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UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.
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Tag: industrial news
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UBS inks pact with Swiss government as Credit Suisse deal may close next week
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UBS said Friday that it’s signed a loss protection agreement with the Swiss government covering up to 9 billion francs ($10 billion) of losses once the takeover of Credit Suisse is completed.
The finalized deal sets the stage for the merger of the Swiss banks to be completed as early as June 12.
Terms call for the guarantee to only be implemented if UBS takes 5 billion francs of losses from what are called non-core assets of Credit Suisse.
The protection applies to roughly 3% of the combined assets of the merged bank. UBS is paying the Swiss government an upfront fee of 40 million francs, as well as an annual maintenance fee of 0.4% and a risk premium depending on how much of the guarantee is used. UBS does have the right to terminate the guarantee at any time.
The per-share value of the UBS offer
UBS,
-0.05% UBSG,
-0.25%
has climbed slightly since the deal was first announced, as it’s now worth 0.81 francs per share, valuing Credit Suisse at 3.2 billion francs, or $3.6 billion.UBS agreed to buy its rival for an initially announced 3 billion francs after Credit Suisse
CS,
+0.49% CSGN,
-0.20%
was unable to stem outflows from its wealthy clients.[ad_2]
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Diageo PLC Names Debra Crew Chief Executive Officer
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By Joe Hoppe
Diageo said Friday that interim Chief Executive Officer Debra Crew has been appointed CEO, effective as of Thursday.
The London-based maker of Johnnie Walker Scotch whisky, Guinness stout and Smirnoff vodka had named Crew interim CEO on Monday, ahead of her planned joining date as CEO in July 1.
On Wednesday, Diageo said that longtime chief executive, Ivan Menezes, died after a short illness. He was 63.
Crew first joined the liquor giant as a nonexecutive director in 2019 before stepping down from the board the following year to lead the company’s business in North America, its largest market. She was promoted to chief operating officer in October 2022.
Write to Joe Hoppe at joseph.hoppe@wsj.com
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Tesla stock surges to its 10th straight gain
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Shares of Tesla Inc. rose Thursday to a 10th straight gain, as data out of China showed that the electric vehicle giant sold more cars in May than the previous month.
The stock
TSLA,
+4.58%
surged 4.6% to $234.86, for its highest close since Oct. 6, when it closed at $238.13, and its largest one-day percentage increase since May 30, when it rose 4.14%. Shares continued rising around 3% in after-hours trading Thursday.It has charged up 27.3% over the past 10 days, its longest win streak since the 11-day streak that ended Jan. 8, 2021.
The China Passenger Car Association reported overnight that May retail sales of new-energy vehicles, which includes electric and plug-in hybrids, jumped 60.9% from a year ago to 580,000 vehicles, or 33.3% of the total passenger cars sold of 1.74 million, according to a Dow Jones Newswires report.
Tesla delivered 77,695 cars that were made at its Shanghai facility in May, the DJ report said, which is up from 75,842 cars delivered in April but down from the more than 88,800 EVs delivered in March.
Meanwhile, shares of other China-based EV makers were mixed, as Nio Inc.’s stock
NIO,
+0.39%
dropped 1.5%, but Xpeng Inc. shares
XPEV,
+0.95%
climbed 0.9% and Li Auto Inc.’s stock
LI,
+0.66%
tacked on 0.7%.See also: Tesla Model 3s now qualify for $7,500 in federal tax credits
Tesla generated $4.89 billion in sales from China during the first quarter, or 21.0% of total sales. In 2022, the company’s China sales totaled $18.15 billion, or 22.2% of total sales for the year.
Separately, the Associated Press reported that late Wednesday that Tesla may face a class-action lawsuit after 240 Black factory workers described racism and discrimination at the company’s plant in the San Francisco Bay Area.
Tesla’s stock has soared 91% year to date, while the Global X Autonomous and Electric Vehicles exchange-traded fund
DRIV,
+0.77%
has run up 25.4% and the S&P 500 index
SPX,
+0.62%
has advanced 11.6%.[ad_2]
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U.S. jobless claims leap to nearly two-year high of 261,000
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The numbers: The number of people who applied for U.S. unemployment benefits in early June jumped to a nearly two-year high of 261,000, but most of the increase took place in just two states: Ohio and California.
