Intel's Federal Chips Grant Shrinks Below $8B As Biden Administration Recalibrates CHIPS Act Funding: Report
The U.S. government reportedly plans to reduce Intel Corp’s INTC $8.5 billion federal chips grant.
What Happened: Intel, the largest beneficiary of CHIPS Act funding, is set to receive less than $8 billion, a reduction from the $8.5 billion initially announced earlier this year, reported the New York Times, citing four people familiar with the matter.
Alongside the reduced grant, Intel was also set to receive up to $11 billion in loans as part of the package.
The adjustment reflects Intel’s $3 billion contract with the Pentagon for chip production.
The CHIPS Act signed into law in 2022, allocated $52.7 billion to strengthen U.S. semiconductor production and research, with $39 billion earmarked for production subsidies and $11 billion for R&D.
Intel’s grant reduction follows a preliminary agreement this spring, which initially promised nearly $20 billion in grants and loans for the company.
Intel has strongly advocated for the bill’s approval. The company was widely regarded as the law’s primary beneficiary. However, its business challenges added complexity to the negotiations over its final allocation.
Intel did not immediately respond to Benzinga’s request for comments.
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Why It Matters: The government cut Intel’s grant after the company delayed its Ohio chip facility timeline from 2025 to the decade’s end, following its largest quarterly loss in 56 years.
The decision also reflects Intel’s technology plans and market demand.
Despite efforts to rival Taiwan Semiconductor Manufacturing Company TSM, Intel has struggled to prove it can match TSMC’s advanced technology.
With the semiconductor industry being a critical driver of innovation and national security, any shifts in funding could influence the U.S. position in the global technology race, especially against competitors like China.
For Intel, the recalibration may require adjusting its strategy for expanding chip production facilities in Arizona and beyond, the report noted.
Moreover, Intel’s challenges are not limited to the U.S. market. In October, the Cybersecurity Association of China launched a probe into Intel, citing national security risks amid escalating trade tensions between the U.S. and China.
Intel’s Gaudi AI accelerator program is also expected to fall short of revenue targets, with CEO Pat Gelsinger acknowledging slower-than-anticipated adoption rates.
Last month, Intel reported a third-quarter loss of 46 cents per share, significantly missing the estimated loss of two cents. However, the company posted quarterly revenue of $13.28 billion, surpassing the consensus estimate of $13.02 billion.
Price Action: At the time of writing, Intel shares were up 0.41% to $24.60 in after-hours trading, after gaining 0.25% to close at $24.50 during Friday’s regular session.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trump Treasury pick Scott Bessent to prioritize tax cuts, WSJ reports
(Reuters) -President-elect Donald Trump’s nominee for U.S. Treasury secretary, Scott Bessent, will prioritize delivering on election tax cut pledges, he told the Wall Street Journal in an interview published on Sunday.
Bessent told the WSJ that tax cut measures would include making Trump’s first term tax cuts permanent, as well as eliminating taxes on tips, social-security benefits and overtime pay.
Bessent would also focus on enacting tariffs, cutting spending and maintaining the status of the dollar as the world’s reserve currency, he told the newspaper in the interview.
Bessent, who has been a donor, economic adviser and booster on TV for Trump, was nominated as U.S. Treasury secretary by Trump on Friday.
Bessent has spent his career in finance, working for macro investment billionaire George Soros and noted short seller Jim Chanos, and has advocated for tax reform and deregulation, particularly to spur bank lending and energy production, as noted in a recent opinion piece he wrote for The Wall Street Journal.
As U.S. Treasury secretary, Bessent will essentially be the highest-ranking U.S. economic official, responsible for maintaining the world’s largest economy, from collecting taxes and paying the nation’s bills to managing the $28.6-trillion Treasury debt market and overseeing financial regulation.
The Treasury boss also runs U.S. financial sanctions policy, has influence over the U.S.-led International Monetary Fund, World Bank and other international financial institutions, and manages national security screenings of foreign investments in the United States.
(Reporting by Kanjyik Ghosh; Editing by Himani Sarkar and Michael Perry)
Strauss Group Reports Third Quarter 2024 Results: Group revenues up 12%, reaching NIS 3 billion, and operating profit rises 4% to NIS 223 million¹
Strauss Group President & CEO Shai Babad commented: “In the past week, the company announced a transaction to sell its ownership interest in Sabra for NIS 900 million. This transaction represents another step in executing the Group’s strategy to focus on core business, better leverage resources, and drive significant initiatives for Strauss. The Group has delivered a quarter of growth across all business segments, despite ongoing challenges posed by rising raw material prices, which continue to put pressure on our margins. I am immensely proud of our dedicated employees, who have ensured business continuity in the face of the war and its repercussions.”
