Benzinga Before The Bell: iPhone 14 Might Be Costlier, Coinbase Face Another SEC Probe, Binance Sees Crypto User Growth And Other Top Financial Stories Thursday, August 11

Reuters

Binance Says Worldwide Inflation Is Driving Crypto User Growth

• A senior executive at cryptocurrency exchange Binance attributes its growing user base to rising inflation across the globe.
• “Now that we are seeing inflation ramping up worldwide, we are seeing that more and more people are seeking cryptocurrency, like bitcoin, as a way to protect themselves from inflation,” said Maximiliano Hinz, head of Binance Latin America, in an interview with Reuters on Wednesday.
• Hinz named Argentina as an example of this phenomenon. While the country’s annual inflation rate is 90%, it has grown into one of Binance’s top markets, along with Brazil and Mexico, the Binance executive said.

• While speculation of Elon Musk’s renewed interest in Twitter, Inc. (NYSE: TWTR) is gaining ground, a report suggests that the Tesla, Inc. (NASDAQ: TSLA) CEO has sought additional information from the social media platform.
• In a letter filed under seal on Tuesday, Musk’s legal team has asked Twitter to turn over the names of its employees who are involved in calculating spam account counts, Reuters reported, citing a source familiar with the matter.
• The billionaires’ legal team has reportedly reasoned that this would help them question the concerned employees.

• Alphabet (NASDAQ:GOOGL) Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Fiber aims to launch its high-speed internet service to multiple cities in Arizona, Colorado, Idaho, Nebraska, and Nevada over the next several years.
• Google took on internet service stalwarts like Comcast Corp (NASDAQ: NASDAQ:CMCSA) and AT&T Inc (NYSE: T) in 2010 as the government failed to drive the industry toward faster speeds at lower costs.
• But Google, in 2015, separated its core business from other bets such as Fiber.

• Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google objected to developing a self-regulatory body for the social media sector in India to hear user complaints.
• However, Meta Platforms Inc’s (NASDAQ: META) Facebook and Twitter Inc (NYSE: NYSE:TWTR) backed the proposal.
• However, the lack of consensus among the tech giants increases the likelihood of a government panel, something that Facebook and Twitter detest.

Wall Street Journal

Baby Formula Startup Seeks To Compete Abbott With 15% Market Share: Report

• Wall Street Journal reported that baby formula startup ByHeart is seeking to register two additional facilities with the FDA to increase its production as the U.S. continues to face shortages.
• Co-founders Ron Belldegrun and Mia Funt said that if the agency completes the registration, ByHeart could expand manufacturing and operations well before the company’s original plans.
• A spokeswoman for the FDA said the agency is reviewing several such requests from formula manufacturers seeking to expand. The FDA would oversee such facilities.

Bloomberg

Cisco Falls Prey To Cyber Breach Linked To Lapsus$: Report

• Cisco Systems, Inc (NASDAQ: NASDAQ:CSCO) disclosed becoming aware of being a cyberattack victim on May 24.
• A hacker repeatedly attempted to access Cisco’s corporate network.
• Cisco acknowledged that the hacker aimed to encrypt files, Bloomberg reports.
• Cisco became aware after the hacker leaked a list of the files it had stolen on the dark web.

• According to data from AAA, U.S. average retail gasoline prices dropped below $4 a gallon, the lowest level since early March, reported Bloomberg.
• According to data released on Thursday, prices were at $3.99, maintaining a pattern of decline that has lasted over two months.
• Recent fuel consumption has been lower than it was in the summer of 2020 when the nation was grappling with the pandemic.

• The U.S. Justice Department prepared to prosecute Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google by September for illegally dominating the digital advertising market.
• Lawyers with the DOJ’s antitrust division questioned publishers in another round of interviews to procure additional details for the complaint.
• The Trump government-led scrutiny into Google’s ad tech market dominance alleged exclusive distribution deals with wireless carriers and phone makers to thwart competition.

• HSBC Holdings (LON:HSBA) Plc’s (NYSE: HSBC) top shareholder, Ping An Insurance Group Co, isn’t convinced by pushback on HSBC’s spinoff of its Asia operations.
• The shareholder argues that HSBC requires urgent and radical change, Bloomberg reported citing a person familiar with its views.
• The report says that Ping An estimates the spinoff would generate an additional market value of $25-$35 billion, release $8 billion in capital requirements, and save on headquarter and infrastructure costs.