New jobless claims in the seven days ended June 3 climbed by 28,000 from the prior week, the Labor Department said Thursday. The figures are seasonally adjusted.
Layoffs rose early in the year and pushed jobless claims above 200,000, but until this week, Jobless claims has barely changed since the spring and indicated that layoffs remained low.
Key details: Of the 53 U.S. states and territories that report jobless claims, 27 showed an increase last week. The other 26 posted a decline.
Most of the increase was in California and Ohio. Minnesota also saw a sizable increase.
Actual or unadjusted claims surged by 6,345 in Ohio to 16,717 — an unusually large gain.
And they rose by 5,173 to 48,750 in California, the state with by far the largest number of jobless claims. That could reflect tech-related layoffs.
Yet lots of states, including California, have suffered from a flood of fraudulent claims since the pandemic. Massive fraud in Massachusetts, for instanced, skewed the national jobless claims totals from March through May.
Before seasonal adjustments, new U.S. jobless claims were a much smaller 219,391 last week. That was up from 208,856 in the prior week.
The Memorial Day holiday may have also influenced new filings. Some people either delay or accelerate their claims applications around a holiday.
The number of people collecting unemployment benefits in the U.S., meanwhile, fell by 37,000 to 1.76 million.
A gradual increase in these so-called continuing claims over the past year suggests it’s taking longer for people who lose their jobs to find new ones.
Big picture: Unemployment claims typically begin to rise when the economy is deteriorating and a recession is approaching. The latest increase could be a red flag, but it will take a series of higher readings to cement the case.
Still, the increase in claims could give the Federal Reserve more reason to “skip” another increase in U.S. interest rates when senior officials meet next week.
Wall Street widely expects the Fed to stay put to give it more time to evaluate the economy and gauge how quickly inflation is slowing after a series of rate hikes over the past year. The Fed hopes the labor market will cool off further and reduce the upward pressure on wages.
Looking ahead: “The latest reading reflects a holiday-shortened week, which ought to raise suspicions that the big move was more noise than signal,” said chief economist Stephen Stanley of Santander Capital Markets. “I am eager to see next week’s reading before I draw any conclusions.”
“Rising initial jobless claims is a classic leading indicator of a recession, but a one-week jump is too little data to call a trend,” said Bill Adams, chief economist at Comerica.
Market reaction: The Dow Jones Industrial Average
DJIA,
+0.44%
and S&P 500
SPX,
+0.40%
were narrowly mixed in Thursday trades.[ad_2]
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UK Regulator To Implement New Rules on Crypto Asset Advertising
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By Elena Vardon
The U.K. Financial Conduct Authority on Thursday said that firms marketing crypto assets will have to abide by new advertising rules that alert consumers to the risks of investing in high-risk assets and protect them from making hasty decisions.
The FCA said the measures are part of a package to help buyers of crypto assets understand that they could lose all of the invested money when purchasing these largely unregulated assets. The measures will become effective on October 8.
They include the introduction of a 24 hour cooling-off period for first-time investors before they’re able to make transactions and will ban incentives to invest such as ‘refer a friend’ or new-joiner bonuses, it added.
The regulator is pushing for the advertisements of crypto promoters to be clear, fair and not misleading, it said.
“The crypto industry needs to prepare now for this significant change. We are working on additional guidance to help them meet our expectations,” Sheldon Mills, executive director, consumers and competition, said.
Write to Elena Vardon at elena.vardon@wsj.com
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GameStop Shares Fall as It Terminates CEO and Ryan Cohen Becomes Executive Chairman
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GameStop Shares Fall as It Terminates CEO and Ryan Cohen Becomes Executive Chairman
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GameStop fires CEO, elects Ryan Cohen as executive chairman; stock plunges
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GameStop Corp. fired Chief Executive Matthew Furlong on Wednesday and said that its board had elected activist investor Ryan Cohen as its executive chairman, effective immediately.
Shares of the videogame retailer and meme stock sank 19% after hours following the brief press release detailing the move. That release did not offer a reason for Furlong’s firing and was made shortly ahead of the chain’s quarterly results.
GameStop
GME,
+5.75% ,
in its earnings release, said it would not be holding a conference call to discuss those results. But in a filing detailing those financials, the company said Cohen’s leadership would be good for shareholders.“We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” GameStop said.
