Market Beats | Intel Shares Jump 9% Amid Potential Takeover; Goldman CEO Pay Jumps 26% Amid Strong Performance; NYC Congestion Fee Appears to Be Working; Global Car Electrification Slows; Microsoft OpenAI Partnership Raises Antitrust Concerns; NYC Mayor Unveils $114.5bn Budge Plan; FTC Sues Pepsi for Price Discrimination

——Intel Shares Jump 9% Amid Potential Takeover; Goldman CEO Pay Jumps 26% Amid Strong Performance; NYC Congestion Fee Appears to Be Working; Global Car Electrification Slows; Microsoft OpenAI Partnership Raises Antitrust Concerns; NYC Mayor Unveils $114.5bn Budge Plan; FTC Sues Pepsi for Price Discrimination

1. Intel Shares Jump 9% Amid Potential Takeover

Intel Corp.’s stock experienced a significant surge, increasing by as much as 9.5% on Friday morning, following a report that the company might be an acquisition target. The information came from SemiAccurate, a technology-focused newsletter established by Charlie Demerjian, which mentioned an undisclosed email suggesting that a “mystery company” with adequate resources was considering acquiring Intel in its entirety. However, the identity of the potential buyer was not disclosed in the report.

This news comes during a challenging period for Intel, once the leading force in the chipmaking industry, which has seen its position erode amidst stiff competition and rapid technological changes. The company’s struggles were highlighted last month when CEO Pat Gelsinger was ousted following a loss of confidence by the board in his turnaround strategy.

Over the past year, Intel’s stock value plummeted by 60%, and only recently did it recover to levels seen in early December. The company’s market valuation currently stands at about $90 billion.

______

2. Goldman CEO Pay Jumps 26% Amid Strong Performance

Goldman Sachs Group Inc. has awarded its top executives, CEO David Solomon and President John Waldron, who also serves as COO, significant retention bonuses valued at $80 million each. This move is part of a broader effort by Goldman to stay competitive with top alternative-asset managers in terms of compensation.

These retention awards, announced via a recent filing, are the second such bonuses given to Solomon and Waldron in just over three years and are a testament to the Board’s intent to keep them at the helm as a leadership team. The awarded stock bonuses are set to vest in January 2030, requiring both executives to remain with the firm for another five years to receive the full benefits.

Additionally, Goldman Sachs has launched a new program that allows its leaders to earn a portion of the carried interest from the firm’s private equity funds.

In the same filing, it was disclosed that Solomon received a $39 million compensation package for 2024, marking a 26% increase from his previous year’s package of $31 million. This raise comes in a year where the bank has seen a significant rise in profits.

______

3. NYC Congestion Fee Appears to Be Working

Preliminary data released by the Metropolitan Transportation Authority reveals a roughly 8% decrease in the number of cars entering the area below 60th Street in New York City, compared to baseline traffic levels. This decline has been accompanied by an increase in traffic speeds into the zone, a finding that is also supported by data from HERE Technologies, a company specializing in digital mapping and location data.

Former NYC deputy traffic commissioner Bruce Schaller commented on the results, stating, “So far, so good,” and that the findings align with expectations. However, questions remain regarding the specific types of vehicles contributing to this decrease.

A Bloomberg News analysis, which examined approximately 75,000 vehicles traveling through the area, suggests that the observed faster travel speeds are likely attributable to a reduction in personal vehicles. This indicates a decrease in car trips made by commuters, shoppers, and individuals running errands.

As a result, drivers whose income depends on quick travel times, such as those in delivery services or operating taxis and Ubers, are benefiting the most from these changes. This early data provides insights but still leaves room for further analysis as more information becomes available.

______

4. Global Car Electrification Slows

As road transportation contributes approximately 12% to global emissions, achieving net-zero climate goals seems unattainable without a significant reduction in the use of gasoline and diesel vehicles. To combat this, governments previously implemented substantial subsidies to encourage a shift to electric vehicles (EVs). This led automakers to adapt their production lines and expand their EV offerings, which, coupled with falling prices and advancing technology, propelled zero-emission vehicles from a niche market to mainstream prominence. This shift suggested that the combustion-engine era might be drawing to a close earlier than anticipated.

