Deflation Pushes PPI To 28-Month Lows; Google's Dominance in Ad Tech Under European Scrutiny; Disney Delays Avatar, Marvel & Star Wars Release: Today's Top Stories

Benzinga

Deflation Pushes Producer Prices To 28-Month Lows Ahead Of Fed's Interest Rate Decision

• U.S. producers now face the reality of deflation, as the Producer Price Index (PPI) for final demand slumped 0.3% month-on-month in May, down from the previous 0.2% monthly increase and below the expected 0.1% fall, the U.S. Bureau of Labor Statistics reported Wednesday.
• The PPI print follows the May consumer price index (CPI) reading, which came in lower than expected, supporting the market belief that the Fed is nearing the end of its interest rate hike cycle.

Apple's Racial Equity Initiative: Tech Giant Invests $25M More in VC for Minority-Owned Businesses

• Apple Inc AAPL plans to invest an additional $25 million in venture capital to support minority businesses.
• The fund has been allocated to Collab Capital, Harlem Capital, and VamosVentures — three venture capital funds working with minority-owned businesses.
• The investments are a part of Apple's Racial Equity and Justice Initiative (REJI) program, launched in June 2020, when protests against racial injustice swept the nation. The company has more than doubled its initial financial commitment of over $200 million over the last three years as part of REJI.

Warren Buffett Says The American Healthcare System Is A 'Tapeworm' Destroying Our Economy

• Warren Buffett, the renowned investor and CEO of Berkshire Hathaway Inc., recently made scathing remarks about the state of the American healthcare system, describing it as a "tapeworm in the American economy." Buffett's assessment is supported by a new report from The Commonwealth Fund, an independent research group, which reveals alarming statistics about the U.S. healthcare system.
• Despite spending more on healthcare than any other high-income country, the United States has the lowest life expectancy at birth and the highest rate of people with multiple chronic diseases. The report also highlights that the U.S. has the highest deaths from avoidable or treatable causes and the highest maternal and infant death rates compared to peer nations.

Shell Boosts Dividend By 15% & Discloses $5B Share Buyback Ahead Of Investor Day

• Shell PLC SHEL released a business and financial update ahead of today's investor day.
• The company has planned to keep its oil production stable by 2030 and aims to enhance its Integrated Gas business to maintain its position as the world's largest liquefied natural gas company.
• Shell will also strategically review its Energy and Chemicals Park assets on Bukom and Jurong Island in Singapore and further high-grading its European assets.

Airbus Raises Forecast For New And Old Aircraft Deliveries

• Airbus SE EADSY provided an update for airplane deliveries for 2023-2042.
• The company raised expectations for new airplane deliveries to 40,850 (from 39,490 issued earlier), of which 32,630 will be Single Aisle and 8,220 Widebody flights.
• The company expects Freighters demand to reach 2,510 aircraft, of which 920 are new builds, over the next 20 years.

Boeing Records 43% Growth In May Deliveries

• Boeing Co BA delivered 50 planes in May, compared to 35 in May 2022 and almost double of 26 delivered in April 2023.
• Its competitor Airbus SE EADSY, delivered 63 airplanes to 36 customers in May, up 34% year-over-year.
• Boeing received 69 orders in May, compared to 23 in 2022.
• Boeing's year-to-date deliveries stood at 206, and Gross orders at 223. Net orders YTD were 262, and cancellations were 127.

Why Logitech Shares Are Falling Wednesday Morning

• Logitech International SA LOGI disclosed the departure of its president and chief executive officer (CEO), Bracken Darrell, effective June 13, 2023.
• Darrell will remain with the company over the coming month to provide a seamless transition.
• The company named Guy Gecht as its interim CEO, presently serving as a non-executive board member since September 2019.

 

CNBC

Google's Dominance in Ad Tech Under Scrutiny, EU Alleges Antitrust Breach, Suggests Compulsory Divestment

• Alphabet Inc's GOOG GOOGL Google has been accused by the European Union of violating antitrust regulations in the field of advertising technology (ad tech). 
• The Union aims to dismantle certain segments of the tech giant's business to address the EU's concerns.
• The European Commission has made an initial determination that Google holds a dominant position in the European market for publisher ad servers and programmatic ad-buying tools for the open-up.

Fantasy Fans Alert! Your Favorite Disney Heroes are Taking a Long Nap - Avatar, Marvel, Star Wars Delayed

• Walt Disney Co DIS has delayed several entries in the Avatar, Marvel, and Star Wars franchises.
• Although studios frequently change their schedules for various reasons, the firm hasn't given any details on the decisions that led to the release date changes.
• The actions come as a writer's strike paralyzes the film and television industry, resulting in production halts that might delay releases.

Eli Lilly CEO Joins Other Pharma Execs, Raises Concern Over Medicare Price Negotiations Impacting Drug Development

• Eli Lilly And Co LLY CEO David Ricks voiced his concerns about the potential impact of Medicare price negotiations on drug development, which aim to reduce costs for older Americans.
• According to Ricks, the primary issue with the provision lies in the difference in timelines for price negotiations between small-molecule drugs and biologic medicines. Small-molecule drugs can be subject to price negotiations as early as nine years after receiving FDA approval, while biologics have a negotiation timeline of 13 years. 
• Ricks expressed concern that this distinction would significantly limit investment in small-molecule drugs, considered highly efficient in healthcare. 

 

Reuters

Pfizer Warns of Potential Pediatric Antibiotic Shortage Amid Surge in Syphilis Infections

• Pfizer Inc PFE cautions about potential supply shortages for pediatric Bicillin L-A, an antibiotic for syphilis treatment, by the end of June. The company has prioritized the production of adult versions due to a surge in syphilis infections in that population. 
• Pfizer's penicillin products have been experiencing shortages since April. 
• The U.K. Health Security Agency data released last week shows that diagnoses of gonorrhea and syphilis have surged in the last year. 

Toyota Shareholders Vote Down Climate Resolution

• Toyota Motor Corp TM shareholders reportedly have voted down the first resolution in 18 years and supported the board at the annual general meeting (AGM).
• The move mirrors the automotive giant's endorsement a day after unveiling its electric vehicle technology plan.
• The resolution, put forward by three European asset managers, invoked more transparency and disclosure on climate lobbying.

Tyson Foods Plans Job Cuts, Illinois and South Dakota Workers Impacted in Corporate Downsizing

• Tyson Foods Inc TSN shared plans to slash about 10% of corporate jobs and 15% of senior leadership positions in April.
• The company had missed the Q2 street expectations and reduced its FY23 Outlook. 
• To save costs, the company plans to let go of 228 corporate workers in Illinois who refused to transfer to the meatpacker's headquarters in Arkansas.

 

Wall Street Journal

Berberine: Cheaper Alternative For Weight Loss, But Consult Your Doctor First

• The latest TikTok health trend, "Nature's own Ozempic," revolves around berberine, an herbal preparation that the social media influencers claim can aid in weight loss. 
• Berberine is a bitter-tasting chemical extracted from the roots of plants like goldenseal and barberry.
• Clinical studies have shown that berberine leads to modest weight loss in obese individuals. However, the data are inconclusive since most published studies are small and of varying quality.

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