Cohen, the co-founder and former CEO of online pet-supplies retailer Chewy Inc.
CHWY,
-4.10% ,
became GameStop’s board chairman in 2021, after joining the board that year and building up a stake in the company earlier. His influence at the company, as the Wall Street Journal reported in 2021, led to feuding with management and an explosion in popularity among the meme traders who helped launch GameStop’s stock higher. He also amassed and then sold off a stake in Bed Bath & Beyond, the home-goods retailer that is in the process of closing up shop.GameStop announced the move on Wednesday as it struggles to put up a consistent profit and tries to cut costs. Under Cohen’s control, the company has redoubled its focus on physical stores — as more of the gaming industry becomes more online and mobile — after initially making a bigger push toward e-commerce.
GameStop, in a separate filing on Wednesday, said Cohen’s responsibilities would include “capital allocation, evaluating potential investments and acquisitions, and overseeing the managers of the company’s holdings.”
In that filing, GameStop said that Furlong was fired without cause. According to his offer letter in 2021, Furlong is due any unvested stock that would have vested in the next six months. According to the terms outlined in that letter, Furlong would have been eligible to receive nearly $2.5 million in stock in August. He’ll also receive $100,000 in base salary. The filing also said Furlong had resigned as a company director.
The company also said it appointed Mark Robinson as its general manager and principal executive officer. Robinson has worked as vice president and general counsel at the company since January 2022, and held other roles at GameStop since 2015, the filing said.
GameStop also said it appointed Alain Attal as the lead independent director of the board and dissolved the Strategic Planning and Capital Allocation Committee.
For its first quarter, GameStop reported a net loss of $50.5 million, or 17 cents a share — far narrower than the $157.9 million, or 52 cents a share, in the same quarter last year. Net sales were $1.24 billion, down from $1.38 billion in the prior-year quarter. GameStop ended the quarter with cash and cash equivalents of $1.06 billion.
Popular videogames, such as “The Legend of Zelda: Tears of the Kingdom” and “Hogwarts Legacy,” seem likely to help GameStop’s sales up ahead. And the company has cut costs in an effort to improve profitability.
The company reported a profit in the prior quarter, helped by holiday-season demand. Still, the two analysts polled by FactSet don’t expect another profitable quarter until this year’s holiday quarter.
Wedbush analyst Michael Pachter, in a note last week, noted that broader challenges for the retailer include “a shift towards digital, mobile and subscription software (and away from the traditional packaged business).”
GameStop shares are down 29% over the past 12 months. By comparison, the S&P 500 Index
SPX,
-0.38%
is up 2.7% over that period.Jeremy Owens contributed to this story.
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STMicroelectronics, Sanan Optoelectronics to Form $3.2 Bln China Joint Venture
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By Adria Calatayud
STMicroelectronics and Sanan Optoelectronics said Wednesday that they are forming a semiconductor-manufacturing joint venture in China, with $3.2 billion in total build-out funding.
The European and Chinese semiconductor companies said they have signed an agreement to create a silicon-carbide-device manufacturing project in Chongqing, China, to tap into rising demand for semiconductors for car electrification as well as for industrial power and energy applications in the country. Production is expected to start in the fourth quarter of 2025, with full build-out anticipated in 2028, the companies said.
The expected $3.2 billion for the full build-out of the joint venture includes capital expenditures of about $2.4 billion over the next five years, which will be funded by contributions from STMicroelectronics and Sanan Optoelectronics, support from the local government and loans, the companies said.
Sanan will separately build a silicon-carbide-substrate manufacturing plant to fulfill the needs of the joint project, the companies said.
Completion of the project remains subject to regulatory approvals, STMicroelectronics and Sanan said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
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AT&T Gets an Upgrade. Why Analysts Are Still Cautious.
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AT&T ‘Has Led the Way Down’ for Telecoms. Why the Stock Still Grabbed an Upgrade.
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Boeing stock drops on warning about defect on 787 Dreamliner planes
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Shares of Boeing Co. dropped 2% in midday trading Tuesday after the aerospace and defense company said it found new problems with its 787 Dreamliner jets.
The defect, which is not a flight safety concern, is connected with a stabilizer fitting, and will lead the company to inspect every plane in inventory before delivery, Boeing
BA,
-0.71%
said.The inspections and required rework will affect timing of near-term 787 deliveries, but “at this time we do not expect that this issue will change our full-year guidance regarding 787 deliveries,” the company said.