PETAH TIKVA, Israel, Nov. 25, 2024 /PRNewswire/ — This morning, Strauss Group STRS published its financial statements, summing up the third quarter of 2024 with growth in revenues, which totaled NIS 3 billion, up 11.8% compared to the corresponding period last year. Operating profit was NIS 223 million, 7.4% of total sales. Net income attributable to shareholders of the company was NIS 102 million, reflecting a decline of 15.4% compared to the same quarter last year.
Strauss Group concluded the first nine months of 2024 with revenues of NIS 8.3 billion, up 6.1% compared to the same period last year. Operating profit in the nine months was NIS 578 million, down 2.3% compared to the corresponding period, and constituted 6.9% of total sales in the period. Net income attributable to shareholders of the company was NIS 344 million, up 1.3% compared to the corresponding period last year.
|
Results |
Q3 2024 |
Q3 2023 |
|
Sales |
NIS 2,991M |
NIS 2,675M |
|
% change |
+11.8 % |
|
|
Operating profit |
NIS 223M |
NIS 212M |
|
% change |
+4.2 % |
|
|
% of sales |
7.4 % |
8.0 % |
|
Net profit |
NIS 102M |
NIS 120M |
|
% change |
-15.4 % |
Over the past few months, the Group has completed several key strategic initiatives as part of executing its strategy. As part of this process, the company announced at the end of last week the sale of its ownership interest in Sabra and Obela for NIS 900 million. Sabra and Obela will be acquired by the global food and beverage company, PepsiCo, the Group’s partner in the joint ventures.
Several months ago, Strauss launched a revised strategy for the Group, prioritizing a renewed focus on its core activities, strengthening its home base in Israel, expanding the business in Brazil and continuing to grow the water business internationally, while making further investments in the development of capabilities and boosting robustness and readiness for the future. The company will continue to pursue the implementation of the Group’s strategy.
Q3 2024 summary by operating segment:
Strauss Israel – revenue and EBIT growth
In the third quarter, Strauss Israel delivered revenues of NIS 1,371 million, up 9.0% compared to the corresponding period last year. Strauss Israel’s operating profit in the quarter was NIS 158 million, up 27.8% versus last year.
Sales by the Health & Wellness segment in the third quarter reached NIS 827 million, up 2.8% compared to the same quarter last year, and operating profit was NIS 120 million, reflecting an increase of 19.5% over last year.
Sales by the Fun & Indulgence (Snacks and Confectionery) segment in the third quarter were NIS 323 million, up 32.6% compared to the corresponding quarter last year, and operating profit was NIS 9 million, an increase of 219.5% compared to an operating loss in the same quarter of 2023.
The Fun & Indulgence (Israel Coffee) segment concluded the third quarter of the year with sales of NIS 221 million, up 5.4% compared to the corresponding period, and operating profit was NIS 29 million, a decline of 6.8% compared to last year.
Strauss International Coffee – revenue and EBIT growth
Strauss International Coffee delivered revenues of NIS 1,259 million in the third quarter of 2024, up 17.8% compared to the same quarter in 2023, and operating profit was NIS 68 million, up 12.6% compared to the same quarter last year.
The coffee company in Brazil, Três Corações (50%) concluded the third quarter with NIS 897 million in revenues, up 25.6% compared to last year, and operating profit of NIS 48 million, reflecting an increase of 61.7% compared to the third quarter of 2023.
The coffee business in Russia summed up the third quarter with revenues of NIS 148 million, up 16.9%. The business in Ukraine concluded the quarter with revenues of NIS 40 million, an increase of 3.3%. In Poland, revenues in the quarter were NIS 104 million, an increase of 15.9%, and the business in Romania delivered NIS 73 million in quarterly revenues, up 26.7% compared to corresponding period last year.
Strauss Water – stronger revenue and margins
Strauss Water concluded the third quarter of 2024 with revenues of NIS 224 million, up 1.6% compared to the corresponding period last year, and operating profit of NIS 26 million, up 23.3% compared to the corresponding period. The water business in China (for 100%) delivered revenues of NIS 213 million in the quarter, up 6.5%, and net profit of NIS 28 million, an increase of 47.4% versus last year.