• Adani Enterprises Ltd, the flagship company of the Adani Group — plans to invest $5.2 billion to set up an alumina refinery in the eastern Indian state of Odisha, reported Bloomberg.
• The refinery will bear an annual capacity of 4 million tons, as per a statement by the local government, it said.
• Why It Matters: Gautam Adani, who is the founder and the Chairman of the Adani Group, had set up a subsidiary named Mundra Aluminium Ltd. in December that signaled his ambitions in the sector, the report said.

Benzinga

Samsung Unveils Premium Foldable Smartphones

• Samsung Electronics (LON:0593xq) Co, Ltd (OTC: SSNLF) showcased its latest high-end foldable smartphones on August 10, keeping prices at the same level as last year’s.
• Counterpoint Research forecasts global shipments of foldable smartphones to grow to 16 million units this year, up from 9 million foldable shipped last year.
• Samsung held a 62% market share in foldable smartphones in the first half of 2022, followed by Huawei at 16% and Oppo at 3%. Counterpoint forecast Samsung’s share in the second half will be around 80% after the new releases.

• Major coins rallied on Wednesday after July consumer price index data indicated a slowdown in inflation. The global cryptocurrency market cap rose 3.9% to $1.1 trillion at press time.
• Why It Matters: Among the major coins, Ethereum led in gains — rising nearly 9% intraday, compared with Bitcoin’s 4% gains.
• Risk assets shot up as data from the U.S. Labor Department indicated that headline CPI rose 8.5% in July compared with 9.1% in June. The number was below economist estimates of an 8.7% rise. At press time, the S&P 500 and Nasdaq futures rose 0.2% and 0.3%, respectively.

• Apple Inc (NASDAQ: NASDAQ:AAPL) could raise the prices of the upcoming iPhone 14, according to the analyst Ming-Chi Kuo.
• Kuo said on Twitter that the increase in the average selling price, or ASP, of the upcoming iPhone means that Hon Hai Precision Industry Co., Ltd (OTC: HNHPF), will be among the “winners.”
• The Taiwan-based analyst said that in his estimates the iPhone 14 series ASP would rise by nearly 15% in comparison to the iPhone 13 series ASP to between $1,000 and $1,050.

• Deliveries of Warren Buffett-backed BYD’s (OTC: BYDDF) blade batteries to Tesla Inc’s (NASDAQ: TSLA) Berlin factory have already commenced, reported CnEVPost citing Sina Tech.
• There have been several rumors that BYD will supply batteries to Tesla since last August.
• Deliveries: The first batch of Tesla vehicles equipped with BYD blade batteries are likely to roll off the assembly line within a month at the earliest, according to the report. At present, Tesla’s Berlin plant mainly produces Model Y.

• SpaceX, a company led by Tesla Inc (NASDAQ TSLA) CEO Elon Musk, will not receive support under the Federal Communication Commission’s Rural Digital Opportunity Fund program.
• The commission said in a statement Wednesday that it was rejecting SpaceX’s long-form application to receive support under the subsidy fund. FCC also rejected the application of LTD Broadband, an operator of 250 tower sites in Iowa, Minnesota, Missouri and Nebraska, among other locations.
• “The Commission determined that these applications failed to demonstrate that the providers could deliver the promised service.”

• Crypto exchange Coinbase Global Inc (NASDAQ: COIN) said it is being investigated by the U.S. Securities and Exchange Commission (SEC) over a number of its products.
• The company in its most recent quarterly report stated that it received investigative subpoenas from the SEC for documents and information about certain customer programs, operations and existing and future products.
• These include Coinbase’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.

• Sonos Inc (NASDAQ: SONO) shares are plunging in Wednesday’s after-hours session after the company reported weak top-line results, issued guidance below analyst estimates, and announced a CFO transition.
• Sonos said fiscal third-quarter revenue decreased 1.8% year-over-year to $371.8 million, which missed the estimate of $419.34 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 19 cents per share, which beat the estimate of 7 cents per share.
• “We have seen the macroeconomic backdrop become significantly more challenging for us starting in June as the dollar’s appreciation and high inflation have adversely affected consumer sentiment globally, particularly in the categories in which we play,” said Patrick Spence, CEO of Sonos.

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