At the time it reported first-quarter earnings in April, Boeing said its 787 program was producing at least three jets a month “with plans to ramp production to five per month in late 2023” and on to 10 a month by 2025-26.
In-service fleet may continue to operate, and the FAA and customers have been informed, Boeing said.
Dreamliner deliveries were halted in February after a documentation and data-analysis error, and the FAA had cleared the jets’ deliveries in March.
Boeing in April identified a problem with another jet family, the 737 Max, related to fittings.
Shares of Boeing have gained around 9% so far this year, compared with gains of about 11% for the S&P 500 index.
SPX,
+0.24% [ad_2]
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The $3,499 Vision Pro headset, iOS 17, and everything else Apple just announced at WWDC
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Apple Inc.’s $3,499 Vision Pro headset stole the show Monday as Apple kicked off its annual WWDC event.
Chief Executive Tim Cook and other executives showed off the next chapter of Apple
AAPL,
-0.76%
technology — “spatial computing” — during a keynote event that failed to maintain Apple’s record stock price. Shares had been on track to close at an all-time high before the event began, but were trading in the red once the event wrapped.While the Vision Pro and its eye-popping price tag was the biggest news from the presentation, Apple also teased forthcoming software enhancements and new Mac computers.
Here’s everything that was announced Monday.
The Vision Pro headset
Apple was widely expected to roll out a mixed-reality headset at Monday’s event, but the announcement still brought a few surprises.
While Apple was rumored to be planning a price tag in the range of $3,000 for its new Vision Pro headset, the actual price of $3,499 was higher. Also, Apple won’t be selling the device until early next year, later than expected, in a move that means the company will miss the holiday season.
The company spent ample time during Monday’s presentation showing off what the Vision Pro can do in terms of bringing photographs, movies and everyday web browsing into physical spaces. Though the company discussed some gaming applications, and a partnership with Unity Software Inc.
U,
+17.16% ,
executives didn’t dwell on gaming and focused the immersive experience more fully.See MarketWatch’s enhanced coverage of the Vision Pro launch here.
New iPhone software
Apple’s iPhone software enhancements are typically a focus of WWDC, an event aimed at developers who create apps for that and other Apple platforms. This year’s update — iOS 17 — will feature new ways to share contact information, journal and make use of the iPhone while it’s locked.
With iOS 17 this fall, Apple users will also be able to set up contact “posters” for themselves, which will appear in full screen when they call others. They’ll be able to see live transcriptions of voice mails so they can determine whether to pick up calls they initially ignored.
See MarketWatch’s full guide to the new iOS 17 features here.
A 15-inch MacBook Air
Apple is making the MacBook Air bigger with a new 15-inch model that features the company’s M2 chip. This version will start at $1,299 and become officially available next week, though preorders begin today. The device gets 18 hours of battery life, is 11.5-millimeters thin and weighs just over 3 pounds.
Mac Pro and Mac Studio
Apple had set out to infuse its personal-computer lineup with custom chips, and the company rounded that out Monday with new Mac Pro and Mac Studio devices that feature Apple Silicon processing. The Mac Studio will start at $1,999, and the Mac Pro will begin at $6,999.
Don’t miss: AI could give a big boost to profit margins — but there’s one key unknown, Goldman Sachs says
New iPad software
Apple will refresh its iPad software as well, with a new custom lock screen, widget enhancements, machine-learning tools that help with PDF editing and better annotation functions for PDFs. Plus, users will be able to at last set multiple timers.
New Mac software
Apple plans to upgrade its Mac operating system as well with a new version that will be called Sonoma. A key feature of this update is a redesign of the widgets function, giving users the ability to place widgets on their home screens and see these automatically fade when necessary so they don’t become distracting.
The new Sonoma operating system will add various tools for web presentations, including a feature that lets people appear as overlays on top of their presentation content and new reaction animations that can show balloons and confetti in response to meeting content.
Within Safari, family members will be more easily able to share passwords. The company will also let people create separate profiles for home, work, and school use of a Mac.
Audio and video improvements
Apple is adding Adaptive Audio to help AirPods users drown out distracting sounds when appropriate. The technology will proactively lower outside volume when someone is on a call and detect when someone is talking to a real-life companion in order to lower music volume for the duration of the conversation.