Sabra and Obela – operating break-even
Sabra’s revenues (for 50%) in the third quarter of 2024 were NIS 114 million, up 6.4%, and operating profit was NIS 1 million, a decline of 95.7% compared to the corresponding period last year. Obela delivered revenues (for 50%) of NIS 21 million in the quarter.
|
Non GAAP Figures (1) |
|||
|
Third Quarter |
|||
|
2024 |
2023 |
Change |
|
|
Total Group Sales (NIS mm) |
2,991 |
2,675 |
11.8 % |
|
Organic Sales Growth excluding FX |
15.4 % |
2.8 % |
|
|
Gross Profit (NIS mm) |
911 |
855 |
6.5 % |
|
Gross Margins (%) |
30.5 % |
32.0 % |
-150 bps |
|
EBITDA (NIS mm) |
332 |
320 |
3.3 % |
|
EBITDA Margins (%) |
11.1 % |
12.0 % |
-90 bps |
|
EBIT (NIS mm) |
223 |
212 |
4.2 % |
|
EBIT Margins (%) |
7.4 % |
8.0 % |
-60 bps |
|
Net Income Attributable to the Company’s Shareholders (NIS mm) |
102 |
120 |
-15.4 % |
|
Net Income Margin Attributable to the Company’s Shareholders (%) |
3.4 % |
4.5 % |
-110 bps |
|
EPS (NIS) |
0.88 |
1.04 |
-15.5 % |
|
Operating Cash Flow (NIS mm) |
60 |
300 |
-80.0 % |
|
Capex (NIS mm) (2) |
158 |
147 |
7.5 % |
|
Net debt (NIS mm) |
3,286 |
2,880 |
14.1 % |
|
Net debt / annual EBITDA |
2.7x |
2.7x |
(0.0x) |
|
(1) The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled
(2) Investments include the acquisition of fixed assets, investment in intangible assets and proceeds from the sale of fixed assets.
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. |
|||
|
Non GAAP Figures (1) |
||||||||
|
Third Quarter |
||||||||
|
Sales (NIS mm) |
Sales Growth vs. Last Year |
Organic Sales Growth excluding FX |
EBIT (NIS mm) |
NIS Change in EBIT |
% Change in EBIT |
EBIT margins |
Change in EBIT margins vs. 2023 |
|
|
Sales and EBIT by Operating Segments and Activities |
||||||||
|
Strauss Israel: |
||||||||
|
Health & Wellness |
827 |
2.8 % |
2.8 % |
120 |
19 |
19.5 % |
14.5 % |
+200 bps |
|
Fun & Indulgence (Snacks and sweets) (2) |
323 |
32.6 % |
32.6 % |
9 |
17 |
219.5 % |
2.8 % |
+590 bps |
|
Fun & Indulgence (Coffee Israel) |
221 |
5.4 % |
5.4 % |
29 |
(1) |
-6.8 % |
12.9 % |
-170 bps |
|
Total Strauss Israel |
1,371 |
9.0 % |
9.0 % |
158 |
35 |
27.8 % |
11.5 % |
+170 bps |
|
International Coffee (2) |
1,259 |
17.8 % |
28.0 % |
68 |
8 |
12.6 % |
5.4 % |
-20 bps |
|
Strauss Water (2) |
224 |
1.6 % |
1.4 % |
26 |
5 |
23.3 % |
11.6 % |
+210 bps |
|
Other |
137 |
6.1 % |
6.1 % |
(29) |
(37) |
-443.9 % |
NM |
NM |
|
Total Group |
2,991 |
11.8 % |
15.4 % |
223 |
11 |
4.2 % |
7.4 % |
-60 bps |
|
(1) The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at period end of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives, until the date when the inventory is sold to outside parties and/or the financial derivative is exercised, other income and expenses, net, and the tax effects of excluding those items, unless stated otherwise.
(2) Fun & Indulgence (Snacks and Confectionery) figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil (a company jointly held by the Group (50%) and by the local São Miguel Group (50%)). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%).
