Top Stories Monday, Oct 30: Penalty Warranted For Southwest Airlines' Flight Fiasco, Amazon Leverages Generative AI for Holiday Ad Boost, McDonald's Q3 Earnings - Autoliv (NYSE:ALV), Amazon.com (NASDAQ:AMZN)

Benzinga

Southwest Airlines Co. LUV has received a warning from the U.S. Department of Transportation that it may face a fine due to significant operational disruptions last December that caused widespread flight cancellations and passenger distress.
This disruption and subsequent recovery efforts resulted in the cancellation of more than 16,700 flights from December 21 through December 31, 2022.

Healthpeak Properties Inc PEAK and Physicians Realty Trust DOC have agreed to merge in an all-stock merger of equals valued at approximately $21 billion.
Under the terms of the agreement, each Physicians Realty Trust common share will be converted into 0.674 of a newly issued Healthpeak common share.

Alphabet Inc.'s GOOG GOOGL Google has revealed that it can turn active noise cancellation (ANC) headphones and wireless earbuds into heart rate monitors without additional hardware.
Google says its approach sends an "ultrasound probing signal" through the speakers of ANC headphones or earbuds.

Toyota Motor Corporation TM said its total global production remained flat in September to 1.037 million vehicles, including subsidiaries Daihatsu Motor Co and Hino Motors Ltd.
For Toyota, September's global production rose 1.5% to 900,919 vehicles, and sales improved 11.6% to 921,308 vehicles.

EV maker Rivian Automotive Inc RIVN will begin charging users of its fast-charging network starting in November.
Though the company provided free charging to its earliest owners, it will begin billing at all of Rivian Adventure Network's charging sites. Charging fees will be billed to the payment information saved in the account, the company said in an email to its customers.

Automotive safety systems supplier Autoliv Inc ALV plans to reduce its headcount in France as part of the previously announced initiatives to reduce its global headcount and optimize its footprint.
In June, Autoliv announced its intention to reduce up to 2,000 indirect employees.

On Friday, the FDA issued a warning to consumers, cautioning them against the use of 26 over-the-counter eye drops from various brands.
The FDA's advisory stems from concerns that these eye drops may lead to eye infections and, in some instances, potential vision loss.
The eye drops are primarily designed to alleviate symptoms of dry eyes and relieve eye irritation.

Wall Street Journal

Isaac "Ike" Perlmutter, former Marvel executive and billionaire, has pledged his support to his friend Nelson Peltz as Peltz gears up for a renewed challenge to make significant changes at Walt Disney Co DIS.
Perlmutter, a significant independent shareholder in Disney, has entrusted his Disney stake to Peltz's Trian Fund Management.

Bloomberg

Pipeline and transportation company TC Energy Corp TRP is reportedly exploring selling a minority stake in ANR Pipeline Co for an estimated enterprise value of around $3 billion. Additionally, TC Energy is contemplating the sale of a portion of its Mexican operation, which generates roughly $600 million in annual EBITDA.
Furthermore, the company is mulling over the sale of a controlling stake in the Portland Natural Gas Transmission System and a significant minority stake in the Millennium Pipeline, both boasting enterprise values surpassing $1 billion.

Reuters

Amazon.Com Inc AMZN looks to utilize generative AI as a strategic tool this festive season, aiming to enhance ad targeting and expedite promotional content creation for merchants.
This approach will likely attract a larger audience of shoppers and advertisers to the platform, utilizing the extensive data from over 160 million Prime subscribers.
Amazon is placing its bets on AI-powered targeted ads to stand out this Black Friday and Cyber Monday beyond its signature fast shipping and attractive discounts.

Blackstone Inc (NYSE: BX) reportedly inked a deal to buy a majority stake in Care Hospitals in India from TPG Inc's (NYSE: TPG fund to foray into the healthcare services sector of the country.
Blackstone plans to commit a $1 billion investment in the hospital chain in India and holds over 75% of Care Hospital.
Care Hospitals plans to acquire a majority stake in KIMSHEALTH, which operates under Kims Healthcare Management, to create one of India's largest hospital platforms with 23 facilities and over 4,000 beds across 11 Indian cities.

Earnings

McDonald's Corp MCD reported Q3 FY23 sales growth of 14% year-on-year to $6.692 billion, beating the analyst consensus estimate of $6.577 billion.
U.S. Comparable sales rose 8.1%, benefiting from strong average check growth driven by strategic menu price increases.
MCD sees FY23 operating margin of 46% and capital expenditure of $2.2 billion - $2.4 billion.

HSBC Holdings PLC HSBC reported Q3 2023 revenues increased 40% Y/Y (reported and constant currency) to $16.2 billion on a rise in net interest income (NII).
HSBC reaffirms its target of paying a special dividend per share of $0.21 from completing the Canadian Banking unit sale in H1 2024.
HSBC reiterated its outlook for 2023 NII at above $35 billion and RoTE in the mid-teens for 2023 and 2024.

Panasonic Holdings Corp PCRFY reported an H1 FY24 sales growth of 1% Y/Y to ¥4.12 trillion on higher sales in Automotive, Connect, and automotive batteries and favorable currency translation.
EPS of ¥123.51 was considerably higher than ¥45.97 a year ago.

Western Digital Corp WDC reported a first-quarter FY23 revenue decline of 26% year-on-year to $2.75 billion, beating the consensus of $2.65 billion.
WDC's board unanimously approved a plan to separate its HDD and Flash businesses. It sees one-time GAAP-only charges from separation transactions during periods preceding closing.
WDC sees Q2 FY23 revenue of $2.85 billion - $3.05 billion, compared to the consensus of $2.92 billion.

XPO Inc XPO reported third-quarter FY23 revenue growth of 1.7% year-over-year to $1.98 billion, beating the consensus of $1.93 billion.
Adjusted EPS was $0.88, down from $0.95 in 3Q22, beating the consensus of $0.63.

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