Apple unveiled its AI-enhanced iPhone 16 on Monday — but Wall Street is divided on whether it will be able to reverse a sales slump for the tech giant’s flagship product.  Dubbed “Apple Intelligence,” the firm’s AI push was front and center during the high-profile presentation at its Cupertino, Calif., headquarters. The latest model features an A18 chip designed to power large generative models and a customizable “action button” that can be paired with various tasks, such as voice translation, and a new ded ...

Justice Department attorneys took aim at Google’s alleged monopoly over the digital advertising market on Monday in an antitrust case that poses a major threat to the Big Tech giant’s business model.Opening arguments in the closely watched trial kicked off in a Virginia courtroom and drew a massive crowd of onlookers. US District Judge Leonie Brinkema will decide the outcome of the non-jury trial, which is expected to last about four weeks. 5 Karen Dunn (left) has faced scrutiny over her ties to Kamala Ha ...

Core Viewpoint - Big Lots has filed for Chapter 11 bankruptcy protection due to declining consumer spending and soft sales, planning to sell its assets and ongoing operations to Nexus Capital Management [1][2]. Group 1: Financial Performance - High inflation and interest rates have negatively impacted Big Lots' business, leading to a significant pullback in consumer purchases of home and seasonal products, which are crucial for revenue [2]. - Sales at stores open for at least a year have declined for nine consecutive quarters, indicating ongoing struggles in retail performance [2]. Group 2: Strategic Decisions - The board of Big Lots determined that selling to Nexus Capital was the best strategic move despite some improvement in performance [3]. - The company will continue operations during the court-supervised sale process but plans to close some stores without specifying details [4][5]. Group 3: Financing and Auction Process - Big Lots has secured commitments for $707.5 million in financing, including $35 million in new financing from current lenders, to support operations during the sale process [8]. - Nexus Capital will act as a "stalking horse" bidder in a court-supervised auction, with the sale subject to higher bids [6]. Group 4: Market Position and Challenges - Big Lots operates in a highly competitive market where other value retailers are outperforming in delivering low prices and compelling bargains [7]. - The company has received a notice from the New York Stock Exchange due to its stock price falling below $1 for 30 consecutive trading days, with shares dropping 40% to 30 cents in premarket trading [9].

Core Viewpoint - Tech billionaire Larry Ellison will gain control of CBS parent Paramount Global following Skydance Media's acquisition of the Redstone family's interest in the company, marking a significant shift in ownership and management structure [1][2]. Group 1: Acquisition Details - Skydance Media signed a deal to acquire Paramount Global in a two-step process, with Larry Ellison, the fourth richest person globally with a net worth of $176 billion, backing the proposal financially [2]. - The Ellisons, along with RedBird Capital Partners, will purchase National Amusements for $2.4 billion and invest over $6 billion into Paramount to acquire shares and reduce debt [2]. - Upon completion of the $8 billion merger, David Ellison will serve as Paramount's chairman and CEO, taking operational control of the business [3]. Group 2: Management and Strategy - David Ellison and his financial partners plan to implement a $2 billion cost-cutting strategy at Paramount following the acquisition [3]. - The decision to sell Paramount Global signifies the end of a decades-long family dynasty led by Shari Redstone, who previously orchestrated the merger of CBS and Viacom in 2019 [4].

Walt Disney was targeted by hackers who obtained sensitive internal company data including revenue figures from its Disney+ and ESPN+ streaming services as well as its Genie theme park passes, according to a report.A cyber-criminal operation known as “NullBulge” uploaded more than 1.1 terabytes of data in July that also included internal Slack messages in which employees sound off on the company’s battle with Florida Gov. Ron DeSantis over so-called “Don’t Say Gay” legislation.NullBulge, whom authorities be ...

