Futures for Canada's main stock index were in the green, as commodity prices rose against a weakening U.S. dollar on hopes that the U.S. Federal Reserve may slow down its pace of interest rate hikes next month
U.S. stock futures suggested a positive opening for Wall Street and world stocks rose
STOCKS IN THE NEWS
Source: Thomson Reuters Alphabet Inc (GOOGL):
Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body
Google had previously set an extended deadline of Oct. 31 for developers in India to integrate apps with its Google Play billing system, which collects a commission that ranges from 15%-30% for each sale
The Competition Commission of India (CCI), however, ordered Google last week not to restrict app developers from using third-party billing or payment processing services in India, while fining it $113 million
Delta Air Lines (DAL):
Pilots at Delta have voted to authorize a strike if negotiators cannot reach agreement on a new employment contract, their union said on Monday
The Air Line Pilots Association (ALPA), which represents nearly 15,000 pilots at the Atlanta-based carrier, said 99% of those who cast their ballots backed strike-authorization
Under U.S. law, Delta pilots cannot walk off the job until the National Mediation Board grants them permission
The board must first decide that additional mediation efforts would not be productive and offer the parties an opportunity to arbitrate
If either side declines, both parties enter a 30-day "cooling off" period, after which pilots and management can engage in self-help - a strike by the union or a lockout by management
Delta said its pilots are not on strike and the vote will not affect its operation
The carrier said a "significant progress" has been made in the contract negotiations and only a few issues have been left to resolve
Tesla Inc (TSLA):
The company aims to start mass production of its Cybertruck at the end of 2023, two years after the initial target for the long-awaited pickup truck Chief Executive Elon Musk unveiled in 2019, two people with knowledge of the plans told Reuters
Tesla said last month that it was working on readying its Austin, Texas plant to build the new model with “early production” set to start in the middle of 2023
“We’re in the final lap for Cybertruck,” Musk told a conference call with financial analysts
A gradual ramp in the second half of next year to full output for the sharp-angled electric truck would mean that Tesla would not be recording revenue until early 2024 for a full-quarter of production on a new model seen as key to its growth
It would also mean a wait of another year for the estimated hundreds of thousands of potential buyers who have paid $100 to reserve a Cybertruck in one of the most highly anticipated, and closely tracked electric vehicle launches ever
DEAL SPOTLIGHT
Source: Thomson Reuters
Abiomed Inc (ABMD) & Johnson & Johnson (JNJ):
Johnson & Johnson said it will acquire Abiomed for a deal valued at $16.6 billion to boost the healthcare conglomerate's medical devices business
The upfront payment of $380 per share represents a 50.7% premium to Abiomed's last closing price
Abiomed shareholders will also get a non-tradeable contingent value right entitling the holder to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved
EARNINGS SPOTLIGHTS
Source: Thomson Reuters
BP PLC (BP):
The company more than doubled its third-quarter profit from a year earlier to $8.15 billion, lifted by strong natural gas trading, as it expanded its share buybacks by $2.5 billion amid rising calls to increase taxes on the energy sector
BP said it expects to pay around $2.5 billion in taxes for its British North Sea business this year, including $800 million in a windfall tax
The company made a profit of $3.3 billion a year earlier and a 14-year high profit of $8.45 billion in the second quarter of 2022
BP, which increased its dividend by 10% in the quarter, will buy back $2.5 billion of shares after repurchasing $7.6 billion so far this year
Pfizer Inc (PFE):
The company raised its full-year estimates for sales of its COVID-19 vaccine by $2 billion to $34 billion, encouraged by demand for its new bivalent booster shots
The company maintained its full-year sales forecast for COVID-19 pill Paxlovid at $22 billion. Pfizer and Moderna have rolled out an Omicron-tailored booster dose in Europe and the United States
It reported third-quarter sales of $22.60 billion, beating the average analyst estimate of $21.04 billion
Thomson Reuters Corp (TRI):
The company reported higher third-quarter revenue and operating profit, helped by gains in its three biggest divisions, and stuck to its forecasts for this year and next
While the company kept its outlook for next year, it said any worsening of the global economic or business environment could impact its ability to achieve that guidance
The news and information company recorded $1.57 billion in sales during the quarter, up 3%, which compared with expectations of $1.59 billion
Adjusted earnings per share came in at 57 cents, beating analysts' consensus forecast of 50 cents
THINGS TO KNOW
Source: Bloomberg Finance L.P.
Federal Reserve Chair Jerome Powell’s favored yield curve may be about revive the recession debate, as current three-month rates are on the cusp of exceeding the rate at which they’re expected to be in 18 months’ time, which would make for an inverted yield curve
President Joe Biden said he’d seek to impose higher taxes on oil companies that record “windfall” profits without reinvesting in production
Credit Suisse Chairman Axel Lehmann said the Swiss lender is not open to takeover discussions, even as its revamp weighs on share prices and continues to invite rumors of buyout deals