Within video, Apple will let people use their phone cameras to engage in FaceTime conversations shown on an Apple TV. The company will also support AirPlay connectivity at hotels.
Apple Watch software enhancements
WatchOS 10, the new Apple Watch operating system, will let users retain their aesthetic watch faces but twist the digital crown to see widgets for information like weather, timers and events. The company is also looking to make the Apple Watch more useful for cyclists with advanced tracking features. One part of this allows users to pair an iPhone and see cycling data on the phone’s lock screen, which can be useful for those who dock their phones on a bike while also wearing the watch.
Watch owners will receive a new hiking app as well, which will let users see elevation data and topographical information.
Read: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
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Apple’s new Vision Pro headset will cost $3,499, arrive in 2024
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Apple Inc. officially showed off its mixed-reality headset Monday, with the new Vision Pro device supporting 3-D content and featuring a price tag of $3,499.
The Vision Pro, Apple’s
AAPL,
-0.76%
first major new product category in eight years, will be available early next year and feature the ability for users to control the device with their hands, eyes and voice, a distinguishing feature of the headset in the current market. Chief Executive Tim Cook previewed the widely anticipated device during the keynote address of Apple’s WWDC developer event Monday.See also: Here are all the new software features coming to Apple’s iPhone this year
Apple had been rumored for years to be developing a mixed-reality headset, which merges immersive augmented reality with real-life surroundings. Cook has long been excited about AR technology, and Monday’s event gave a sense for how he sees the theme playing into the business going forward as he announced WWDC’s “one more thing.”
“It’s the first Apple product you look through and not at,” he said, adding that Vision Pro represents “spatial computing” and brings “a new dimension to powerful personal technology.”
Users will be “no longer limited by a display,” Cook claimed.
See also: Apple CEO Tim Cook explains why consumers would want a mixed-reality headset
One key feature of the Vision Pro is the ability to see apps overlaid across real-world surroundings. Users will be able to determine how immersed they want to be by tweaking settings on a digital crown.
The device will also allow users to rely only on their eyes, hands and voice to control content. Users can flick to scroll through options and tap their fingers together to select something with gestures that Apple says are subtle. Apple showed off how users will be able to arrange apps like FaceTime and Safari and then turn to the side to switch from one app to another. Their eyes will still be visible to people engaging with them in the real world.
The company highlighted panoramic photos and noted that users will be able to capture “spatial” 3-D videos and photos using the headset. Apple teased that people would be able to make the surroundings of a plane disappear if they opted to watch 3-D video while flying.
Robert Iger, Walt Disney Co.’s
DIS,
+0.25%
CEO, appeared onstage to call the launch a “momentous event” that could help make Disney’s vision “a reality” through the advent of deeply immersive and personal stories. The Disney+ app will be available “on day one” through Vision Pro.Apple explained that users can either plug the Vision Pro in or use an external battery that will provide roughly two hours of use. The display has “more panels than a 4K TV for each eye.” The Vision Pro relies on Apple’s custom processing, including a new R1 chip that the company says helps reduce latency issues, which have plagued other devices.
Users will be able to set up digital personas as part of the new visionOS operating system for the device.
With the Vision Pro, Apple is wading into a market for augmented- and virtual-reality devices that has been underwhelming thus far as products from Meta Platforms Inc.
META,
-0.45%
and others have failed to pick up meaningful traction with consumers. VR devices dominate the market, according to third-party data from IDC, but overall shipments plunged more than 50% in the latest quarter amid economic pressures and a general cooling of interest.Read: Apple debuts new 15-inch MacBook Air for $1,299, adds new Mac Pro and Studio PCs
While Apple is sitting on a number of multibillion-dollar businesses now, the company’s current big moneymakers weren’t seen as slam dunks when they launched. Evercore ISI analyst Amit Daryanani noted that critics dinged the early iPhone for a lack of third-party apps and keyboard and pointed to fading interest in watch-wearing more generally at the time the Apple Watch debuted.
Whether Apple can succeed again in making a once-questioned product category mainstream remains to be seen with the Vision Pro. The company could sell over 10 million units in the first five years, according to Daryanani, but that would make the device Apple’s slowest to ramp in the 21st century.
