1. UK Approves Microsoft-Activision Deal
2. Country Garden Founder Provides $300M Interest-Free Loan
3. JPMorgan Hits Record High Net Interest Income
4. U.S. Auto CEOs Took $1B in Compensation
5. Boeing Investigates 737 Parts Flaws
6. Citi Slashes Management Layers
7. Israeli Billionaire Resigns From Harvard Board
1. UK Approves Microsoft-Activision Deal
After months of regulatory scrutiny, the UK’s Competition and Markets Authority (CMA) has officially approved Microsoft’s $69 billion acquisition of Activision Blizzard.
The CMA stated that Microsoft made certain adjustments to the deal, including selling some game streaming rights to France’s Ubisoft Entertainment, which helped address concerns around competition and service quality.
This acquisition is the largest in the history of the gaming industry.
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2. Country Garden Founder Provides $300M Interest-Free Loan
Media reports indicate that Yang Guoqiang, founder of Chinese developer Country Garden, and his family have provided the company with a $300 million interest-free loan.
Country Garden has recently faced potential default and is seeking a massive debt restructuring. This week, the once-largest Chinese developer warned it could no longer meet all offshore debt obligations.
The family reportedly also sold several private jets to improve the company’s cash flow.
Though it narrowly avoided default in past months, investors remain on high alert.
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3. JPMorgan Hits Record High Net Interest Income
JPMorgan reported a record $22.9 billion in net interest income for the quarter ending September 30, prompting the bank to raise its full-year forecast to $88.5 billion.
CEO Jamie Dimon credited high interest income and low credit losses but warned that results would eventually normalize. He also cited the Russia-Ukraine and Middle East conflicts as growing global risks.
JPMorgan shares are up 8.7% year-to-date, rising 0.8% this morning.
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4. U.S. Auto CEOs Took $1B in Compensation
The United Auto Workers (UAW) union says that since 2010, the CEOs of Ford, General Motors, and Stellantis have collectively received more than $1 billion in salary, stock, and bonuses.
Meanwhile, worker wages at these companies have fallen 17% over the same period, according to the union.
UAW President Shawn Fain criticized the pay disparity, saying many workers can’t afford the cars they help build.
Wage hikes remain the biggest sticking point in the ongoing labor negotiations.
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5. Boeing Investigates 737 Parts Flaws
Boeing said in an email that it is investigating quality issues with some 737 Max aircraft parts. Some components may require manual drilling to maintain proper cabin pressure.
Today, Boeing shares posted their steepest drop in seven weeks, while parts supplier Spirit AeroSystems fell the most in a month.
Ongoing investigations are likely to disrupt Boeing’s Q4 delivery goals.
Ryanair Holdings has already reported worsening delivery delays.
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6. Citi Slashes Management Layers
Citigroup announced it will reduce its management structure from 13 layers to 8. CEO Jane Fraser has also dismissed 60 senior managers as part of the largest reorganization in the bank’s history.
The bank is cutting two major business units and will focus on five core areas: trading, investment banking, services, wealth management, and U.S. consumer operations.
Fraser said the reorganization aims to improve operational efficiency and shareholder value.
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7. Israeli Billionaire Resigns From Harvard Board
Israeli billionaire Idan Ofer and his wife Batia announced they are stepping down from Harvard’s board in protest of the university’s response to the Israel-Hamas war.
Ofer said the leadership’s failure to clearly support Israel shattered their trust in the institution.
As the largest shareholder of Quantum Pacific Group, Ofer is one of Israel’s wealthiest individuals, with an estimated net worth of $20 billion.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.