Microsoft-Activision Adjust Deal Deadline Terms, Goldman Sachs' Q2 Profits Fall 60%, Johnson & Johnson Joins Legal Battle Against US Government On Drug Pricing Negotiation: Today's Top Stories

Benzinga

What's Going On With Microsoft-Activision Deal? Companies Adjust Deadline Terms

• Microsoft Corp MSFT and Activision Blizzard Inc ATVI stocks are grabbing attention amid reports of the companies extending the $69 billion takeover deal to October 18.
• The terms of the agreement include an increase in the termination fee payable to Activision Blizzard from $3.0 billion to $3.5 billion if the transaction is terminated after August 29, 2023, and to $4.5 billion if the transaction is terminated after September 15, 2023. 

Microsoft Announces Bing Chat Enterprise, Microsoft 365 Copilot Pricing

• Microsoft Corp MSFT stock is trading higher Tuesday after it announced Bing Chat Enterprise and Microsoft 365 Copilot pricing.
• At Microsoft Inspire, the company disclosed significantly expanding Bing to reach new audiences with Bing Chat Enterprise, delivering AI-powered chat for work, and rolling out today in Preview – which means more than 160 million people already have access. 

Goldman Sachs' Q2 Profits Tumble Due To Tepid M&A Activity: Performance By The Numbers

• Goldman Sachs Group Inc GS reported Q2 EPS of $3.08, which plunged 60% Y/Y, missing the consensus of $3.18.
• The Wall Street giant took a writedown of $504 million tied to its GreenSky business and $485 million related to its consolidated real estate investments.
• The sale of "substantially all of the remaining" Marcus loans portfolio also resulted in a gain of $100 million for Goldman.

Carvana Shoots Higher After Q2 Earnings

• Carvana Co CVNA reported a second-quarter FY23 sales decline of 23.6% year-on-year to $2.97 billion, beating the consensus estimate of $2.59 billion. 
• EPS loss of $(0.55) beat the consensus loss of $(1.15).
• Carvana looks to achieve a positive adjusted EBITDA for the second consecutive quarter in Q3FY23.

Tata's New Multi-Billion Dollar Battery Plant In The UK Promises To Create 4,000 Jobs

• The Tata Group has chosen the U.K. for its first battery manufacturing plant outside India, representing one of the largest investments ever made in the UK auto industry.
• With a capacity of 40GWh, the new plant will be one of Europe's largest and will secure UK-produced batteries for another Tata investment, Jaguar Land Rover (JLR), and other UK and European manufacturers.
• The gigafactory will create up to 4,000 jobs and trigger thousands more in the wider supply chain for battery materials and critical raw minerals. Production at the new plant is set to begin in 2026.

General Motors Sees More EV Output In H2 After Lackluster First Half

• Automaker General Motors GM reportedly anticipates an uptick in electric vehicle production in the second half of the year, driven by improved battery module availability.
• During the first half, due to supply chain challenges, GM experienced declining EV production, including the GMC Hummer EV and Cadillac Lyriq.
• Despite having full-order banks, GM sold only 49 Hummer EV pickups and 2,316 Lyriq models. 

Halliburton Q2: Revenue Miss, Strong Cash Flow Generation & More

• Halliburton Company HAL reported second-quarter FY23 revenue growth of 14.3% year-over-year to $5.798 billion, missing the consensus of $5.86 billion.
• Adjusted EPS was $0.77 (+57.1%), beating the consensus of $0.75.
• Total cash flows provided by operating activities year-to-date totaled $1.17 billion, compared to $326 million a year ago.

U.S. Bancorp Exceeds Expectations with 29% Jump In Adjusted Net Interest Income, Well-Positioned For Revenue Growth Strategies

• U.S. Bancorp USB clocked a second-quarter total adjusted net revenue growth of 19.7% year-over-year to $7.197 billion. 
• Net interest income plus non-interest income totaled $7.141 billion. This compares to the consensus of $7.150 billion.
• Adjusted earnings per share totaled $1.12, in line with the consensus.

