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Alphabet Inc. (NASDAQ:GOOGL) and the European Commission have agreed to work together to develop an Artificial Intelligence (AI) pact ahead of the proposed EU rules governing the technology. The pact will involve both European and non-European companies. EU industry chief Thierry Breton and Alphabet CEO Sundar Pichai met in Brussels to discuss the pact.

The EU and the US are also planning to step up cooperation on AI to establish minimum standards before legislation enters force. Breton urged EU countries and EU lawmakers to finalise details of the Commission’s proposed AI rules before the end of the year. The pact is seen as a way to ensure that AI is used responsibly and ethically.

Analog Devices Inc. (NASDAQ: ADI) reported a 10% increase in revenue for the second quarter of 2021, beating analysts’ estimates. However, the chipmaker’s shares dropped nearly 8% after the company forecasted lower-than-expected third-quarter revenue and profit.

The company expects third-quarter revenue of $3.10 billion, plus or minus $100 million, and adjusted profit of $2.52 per share, plus or minus 10 cents. This is below analysts’ estimates of $3.16 billion and $2.65 per share, respectively.

The chip industry is struggling to shake off a slump that has led to a pile-up of inventory, and Analog Devices is no exception. CEO Vincent Roche said, “Looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains.”

Despite the gloomy outlook, Analog Devices saw resilient demand from the industrial and automotive sectors, with revenue from the industrial segment rising 16% and the automotive segment’s revenue increasing 24%. The company also announced plans to invest 630 million euros ($678.8 million) in a new research and development and manufacturing plant in Ireland.

Prashanth Mahendra-Rajah will step down as finance chief at the end of the fiscal year. The company’s shares were down 7.9% at $173.04 on Wednesday.

Microsoft’s (NASDAQ:MSFT) acquisition of video game maker Activision Blizzard (NASDAQ:ATVI) is likely to close despite an objection from the U.K.’s competition watchdog, according to analysts at Macquarie. Recent approvals from regulators in China and the European Union have created “a path” for the $69 billion deal to be finalized. The Department of Justice still has concerns, but the analysts believe that the deal will not run into any serious roadblocks from the U.S.

The CMA published an interim order restricting Microsoft and Activision from acquiring an interest in each other, citing concerns that the merger would limit choices for gamers as well as innovation. The Macquarie analysts argued that the CMA’s decision now looks “out of consensus in nature,” which would in effect reduce its impact on the ultimate outcome of the merger. They said the tie-up could still potentially be closed without a green light from the CMA if Microsoft agrees to offer Activision content in the U.K. on Xbox and PlayStation consoles only.

Overall, the analysts believe that the deal will be finalized and that Microsoft and Activision will be able to move forward with their plans.

The world’s largest asset manager said it received strong support for its board and executive pay, with more than 99% of votes cast in favor of the proposals.

BlackRock said it was pleased with the outcome of the meeting, which was held virtually due to the coronavirus pandemic.

The company said it was committed to engaging with shareholders and addressing their concerns. It also said it was focused on delivering long-term value for all shareholders.

BlackRock is the world’s largest asset manager, with more than $7 trillion in assets under management. It is a major player in the global financial markets and has a significant presence in the world’s major economies.

On Wednesday, U.S. stock indexes were set to open lower as talks between the White House and Republican representatives over raising the debt ceiling failed to make a breakthrough. Shorter-dated Treasury yields continued to rise, with yields on the 1-month bond hitting another record high at 5.8920%, as worries about a possible government debt default rise.

Investors await minutes from the Federal Reserve’s May 2-3 meeting, due later in the day, to assess the central bank’s interest-rate path. Shares of Meta Platforms Inc, Agilent Technologies Inc, Nvidia Corp, PacWest Bancorp, Kohl’s Corp, Urban Outfitters Inc, VF Corp, and Abercrombie & Fitch Co were all trading lower or higher premarket, depending on their respective earnings reports.

The lack of progress in talks to raise the $31.4 trillion borrowing limit ahead of the June 1 deadline has weighed on Wall Street, with its benchmark indexes ending the previous session sharply lower. Investors will be closely watching the Fed minutes and earnings reports for further direction.

Shares of Sarepta Therapeutics (NASDAQ:SRPT) tumbled 15% in early Wednesday trading after the medical research company said the U.S. Food and Drug Administration (FDA) informed the company it “requires modest additional time to complete the review” of SRP-9001. The PDUFA date for ‘9001 will be delayed until June 22, 2023, from May 29th. The therapy is currently under review for the treatment of ambulant individuals with Duchenne muscular dystrophy (DMD). The FDA also indicated that it intends to potentially grant an accelerated approval for SRP-9001, initially for use in Duchenne patients ages 4-5 years old, once the review is completed. RBC analysts said the delay “offers concrete timelines” and believe the weakness presents a buying opportunity.

Analysts at Bank of America (BofA) believe that Apple’s upcoming Mixed Reality (MR) headset could be a game-changer. At the Worldwide Developers Conference, Apple is expected to unveil the headset, as well as updates to iOS, iPadOS, macOS, watchOS, and tvOS.

BofA analysts have a Neutral rating and a $176 price target on Apple, and feel that the MR headset “could be transformative over time.” They believe that the headset could disrupt existing markets and create entirely new ones, and that the initial uptake may be modest, with 200K units in 2023. However, if Apple can drive meaningful adoption, the headset could drive one-third of App Store revenues by 2026.

Investors were active in premarket trading on Wednesday, May 24th, with stocks in focus ranging from Kohl’s to PacWest Bancorp. Kohl’s stock soared 11.6% after the retailer reported a surprise profit, while Abercrombie & Fitch stock rose 15.8% after the clothes retailer raised its annual sales forecast. XPeng stock fell 5.6% after the China-based EV maker reported a wider-than-expected quarterly loss, while Palo Alto Networks stock rose 4.7% after the cybersecurity company posted stronger-than-expected third-quarter profit. Urban Outfitters stock soared 13.3% after the clothes retailer reported quarterly results that topped Wall Street estimates, while Intuit stock fell 5.2% after the business software firm reported disappointing third-quarter revenue. Agilent stock fell 9.4% after the lab-equipment maker disappointed with its full-year guidance, and Integra LifeSciences stock fell 2.6% after JPMorgan downgraded the medical technology company. Finally, PacWest Bancorp stock rose 4.9% after the lender agreed to sell its property lending unit in its second asset sale this week.

Meta Platforms Inc (NASDAQ:META) has completed the third and final round of layoffs, cutting 10,000 roles as part of a plan announced in March. The cuts hit non-engineering roles most heavily, with the ad sales, marketing and partnerships teams being the most affected. CEO Mark Zuckerberg said the bulk of the layoffs would take place in three “moments” over several months, largely finishing in May. The layoffs follow months of waning revenue growth and the company’s investment in its metaverse-oriented Reality Labs unit and AI infrastructure.

Kohl’s Corp reported a surprise profit in the first quarter of 2021, sending its shares up 12%. The department store operator’s efforts to reduce excess inventory and slash costs under newly appointed CEO Tom Kingsbury have started to pay off. Gross margin grew by 67 basis points, while operating expenses fell 4.2%. Comparable store sales declined 4.3%, however, due to ongoing cost-of-living pressures. Kohl’s maintained its fiscal 2023 earnings per share in the range of $2.10 to $2.70, and operating margin at about 4%.