at a premium to get rid of the company’s stock at a current price of $11.81
Meet David Ellison, the CEO of Skydance and Paramount’s New Owner - New York Times
David Ellison, the CEO of Skydance Media, has merged with Paramount to create a media empire that includes CBS, MTV, and the Paramount movie studio.
He is the son of Oracle founder Larry Ellison and has been involved in producing big-budget films like “Mission: Impossible” and “Star Trek Into Darkness.”
Mr. Ellison has a relatively undistinguished acting career but became a producer after giving up on acting and turned to producing in college
His family has considerable influence in Hollywood, with Larry Ellison personally backing his bid for Paramount and his sister and sister-in-law also being involved in showbusiness
Although he hasn’t publicly announced his plans for Paramount, he has discussed working on a streaming joint venture with another major entertainment company in the US
Shari Redstone, Paramount’s controlling shareholder, is enthusiastic about other aspects of the deal and sees the merger as a way to add financial capabilities and improve efficiency
Ellison plans to work with other major entertainment companies, including NBC and Universal, to expand his media empire.
New Plan to Target Russia’s Oil Revenue Brings Debate in White House - New York Times
Treasury officials want to impose penalties on tankers that help Russian oil evade sanctions
White House aides worry that risks making gasoline more expensive
Russia has circumvented the cap on oil exports to fund its war efforts
Economic advisers inside the White House worry that would push up U.S. gasoline prices
The dispute reflects a rare public instance of internal administration disagreement over inflation and Ukraine policy
proposed penalties on the Russian shadow fleet remain under review and are not imminent
No decisions have been made on the proposed action.
Young Couples Move in Together Early to Save on Rent - New York Times
Some young couples are choosing to move in together early in their relationships to save money on housing and living costs.
High housing costs are a major factor in this trend, with many young couples struggling to find affordable housing options and finding creative ways to share living spaces with roommates or other roommates.
Some couples are prioritizing quality time together and working on merging living styles to avoid conflicts between roommates, but not all relationships have to be like-minded and respect each other’s preferences.
A recent survey by Realtor.com found that 80% of Gen Z and 76% of millennial couples who have moved in with a romantic partner said finances or logistics played a role in their decision to share space with their other partner.
Students Target Teachers in Group TikTok Attack, Shaking Their School - New York Times
Some 20 educators were targeted by students impersonating their teachers on TikTok in the first known mass attack of its kind in the US.
Students posted derogatory and offensive videos, including pedophilia, racism, homophobia, and made-up sexual hookups among teachers
The incident is a significant escalation in how students impersonate, troll, and harass educators on social media
Social media has helped normalize anonymous aggressive posts and memes, leading some children to weaponize them against adults
Teachers are concerned about how students’ use of popular online tools is intruding on the classroom
Some states and districts have recently restricted or banned student cellphone use in schools to limit peer harassment and cyberbullying on Instagram, Snap, TikTok and other apps
Patrice Motz, a veteran Spanish teacher, was one of the educators targeted by fake TikTok accounts at Great Valley Middle School in Malvern, Pa.
Chinese stock markets decline as shipping companies sell off - Financial Times
Real wages for Japanese households fell for a 26th consecutive month in May due to inflation.
Rising energy prices and a weakening yen have contributed to higher inflation in Japan, a net energy importer, and further raised the cost of imports.
US President Joe Biden is campaigning in the battleground state of Pennsylvania to persuade voters he is fit for office while Democrats debate whether he should be replaced as the Democratic candidate. - Israeli Prime Minister Benjamin Netanyahu insists that any deal to free Israeli hostages must allow Israel to resume fighting and achieve all its war goals. Talks to reach a deal to release the hostages and end the war have been deadlocked for months. ּ- France’s snap election saw a leftwing surge defeat the far-right Rassemblement National party, with the Nouveau Front Populaire bloc winning the most seats in almost all votes. �- Wall Street lenders are expected to report second-quarter earnings, with investment banking revenues expected to rise by more than 30% from a year earlier.
Wall Street’s upbeat earnings expectations set high bar for US companies - Financial Times
US companies need to deliver the biggest rise in profits in over two years to avoid disappointing investors
S&P 500 stocks are expected to report year-on-year earnings growth of almost 9% in the three months to June, the biggest quarterly increase since early 2022
The tech rally has pushed stock valuations to their highest level in nearly three years, leaving room for disappointment if earnings fail to live up to expectations
Big Tech is expected to slow down its profit growth to an average of 30% year on year in Q3, down from 38% in Q2
Analysts expect an earnings pick-up from the rest of corporate America to support any further market gains
Valuations will remain roughly unchanged and earnings growth instead of tech-driven growth may be the driver
Historically, growth stocks with higher valuations have underperformed the market by 32 percentage points when missing forecasts
How Saudi Arabia’s MBC came to dominate Middle East streaming - Financial Times
Media group MBC is competing with Netflix to become the Middle East’s biggest streaming service
MBC dominates 22% of the $1bn streaming market through its Shahid division, ahead of regional rival Starz Play Arabia and 5% of Netflix
Shahid has 4.8mn paying subscribers and 20mn regularly watch its advertising-supported streaming service, attracting viewers with long-running dramas
The shift from television to streaming presents an opportunity for media companies to see what customers are watching and how much advertising they are exposed to
demographics and local talent are playing a role in MBC’s streaming bet, funding local talent and recruiting foreign producers and directors to make content
Management approach to making new programmes is constructive paranoia and difficult meetings with accountants to maintain reasonable spending levels
Sales and advertising revenues are improving, with Ramadan being a top period for advertising spending.
