Every day, we handpick the 5 Top Stories stock market investors need to know. In 5 minutes, you’ll learn the stocks, CEOs, and money managers moving markets.
Saudi Telecom acquires 10% stake in Telefonica
In a sign of the growing presence of Middle Eastern carriers in the EU, state-controlled Saudi Telecom [7010.SR] has acquired a 9.9% stake in Spain’s beleaguered Telefonica [TEF.MC], having spent some $2.25bn on approximately 569.3 million shares. While the Spanish government has of late been calling for greater consolidation in the telecommunications space, the deal is expected to be met with regulatory scrutiny, given Telefonica’s key strategic importance, reported Bloomberg.
FTC Set to Launch Amazon Lawsuit
Members of Amazon’s [AMZN] legal team met with the US Federal Trade Commission (FTC) in August for a ‘last rites’ meeting regarding antitrust claims — a final chance for the tech titan to prevent a lawsuit by modifying its modus operandi. However, no settlement was reached, and the FTC is now reportedly moving to file a lawsuit against Amazon, which the regulator has been investigating for years.
Where Next for AI Start-ups?
Less than 10 months after the launch of ChatGPT, a growing chorus of voices has been wondering whether the artificial intelligence (AI) start-up bubble is about to burst. After initial enthusiasm, usage of ChatGPT has dropped off and there is now “a shallow trough of disillusionment”, Mark Goldberg, Partner at Index Ventures, recently told the Wall Street Journal. Asset managers are increasingly unsure what a successful business model might look like, and are consequently less inclined to fund cutting-edge start-ups.
Musk Took $1bn Loan from SpaceX
The Wall Street Journal has reported that Elon Musk took a $1bn loan from his rocket company SpaceX last October, at the same time as he was in the process of buying Twitter, now known as X. However, the newspaper has been unable to ascertain what he used the money for. The loan was backed by some of his SpaceX stock, and was repaid with interest shortly afterwards.
Apple vs. Huawei
According to Bank of America Securities analyst Wamsi Mohan, Apple [AAPL] has been able to encroach on Huawei’s smartphone market share in China over the past few years, largely thanks to US sanctions. However, the Chinese giant’s Mate 60 and Mate 60 Pro phones seem able to compete with the current version of Apple’s iPhone. Meanwhile, Beijing has instructed central government officials not to use Apple devices for work, or even bring to them to the office.