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Kodak scores major loan to make generic pharmaceuticals

Eastman Kodak shares reached some impressive heights a few days ago: it skyrocketed about 1200 percent in 2 days, boosঞ ng its market capitalizaঞ on to $2,6 billion from under $150 million. At this point, Kodak stock was trading at $60, compared to last month’s $2,77. The main reason behind these numbers was the fact that Kodak announced that it won a $765 million government loan to launch Kodak Pharmaceuঞ cals, which will produce generic active pharmaceutical ingredients to reduce America’s dependency on foreign drug makers. The company will hire 359 workers, most in New York state, and create approximately 1200 indirect jobs. This is not Kodak’s fi rst ঞ me geম ng involved in the drug sector: back in 1990, Kodak was engaged in the producঞ on of drug ingredients, and consumers are familiar with Kodak because of aspirin. Since announcing the news, criঞ cs have started quesঞ oning why the Trump administraঞ on awarded the loan to Kodak, which is sঞ ll primarily a technology company, rather than giving it to a pharmaceuঞ cal company. However, at that point, Kodak’s whirlwind wasn’t over just yet: the company’s shares recorded a big drop on the very last day of July, leaving everyone wondering what comes next. Shares went down about 20 percent to $23,95 in midday trading, cuম ng the week-to-date gain to more than 1000 percent. Many investors believe that Kodak’s shares went too far too fast, and it looks like the company’s stock is in its own universe for now.

Microsoft confi rms plans to buy TikTok

The US tech giant Microso[ has confi rmed that it is not only in talks to buy US operaঞ ons for the video social media pla orm TikTok, but also in Canada, Australia, and New Zealand. The company discussed its plan with President Trump, as the White House threatened to blacklist the hugely popular Chinese-owned app, as he believes that the app poses a naঞ onal security risk because it could be used to collect American’s personal data. In a blog post, Microso[ noted that the company is exploring a preliminary proposal to purchase TikTok service in those countries with the pla orm’s owner ByteDance, which “would result in Microso[ owning and operaࢼ ng TikTok in these markets.“ It added that Microso[ “may invite other American investors to parࢼ cipate on a minority basis in this purchase.“ Microso[ emphasized that it would ensure that “all private data of TikTok’s American users“ was transferred to and remained in the US. What is more, it would ensure that any data currently stored or backed up outside the country would be deleted from servers a[ er it was transferred to US datacenters. It also said that Microso[ “appreciates the US Government’s and President Trump’s personal involvement as it conࢼ nues to develop strong security protecࢼ ons for the country.“ Short-form video app TikTok is thought to have about half a billion acঞ ve users worldwide, and about 80 million in the US, with a huge proporঞ on of these in their teens or early 20s. The discussions should be completed no later than 15 September this year.

Barry Manilow sells song catalog to Hipgnosis

Veteran manager and recording execuঞ ve Merck Mercuriadis’ Hipgnosis Songs Fund Ltd. has added Barry Manilow’s catalog to its $1 billion-plus por olio. In a statement issued at the very beginning of August to the London Stock Exchange, Hignosis said it has acquired 100 percent of Manilow’s worldwide recording royalঞ es in his catalog, comprising 917 songs. Manilow, a Grammy, Tony, and Emmy winner, is one of the most successful recording arঞ sts of the 1970s and 1980s, with 50 Top 40 singles to his name. He released his self-debut album back in 1973 and fi rst reached the top of the US chart 2 years later with ‘Mandy’. He sold more than 85 million albums worldwide. Recently, Manilow has been back in the news and the charts: in June 2020, his ‘80s recording ‘When the Good Times Come Again’ worked its way up Billboard’s Adult Contemporary chart, making Manilow the fi rst arঞ st to span reaching the top 20 of the chart from the ‘70s to the ‘20s. Mercuriadis, the founder of Hipgnosis Songs Fund Limited and The Family (Music) Limited, noted that “Barry Manilow is an internaࢼ onal treasure. He’s an incomparable arࢼ st, songwriter, arranger, musician, and performer.“ The veteran singer also commented on the recent news, saying that “Merck has created a new type of music company and I’m looking forward to being part of the family at The Family Music and Hipgnosis Songs.“

Gold hits new record and posts best numbers since 2016

July ended with some interesঞ ng numbers: on the very last day of the month, gold hit a new all-ঞ me high. It was gold’s best month since February 2016, and its 5th straight posiঞ ve month. Rising poliঞ cal tensions between the US and China, combined with the uncertainty caused by the coronavirus, boosted the spot price to $1,944 an ounce. Some observers sঞ ll predict that $2000 could be broken in the nearest future. BBC noted that as the interest rates are currently near zero and dividend returns from companies are uncertain at best, with so many struggling, as well as lacking in returns, many investors tend to think that invesঞ ng in gold is one of the best opঞ ons: not only it does not pay dividends or earn interest, but its price tends to rise in troubled ঞ mes. So far this year, gold prices have risen by 28 percent. Meanwhile, due to the pandemic, the dollar was on track for its biggest monthly drop in almost a decade. Suki Cooper, an analyst at the Standard Chartered, mulঞ naঞ onal banking, and fi nancial services company, noted that “the extreme weakness in the dollar has helped buoy gold prices further.“ The price of fellow precious metal silver was also higher. It rose more than 6 percent to $24,36 per ounce — its highest since September 2013.