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands. |
||||||||
|
Condensed financial accounting (GAAP) |
|||
|
Third Quarter |
|||
|
2024 |
2023 |
Change |
|
|
Sales |
1,873 |
1,746 |
7.3 % |
|
Cost of sales excluding impact of commodity hedges |
1,245 |
1,126 |
10.5 % |
|
Adjustments for commodity hedges |
(25) |
41 |
|
|
Cost of sales |
1,220 |
1,167 |
4.5 % |
|
Gross profit |
653 |
579 |
12.9 % |
|
% of sales |
34.9 % |
33.1 % |
|
|
Selling and marketing expenses |
360 |
369 |
-2.5 % |
|
General and administrative expenses |
127 |
118 |
7.7 % |
|
Total expenses |
487 |
487 |
|
|
Share of profit of equity-accounted investees |
58 |
70 |
-16.4 % |
|
Share of loss of equity-accounted incubator investees |
(8) |
(6) |
33.3 % |
|
Operating profit before other expenses |
216 |
156 |
39.3 % |
|
% of sales |
11.6 % |
8.9 % |
|
|
Other expenses, net |
(19) |
(3) |
|
|
Operating profit after other expenses |
197 |
153 |
28.5 % |
|
Financing expenses, net |
(40) |
(20) |
89.0 % |
|
Income before taxes on income |
157 |
133 |
19.0 % |
|
Taxes on income |
(36) |
(33) |
9.7 % |
|
Effective tax rate |
22.8 % |
24.8 % |
|
|
Income for the period |
121 |
100 |
22.1 % |
|
Attributable to the Company’s shareholders |
99 |
80 |
23.7 % |
|
Attributable to non-controlling interests |
22 |
20 |
15.3 % |
|
Non GAAP Figures (1) |
|||
|
First Nine Months |
|||
|
2024 |
2023 |
Change |
|
|
Total Group Sales (NIS mm) |
8,334 |
7,854 |
6.1 % |
|
Organic Sales Growth excluding FX |
6.9 % |
7.5 % |
|
|
Gross Profit (NIS mm) |
2,626 |
2,531 |
3.8 % |
|
Gross Margins (%) |
31.5 % |
32.2 % |
-70 bps |
|
EBITDA (NIS mm) |
912 |
905 |
0.7 % |
|
EBITDA Margins (%) |
10.9 % |
11.5 % |
-60 bps |
|
EBIT (NIS mm) |
578 |
591 |
-2.3 % |
|
EBIT Margins (%) |
6.9 % |
7.5 % |
-60 bps |
|
Net Income Attributable to the Company’s Shareholders (NIS mm) |
344 |
339 |
1.3 % |
|
Net Income Margin Attributable to the Company’s Shareholders (%) |
4.1 % |
4.3 % |
-20 bps |
|
EPS (NIS) |
2.95 |
2.91 |
1.3 % |
|
Operating Cash Flow (NIS mm) |
(41) |
135 |
-130.4 % |
|
Capex (NIS mm) (2) |
454 |
348 |
30.5 % |
|
Net debt (NIS mm) |
3,286 |
2,880 |
14.1 % |
|
Net debt / annual EBITDA |
2.7x |
2.7x |
(0.0x) |
|
(1) The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly
(2) Investments include the acquisition of fixed assets, investment in intangible assets and proceeds from the sale of fixed assets.
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. |
|||
|
Non GAAP Figures (1) |
||||||||
|
First Nine Months |
||||||||
|
Sales (NIS mm) |
Sales Growth vs. Last Year |
Organic Sales Growth excluding FX |
EBIT (NIS mm) |
NIS Change in EBIT |
% Change in EBIT |
EBIT margins |
Change in EBIT margins vs. 2023 |
|
|
Sales and EBIT by Operating Segments and Activities |
||||||||
|
Strauss Israel: |
||||||||
|
Health & Wellness |
2,312 |
0.5 % |
0.5 % |
286 |
23 |
8.9 % |
12.4 % |
+100 bps |
|
Fun & Indulgence (Snacks and sweets) (2) |
955 |
24.6 % |
24.6 % |
39 |
23 |
146.7 % |
4.1 % |
+200 bps |
|
Fun & Indulgence (Coffee Israel) |
625 |
1.4 % |
1.4 % |
83 |
– |
-0.6 % |
13.2 % |
-30 bps |
|
Total Strauss Israel |
3,892 |
5.6 % |
5.6 % |
408 |
46 |
12.8 % |
10.5 % |
+70 bps |
|
International Coffee (2) |
3,418 |
7.9 % |
10.3 % |
167 |
(30) |
-15.3 % |
4.9 % |
-130 bps |
|
Strauss Water (2) |
627 |
2.4 % |
2.2 % |
75 |
9 |
12.6 % |
11.9 % |
+100 bps |
|
Other |
397 |
1.7 % |
1.7 % |
(72) |
(38) |
115.8 % |
NM |
NM |
|
Total Group |
8,334 |
6.1 % |
6.9 % |
578 |
(13) |
-2.3 % |
6.9 % |
-60 bps |
|
(1) The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise.
