Author: fortraders

SoftBank Investment Advisers is exploring the launch of a structured credit fund to provide tech startups with more liquidity options. The fund is expected to generate mid-teens returns and will tap into the rapidly growing private credit market. This move comes as SoftBank Group Corp posted a sharply narrower annual loss after a capital raise using its stake in Alibaba Group Holding Ltd. The company is now looking to leverage its investments in high-growth technology firms to further expand its portfolio.

Micron Technology, the biggest U.S. memory chipmaker, has been targeted by China in response to Washington’s efforts to restrict Beijing’s access to key technology. This move could benefit Micron’s key rivals – South Korea’s Samsung Electronics and SK Hynix – in the near term. However, the growing geopolitical tensions cast a shadow over the industry as firms need to navigate rising uncertainties that could impact investment and supply chain management.

The White House has asked South Korea to urge its chipmakers not to fill any market gap in China if the sale of Micron products were restricted. This is a stark reminder of the risks facing the global chip industry as it braces for escalating Sino-U.S. trade tensions. Companies have to address both production and sales, and it is becoming increasingly difficult to make investment decisions.

The industry is one of the most capital-intensive manufacturing sectors, requiring construction of clean rooms and purchase of sophisticated chip manufacturing tools. In China, Samsung and SK Hynix have invested billions of dollars in their chip factories, which import some equipment such as etching machines from the United States.

It is clear that the U.S.-China hegemony war is here to stay, and now it’s chips, later it will be rare earths, raw materials. Companies must accept the rounds of Sino-U.S. trade war as status quo, while roundabout ways of importing memory chips may emerge in response to any further geopolitical pressure.

Abbott Laboratories (NYSE:ABT) has been successful in persuading a federal judge to dismiss some claims in nationwide litigation over recalled baby formula. The parents lacked standing to sue as they did not show which Abbott products or lots were contaminated, or that their children experienced symptoms. The judge also narrowed but did not dismiss two related lawsuits against Abbott. The first lawsuit involves 28 plaintiffs bringing personal injury claims alleging that Abbott’s formula caused salmonella contamination, bacterial meningitis and other health problems. The second lawsuit by eight plaintiffs alleged that Similac products contained heavy metals and were manufactured in unsanitary decisions. Abbott did not immediately respond to requests for comment. The litigation follows Abbott’s February 2022 closure of a baby formula plant in Sturgis, Michigan and subsequent recalls, which together caused a nationwide shortage of formula. The plaintiffs are currently reviewing their next steps.

TEGNA (TGNA) shares rose around 3% after-hours following the company’s announcement of a $300 million accelerated share repurchase (ASR) program and a 20% dividend hike. This follows the termination of the company’s merger agreement with an affiliate of Standard General L.P. The company is entitled to receive a termination fee of $136M from Standard General. The ASR agreement will be funded through cash on hand and is expected to be completed by the end of Q3/23.

The company also hiked its quarterly dividend by 19.7% to $0.11375 per share, or $0.455 annualized, for an annual yield of 2.9%. The dividend will be payable on July 3, 2023, to stockholders of record on June 9, 2023, with an ex-dividend date of June 8, 2023.

TEGNA will host an investor call to discuss its Q1 results and will provide guidance for the Q2 and full year on May 25, 2023, at 10:00 a.m. (ET). Investors will be looking for further details on the company’s plans for the future and how the ASR and dividend hike will affect the company’s performance.