Philips Shares Drop 6% as US Sales Halted Following Agreement on Faulty Sleep Apnea Devices, and more Wall Street Highlights

Royal Philips NV (NYSE:PHG) – Royal Philips NV has suspended sales of sleep apnea devices and ventilators in the US after reaching an agreement with the US Food and Drug Administration due to quality issues. Philips has set aside 363 million euros in the fourth quarter to cover the costs of the agreement. The company faces class-action lawsuits and potentially thousands of individual lawsuits related to defective devices. CEO Roy Jakobs stated that the company sees “no appreciable harm caused” by the devices, but the FDA disagrees. Shares dropped up to 6% in pre-market trading on Monday.

Microsoft (NASDAQ:MSFT) – Microsoft’s early lead in artificial intelligence positions it to potentially surpass Apple (NASDAQ:AAPL) in market value over the next five years, according to 13 institutional investors. Microsoft, with a market value of over $3 trillion, has excelled in generative AI, while iPhone-dependent Apple faces challenges. Nvidia (NASDAQ:NVDA) is also seen as a potential competitor. In other news, Microsoft restored services to Microsoft Teams on Saturday after an outage that affected access to the messaging platform. The company identified a network issue and took mitigation actions to address the problems reported by users. Microsoft Teams is an important part of the Microsoft 365 software suite used for online communication and collaboration.

Amazon (NASDAQ:AMZN) – MacKenzie Scott, the ex-wife of Amazon CEO Jeff Bezos, sold 65.3 million Amazon shares last year, representing about 25% of her stake in the company and valued at $10.4 billion. She received shares as part of her divorce from Bezos in 2019 and is a philanthropist committed to significant charitable donations.

Spotify (NYSE:SPOT) – Spotify criticized Apple for its plan to comply with the EU’s Digital Markets Act, calling it a “complete and utter sham.” While developers can offer alternative app stores on iPhones, Apple still demands a “basic technology fee.” Spotify argued it would have to pay a 17% commission under the new terms, compared to the current rate in the App Store.

Apple (NASDAQ:AAPL) – An Apple veteran, DJ Novotney, is joining Rivian Automotive (NASDAQ:RIVN) as Senior Vice President of Vehicle Programs, marking another senior departure from Cupertino. Novotney played a key role in Apple’s product development, including the iPod, iPhone, iPad, and Apple Watch, and also participated in Apple’s initial efforts to develop an electric vehicle.

Baidu (NASDAQ:BIDU) – Samsung will feature Baidu’s Ernie Bot as a highlight in its new Galaxy S24 smartphone series in China. The partnership aims to offer AI features, including text summarization, organization, and translation, as well as support for Samsung’s “circle to search” function.

Uber (NYSE:UBER) – Uber has filed a legal appeal against restrictions imposed on VTCs (touring cars with drivers) in Paris, seeking to overturn Mayor Anne Hidalgo’s decision to exclude them from rue de Rivoli and rue Saint-Antoine, citing transportation concerns during the summer Olympics.

Toyota (NYSE:TM) – Toyota Motor announced the suspension of shipments of some models, such as Hilux and Land Cruiser 300, due to irregularities in diesel engine certification tests by affiliate Toyota Industries. Ten models are affected globally, including the Lexus LX500D. Additionally, the Toyota union is seeking a record annual bonus of 7.6 months’ salary, surpassing the previous high of 7.2 months, driven by the company’s projected profits and the need to increase wages. The final decision is expected by the end of February.

Ferrari (NYSE:RACE) – Ferrari is in talks with the Italian government to amend a capital market law that could facilitate its return to Italy from the Netherlands, seeking to protect the voting rights of its main shareholder, the Agnelli family, under Dutch law.

Boeing (NYSE:BA) – The first Boeing 737 MAX delivered to a Chinese airline since 2019 arrived in China on Saturday, marking the end of a nearly five-year freeze on imports of these jets. China Southern Airlines received the delivery, ending the suspension that began after two accidents in 2018 and 2019. This could potentially trigger the delivery of several dozen MAX jets ordered by China.

Ryanair (NASDAQ:RYAAY) – Ryanair revised its annual profit forecast downwards due to disruptions in sales by online travel agents. It now projects a profit between $2 to $2.1 billion, below the previous forecast. In the 3rd quarter, profit was €15 million. Traffic increased by 7%, and fares rose by 13%. CEO O’Leary maintains a target of 300 million passengers by 2034, up from 183.5 million in the current year. Ryanair expressed interest in purchasing Boeing‘s 737 MAX 10 jets that U.S. customers may not wish to receive, stating it would acquire them “at the right price.” The European airline expects the MAX 10’s certification by the end of the year and flights from 2025.