(2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%).
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands. |
||||||||
|
Condensed financial accounting (GAAP) |
|||
|
First Nine Months |
|||
|
2024 |
2023 |
Change |
|
|
Sales |
5,300 |
5,090 |
4.1 % |
|
Cost of sales excluding impact of commodity hedges |
3,459 |
3,280 |
5.4 % |
|
Adjustments for commodity hedges |
40 |
(16) |
|
|
Cost of sales |
3,499 |
3,264 |
7.2 % |
|
Gross profit |
1,801 |
1,826 |
-1.3 % |
|
% of sales |
34.0 % |
35.9 % |
|
|
Selling and marketing expenses |
1,060 |
1,045 |
1.4 % |
|
General and administrative expenses |
382 |
359 |
6.6 % |
|
Total expenses |
1,442 |
1,404 |
|
|
Share of profit of equity-accounted investees |
143 |
162 |
-11.9 % |
|
Share of loss of equity-accounted incubator investees |
(18) |
(23) |
-21.7 % |
|
Operating profit before other expenses |
484 |
561 |
-13.7 % |
|
% of sales |
9.1 % |
11.0 % |
|
|
Other income (expenses), net |
(82) |
58 |
|
|
Operating profit after other expenses |
402 |
619 |
-35.1 % |
|
Financing expenses, net |
(73) |
(50) |
44.2 % |
|
Income before taxes on income |
329 |
569 |
-42.1 % |
|
Taxes on income |
(36) |
(137) |
-73.7 % |
|
Effective tax rate |
11.0 % |
24.1 % |
|
|
Income for the period |
293 |
432 |
-32.1 % |
|
Attributable to the Company’s shareholders |
232 |
384 |
-39.5 % |
|
Attributable to non-controlling interests |
61 |
48 |
27.9 % |
Conference call
Strauss Group will host a Zoom conference call in Hebrew on Monday, November 25, 2024 at 14:00 (Israel time) with the participation of company management for a review of the financial statements of the company for the third quarter of 2024. Following is the information for those wishing to join the online conference:
https://us02web.zoom.us/webinar/register/WN_0IC9yHxQQa2s9EpVY-I6VQ
Strauss Group will also host a Zoom conference call in English on Monday, November 25, 2024 at 15:30 (Israel time) with the participation of company management for a review of the financial statements of the company for the third quarter of 2024. Following is the information for those wishing to join the online conference:
https://us02web.zoom.us/webinar/register/WN_Y3TuLOrtSoaK_0zV3Ay36Q
For further information, please contact:
1 The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at period end of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives, until the date when the inventory is sold to outside parties and/or the financial derivative is exercised, other income and expenses, net, and the tax effects of excluding those items, unless stated otherwise.
View original content:https://www.prnewswire.com/news-releases/strauss-group-reports-third-quarter-2024-results-group-revenues-up-12-reaching-nis-3-billion-and-operating-profit-rises-4-to-nis-223-million-302315175.html
SOURCE Strauss Group Ltd.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla, Rivian Signal End To 4-Year Legal Battle Over Alleged Trade Secrets Theft
Tesla Inc. TSLA and Rivian Automotive Inc. RIVN are nearing a settlement in a lawsuit over alleged theft of battery technology. The legal confrontation, which began in 2020, accused Rivian of recruiting Tesla employees to obtain confidential engineering data.
What Happened: Initially, Tesla alleged that Rivian hired ex-employees who brought sensitive documents with them.
The lawsuit later expanded to include claims of Rivian stealing core technology for advanced batteries. Despite efforts to settle outside of court, the case went to trial last year.
Tesla has informed the court of a conditional settlement agreement with Rivian, with plans to file for dismissal by Dec. 24, according to a Bloomberg report. The settlement terms remain undisclosed.
See Also: Lucid Forms Cross As Gravity SUV, Earnings Show Progress
Tesla, known for its openness with patents, has maintained that Rivian’s actions were deliberate theft. The focus on “next-gen batteries” hints at the possible involvement of Tesla’s 4680 battery cells.
