UK Authority Approves Microsoft's $69B Activision Blizzard Acquisition, Google Search Gets Generative AI Boost, Big Banks Earnings: Today's Top Stories

Benzinga - by Vandana Singh, Benzinga Editor.

Benzinga

Microsoft's $69B Activision Blizzard Acquisition Gets Green Light From UK Antitrust Regulator

• The Competition and Markets Authority (CMA) in Britain has approved the proposed $69 billion acquisition of Activision Blizzard Inc (NASDAQ: ATVI) by Microsoft Corporation (NASDAQ: MSFT).
• This approval comes after Microsoft made concessions to allay competition fears.
• Microsoft has secured the approval after agreeing to sell Activision's game streaming rights, including the popular "Call of Duty," to Ubisoft Entertainment.

• In an innovative move, Google is trialing generative AI functionalities for its search tool, aiming to allow users to generate images and write drafts straight from the search engine.
• Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google announced on Thursday that it is exploring new avenues to boost its search engine's utility. The tech giant's users could soon create an image or draft a write-up using generative AI.

• Cassava Sciences Inc (NASDAQ: SAVA), the Alzheimer-focused firm, is facing further controversy as a recent investigation by the City University of New York (CUNY) has implicated neuroscientist Hoau-Yan Wang, a long-time collaborator of Cassava, in scientific misconduct related to 20 research papers.
• The CUNY investigative committee uncovered several instances of improperly manipulated images, particularly in a 2012 publication in The Journal of Neuroscience, which suggested that simufilam could mitigate the pathological effects of beta-amyloid, a protein associated with Alzheimer's disease.

• Ford Motor Company (NYSE: F) is reportedly struggling with contract negotiations with the United Auto Workers (UAW) union, hinting that it may have hit its maximum limit for financial concessions.
• Ford's shares experienced a 2% drop on Thursday, bringing an end to a four-day streak of gains. The previous day, the stock reached a peak of $12.39 per share but fell short of surpassing the 55-day moving average. This moving average has proven to be a formidable resistance level since late July.

• EHang Holdings (NASDAQ: EH) shares are trading higher after the company obtained a type certificate for the EH216-S passenger-carrying UAV system issued by the Civil Aviation Administration of China.
• The EH216-S is an innovation with significant differences from conventional aircraft in critical areas, including technical architecture.

NewYork Post

OpenAI Valued at $90B, Eyes Middle East Investors for Share Sale

• ChatGPT parent OpenAI is close to selling shares in a deal that values the company at $90 billion.
• The proposed share sale will enable OpenAI's employees to offload their existing shares instead of requiring OpenAI to issue new shares to attract additional capital. Representatives from OpenAI have reportedly begun pitching the deal to investors.

Nikkei Asia

TSMC Seeks Permanent US Approval As Geopolitical Tensions Rise, Aims to Secure Chip Supplies

• Taiwan Semiconductor Manufacturing Co (NYSE: TSM) is applying for permanent approval to ship U.S. chip equipment to its facility in Nanjing amid intensifying U.S.-China geopolitical friction.
• The Bureau of Industry and Security (BIS) recommended that TSMC apply for a Validated End-User (VEU) authorization, a permanent authorization.

Bloomberg

Netflix Challenges Disney With Immersive' Netflix House' Experiences!

• Netflix Inc (NASDAQ: NFLX) looks to launch immersive venues named "Netflix House" where enthusiasts can delve into their beloved TV show universes, shop for merchandise, savor themed cuisines, and potentially engage in activities like a Squid Game-inspired obstacle course.
• Josh Simon, Netflix's VP of consumer products, revealed that these establishments will offer shopping, dining, and live events.
• The initial two venues will likely open in the U.S. by 2025, with plans to take the idea global after that.

