Teamwork Makes the…

EU mad. They charged MSFT with “abusive” bunding of Teams and Office. They should have charged the co with a “bad product.” (Does anyone like Teams vs ZOOM?) They’re looking for solutions to avoid breaching their antitrust rules. The EZ can ban the conduct and fine MSFT up to 10% of global rev….Slack (CRM-owned) is partying, as it was the co that filed the complaint. The stock was not down much on the news.

Tech got hurt. NVDA was down -6.7%. Super Micro was down -8.7%. Dell down -5.2%. Arm down -5.8%. Qualcomm -5.5%. If you’re a bear, it’s a signal for the future. If you’re a bull, it’s a buying opportunity. Given the run-up, we would caution that it’s just some gas coming out of the balloon…but with NVDA down -13% in 3 days and insiders selling, we’d be watching carefully, per our warnings last week.

AAPL shunned META's offer to integrate Llama chatbot into their iPhone some months ago, per BBG. That news is coming public at the same time we’re hearing that GOOG is working on a product to compete with META’s Chatbots, Character.AI, per The Information.

First, Banks are quietly dumping their bad CRE loans because they know the pain train is ahead of them, per the NYT. Second, per BBG, Nike is betting on a China comeback with $1000 Jordan high top sneakers. Who is running this company into the ground with bad ideas? Do they know that China retail had a disappointing mid-year shopping festival, per Reuters? Many kids don’t even know who Jordan is anymore.

First, Activist Starboard is demanding ADSK explain its accounting/fins issues. Second, Paramount+ is looking to raise prices for its streaming service during its restructuring, per CNBC. More to watch Survivor? Come on…

In a funny twist, ORCL is warning that a TikTok ban will adversely impact its revs and profits, per BBG. But what if the ban makes our kids better-adjusted for real life? (just kidding…I am not a TikTok hater…my teenagers share hilarious videos from the service)

Oil prices are down (just above $81/barrel). Traders are watching Middle East moves as well as summer demand. But WTI and Brent are up 5%+ for the mo.

Airbus was down -11% after chopping 2024 financial targets.

The defense industry is smelling the roses in the US as it benefits from a munitions boom due to jumbo aid packages for Ukraine, Israel and Taiwan, per the FT.

SolarEdge was down >-17% after announcing a new debt offering ($300mm of converts due 2029). No one likes dilution.

The gov named the state as home to 1 of 31 regional tech hubs in the CHIPS and Science Act, with a focus on bio-health. They’re talking 30k jobs in the next decade. $9bn development. That’s on top of MSFT’s $3.3bn investment. Best way to play this? Sell your FL real estate and buy WI? Maybe check out NC too. Novo is building a $4.1bb facility to boost their drug output.

China must be listening to Shakira. The country is trying to get consumption back via inbound tourism, autos and smart wearables, per Xinhua. Also, their tech co’s are pressuring employees to work more hours as their growth is slowing, per the FT. Are these the same people Nike wants to buy its $1k shoes?

Japan’s equities are higher: Nikkei up 0.95% and Topix up 1.72%. Their central bank is talking about a potential hawkish double surprise with possible bigger QT. Just digest that! Per Reuters. Some traders say that the yen could fall to 38-year low as intervention warnings fail to impress them, per BBG.

Check this out from Schwab:

1. LVMH’s Arnault bought a stake in Richemont, which owns Cartier.
2. Barclay’s CEO says the co can’t go “cold turkey” on oil clients.
3. The widening French-German yield spread is concerning.