Rivian, on the other hand, plans to use a taller 4695 battery for its future vehicles.
Tesla and Rivian did not immediately respond to a Benzinga request for comment.
Why It Matters: The lawsuit’s roots trace back to July 2020, when Tesla accused Rivian of employee poaching and intellectual property theft. Tesla described an “alarming pattern” of Rivian hiring its employees and obtaining its trade secrets.
In August 2020, Rivian hired Nick Kalayjian, a former Tesla executive, as its top engineer, despite the ongoing lawsuit. This move highlighted the competitive nature of the electric vehicle industry and the strategic importance of engineering talent.
By August 2023, the case was still unresolved, with a California court tentatively denying requests for summary adjudication, indicating the complexity and significance of the trade secrets involved.
Price Action: Tesla stock closed 3.80% higher on Friday at $352.56, according to Benzinga Pro data. Rivian stock edged up 2.20% to close at $10.24 on Friday.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photos courtesy: Tesla and Rivian
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Vallourec to Sell Logistics Group (Indonesia) for €20 Million
VALLOUREC TO SELL LOGISTICS GROUP (INDONESIA) FOR €20 MILLION
Meudon (France), November 25, 2024 – Vallourec, a world leader in premium seamless tubular solutions, announces today that it has entered into an agreement to sell its c. 99% participation in PT CPPI and PT SCN (“Logistics Group”) to CKB Logistics, a subsidiary of ABM Investama Tbk, for approximately €20 million, of which €2.9 million will be paid via an earn-out.
Based in Batam, Indonesia, Logistics Group provides integrated port and logistics services to a growing variety of energy, industrial, construction and logistics clients, including Vallourec. Logistics Group is predominantly owned by PT Citra Tubindo, Vallourec’s Indonesian subsidiary specialized in heat treatment and premium threading. The transaction is expected to close in the fourth quarter 2024, subject to customary closing conditions including necessary regulatory approvals. Vallourec will continue to use Logistics Group’s services following the transaction close under similar contractual terms.
Philippe Guillemot, Chairman of the Board of Directors, and Chief Executive Officer commented: “The divestment of Logistics Group aligns with our strategy of refocusing on our core business and optimizing our capital employed. This transaction furthers our goal of creating a leaner, more agile asset base. I would like to thank the Logistics Group employees for their commitment to excellence as part of Vallourec. We look forward to our ongoing collaboration.”
About Vallourec
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting-edge R&D open new technological frontiers. With close to 14,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
For further information, please contact:
Investor relations:
Connor Lynagh
Tel: +1 (713) 409-7842
connor.lynagh@vallourec.com
Individual shareholders:
Toll Free number (From France): 0 805 65 10 10
actionnaires@vallourec.com
Press relations: Taddeo
Romain Grière
Tel: +33 (0)7 86 53 17 29
romain.griere@taddeo.fr
Nicolas Escoulan
Tel: +33 (0)6 42 19 14 74
nicolas.escoulan@taddeo.fr
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Transforming the Skyline: The BR Companies Announces New Upscale Residential High-rise Downtown
KANSAS CITY, Mo., Nov. 25, 2024 /PRNewswire/ — California-based BR Companies, a development and construction firm, announced plans to revitalize a blighted area of Downtown Kansas City with a new 25-story residential high-rise on Grand Blvd. BR Companies, with an office in Kansas City, has been developing the plans for over a year.
BR Companies Unveils $250M Grand Blvd High-rise in Downtown KC
The $250 million project will turn a barren area of Downtown into a vibrant residential and cultural hub. The development will feature a mix-use, branded residential tower and will create temporary and permanent jobs in the area, as well as bring in new visitors to downtown Kansas City each year. This project creates a world class perspective for visitors entering downtown from the north and promotes new activity & safety along Grand Blvd.
“Development tells a story of human progress,” said Juan Banos, CEO of BR Companies. “This project will build on Kansas City’s cultural and economic growth and contribute to its remarkable place in history.”
The upscale tower will be located at the southwest corner of Eighth Street and Grand Boulevard. The tower will include more than 300 residential units and 24,000 square feet of retail programming.
“Kansas City has the right environment and connectivity through smart public investment in public parks and transportation expansions to attract private investment,” said Ryan Sullivan, Chief Development Officer of BR Companies. “We are delighted to present this unique offering, designed to enhance the experience of Kansas City’s residents and visitors alike.”
