Author: fortraders

Microsoft (NASDAQ:MSFT) and Western intelligence agencies have warned of a state-sponsored Chinese hacking group targeting a wide range of U.S. critical infrastructure organizations, from telecommunications to transportation hubs. The espionage has also targeted the U.S. island territory of Guam, home to strategically important American military bases.

Analysts say this is one of the largest known Chinese cyber-espionage campaigns against American critical infrastructure. The U.S. National Security Agency (NSA) is working with partners including Canada, New Zealand, Australia, and the UK, as well as the U.S. Federal Bureau of Investigation to identify breaches.

Microsoft analysts said they had “moderate confidence” this Chinese group, which it dubbed as ‘Volt Typhoon’, was developing capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises.

Security analysts expect Chinese hackers could target U.S. military networks and other critical infrastructure if China invades Taiwan. The NSA and other Western cyber agencies urged companies that operate critical infrastructure to identify malicious activity using the technical guidance they issued.

Microsoft said the Chinese hacking group has been active since at least 2021 and has targeted several industries including communications, manufacturing, utility, transportation, construction, maritime, government, information technology, and education.

As opposed to using traditional hacking techniques, which often involve tricking a victim into downloading malicious files, Microsoft said this group infects a victim’s existing systems to find information and extract data.

The NSA cybersecurity director Rob Joyce said the Chinese campaign was using “built-in network tools to evade our defenses and leaving no trace behind.” Such techniques are harder to detect as they use “capabilities already built into critical infrastructure environments,” he added.

Western governments have urged companies to take action to prevent attackers hiding on their systems. Microsoft said mitigating this attack could be challenging.

The Gilinski Group, owned by Colombian billionaire Jaime Gilinski, has signed a Memorandum of Understanding (MoU) to take a controlling stake in food producer Nutresa and exit its stake in Grupo Sura, Colombia’s largest investment firm. The agreement involves Aflaj Investment LLC, Grupo Argos, JGDB Holding SAS and Nugil SAS, all part of Gilinski’s conglomerate.

Under the MoU, JGDB and Nugil will acquire a controlling stake of no less than 87% in Nutresa, while Nutresa will exit its stake in Grupo Sura and Grupo Argos. Gilinski’s JGDB and Nugil, as well as their partner IHC Capital, will also exit their stakes in Grupo Sura.

Nutresa is present in 14 countries with 47 plants producing processed meats, coffee, cookies, chocolates, pasta and ice cream, as well as a line of restaurants and ice cream parlors. The agreement between Gilinski and GEA takes place amid a number of legal disputes over alleged wrongdoing during takeover bids.

The MoU sets out the initial terms on which it has been agreed to enter into a series of operations between the parties. This agreement marks a major shift in the Colombian business landscape and will have a significant impact on the country’s economy.

On Wednesday, a federal judge ruled that Swedish telecoms company Ericsson (BS:ERICAs) did not mislead investors about its compliance with U.S. anti-bribery laws. The lawsuit was filed in March 2022 by a Boston-based pension fund after Ericsson’s stock dropped sharply following allegations by the U.S. Department of Justice (DOJ) that it was in breach of a 2019 deferred prosecution agreement (DPA).

Judge William Kuntz in Brooklyn, New York, wrote that Ericsson had issued “ubiquitous warnings” to investors raising “the possibility of future compliance failures” after the agreement. Ericsson had agreed to pay $206 million and plead guilty in March for violating the DPA agreement.

Under the conditions of the 2019 DPA, Ericsson paid more than $1 billion to resolve a series of corruption probes, involving bribery allegations in China, Vietnam and Djibouti, and agreed to cooperate with the department for ongoing investigations.

The ruling is a victory for Ericsson, which has been working to restore investor confidence in the company. It remains to be seen if the company will be able to fully recover from the scandal.

U.S. stock futures traded higher on Wednesday evening, following a lower close in the regular session. Minutes from the Federal Reserve’s latest meeting showed division among policymakers as to the future path of interest rates. NVIDIA (NASDAQ:NVDA) surged 24.6% after reporting better-than-expected Q1 earnings, while American Eagle Outfitters (NYSE:AEO) and Snowflake Inc (NYSE:SNOW) dropped 17.2% and 12.5%, respectively, after reporting their quarterly results. Nutanix (NASDAQ:NTNX) added 14.5% after reporting better-than-expected Q3 earnings. Ahead in Thursday’s session, traders will be looking towards preliminary GDP figures, weekly jobless claims, pending home sales as well a speech from the Fed’s Collins. The Dow Jones Industrial Average lost 0.8%, the S&P 500 lost 0.7%, and the NASDAQ Composite dipped 0.6%. United States 10-Year rates were near fresh 2-month highs of 3.743%.

