STOCK MARKET NEWS: Exxon Mobil eyes Pioneer, FTX report, inflation worries

A pack of birth control pills is displayed in this illustration picture taken in Philadelphia, Pa., July 11, 2022. (Reuters/Hannah Beier/Illustration)

Over 300 biotech and pharmaceutical industry executives, including Pfizer Inc.

CEO Albert Bourla, signed an open letter on Monday seeking the reversal of a federal judge's decision to suspend sales of the abortion pill mifepristone.

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POLITICS

Drug companies blast Texas judge for abortion drug decision, call for reversal

Hundreds of pharmaceutical firms including Pfizer wrote an open letter condemning a federal judge in Texas who halted the approval of abortion drug mifepristone.

A U.S. judge on Friday suspended the U.S. Food and Drug Administration's two-decade-old approval of the drug, effectively banning sales while a case brought by anti-abortion groups before him continues in the Northern District of Texas.

Last week's ruling by Judge Matthew Kacsmaryk undermines the FDA's authority, the letter's authors wrote, adding that it ignores decades of scientific evidence and legal precedent.

MARKETS

FTX collapse report: 'Hubris, incompetence, and greed' led to failure

FTX's new management team released its first report on what led to the cryptocurrency exchange's demise under the leadership of founder Sam Bankman-Fried.

FTX’s new management is blaming hubris, incompetence, and greed for the cryptocurrency exchange’s failure.

"These individuals stifled dissent, commingled and misused corporate and customer funds, lied to third parties about their business, joked internally about their tendency to lose track of millions of dollars in assets, and thereby caused the FTX Group to collapse as swiftly as it had grown," the report added.

Sushi is seen on a conveyor belt at a Kura Sushi restaurant in Tokyo, Japan, June 3, 2021. Picture taken June 3, 2021. REUTERS/Kim Kyung-Hoon

Kura Sushi USA, Inc a Japanese restaurant concept, announced that it has commenced an underwritten public offering of 1,100,000 shares of its Class A common stock. In connection with the offering, Kura Sushi intends to grant the underwriters a 30-day option to purchase an additional 165,000 shares.

Kura Sushi intends to use the net proceeds from the proposed offering for general corporate purposes, including capital expenditures, working capital, and other business purposes.

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 45 locations across 14 states and Washington, D.C. The Company offers guests Japanese cuisine and a revolving sushi service model.

Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with over 500 restaurants and 40 years of brand history. 

Potbelly is reporting preliminary first quarter same-store sales above guidance.

The sandwich chain said same-store sales rose 22% to 22.3% in the quarter ended Mar. 27, above its estimate of 18.5% to 20.5%.

Shop-level margin and adjusted EBITDA also exceeded guidance.

Average unit volumes were below the top end of guidance: $23,800 to $23,900 versus $23,000 to $24,000 guided.

“We also enjoyed good progress in our Franchise Growth Acceleration Initiative during the quarter, as we signed a new franchise development deal and our first refranchising transaction in the New York City market,” said CEO Bob Wright.

HEXO has agreed to be acquired by Tilray Brands in an all-stock transaction.

HEXO shareholders will receive 0.4352 of a share of Tilray common stock in exchange for each HEXO share held, which implies a purchase price of $1.25 per HEXO Share based on the volume weighted average price of Tilray Shares on the Nasdaq Stock Market for the 60-day period ended on April 5.

The arrangement is to be effected by way of a court-approved plan of arrangement under the Business Corporations Act (Ontario).

HEXO is a licensed producer of premium products for the global cannabis market.

U.S. Senator Elizabeth Warren (D-MA) speaks to supporters in Memphis, Tennessee, U.S. March 17, 2019. REUTERS/Karen Pulfer Focht

Sen. Elizabeth Warren of Massachusetts and Rep. Alexandria Ocasio-Cortez of New York on Sunday demanded answers from depositors at Silicon Valley Bank over their role in the bank's stunning demise in early March. 

"Silicon Valley Bank’s unusually cozy relationship with its clients increased the threat of contagion when the bank went under," Warren said in a statement. "The American people deserve to know how these mutual backscratching arrangements developed, who benefitted from them, and what role they played in Silicon Valley Bank's failure."

The companies probed include Circle, BILL, BlockFi, Eiger, Ginkgo Bioworks., iRhythm Technologies, LendingClub, Oncorus, Payoneer Global, Protagonist Therapeutics, Roblox, Rocket Lab USA, Roku and Sangamo Therapeutics.

POLITICS

Warren, Ocasio-Cortez probe major SVB depositors about role in bank collapse

Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez raised concerns over the "cozy" relationship between Silicon Valley Bank and its biggest customers.

The new Apple Mac Studio computer and Studio Display are displayed shortly after going on sale at the Apple Store on 5th Avenue in Manhattan, in New York City, New York, U.S., March 18, 2022. REUTERS/Mike Segar

Global shipments of personal computers slumped by nearly a third in the first quarter of 2023, with Apple Inc dropping the most among the market heavyweights as the industry struggles with a post-pandemic slowdown in consumer spending.