Since 2019, BR Companies has been steadily building its presence across the Midwest, with significant milestones in St. Louis and Kansas City.
“Our vision for Downtown Kansas City is not merely a business venture but a pledge to honor and amplify the city’s rich legacy,” said Gary Pellant, President of BR Companies. “We are certain this will strengthen the core of downtown and continue to energize the city’s vibrant community well into the future.”
The visionary design of Architect of Record Hoefer Welker sets the stage, while the exceptional teams at Clarkson and JE Dunn take the helm as general contractors, and our partnership with Aristocrat Realty ensuring this project comes to life with precision, innovation, unparalleled expertise and the local taste of Kansas City.
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SOURCE The BR Companies
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Dogecoin Foundation Shares Message Against Trump's Tax Favoritism For US Crypto Firms
The Dogecoin Foundation, a non-profit building open-source projects for the Dogecoin DOGE/USD ecosystem, reshared an X post calling for equitable treatment for community-driven projects amid speculations of President-elect Donald Trump slashing capital gains tax on U.S.-issued cryptocurrencies.
What Happened: The Dogecoin Foundation shared arguments by a user called “junior developer,” who stated that the policy should be extended to all community-driven and open-source coins, not only those generated by U.S. companies.
“If I started a U.S. company to hardfork Dogecoin and the fact there’s a company behind it gives tax preference where classic Doge doesn’t get the same treatment, the Trump admin has chosen a network winner based on policy and preference. I reject that idea,” the user wrote.
Junior developer added that penalizing cryptocurrencies backed by communities instead of companies could promote “crony capitalism.”
“And, this is bait, but if you’re railing against the global financial system doing exactly that with central banks, I think you should rail against a government doing it even if you like the government or parts of this policy,” he stated.
The Dogecoin team didn’t immediately respond to Benzinga’s request for additional commentary on this development.
Why It Matters: The pushback comes in response to media reports that Trump could potentially transform the U.S. into a tax-free crypto haven for tokens created by U.S. companies. However, no formal confirmation has come as yet.
For U.S. taxpayers, short-term capital gains on cryptocurrencies held for less than a year are taxed at regular income rates, ranging from 10-37% depending on income and tax bracket, while long-term gains for coins held over a year are taxed at a reduced rate of 0-20%.
Tanya Solati, vice president of business development at real estate transaction platform Propy, pointed out that current tax laws, which impose a capital gains tax on every crypto-to-fiat transaction, make daily use impractical and are a significant barrier to broader adoption.
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Gary Black Defends Tesla Trim At $351: 'No One Ever Went Broke By Taking Profits' Amid Stock's 150% Surge Since April
The Future Fund LLC Managing Partner Gary Black defended his firm’s Tesla Inc. TSLA investment strategy amid criticism from Tesla bulls, emphasizing a disciplined approach to position management rather than short-term trading.
What Happened: Black revealed that his fund’s average Tesla stock purchase price since early 2023 has been $162, while their average selling price reached $252. The disclosure came as The Future Fund recently trimmed its Tesla position at $351, following a 150% surge from April lows.
“That’s what professional investors do – buy low, sell high,” Black stated on X, addressing criticism from Tesla enthusiasts. “No one ever went broke by taking profits.”
The Future Fund began reducing its Tesla position in the fourth quarter of 2022 when it represented 12.2% of the portfolio, following Tesla’s 20% EV price cuts.
The position now stands at 4.11% as of Nov 15, making Tesla the fifth-largest holding in The Future Fund Active ETF FFND, behind NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Salesforce Inc. CRM, and Netflix Inc. NFLX.
Why It Matters: Black pointed to Tesla’s earnings estimates being reduced by 59% since the price cuts, noting that competitors matched the reductions, resulting in minimal volume growth. Despite the recent rally, Tesla’s stock has underperformed the NASDAQ 100 index by 32 percentage points over the past three years.
The investment veteran expressed concern about growing polarization within the Tesla investor community, noting that moderate voices face criticism for discussing potential risks.
“In the X world, uberbulls bash fellow bulls personally for not being bullish enough. That does not happen in the real world. Portfolio discipline is rewarded, not criticized,” Black emphasized.