However, the momentum toward electric vehicles has encountered obstacles recently. In the past few years, the enthusiasm for accelerating the EV transition has waned—governments have reduced financial incentives for EV purchases, growth in EV sales has slowed, and the auto industry is reconsidering some of its investment strategies that were based on expectations of a swifter transition to electric vehicles.

This has introduced uncertainty into the market and poses challenges to the global efforts aimed at reducing vehicular emissions.

______

5. Microsoft OpenAI Partnership Raises Antitrust Concerns

The Federal Trade Commission (FTC) has expressed concerns about Microsoft Corp.’s substantial $13 billion investment in OpenAI, suggesting that this move could potentially extend Microsoft’s dominance from the cloud computing sector into the burgeoning artificial intelligence market. A report released by the FTC on Friday highlighted similar concerns with respect to the partnerships between Amazon.com Inc., Google, and AI firm Anthropic, indicating a risk of these AI developers eventually being fully acquired by larger tech companies.

FTC Chair Lina Khan commented on the implications of these partnerships, noting that they could lead to market lock-in, deprive startups of essential AI resources, and expose sensitive information, thereby undermining fair competition. The FTC’s ability to conduct market studies could play a crucial role in gathering more data on industry trends, which in turn could shape future regulatory actions.

It remains uncertain how the FTC’s new leadership under the Trump administration will respond to the findings of this report. The inquiry, which began last year, was focused on investigating the billions of dollars invested by major cloud-service providers into AI startups, including significant investments in OpenAI and Anthropic, the latter being founded by former OpenAI staff. This ongoing scrutiny reflects the FTC’s heightened vigilance over the competitive dynamics within the AI industry.

______

6. NYC Mayor Unveils $114.5bn Budge Plan

New York City Mayor Eric Adams has unveiled a proposed budget of $114.5 billion for the fiscal year starting July 1, which reflects an increase of over $2.5 billion from the current budget approved last June. This proposal, which now awaits City Council approval, marks a shift in focus from previous budgets under Adams’ administration, which primarily concentrated on agency savings and spending cuts.

For the first time since his tenure as mayor began, Adams’ budget doesn’t revolve around cost-cutting measures. He attributes this change to prudent fiscal management by his administration and a strong economy. However, critics argue that the increase in spending is the result of years of overly conservative budgeting practices.

A key factor contributing to the ability to allocate additional funds for social services is the lower-than-expected expenses for migrants. The city has welcomed over 230,000 migrants since April 2022, with the administration spending $6.91 billion on related costs from July of that year through December. This amount is significantly lower than the projected $12 billion that was anticipated to be spent by July of this year. This surplus has enabled more flexible spending in other areas of the budget.

______

7. FTC Sues Pepsi for Price Discrimination

The U.S. Federal Trade Commission (FTC) has initiated legal action against PepsiCo Inc., citing violations of the Robinson-Patman Act, a law from the 1930s designed to prevent price discrimination among retailers. Filed in a federal court in Manhattan, the lawsuit accuses Pepsi of charging higher prices to smaller retailers compared to what it charges a large multinational chain, identified by sources as Walmart Inc.

According to the FTC, Walmart received promotional payments from PepsiCo, which were essentially compensations for advertising or other services, giving them a pricing advantage over smaller competitors. Although the complaint does not implicate Walmart in any wrongdoing, the FTC’s allegations focus on how PepsiCo’s practices have disadvantaged a broad range of retailers, from large grocery chains to local convenience stores, by not extending similar benefits to them.

PepsiCo has contested the FTC’s claims and criticized the partisan manner in which the lawsuit was filed, vowing to defend its case vigorously in court. Meanwhile, Walmart has opted not to comment on the matter.

The decision to sue was contentious within the FTC itself, with commissioners divided in a 3-2 vote along party lines. This lawsuit highlights ongoing concerns about fair market practices and competitive equality in the retail sector.

______