See more: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
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Here are all the new software features coming to Apple’s iPhone this year
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Users of Apple Inc.’s iPhone will soon be able to more easily screen calls, check-in with loved ones and exchange contact information.
Apple
AAPL,
+0.43%
executives teased the elements of its forthcoming iOS17 software update at the keynote address of its WWDC event Monday, which also brought the introduction of new Macs.Consumers will gain the ability to choose how they come up when they call others through a new “poster” feature. Users will be able to customize posters with photographs and fonts, and have these appear in another person’s contacts app.
The company is also changing up how calls work by adding a way for people to pick up calls while they’re in the middle of receiving a voice mail. A new on-device live-voicemail feature will show transcripts of a voice mail while it’s in progress, so people can determine that a call isn’t spam or is important enough to stop what they’re doing before they pick it up.
Users will also gain the ability to leave a message when using FaceTime, Apple’s video-calling app.
See also: Apple’s stock at all-time highs ahead of WWDC headset reveal
Within iMessage, Apple will offer the ability for people to share their locations within a conversation and check in with loved ones. People will be able to set up a check-in option that can notify loved ones when they get home and offer alerts about battery, cell service, and location if they end up running late.
Apple is also enhancing the Stickers feature within iMessage with the ability to create “live stickers” from photos. Further, it’s tucking iMessage apps like Stickers behind a menu so they don’t initially clutter the message screen.
Within iMessage, Apple will make it easier for people to jump to the top of long group threads and swipe to reply to a given message.
Apple is introducing a NameDrop feature that lets people share contact information just by tapping their phones together. It’s also augmenting AutoCorrect with in-line predictions that go beyond one word and the ability for people to teach autocorrect their preferences better.
Read: Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says
The company is rolling out two new apps, including one for journaling. People will be able to collect photos, music, and written notes into moments. A new StandBy app will turn a locked iPhone into a smart display that users can customize based on their preferences and the time of day.
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Circor’s stock rockets toward 4-year high after buyout deal with KKR valued at $1.6 billion, including debt
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Shares of Circor International Inc.
CIR,
+8.46%
rocketed 49.2% toward a four-year high in premarket trading Monday, after the flow control products company announced a deal to be acquired by KKR & Co. Inc.
KKR,
+2.29%
in a cash deal valued at $1.6 billion, including debt. KKR’s stock was still inactive ahead of the open. Under terms of the deal, Circor shareholders will receive $49 for each Circor share they own, which represents a 54.7% premium to Friday’s closing price of $31.67, and implies a market capitalization for Circor of $999.1 million. The deal, which is expected to close in the fourth quarter of 2023, follows a strategic review Circor initiated in March 2022. “We believe that this transaction and the immediate cash value it will provide to Circor’s stockholders best achieves the Board’s goal of unlocking the significant incremental value within Circor for its stockholders,” said Circor Chairman Helmuth Ludwig. Circor’s stock has soared 32.2% year to date through Friday, while KKR shares have run up 15.5% and the S&P 500
SPX,
+1.45%
has advanced 11.5%.[ad_2]
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UBS Expects to Complete Credit Suisse Acquisition, Delisting as Early as Next Week – Update
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By Pierre Bertrand
UBS Group said it expects to complete its acquisition of Credit Suisse Group and have the shares of the Swiss peer delisted as early as next week.
Upon completion, Credit Suisse will be merged into UBS and its shares and American depositary shares will be delisted from the SIX Swiss Exchange and the New York Stock Exchange, UBS said in a statement Monday.
If the acquisition is finalized before the opening of trading in the U.S. on June 12, Credit Suisse will de delisted in New York on June 12 and delisted in Switzerland on June 13, UBS said.
If the deal is finalized after the opening of trading in the U.S. on June 12, the delisting on the NYSE and the SIX will both occur on June 13, UBS added.
UBS, which received the European Union’s clearance for its takeover of Credit Suisse last month, said Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares held and that it will assume all Credit Suisse Group assets and liabilities.
It added that Credit Suisse Group’s obligations under its outstanding debt securities will become UBS obligations.
UBS agreed to take over Credit Suisse as part of an emergency measure in March to shore up the troubled lender and restore confidence in the global banking system.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
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Oil prices jump more than 2% after Saudi Arabia sets July production cut
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Oil futures opened sharply higher Sunday evening, after Saudi Arabia agreed to deliver an additional 1 million–barrel daily production cut next month as the Organization of the Petroleum Exporting Countries and its allies moved to extend existing production targets.