United Airlines (NASDAQ:UAL) – United Airlines approached Airbus to buy more A321neo jets due to the delay of the Boeing 737 MAX 10, while also revisiting the ordered A350s. The talks are in the early stages, focusing on the availability of the A321neo. The future of the MAX is uncertain, and Airbus leads the market with the A321neo. United Airlines resumed using its Boeing 737 MAX 9 jets for passenger flights following approval by U.S. regulators, after a cabin explosion on an Alaska Airlines flight. The first operation took place from Newark to Las Vegas. The FAA lifted its suspension order but imposed new inspections and maintenance checks.

Alaska Airlines (NYSE:ALK) – Alaska Airlines completed inspections on its first group of Boeing 737 MAX 9 aircraft after a cabin explosion, allowing the carrier to resume some operations with the MAX 9.

Lockheed Martin (NYSE:LMT) – Lockheed Martin plans to cut 1% of its jobs over the year to reduce costs and improve efficiency. The reductions will affect various areas of the defense company, including hiring freezes and voluntary separations. This is part of efforts to optimize the supply chain and digitally transform the company’s operations as they face supply chain challenges and anticipate lower-than-expected profits for 2024.

Shell (NYSE:SHEL) – Shell’s exit from Nigeria’s onshore oil sector highlights the challenges faced by major oil companies in the country, but also raises hopes that local companies can offset the decline in production in the Niger Delta. The production decline is attributed to these factors and the lack of investment in onshore assets by major companies. Local companies could play a significant role in reversing this decline, but face financial challenges. Additionally, Shell will close its oil refinery in Wesseling, Germany, by 2025, converting it into a Group III base oil production unit for lubricants, aiming to reduce carbon and operational emissions. The change is expected to reduce about 620,000 tons of carbon emissions per year. The company also plans to sell its refining unit in Singapore.

Dollar Tree (NASDAQ:DLTR) – Houthi attacks in the Red Sea are raising concerns about maritime transport costs. Wells Fargo sees Dollar Tree at greater risk, with estimates of impact on its profits at 15 to 25 cents per share in 2024.

Farfetch (NYSE:FTCH) – Farfetch, a global luxury fashion platform, plans to sell its luxury online retail platform to South Korean company Coupang. Bondholders, representing more than 50% of Farfetch’s $400 million in convertible notes, seek to protect their interests and possibly find allies among convertible debt holders of Richemont and Alibaba Group Holding (NYSE:BABA). Despite market pessimism, Farfetch still owns an attractive platform and had significant revenues in 2023.

Willscot Mobile Mini Holdings (NASDAQ:WSC), McGrath RentCorp (NASDAQ:MGRC) – Willscot Mobile Mini Holdings is preparing to announce a deal of over $3 billion to acquire McGrath RentCorp in a partnership of mobile construction companies. The cash and stock deal is expected to be made official on Monday, as reported by the Journal.

ResMed (NYSE:RMD) – ResMed’s shares dropped 40% between July and October, due to concerns about the demand for CPAPs after the success of weight loss drugs from Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY). However, the company noted an increase in CPAP compliance among patients who were also taking GLP-1 medications, which could indicate a positive impact on treatment adherence. The company reported a recent increase in sales and profits, boosting its shares. Eli Lilly is also conducting a clinical study to assess the impact of GLP-1 medications on sleep apnea.

Archer-Daniels-Midland (NYSE:ADM) – Archer-Daniels-Midland will delay performance bonus payments to some executives until its financial statements are audited, following an investigation into accounting practices in the nutrition segment. ADM’s long-term compensation was tied to the profit growth of this unit. The investigation prompted a drop in ADM shares and the postponement of 2023 financial results.

Morgan Stanley (NYSE:MS) – The asset management division of Morgan Stanley plans to double its private credit portfolio to $50 billion in the medium term, pooling funds from institutional investors and the wealthy. The private credit market has grown due to strict regulations and higher interest rates, boosting banking activity in this sector. Morgan Stanley seeks to expand its presence in this competitive market as traditional banks become more aggressive.

Deutsche Bank (NYSE:DB) – Douglas Braunstein’s stake in Deutsche Bank from Hudson Executive Capital has decreased from 3.18% to 0.92%. Braunstein, a former CFO of JP Morgan Chase (NYSE:JPM), invested in Deutsche Bank in 2018 but did not comment on the reason for the reduction. Deutsche Bank stated that the move was a kind distribution to certain limited partners.

Blackstone (NYSE:BX) – Blackstone is heavily investing in data centers to meet the growing demand from artificial intelligence. The acquisition of QTS and the massive expansion of these centers are driving the company, but it faces energy and community challenges.

Holcim – Holcim plans to fully separate its North American operations and list them on the New York Stock Exchange (NYSE), with an estimated valuation of about $30 billion. The new CEO, Miljan Gutovic, will take over in May. The division aims to increase sales and operating profit in the region by 2030, while the rest of Holcim’s global business will focus on building solutions in other regions. Analysts see the listing as a positive move for the company.

Reddit – Reddit is considering a valuation of at least $5 billion in its initial public offering, despite private negotiations indicating values below that. The company plans to list in March, but IPO market uncertainty may influence the final outcome.

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