The debate comes amid increased attention on Tesla, with recent headlines highlighting the Cybertruck’s appearance in President-elect Donald Trump‘s motorcade during a visit to SpaceX’s Starbase facility, potentially signaling new opportunities in government and security sectors.
Price Action: Tesla stock closed at $352.56 on Friday, up 3.80% for the day. After hours, the stock rose by 0.26%. Year-to-date, Tesla’s stock has surged by 41.92%, according to data from Benzinga Pro.
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Stocks, Bonds Rise as Traders Cheer Treasury Pick: Markets Wrap
(Bloomberg) — Equities and Treasuries advanced, with traders embracing Donald Trump’s pick of Scott Bessent for Treasury Secretary as a measured choice that would inject more stability into the US economy and financial markets.
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A gauge of Asian stocks rose about 1%, led by gains in Japan, South Korea and Australia. US futures also edged higher. Meanwhile, the yield on 10-year Treasuries dropped five basis points to 4.35%. The dollar declined while Bitcoin rebounded from a weekend drop.
Bessent, who runs macro hedge fund Key Square Group, has indicated he’ll back Trump’s tariff and tax cut plans but investors expect him to prioritize economic and market stability over scoring political points. The nomination has eased concerns over the incoming president’s protectionist policies, which had threatened to stoke inflation, worsen trade tensions and amplify market volatility.
Elements of the so-called Trump Trade that feature a surging dollar and rallying Bitcoin are cooling, as traders trim bets on elevated interest rates that may result from pricier imports and lower taxes.
“We have the Trump reflationary agenda with obviously maybe someone in charge of the economy at the Treasury who is probably more gradualist,” Vincent Juvyns, global market strategist at JPMorgan Asset Management, told Bloomberg TV. “US exceptionalism will to some extent remain in place on the economic front but also on the market front.”
The Bloomberg’s dollar index fell by the most in over two weeks, with the yen leading the gains. Traders betting on Trump’s fiscal policies — including sweeping trade tariffs and persistent economic growth — had pushed the dollar up for eight straight weeks through Friday.
Back in Asia, stock benchmarks in India surged on Monday as Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance secured a thumping victory in the nation’s wealthiest state of Maharashtra. Still, local equities remain well off their highs for the year, as global funds have withdrawn over $14 billion since October amid concerns over earnings growth, elevated valuations and the recent US charges against the Adani Group.
“This is a short-term relief rally,” said Sonam Srivastava, founder of Wright Research. “We have to wait for a substantial return of foreign capital.”
Gold Tumbles as Traders Turn Attention to the Fed’s Next Move
(Bloomberg) — Gold tumbled after surging by the most in 20 months last week, with traders ignoring a softer US dollar and shifting their attention to the Federal Reserve’s upcoming interest-rate decision.
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Bullion fell by almost 2% to drop back below $2,700 an ounce, despite a slide in the US currency, which typically aids the commodity. Investors are now focused on the outlook for monetary policy, after a report showed US business activity expanding at the fastest pace since April 2022. Swaps traders see a less-than-even chance the central bank will cuts rates next month. Higher borrowing costs tend to weigh on gold, as it doesn’t pay interest.
The precious metal is still up by more than a quarter this year, supported by central bank purchases and the Fed’s pivot to rate cuts. Haven buying has also been a feature, with prices rallying 6% last week, on an escalation in the Russia-Ukraine war. Most banks remain positive about the outlook, with Goldman Sachs Group Inc. and UBS Group AG seeing further gains in 2025.
“Prices continue to reflect the interplay between geopolitical risks and a less dovish outlook from the Federal Reserve,” said Jun Rong Yeap, a market strategist with IG Asia Pte. “Any upside inflation surprises could further sway bets towards a potential rate hold in December, with any prospects of a slower pace of rate cuts likely to offer some resistance for gold prices.”
A slew of of data this week may yield clues on the Fed’s likely rate path. These include minutes of the central bank’s November meeting, consumer confidence and personal consumption expenditure data — the monetary authority’s preferred gauge of inflation.
The drop in the dollar on Monday — which was accompanied by a decline in US bond yields — came after US President-elect Donald Trump nominated Scott Bessent to oversee the Treasury. Investors expect the hedge fund manager to prioritize economic and market stability over more radical measures.
Spot gold retreated 1.6% to $2,673.94 an ounce as of 12:02 p.m. in Singapore, dropping along with silver, platinum and palladium. The Bloomberg Dollar Spot Index declined 0.5%.
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