Price action
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West Texas Intermediate crude for July delivery
CL00,
+0.98% CL.1,
+0.98%
CLN23,
+0.98%
remained up $1.49, or 2.1%, at $73.23 a barrel on the New York Mercantile Exchange, after trading as high as $75.06. -
August Brent crude
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+0.87% BRNQ23,
+0.87% ,
the global benchmark, gained $1.59, or 2.1%, to trade at $77.72 a barrel on ICE Futures Europe, after touching $78.73 after the open.
Market drivers
Saudi Arabia on Sunday said it would cut oil output by 1 million barrels a day in July, and that the reduction could be extended if needed. The announcement came as OPEC+ agreed to extend current production levels through the end of 2024 at a contentious meeting in Vienna.
See: Saudis to cut oil production by 1 million barrels a day in July as OPEC+ extends output deal
OPEC+ agreed last October to cut production by 2 million barrels a day. Some OPEC+ members in early April announced further cuts totaling 1.6 million barrels a day through year-end, including 500,000 barrels a day in reductions by Saudi Arabia.
Saudi Energy Minister Abdulaziz bin Salman last month warned that short sellers should “watch out” and that they would be “ouching” much as they did in early April, when the surprise cuts caused a sharp, but short-lived, spike in crude prices.
The outcome of the meeting reinforces Saudi Arabia’s “uneasiness with the level of short positions in the market rather than signaling concerns around demand outlook,” said Giacomo Romeo, energy equity analyst at Jefferies, in a Sunday evening note to clients.
“The open-ended part of the measure was likely put in place to discourage future short positioning,” he wrote.
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West Texas Intermediate crude for July delivery
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Saudis to cut oil production by 1 million barrels a day in July as OPEC+ extends output deal
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Saudi Arabia will voluntarily cut production by 1 million barrels a day in July, alongside an agreement by the Organization of the Petroleum Exporting Countries and its allies to stick to production targets on Sunday.
Describing the voluntary cut as a “Saudi lollipop,” the country’s energy minister, Prince Abdulaziz bin Salman, said the July reduction could be extended if needed.
OPEC+ — the group made up of OPEC and its Russia-led allies — concluded a contentious meeting in Vienna, with members agreeing to extend previously agreed production cuts through the end of 2024. OPEC+ agreed last October to cut output by 2 million barrels a day and followed that in April with the surprise announcement of 1.6 million barrels a day in additional cuts.
Oil prices have fallen sharply since the October reduction amid worries over the global economic outlook, with Brent crude
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Rivian stock has ‘clear opportunity’ to pull ahead, Barclays says
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Rivian Automotive Inc.’s recent “clear improvements” reinforce investor’s confidence that the EV maker is on path to break even next year, presenting an opportunity for the stock.
That’s from analysts at Barclays, led by Dan Levy, who said in a note Friday that they recently visited Rivian’s
RIVN,
-0.69%
plant in Normal, Ill.“Our clear takeaway is that [Rivian] has moved past the many challenges/fire fights which deeply challenged operations in 2022,” the Barclays analysts said.
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The EV maker now has the bandwidth to address its manufacturing process improvements and cost-cutting goals.
“There is much low hanging fruit, much runway, and clear improvements are being made … we see improved confidence on the path to reaching gross margin breakeven in 2024,” they said.
The analysts reaffirmed their rating on Rivian stock at the equivalent of buy, with a price target of $22. That represents upside of about 59% over Rivian share prices on Friday.
The automaker is not “out of the woods yet,” however.
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“There is much work ahead, and execution is a key question. We believe demand is increasingly emerging as a question – just as it is for other EV automakers. And we see significant capital needs ahead,” the Barclays analysts said.
Yet with that improved confidence that Rivian is on track to break even, and the company’s “great” products and the strength of Rivian’s vertical integration, “we see clear opportunity ahead for the stock,” they said.
Rivian shares have lost 20% so far this year, contrasting with gains of around 12% for the S&P 500 index.
The automaker last month reported a narrower-than-expected first-quarter loss and stuck with its production outlook for the year, in contrast with guidance cuts for two other EV startups.
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