Core Viewpoint - The Nordstrom family has made a $3.8 billion bid to take the company private, significantly lower than their previous offer of $8.4 billion in 2018, reflecting ongoing challenges in the department store sector due to declining mall traffic [1][2]. Company Summary - The Nordstrom family, which owns approximately 33.4% of the company's outstanding common stock, is partnering with Mexican department store chain El Puerto de Liverpool to offer $23 per share in cash for all outstanding shares [2][3]. - Under the proposed deal, the Nordstrom family would control 50.1% of the company [3]. - The company operates around 350 stores, including the off-price chain Nordstrom Rack [2]. Financial Performance - Nordstrom reported a 3.4% increase in sales for its 350 stores in the second quarter, with revenues reaching $3.9 billion and comparable sales up by 1.9% year-over-year [5][6]. - Despite the overall decline in department store sales over the past decade, Nordstrom's recent performance indicates some improvement [5][6]. Market Context - The department store sector is experiencing significant pressure, with other retailers like Macy's facing activist investor pressure to sell or go private [6]. - The recent bid from the Nordstrom family comes amid a trend of consolidation in the industry, exemplified by HBC's pending acquisition of Neiman Marcus for $2.65 billion [5]. Offer Dynamics - The $23 per share offer is close to the current stock price, which raises questions about the attractiveness of the bid [7]. - The involvement of El Puerto de Liverpool may provide leverage to negotiate a higher price, as the independent committee evaluates the proposal [8].

Nvidia has been served with subpoenas by the Justice Department as part of its ongoing investigation into potential antitrust violations by the Silicon Valley chipmaker that has dominated the artificial intelligence market.The antitrust watchdog had previously delivered questionnaires, and has now sent legally binding requests to Nvidia, according to Bloomberg News.The report added that other companies had also received subpoenas. 3 Nvidia, which is run by CEO Jensen Huang (above), has been subpoenaed by ...

Core Viewpoint - Constellation Brands is facing significant challenges due to weak wine demand, leading to a potential asset write-down of up to $2.5 billion and a drastic reduction in earnings outlook for the year [1][2]. Financial Outlook - The company has nearly halved its earnings outlook to a range of $3.05 to $7.92 per share, down from initial expectations of $14.63 to $14.93 per share [2]. - Total sales outlook has been revised down to between 4% and 6%, from a previous estimate of 6% to 7% [2]. Market Conditions - CEO Bill Newlands highlighted ongoing macroeconomic headwinds, particularly rising unemployment, as factors contributing to a slowdown in consumer demand for products [3][6]. - A sales decline of 4% to 6% is expected in the wine and spirits division, contrasting with earlier expectations of flat sales [3]. Strategic Adjustments - The company plans to adjust pricing and enhance marketing efforts to mitigate sales challenges in the wine and spirits sector [4]. - Despite the struggles in the wine division, Constellation anticipates a sales growth of 6% to 8% in its beer division [4]. Sales Performance - The demand drop has been particularly pronounced in the top five states for the beer business, which account for over half of Constellation's total sales volumes [7]. - The company had previously raised its profit outlook in July due to improved margins and strong beer sales [7]. Stock Performance - On the day of the announcement, Constellation shares rose by 2%, and the stock has increased by 0.7% year-to-date [8]. - The company has a market capitalization of $44.99 billion [8].

Toyota has recalled more than 43,000 trucks in the US over defects that could increase the risk of a car crash. The Japanese automaker recalled 43,395 2023-2024 Sequoia Hybrids sold in the US after identifying a risk with the vehicles’ tow hitches.Toyota has recalled its 2023-2024 Sequoia Hybrid vehicles due to a defect with the rear tow hitches. Getty ImagesThe tow hitch is a part located on the back of the truck that is used to connect the car to a trailer in order to be towed.The resin tow hitch on the S ...

Core Viewpoint - Intel is planning to present a strategy to its board aimed at cutting unnecessary businesses and revamping capital spending to improve its financial performance, which has significantly declined in recent times [1][4]. Group 1: Business Restructuring - The plan includes selling off businesses, particularly the programmable chip unit Altera, which Intel can no longer afford to support financially [1][7]. - Intel has already separated its foundry business from its design business and has been reporting these segments' financial results separately since Q1 of this year [2][3]. - The mid-September board meeting is crucial for determining which businesses Intel will retain and which will be sold off [5][7]. Group 2: Financial Performance - Intel's market capitalization has dropped below $100 billion, a significant decline compared to Nvidia's $3 trillion valuation [3]. - The company reported a disastrous second-quarter earnings report in August, leading to a pause in dividend payments and a 15% staff reduction aimed at saving $10 billion [5][6]. - Intel expects to cut capital spending to $21.5 billion in 2025, a 17% decrease from the current year [4]. Group 3: Advisory and Strategic Planning - Intel has engaged Morgan Stanley and Goldman Sachs to advise on which businesses to sell and which to retain [4]. - The proposal does not currently include plans to split Intel's contract manufacturing operation but may be discussed in the future [2][8]. - Potential buyers for the Altera unit include infrastructure chipmaker Marvell, indicating interest from other companies in acquiring parts of Intel's business [7][8].