In separate reports published on Monday, market research firms IDC and Canalys blamed weak demand, excess inventory and a bleak economic outlook for the shipment declines of 29% and 33%, respectively.

Of the top five PC makers analysed in the reports, Apple saw the largest drop with a fall of more than 40%. That was followed by Dell Technologies Inc with a drop of around 31%.

Lenovo Group Ltd, Asustek Computer Inc and HP Inc also faced declines, the reports said. The data suggests that PC makers are set for another quarter of weak earnings after a 2022 that saw their sales squeezed by the end of the pandemic-driven demand boom.

The logo of KPMG, a professional service company, is seen at the company's head offices at La Defense business and financial district in Courbevoie near Paris, France. May 16, 2018. REUTERS/Charles Platiau

Audit firm KPMG LLP flagged potential losses on loans as a critical matter for Silicon Valley Financial but missed the inherent bond losses and unreliable deposits that took the financial institution down, the Wall Street Journal reported.

A KPMG spokesperson told FOX Business, that auditors can only take into account the "audit evidence available up to and at the date of the opinion."

The accounting firm gave Silicon Valley Financial an unqualified opinion as part of the company's annual financial filing issued on Feb. 24 for the year ended Dec. 31, 2022. This audit came less than three weeks before SVB's March 10th crash.

MARKETS

Auditors didn’t flag risks building up in banks

Audit firm KPMG LLP flagged potential losses on loans as a critical matter for Silicon Valley Financial but missed the inherent bond losses and unreliable deposits that took the financial institution down, the Wall Street Journal reported.

A customer enters one of Careem cars in Mosul, Iraq, Sept. 25, 2019. (Reuters/Abdullah Rashid)

Emirates Telecommunications Group Company has agreed to take a 50.03% stake in a super app managed by Careem, Uber Technologies' Middle East subsidiary, in a transaction valued at $400 million, said a filing on Monday.

The Super App will be managed by Careem founders Mudassir Sheikha and Magnus Olsson, said the company, formerly known as Etisalat Group and now called e&.

The ride-hailing business will be separated from the Careem Super App business and will be fully owned by Uber, but will still be available on the super app.

The deal will be financed from e&'s existing cash balance, and subject to regulatory approvals, customary closing conditions and administrative procedures, e& said in the filing.

Woman holds U.S. dollar banknotes in this illustration taken May 30, 2022. (Reuters/Dado Ruvic/Illustration)

Americans said last month that access to credit was at its toughest level in nearly a decade, as they also braced for higher levels of inflation over the next few years, a report from the New York Fed said Monday.

ECONOMY

US inflation expectations jump for first time in months, NY Fed survey shows

A New York Federal Reserve survey published Monday shows that consumers are worried about a potential credit crunch and higher inflation in coming years.

In the March Survey of Consumer Expectations, the bank found that the share of households who said credit is harder to get versus a year ago rose to the highest level in a survey that dates back to 2014.

Meanwhile, households project that inflation a year from now would stand at 4.7%, versus February’s 4.2%. That was the first increase in year-ahead expected inflation since October.

Despite expectations of higher near-term inflation, respondents to the New York Fed survey see lower gasoline, food and rent costs, while they forecast a 1.8% rise in home prices.

A Whole Foods Market store is seen in Santa Monica, California, U.S. March 19, 2018. REUTERS/Lucy Nicholson/File Photo

Whole Foods, which has outsourced much of the preparation of hot foods and prepared meals, is reconsidering the merits of vertical integration said the Wall Street Journal citing "people familiar with the matter."

The move would come as shoppers have returned to the hot-food bars at grocery stores. Other grocery stores including Albertson's and Kroger, see ready-to-eat food as a way of drawing in customers and builiding brand loyalty.

Amazon, who owns Whole Foods Market has been looking for ways to increase buzz about the brand as it prepares to launch 50 new stores, and it believes improved quality in its own kitchens is its meal ticket.

MARKETS

Whole Foods Market explores building off-site kitchens to supply food bars

Whole Foods might acquire its own kitchens to improve quality control and bring down costs of its prepared meals, to counterbalance inflationary pressure.

The logo for Canadian mining company Teck Resources Limited is displayed above their booth at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada, Mar. 7, 2023. (Reuters/Chris Helgren)

Canada's Teck Resources on Monday reinforced its rejection of an unsolicited $22.5 billion bid from Glencore, calling it "an illusion" and telling shareholders that its proposed restructuring is the only option on the table.

Glencore's offer, made public on April 3, includes a plan to simultaneously spin off the companies' thermal and steelmaking coal businesses and rebrand the remaining company as GlenTeck.

Talking to shareholders on Monday, Teck Chief Executive Jonathan Price said that more value could be unlocked through a proposed restructuring in which the Vancouver-based miner would spin off its steelmaking coal unit to focus on copper and other industrial metals.

A shareholder vote on Teck's proposal is scheduled for April 26. If it passes, the separation process will then take 6-8 weeks to complete.