HSBC to accelerate 35,000 job cuts

HSBC, Europe’s biggest bank, is to accelerate plans to cut 35,000 jobs globally a[ er the coronavirus crisis forced the bank to put aside another $3,8 billion to cover bad debts. The bank noted that the bad loans linked to the Covid-19 pandemic could reach $13 billion in total. HSBC chief execuঞ ve Noel Quinn said that HSBC will “accelerate“ an earlier restructuring plan, which included axing 35000 jobs, as the “operaࢼ ng environment has changed signifi cantly since the start of the year.“ He also added that the bank would examine “addiࢼ onal acࢼ ons“ to strengthen its business. To be more specifi c, HSBC reported a 65 percent drop in pre-tax profi ts to $4,3 billion for the fi rst half of the year, and, according to the BBC, this number is much steeper than analysts had forecast. Back in February, HSBC announced its plan to cut 35,000 jobs from a global workforce of 235,000 as part of a major restructuring. But the job cuts had iniঞ ally been put on hold during the coronavirus outbreak. Now, as the bank is dealing with several challenges, including tensions between China and the west, HSBC chairman Mark Tucker is overseeing the program to shrink the bank’s operaঞ ons in Europe and the US. “Having paused parts of our transformaࢼ on program in response to the Covid-19 outbreak, we now intend to accelerate the implementaࢼ on of the plans we announced in February,” Quinn said. “We are also looking at what addiࢼ onal acࢼ ons we need to take in light of the new economic environment to make HSBC a stronger and more sustainable business.”

Virgin Galactic and Rolls-Royce join forces

Space tourism venture Virgin Galacঞ c announced it signed an agreement with Rolls-Royce to develop an aircra[ for supersonic travel, giving a fi rst look at the coming vehicle’s design. George Whiteside, Virgin Galacঞ c’s Chief Space Offi cer, commented on a statement, saying that “We are pleased to collaborate with the innovaࢼ ve team at Rolls-Royce as we strive to develop sustainable, cu࣌ ng-edge propulsion systems for the aircraft, and we are pleased to be working with the FAA to ensure our designs can make a pracࢼ- cal impact from the start. We have made great progress so far, and we look forward to opening up a new fronࢼ er in high-speed travel.” He also added that the recruitment of Rolls-Royce, which provided the engines for Concorde, the world’s only civil-cerঞfi ed supersonic aircra[ to date, is aimed at devising a propulsion system that’s both cutঞ ng-edge and sustainable. Briঞ sh aerospace company Rolls-Royce has a notable history-making aircra[ engines and is a leader in the cuম ng-edge technologies that deliver clean, safe, and compeঞঞ ve soluঞ ons to the planet’s vital power needs. “We are excited to partner with Virgin Galacࢼ c and TSC to explore the future of sustainable high-speed fl ight,” said Rolls-Royce North America Chairman and CEO Tom Bell. “Rolls-Royce brings a unique history in high-speed propulsion, going back to the Concorde, and off ers world-class technical capabiliࢼ es to develop and fi eld the advanced propulsion systems needed to power commercially available high-Mach travel.” A[ er unveiling the high-speed aircra[ design and announcing the deal with the Rolls-Royce, Virgin Galacঞ c recorded a 4 percent rise in shares in the premarket trading from its previous close of $22,45.