Bill Ackman, the billionaire investor and CEO of Pershing Square Capital Management, has questioned the valuation of Carl Icahn’s flagship firm, Icahn Enterprises (IEP). In a tweet on Wednesday, Ackman noted that the company’s premium had been sustained by a large dividend yield, which is funded by the company selling stock to investors.

Ackman’s comments come after short-seller Hindenburg Research accused IEP of overvaluing its holdings and relying on a “Ponzi-like” structure to pay dividends. Icahn has called Hindenburg’s report “self-serving” and reiterated his defense of the company.

Shares in IEP have lost more than half their value so far this year, and the stock was down another 0.3% in extended trading. On May 10, IEP said it was contacted by U.S. prosecutors, and it posted a surprise quarterly loss in the first quarter.

Ackman and Icahn have a long history of rivalry, having locked horns over the supplement company Herbalife in early 2013. Ackman said that IEP’s performance history and governance structure do not justify a premium, and he is neither long nor short on the stock.

Singapore Telecommunications (Singtel) reported a 14% increase in net profit for the year ended March 2021. The company’s core businesses benefited from a recovery in international travel and roaming, as well as rising 5G adoption. Net profit for the year was S$2.23 billion ($1.68 billion), compared to S$1.95 billion a year ago. Analysts had expected S$2.26 billion, according to Refinitiv.

The company’s strong performance was driven by a recovery in international roaming and travel, as well as increased 5G adoption. Singtel’s consumer business saw a 4.3% increase in revenue, while its enterprise business saw a 5.3% increase. The company also saw a strong performance in its digital businesses, with revenue increasing by 11.3%.

Singtel’s strong performance is a sign of the recovery of the global economy, as well as the increasing demand for 5G services. The company is well-positioned to capitalize on the growing demand for 5G services, and is expected to continue to perform well in the coming years.

Toyota and Volkswagen are leading the way in decarbonising their steel supply and reducing the material’s consumption. Greenpeace estimates that the carbon footprint of the steel materials used by the world’s 16 biggest automakers could have been at least 77 million tonnes of carbon dioxide (CO2) in 2021. The automakers are taking steps to reduce their carbon footprint, with Toyota exploring the technological development and utilisation of low-CO2 steel materials, and Volkswagen focusing on reducing CO2 emissions in the supply chain. Stellantis, the world’s No. 3 car maker by sales, is aiming to reach carbon neutrality by 2038. These automakers are setting an example for the industry, and it is hoped that other car manufacturers will follow suit.

Fitch Ratings has placed the United States of America’s “AAA” long-term foreign currency ratings on rating watch with negative implications. This is due to the increasing uncertainty surrounding the country’s fiscal outlook and the potential for further deterioration in the government’s debt burden.

The agency noted that the U.S. government’s debt burden has risen significantly since the onset of the COVID-19 pandemic, and that the government’s fiscal position is likely to remain weak for the foreseeable future. Fitch also highlighted the potential for further fiscal stimulus measures, which could further increase the government’s debt burden.

The agency said it will continue to monitor the situation and will take appropriate action if the government’s fiscal position deteriorates further. It also noted that the U.S. government’s ability to manage its debt burden and maintain its creditworthiness will be key to the outcome of the rating watch.

The U.S. government’s creditworthiness is of paramount importance to the global economy, and Fitch’s decision to place the country’s ratings on watch is a reminder of the need for fiscal discipline and prudent management of public finances.

AI stocks surged in extended trading on Wednesday, adding almost $300 billion in market capitalization after chipmaker Nvidia Corp forecast strong revenue growth and said it was boosting production of its AI chips to meet surging demand. Nvidia’s stock zoomed as much as 28% after the bell to trade at its highest level ever, increasing its stock market value by about $200 billion.

Rival chipmaker Advanced Micro Devices Inc jumped 10%, while Microsoft Corp and Google parent Alphabet Inc, which are both rushing to incorporate regenerative AI into their Web search platforms, each rose about 2%. AI software maker C3.ai and Palantir Technologies, which recently launched its own AI platform, both soared about 8%.

Interest in AI surged this year after startup OpenAI introduced ChatGPT, attracting over a million users within a week. Ahead of Nvidia’s report on Wednesday, optimism around AI had already fueled a 109% surge in its stock so far in 2023, making the chipmaker the S&P 500’s top performer year-to-date.