Author: fortraders

Australian financial services firm AMP Ltd has been fined A$24 million ($16.28 million) by the federal court for billing thousands of dead clients for insurance and financial advice. The proceedings were brought forward by the country’s corporate regulator, Australian Securities and Investments Commission (ASIC), in 2021.

AMP had disclosed in 2018 that it had charged customers for financial advice it never gave, despite knowing they had deceased as it had no system in place to prevent dead clients from being billed. The penalty was fully provisioned for by the company in its financial statements for the year ended Dec. 31, 2022.

The fine is a reminder of the importance of having systems in place to ensure that customers are not charged for services they do not receive. It also highlights the need for companies to be transparent and accountable when it comes to their billing practices.

Apple Inc. (NASDAQ:AAPL) has restricted the use of external artificial intelligence (AI) tools for its employees, according to a Wall Street Journal report. The move comes as Apple develops its own AI technology and is concerned about the potential leak of confidential data. The company has also advised its employees not to use Microsoft-owned GitHub’s Copilot, which automates the writing of software code.

OpenAI, the creator of ChatGPT, recently introduced an “incognito mode” for the AI program that does not save users’ conversation history or use it to improve its AI. Earlier Thursday, OpenAI also released the ChatGPT app for Apple’s iOS in the United States.

Apple, OpenAI and Microsoft have not responded to Reuters’ request for comment. The move by Apple to restrict the use of external AI tools is a sign of the company’s commitment to developing its own AI technology and protecting its confidential data.

Berkshire Hathaway Inc, the conglomerate controlled by billionaire Warren Buffett, has increased its stake in Occidental Petroleum Corp to 24.4%. The conglomerate paid about $201 million for 3.46 million Occidental shares between May 16 and 18. Berkshire has also acquired Occidental’s preferred stock and warrants, and has been buying common shares since early last year. At Berkshire’s annual shareholder meeting on May 6, Buffett praised Occidental CEO Vicki Hollub and tried to end speculation that Berkshire might buy Occidental. Berkshire owns dozens of businesses, including Geico car insurance and many retail and manufacturing companies, as well as stocks such as Apple Inc.

U.S stock futures were trading higher during Thursday’s evening deals, with the Dow Jones Industrial Average, S&P 500 and NASDAQ Composite all closing in positive territory. Farfetch Limited (NYSE:FTCH) added 17% after reporting Q1 losses of $0.16 per share, while DXC Technology Co (NYSE:DXC) and Flowers Foods (NYSE:FLO) both dipped after reporting quarterly results. Ahead in Friday’s trade, speeches from Fed Chair Powell and FOMC member Williams and Bowman will be closely watched by investors, while earnings season draws to a close with Deere & Company (NYSE:DE) and Foot Locker Inc (NYSE:FL) scheduled to report. On the bond markets, United States 10-Year rates lifted to 9-week highs of 3.651%.

Reuters has reported that Twitter Inc has accused Microsoft Corp (NASDAQ:MSFT) of violating an agreement over using the social media company’s data. According to a letter seen by Reuters, Twitter owner Elon Musk’s lawyer Alex Spiro has asked Microsoft to conduct an audit of its use of Twitter’s content.

Twitter alleges that Microsoft has accessed its APIs over 780 million times and retrieved over 26 billion tweets in 2022 alone, despite rate limits imposed by the social media company. Microsoft has responded to the accusations, saying they have heard from a law firm representing Twitter and will review the questions and respond appropriately.

The accusations come at a time when Elon Musk is at odds with Microsoft over its artificial intelligence platform. Musk has criticized Microsoft-backed OpenAI, and accused Larry Page, co-founder of Google, of not taking AI safety seriously. He has also announced plans to launch his own AI platform, TruthGPT, to challenge the offerings from Microsoft and Google.

The U.S. Department of Justice is reportedly considering suing to block Korean Air’s planned acquisition of Asiana Airlines. The DOJ has been investigating the November 2020 deal for roughly two years, citing concerns that it will hurt competition on overlapping routes to the United States. The administration is also worried that the merger would place too much control of cargo transportation of key goods like microchips in the hands of one company. EU antitrust regulators have also expressed similar concerns. The deal, announced by Korean Air in late 2020, would see it become the biggest shareholder in indebted Asiana, the biggest shake-up in the country’s aviation industry in nearly three decades. No decision has been made on whether to bring a case.

Disney has announced the closure of its immersive Star Wars-themed luxury hotel, the Star Wars: Galactic Starcruiser, in Orlando this September. The hotel opened with fanfare in March 2022, but due to cost-cutting measures, Disney has decided to close the two-night experience.

The hotel offered guests a two-day and two-night stay in one of 100 Starcruiser cabins, galactic-inspired food and drink, and a visit to Batuu, the “Star Wars” planet inside the Disney World theme park. However, the cost of the experience was too high for some fans, with bookings starting at $4,800 for two guests.

Disney also announced the cancellation of plans to build a nearly $1 billion corporate campus in Florida, citing “changing business conditions” and a battle with Republican Gov. Ron DeSantis.

A Disney spokesman said the Starcrusier experience was “praised by our guests and recognized for setting a new bar for innovation and immersive entertainment.” Disney will take what it has learned from the experience to create future experiences that can reach more of its guests and fans.

The chip sector outperformed the broader market on Thursday, with shares in Nvidia Corp, Advanced Micro Devices (AMD) and Micron Technology (MU) providing the biggest boosts. The sector was buoyed by investor interest in artificial intelligence (AI) and news from Japan that Micron would invest up to 500 billion yen ($3.70 billion) in extreme ultraviolet (EUV) technology in the country.

Synopsys (SNPS) shares also rose 8.7% after it forecast better-than-expected third-quarter profit estimates, citing increased use of AI and automation. Nvidia (NVDA) shares were up 5.0%, while AMD and Intel (INTC) shares rose 4.0% and 2.8%, respectively.

Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, attributed the rally to investor interest in AI, noting that chips are the part of the AI story investors can buy into today. Nvidia shares hit their highest level since December 2021, while Micron shares touched their highest point since June 2022.

The S&P 500 technology index was up 2.1%, and the S&P 500 growth index rose at a slower 1.0% pace. Nvidia is due to report quarterly results on May 24.

Farfetch Limited (NYSE:FTCH) shares surged more than 17% after-hours following the company’s reported Q1 results. EPS of ($0.16) came in better than the consensus estimate of ($0.39). Revenue increased 8.1% year-over-year to $556.4 million, beating the consensus estimate of $515.51M. Q1 gross merchandise value (GMV) grew 0.1% year-over-year to $931.7M. The company provided its full 2023 year outlook, expecting group GMV of approximately $4.9B, and an adjusted EBITDA margin of 1%-3%. CEO José Neves commented on the strength and resilience of the company’s core business. Investors responded positively to the news, pushing the stock up 17%.