Microsoft In Talks To Extend Contract With Activision
Microsoft Corp (MSFT.O) is in talks about an extension of its acquisition contract with video game maker Activision Blizzard (ATVI.O), which is set to expire on Tuesday, so the parties can overcome the remaining regulatory hurdles to their USD 69 billion deal.
Global Market Outlook On The Rise
Another day, another whoosh higher on Wall Street, but the double whammy of gloomy news from China on Monday is spoiling the party in Asia, and regional markets indicate that it could face another struggle on Tuesday.
Netflix Shielded From Hollywood Strike
Netflix (NFLX.O) investors will assess risks from the ongoing strike in Hollywood when the company reports quarterly results tomorrow, but analysts said it was well-positioned due to its solid pipeline of shows and international production crew.
Today’s News
Since the imposition of China’s export restrictions on gallium and germanium, raw materials that are utilized in the production of modern semiconductors, the U.S. automotive industry has been in turmoil as automakers are falling behind production demands.
This has caused a huge ruckus in the industry as the U.S.-based Semiconductor Industry Association trade group has called on the Biden administration to “refrain from further restrictions” on chip sales to China as chief executives from the biggest U.S. semiconductor firms planned to visit Washington this week to press their views on China policy.
The statement came as the Biden administration considers updating a sweeping set of rules imposed in October to hobble China’s chip industry and a new executive order restricting some outbound investment.
Experts speculate that further rule-tightening by U.S. officials could prove catastrophic as supply chains could be disrupted further, causing significant market uncertainty, prompting a continued escalatory retaliation by China.
Other reports include:
GM Production And Delivery Of New Vehicles Stunted
General Motors is seeing strong demand for many of its U.S. vehicles, but can’t deliver them to dealers fast enough, one of the company’s top executives expressed. “GM very strongly continues to have discipline in terms of incentives, which means that demand is still very high,” said Rory Harvey, the company’s North America president, at an event in Lansing, Michigan. “At this particular point in time, we could just about sell every product that we can build.”
But the automaker is also facing outbound logistics challenges in the aftermath of COVID, he said, particularly in shipping vehicles to dealers, be it via truck or rail.
Ford Slashes Prices Of F-150 Lightning Trucks
Ford (F.N) dug deep with a price war in the electric vehicle (E.V.) industry yesterday by slashing the prices of its F-150 Lightning trucks, including a 17% cut for the base model, as it aims to boost its share in the electric vehicles market, which is currently dominated by Tesla (TSLA.O).
Ford shares closed at a down of 6%, at USD 14.09.
The Detroit-based automaker, which had raised the F-150 Lightning prices earlier this year, said it was able to cut prices following improvements in scale and battery raw material costs. However, Ford’s E.V. sales fell by 2.8% in the quarter through June.
Top U.S. Officials To Converge On China Policy
U.S. chip company executives met with top Biden administration officials yesterday to discuss about the China policy, the State Department and sources reported, as the most powerful semiconductor lobby group urged a halt to more curbs under serious concerns and consideration.
Secretary of State Antony Blinken met with chip company chief executives about the industry and supply chains after his recent trip to China, a department spokesperson told reporters.
