Overview of TOP weekly news 4.11.2020

04 / 11 / 2020
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Agreement between Nvidia and Arm in jeopardy

An almost certain $40 billion deal between the British chip company Arm, owned by SoftBank and Nvidia. The reason is Allen Wu, CEO of Arm China, which controls almost 17 per cent of its shares. Allen Wu took control of a key investment company last November and currently controls four of Arm China’s six shareholders.

SoftBank entered negotiations with responsibility for negotiating the departure for Mr Wu, according to two people familiar with the process. The compensation should be between $ 100 and $ 200 million. Arm’s Chinese subsidiary is important, as SoftBank stated in 2018 that China was responsible for one-fifth of Arm’s total sales. It also deals with licensing agreements in the country and carries out some research and development.

A spokesman for Arm China said it was not responding to speculation and threatened legal action “against any organization or individual who spread rumours in the hope of damaging our reputation.” It is in everyone’s best interests for Arm China to remain stable.

More questions around the Wirecard

The European Securities and Markets Authority (ESMA) has identified shortcomings in the supervision of German regulators over the financial company Wirecard, which declared bankruptcy this year because of a major accounting scandal. The company lacked 1.9 billion euros, which were reported in the books.

“The Wirecard case again emphasized that high-quality financial information is essential to maintain investor confidence in capital markets,” said ESMA President Steven Maijoor.

In response to the case, the German prosecutor’s office detained former executives of the company, including the chairman of the board Markus Braun, which caused a fraud worth 3.2 billion euros. The defendants were from organized fraud, embezzlement, accounting fraud and stock market manipulation.

Half profits of the Saudi Aramco

Saudi Arabia’s largest oil company, Saudi Aramco, is the world’s largest oil producer, accounting for about 10 per cent of global production. Saudi Arabia holds about 98 per cent of the company.

Due to slowing economic growth, accelerating the spread of coronavirus and the gradual introduction of lockdowns, the company reported about half the profit compared to last year. Profit fell 44.6 per cent in the third quarter to 44.2 billion riyals. Revenues fell by almost a quarter to 200.1 billion rials. The economy was affected by low oil prices, a drop in demand for raw materials due to the pandemic and low refinery margins. The company has set aside $18.75 billion in dividends for the third quarter, which it will use to pay dividends.

“In the third quarter, we saw the first signs of recovery due to improved economic activity, despite the adverse conditions facing global energy markets,” said CEO Amin Nasir in a statement.

BMW has seen an increase in demand

BMW published quarterly results and it turned out that sales in China, BMW’s largest and most profitable market, increased by more than 31% in the quarter to the end of September compared to the same period in 2019. Sales in Europe also increased slightly by 7% compared to the previous year.

BMW’s third-quarter earnings rose nearly 10%, driven by demand in Asia. The company’s total pre-tax profit grew by 2.5 billion EUR for the given period, compared to 2.25 bln. EUR in the same quarter last year.

Performance of the BMW’s shares (Source of the graph: Tradingview)

California supported Uber

Uber and Lyft, has skyrocketed after motor vehicle recall providers have gained ground in public voting, allowing them to evade California labour law, meaning their drivers do not have to be reclassified as employees.

Edison Research conducted the survey, published data, and 58% received support for the measure, with almost 95% of constituencies reporting at least in part. The results are incomplete and must also be certified.

Performance of the Uber’s shares (Source of the graph: Tradingview)

Watch this week:

Thursday, November 5, 2020

The Bank of England will decide on the main interest rate. An unchanged rate of the current 0.1% is expected.

In the United States, the Fed will meet, which will also decide on the base interest rate. Unchanged 0.25% is expected.

Friday, November 6, 2020

The United States will disclose the change in the number of employees employed in the previous month excluding the agricultural industry. A decrease from 661 thousand to 600 thousand is expected.

Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview

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