Reuters

Kroger-Albertsons Deal Faces Potential Legal Challenge In California

• California Attorney General Rob Bonta has reportedly raised concerns regarding the planned acquisition of Albertsons Companies Inc (NYSE: ACI) by Kroger Company (NYSE: KR).
• The takeover, valued at $24.5 billion, is now reportedly under the scrutiny of the state's legal machinery. Bonta expressed uncertainty over the future course of action but hinted at the possibility of a lawsuit to prevent the deal.
• He raised various apprehensions, primarily focusing on potential negative consequences for California residents, including inflated consumer prices and diminished compensation to local farmers.

• Boeing Company (NYSE: BA) and Spirit AeroSystems Holdings Inc (NYSE: SPR) reportedly jointly expanded the scope of their ongoing inspections of 737 Max 8 aircraft-related production defects.
• Earlier this week, Boeing notified the Federal Aviation Administration (FAA) of its initial findings and customers seeing delivery delays of 737 Max 8s.
• An FAA spokesman confirmed they are "aware of the issue and are working it through our regular oversight process. There is no immediate safety concern."

Earnings

Wells Fargo Lifts Annual Interest Income Forecast As Q3 Earnings Beat Street View

• Wells Fargo & Company (NYSE: WFC) reported Q3 net interest of $13.1 billion, up 8% Y/Y, primarily due to the impact of higher interest rates.
• The bank reported Q3 revenues of $20.86 billion, up 21% Y/Y, above the consensus of $20.11 billion.
• For FY23, Wells Fargo expects net interest income to be ~16% higher than the FY22 level of $45.0 billion, up from prior guidance of ~14% higher, with 4Q23 expected to be ~$12.7 billion.

• JPMorgan Chase & Co (NYSE: JPM) reported Q3 net revenue (managed) of $40.7 billion, up 21% Y/Y, beating the consensus of $39.57 billion.
• Reported revenue was $39.87 billion in the quarter, up 22% Y/Y.
• Net interest income increased by 30% Y/Y to $22.9 billion and +21% Y/Y, excluding First Republic.
• JPMorgan expects net interest income excluding Markets of ~$89 billion (vs. ~$87 billion earlier). It now anticipates card services NCO rate of about 2.50% (vs. 2.60% prior).

• Citigroup Inc (NYSE: C) reported a third-quarter FY23 net revenue growth of 9% year-over-year to $20.14 billion, beating the consensus of $19.32 billion. EPS of $1.63 beat the consensus of $1.21.
• Revenue increased by 10%Y/Y, and EPS was $1.52, excluding the divestiture-related impacts.
• Citigroup reiterated FY23 adjusted revenue of $78 billion - $79 billion vs. consensus $79 billion.

• BlackRock Inc (NYSE: BLK) reported third-quarter FY23 revenue growth of 4.9% Y/Y to $4.52 billion, driven by organic growth, the impact of market movements over the past twelve months on average AUM, and higher technology services revenue. Revenue marginally missed the consensus of $4.54 billion.
• Adjusted EPS increased 14% Y/Y to $10.91, beating the consensus of $8.26.

• UnitedHealth Group Inc (NYSE: UNH) reported nearly $5.8 billion, up 11% Y/Y in Q3 profits. Group revenues rose 14.2% to $92.4 billion, topping analysts' estimates of $91.37 billion, while Optum revenues rose 21.6% to $56.7 billion.
• UnitedHealth said adjusted profits came in at $6.56 a share, up 13.3% Y/Y, ahead of the consensus of $6.32.
• UnitedHealth said it sees 2023 earnings of $24.85-$25.00, up from its prior forecast of $24.70-$25.00 per share versus the consensus of $24.84.

• Luxury automaker Dr. Ing. h.c. F. Porsche AG (OTC: DRPRF) (OTC: DRPRY) delivered 242,722 vehicles worldwide between January and September 2023, a 10% increase year-on-year.
• However, a contrasting 12% slump was observed in China, resulting in 60,748 units delivered in the region. Porsche attributes this decline to the ongoing economic challenges China is grappling with.

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