Tupperware products

Tupperware has engaged financial advisors to improve the company's capital structure and near-term liquidity.

“Due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its credit facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term,” the company said.

As a result, Tupperware has concluded there is substantial doubt about its ability to continue as a going concern.

The consumer products company has engaged financial advisors to assist in securing supplemental financing and is engaging in discussions with potential investors or financing partners.

Tupperware is also reviewing its real estate portfolio to identify potential dispositions or sale-leaseback transactions along with right-sizing efforts, monetization of fixed assets, cash management, and marketing and channel optimization, to preserve or deliver additional liquidity.

Scotts Miracle-Gro expects its debt load will come in “comfortable below” the terms of its credit agreement.

The world’s leading marketer of branded consumer lawn and garden products announced that its final fiscal second-quarter net leverage is forecast to be in the range of 6 times versus the credit facility covenant of 6.5 times.

Leverage at Dec. 31, 2022 was 5.9 times. Long-term debt was $3.19 billion. Net leverage is average total indebtedness, divided by earnings before interest, taxes, depreciation and amortization (EBITDA).

Scotts also announced that Nate Baxter will join the company as executive vice president, technology & operations.

Dutch technology company Philips' logo is seen at company headquarters in Amsterdam, Netherlands, Jan. 29, 2019. (Reuters/Eva Plevier)

The U.S. Food and Drug Administration (FDA) on Friday classified the recall of Philips' PHG.AS respiratory machines as its most serious type, as their use could cause serious injuries or death.

The Dutch medical devices maker's unit Philips Respironics recalled 1,088 devices in the U.S. on Feb. 10.

Philips was recalling the machines as some devices were assigned incorrect or duplicate serial numbers during initial programming, the U.S. health agency said.

The duplication could cause therapy to be delivered using the wrong prescription or factory default settings, it added.

The company has received 43 complaints about the issue, according to the FDA. It said there were currently no reported injuries or deaths attributed to it.

The devices were distributed between Dec. 1, 2021 and Oct. 31, last year.

Walmart store, West Berlin, N.J., Nov. 24, 2022

Walmart wants to end its exclusive credit card partnership with Capital One Financial, the bank holding company said in a regulatory filing.

Capital One is the exclusive issuer of Walmart’s private label and co-branded credit card program in the U.S.

Walmart filed a lawsuit Monday in New York federal court seeking early termination.

Capital One disputes Walmart’s right to end the deal mid-stream and will vigorously defend its contractual rights in court.

As of December 31, 2022, the Card Program consisted of approximately $8.3 billion in ending outstanding loan balances and the allowance for credit losses related to the Card Program portfolio was approximately $314 million.

A smartphone with a displayed TSMC (Taiwan Semiconductor Manufacturing Company) logo is placed on a computer motherboard in this illustration taken Mar. 6, 2023. (Reuters/Dado Ruvic/Illustration)

Taiwan Semiconductor Manufacturing says revenue fell 15.4% year-over-year in March to $145.41 billion in Taiwan dollars ($4.78 billion). Sequentially, revenue declined 10.9% from February.

Revenue for January through March 2023 totaled $508.63 billion in Taiwan dollars, an increase of 3.6% compared to the same period in 2022.TSMC is the world’s largest semiconductor facility.

SPORTS

Jon Rahm wins Masters: How much money does he take home in 2023 victory?

Jon Rahm won his very first green jacket, holding off Brooks Koepka for the Masters win. Rahm also won a bunch of money as the first-place finisher.

In a stunning finish, Jon Rahm captures the coveted green jacket at Augusta National. The Masters win gives Rahm millions in prize money, along with prestige.

MARKETS

Exxon Mobil eyes potential mega-deal with shale driller Pioneer

Exxon Mobil looks to purchase Pioneer Naturla Resources, a US fracking giant with operations in West Texas' shale fields. Exxon is hoping to deploy its windfall profits.

Exxon Mobil is reportedly eyeing a deal with Pioneer Natural Resources which would expand its footprint in the shale world, according to the WSJ.

Tesla is reportedly planning to incorporate iron-based batteries into an affordable electric vehicle and a semi heavy electric truck.

MARKETS

Tesla announces big plans for cheaper iron-based batteries

Tesla released its Master Plan 3 on Wednesday, announcing plans to install lithium iron phosphate battery technology in vehicles because of iron's abundance and low cost.

The company currently uses nickel-based batteries in its vehicles.

Reuters reported that Tesla CEO Elon Musk was quoted last month as saying "the vast majority of the heavy lifting for electrification will be iron-based cells."

MARKETS

Tesla faces possible class-action lawsuit after allegations workers secretly shared images from car cameras

Tesla is facing a class-action lawsuit over alleged privacy violations by company employees who shared images and videos of owners from car cameras on company messaging platforms.

A prospective class action lawsuit was filed against Tesla over allegations the company's employees shared invasive images and videos recorded by customers' car cameras between 2019 and 2022.

The suit was filed Friday in the wake of a report by Reuters the prior day.