A $100 billion opportunity for Amazon

Amazon has received US approval to build its ambiঞ ous satellite internet system, which would compete with SpaceX’s Starlink network. The company announced it will invest more than $10 billion to build a network of 3,236 satellites that will provide highspeed broadband internet services to people around the world who lack such access. “There are sࢼ ll too many places where broadband access is unreliable or where it doesn’t exist at all. We will change that. Our $10 billion investment will create jobs and infrastructure around the United States that will help us close this gap,” Amazon senior vice president Dave Limp said in a statement. Amazon’s announcement was released right a[ er the Federal Communicaঞ ons Commission’s (FCC) approval of the plan, also called ‘Project Kuiper’. The plan was approved by the unanimous vote of 5 FCC’s commissioners, giving the project the paperwork it needs to get off the ground. “We conclude that grant of Kuiper’s applicaࢼ on would advance the public interest by authorizing a system designed to increase the availability of high-speed broadband service to consumers, government, and businesses,“ the FCC wrote in its order, released on July 30. The company has not outlined a ঞ meline for the project and the FCC said the company has not fi nished the satellites’ design. However, the FCC authorizaঞ on requires Amazon to launch half of its satellites no later than mid-2026 and build out the rest of the constellaঞ on by mid-2029. Morgan Stanley has declared the high-speed internet network has the potenঞ al to be a ”$100 billion opportunity” for Jeff Bezos’ company.

Japan’s Seven & I Holdings seals the deal with Marathon Petroleum

Marathon Petroleum, the largest US independent refi ner, announced that it had sold its Speedway gas staঞ on chain to the Japanese retail group Seven & I Holdings for $21 billion in cash. The sale of Speedway, one of the country’s largest convenience store chains with nearly 4,000 outlets, is the biggest corporate deal in the oil sector since the coronavirus cut the demand for fuel early this year. A[ er-tax proceeds from the sale, approved by the boards of both companies, are esঞ mated at $16,5 billion. Marathon Petroleum noted that the company will use the proceeds to pay exisঞ ng debt. “This transacࢼ on marks a milestone on the strategic prioriࢼ es we outlined earlier this year,“ said Michael J. Hennigan, Marathon’s president, and CEO. “Our announcement crystalizes the signifi cant value of the Speedway business, creates certainty around value realizaࢼ on, and delivers on our commitment to unlocking the value of our assets. At the same ࢼ me, the establishment of a long-term strategic relaࢼ onship with 7-Eleven creates opportuniࢼ es to improve our commercial performance.“ The deal, which is expected to close in the fi rst quarter of 2021, includes a 15-year fuel supply agreement for about 7,7 billion gallons per year associated with the Speedway business, said Marathon. The agreement also rises 7-Eleven’s store count to about 14,000 locaঞ ons in the United States and Canada.

Apple faces a $1,4 billion lawsuit in China

Chinese arঞfi cial intelligence company Shanghai Zhizhen Intelligent Network Technology, also known as Xiao-i, has fi led a lawsuit against Apple Inc, alleging it has infringed on its patents. The company expects to get $1,43 billion in damages and demands that Apple cease “manufacturing, using, promising to sell, selling, and imporࢼ ng” products that infringe on the patent, it said in a social media post. Xiao-i also argued that Apple’s products violated a patent the Chinese company owns for a virtual assistant whose technical architecture is similar to Siri. To be more specifi c, Siri, a voice-acঞ vated funcঞ on in Apple’s smartphones and laptops, allows users to dictate text messages or set alarms on their devices. If successful, the suit could block Apple from selling some of its most popular products to the Chinese market, its most signifi cant source of income outside of the US. Xiao-i argued that Apple’s voice-recogniঞ on technology Siri infringes on a patent that it applied for in 2004 and was granted in 2009. According to Reuters, Apple did not respond to a request for comment. This latest filing marks a new step in a legal dispute that has conঞ nued for almost a decade. Xiao-I iniঞ ally sued Apple for patent infringement in 2012, and China’s Supreme People’s Court ruled in July that its patent was valid.

Google partners with ADT on smart security in a $450 million deal

ADT, a leading provider of security and smart home soluঞ ons, and Google announced they are entering into a long-term partnership to create the next generation of smart home security off erings. Right a[ er the announcement, shares of ADT surged as much as 97 percent in premarket trading, reaching an all-ঞ me high of $17,21. Google will invest $450 million in the deal and own a 6,6 percent stake in the company. The deal, which is expected to close in the 3rd quarter of this year, will see ADT’s technicians selling and installing Google’s Nest smart home devices, such as cameras and smart displays, as early as this year. Both companies have also commi‚ ed $150 million each — provided they reach certain milestones — for co-markeঞ ng, product development, and investment in technology and employee training. Rishi Chandra, Vice President and GM at Nest, noted in a blog post that over ঞ me, Nest’s devices will enhance ADT’s security monitoring and become the “cornerstone of ADT’s smart home off ering.“ He also added that “The goal is to give customers fewer false alarms, more ways to receive alarm events, and be‚ er detecࢼ on of potenࢼ al incidents inside and around the home. It will also provide people with more helpful noࢼfi caࢼ ons that make everyday life more convenient, like package detecࢼ on. ADT customers will also have access to Nest Aware, a service that keeps people informed about important events at home, including intelligent alerts and event history recording for up to 30 days.“