Baker Hughes Reports Q2 Results Above Street Expectations

• Baker Hughes Co BKR reported a second-quarter FY23 revenue increase of 25.1% year-over-year to $6.32 billion, beating the consensus of $6.26 billion.
• Adjusted EPS was $0.39, beating the consensus of $0.33.
• BKR expects Q3 FY23 revenue of $6.4 billion-$6.5 billion versus $6.48 billion consensus and Adj. EBITDA of $930 million-$990 million.

ASML Tops Q2 Backed By DUV Revenue, Declares Interim Dividend

• ASML Holding NV ASML reported a second-quarter FY23 net sales growth of 27% year-on-year to €6.90 billion ($7.52 billion) above the consensus of $7.51 billion.
• GAAP EPS was €4.93 ($5.37) above the consensus of $5.17.
• ASML expects Q3 net sales of €6.5 billion - €7.0 billion vs. consensus $7.41 billion and a ~50% gross margin.

 

Financial Times

Microsoft's New Premium AI Feature Raises Concerns About Affordability and Market Competition

• Microsoft Corp MSFT looks to charge at least 53% - 83% more to access new artificial intelligence features in its widely used Microsoft 365 service.
• CEO Satya Nadella defended the pricing decision as part of a generational technological shift.
• On Tuesday, Microsoft announced Bing Chat Enterprise and Microsoft 365 Copilot pricing at its annual partner conference Microsoft Inspire.

 

Reuters

Drug Pricing Negotiation Program: Johnson & Johnson Joins Legal Battle Against US Government

• Johnson & Johnson JNJ has reportedly taken legal action against the U.S. government, following the lead of other pharmaceutical companies aiming to obstruct a program that empowers the Medicare government health insurance plan to negotiate lower prices for medication. 
• The pharmaceutical sector asserts that President Joe Biden's hallmark Inflation Reduction Act, which enables the drug price negotiation scheme, will limit profits and force companies to reduce the development of innovative new treatments.

Spain Penalizes Amazon and Apple with €194M for Conspiring to Limit Competition in Device Sales

• Spain's antitrust watchdog penalized Amazon.Com, Inc AMZN and Apple Inc AAPL by a total €194.1 million ($218.03 million) for conspiring to restrict the online sale of devices from Apple and competitors in Spain.
• On October 31, 2018, Amazon and Apple signed two agreements updating Amazon's terms as an Apple Authorized Reseller. They included several clauses restricting competition that affected the Internet (online) retail sale of electronic products in Spain.

Johnson & Johnson's First Talc-Related Trial In Two Years: Court Orders To Pay Around $19M

• Johnson & Johnson JNJ has been ordered to pay $18.8 million to Emory Hernandez Valadez, a California man who allegedly developed cancer due to exposure to the company's baby powder.
• Hernandez, 24, claims his mesothelioma, fatal cancer, developed due to significant exposure to J&J's talc since childhood. 
• This is the first talc-related trial that J&J has faced in nearly two years.

American Airlines Pilots Want A Contract Deal At Par With United Airlines

• American Airlines Group Inc AAL pilot union has reportedly informed the company that its new contract deal is in peril.
• The ratification of American Airlines' new contract deal is in "jeopardy" as United Airlines Holdings Inc UAL raised the bar with its deal.
• American pilots will vote next week on a new four-year contract with a 42% pay raise and other benefits.

Nissan, Renault To Announce New Alliance Soon

• Nissan Motor Co Ltd NSANY and Renault SA RNLSY are reportedly expected to announce their restructured alliance and a final deal in the coming days.
• Both automakers announced a framework agreement in February and said they aimed to finalize the negotiations in early March.
• Under the agreement, Nissan is expected to take 15% of Renault's new electric vehicle unit, Ampere, and Renault would slash its 43% stake in Nissan.