News updates from July 5: US economy adds 206,000 jobs; Keir Starmer appointed UK prime minister - Financial Times
Donald Trump distanced himself from the conservative policy blueprint Project 2025, which proposes ways to reshape the federal government if a Republican candidate is elected president in November.
Trump’s comments may be seen as an effort to appeal to more moderate voters in the run-up to the election
Big Tech stocks lifted Wall Street indices to record highs, with technology the best performing sector
Soft details in June’s non-farm payrolls report raise risks around an economic slowdown, which would have a bigger impact on domestically focused companies
Treasuries rallied as yields fell, with the 10-year Treasury note yield dropping 0.07 percentage points to 4.28%
Large UK stocks fell and gilts rallied after Labour claimed its first election victory since 2015
Bitcoin fell below $54,000 on Friday, the lowest level since February, as traders braced for sales from defunct Japanese exchange Mt Gox
New podcast series: China’s race to tech supremacy - Financial Times
China aims to lead the world in technology, including artificial intelligence, computer chips, robots, and electric cars.
The FT’s Tech Tonic podcast explores the reasons behind China’s emergence as a global technology leader and whether it will overtake the US in the global tech race.
James Kynge travels to Shenzhen, a hub for manufacturing and Chinese tech innovation, and follows Chinese electric vehicle maker BYD to Germany and Nigeria to witness the impact of Chinese technology dominance.
For AI Giants, Smaller Is Sometimes Better - Wall Street Journal
Tech giants and startups are using small or medium language models to make AI software cheaper, faster, and more specialized. These models are trained on less data and often designed for specific tasks. Smaller models cost less than $10 million to train and use fewer than 10 billion parameters. Microsoft, Google, and Apple have all released smaller models this year. OpenAI recently released a version of its flagship model that it says is cheaper to operate. Businesses and consumers are looking for ways to run generative AI-based technology more cheaply. Small models can answer questions for as little as one-sixth the cost of large language models in many cases. Fine-tuning small models on specific sets of data allows them to perform as effectively as large models at a fraction of the cost.
In an Era of Fakes, How to Know When Someone Online Is Real - Wall Street Journal
Personalized schemes to dupe internet users are on the rise
The single best step to determine someone’s identity online and protect yourself is to slow down
Tech companies are beginning to help, with Google, LinkedIn and Bumble introducing features to detect suspicious messages and users
Guidelines for operating online are changing, some old rules still apply
Before transferring funds, ask for your prearranged secret word.
Sam Altman Startup Names Former X Executive as First Head of Privacy - Wall Street Journal
Tools for Humanity has appointed Damien Kieran as its first head of privacy as the company faces regulatory scrutiny over its Worldcoin venture. Kieran left his job as chief privacy officer at Twitter after Elon Musk’s takeover of the social-media platform.- Worldcoin lets users download a wallet app that supports a digital identity known as World ID, which scans people’s eyes in exchange for cryptocurrency tokens.
Kieran faces the task of liaising with regulators globally and addressing concerns over how Worldcoin handles biometric data, which has raised eyebrows in countries such as Spain and Germany.
The Bavarian State Office for Data Protection Supervision launched a review of Worldcoin last year, citing the high sensitivity of the biometrically data it processes. Worldcoin tokens are distributed to users in countries where they are legally available, and nearly 6 million users across more than 160 countries have signed up for World ID.
How the Kindle Became a Must-Have Accessory (Again) - Wall Street Journal
TikTok’s literary subculture, BookTok, is giving e-readers the Stanley cup treatment. Kindle has become the gadget of choice among the community of book lovers. Kindle sales have grown in double-digit percentages for each of the past two years and are on track for similar gains this year. People under 45 are Kindle’s fastest-growing customer segment. BookTokkers share reading habits, book clubs, book challenges, library cards, and people’s reading setups. Kindle Unlimited, Amazon’s $12-a-month subscription service allows customers to borrow more than four million digital books. Kindle newbies are driving the sales growth, with about 60% of Kindle sales growth coming from people who’ve never owned one of the devices before. Print and ebook sales rose during the pandemic but have declined since, according to market-research firm Circana. Library checkouts have jumped 75% since 2019, reaching 370 million ebooks last year.
Apple Watch Is Becoming Doctors’ Favorite Medical Device - Wall Street Journal
Doctors are using the Apple Watch as part of diagnosing and managing heart-rhythm disorders in patients.
The Apple Watch is being used informally in medical care despite other approved devices being available to track the same metrics
Dr. Rod Passman, a cardiologist and professor of medicine at Northwestern Medicine, is conducting a six-year, National Institutes of Health-funded study to determine if data from the Watch can be used to reduce the time spent on blood-thinning medications for atrial fibrillation patients
Passman has received an exception to FDA rules to use the Watch to alert patients who have already been diagnosed with the disorder that they are having an irregular heartbeat
Many doctors are encouraging patients to buy an Apple Watch to monitor stress levels and assess stress levels
Apple shipped about 40 million of its watches in 2023 alone, making it a popular choice for healthcare professionals
Compliance with medical-monitoring devices is an issue, but doctors are opting for the Watch due to its simplicity, affordability, and ubiquity
Patients wear the Watch for an average of more than 14 hours a day.