Target on Thursday said its holiday sales were better than expected, though it kept its profit forecast the same – likely because cost-conscious shoppers stocked up on discounted items.The Minneapolis-based chain said sales on Black Friday and Cyber Monday hit records, prompting it to raise its comparable sales growth forecast for the three months through January to 1.5% from prior expectations of flat growth.But the retailer maintained its fourth quarter and full-year adjusted earnings per share (EPS) fore ...

Job Cuts and Restructuring - Citigroup is cutting more jobs this week, including managing directors in the wealth and technology units, as well as members of a team that compiles client data and analysis [1] - The job cuts are part of CEO Jane Fraser's expense goals and follow a restructuring plan presented in late 2023 to increase earnings, streamline operations, and address deficiencies in data governance and risk management [2][5] - One of the senior exits includes Shadman Zafar, the bank's Dallas-based co-chief information officer [1] Financial Performance and Market Reaction - Citigroup's stock surged 37% in 2024, outperforming the broader banking index and equity markets, as investors responded positively to Fraser's transformation efforts [4] - The bank beat estimates for fourth-quarter profit, driven by strength in trading and dealmaking [4] Banamex Listing Plans - Citigroup still expects to list its Mexican unit, Banamex, on both Mexican and US stock exchanges this year [3] - However, market conditions and regulatory hurdles might delay the stock floatation to 2026 [3] - The bank completed the separation of banking companies needed for the listing in December [3]

Core Insights - UnitedHealth's shares fell nearly 5% following a disappointing revenue report, with Q4 revenue at $100.81 billion, below the expected $101.76 billion due to lower-than-expected premiums [1][3] - The company reported adjusted net earnings per share of $6.81, exceeding expectations of $6.72 [2] - UnitedHealth maintained its 2025 adjusted net earnings forecast at $29.50 to $30 per share despite the recent challenges [3] Financial Performance - The medical cost ratio for UnitedHealth was reported at 87.6%, higher than the estimated 85.95%, indicating increased costs relative to premiums [8] - The company anticipates its medical cost ratio to be approximately 86% to 87% for the current year [11] Market Context - A significant portion, 26%, of UnitedHealth's revenue is derived from its Medicare segment, highlighting the importance of this area for the company's financial health [7] - The health insurance industry, including major players like Humana and Aetna, has faced profit declines from Medicare Advantage plans as older Americans resumed medical visits post-pandemic [5][8] - The assassination of Brian Thompson, the CEO of UnitedHealth's insurance branch, has created a negative sentiment around the insurance industry, with social media backlash against high premiums and denied claims [4][10]

Core Viewpoint - Apple is facing significant backlash due to its AI tool, Apple Intelligence, generating inaccurate news summaries, which misinform users about critical events and figures [1][2][5]. Group 1: AI Tool Performance - Apple Intelligence inaccurately reported that Defense Secretary nominee Pete Hegseth was "fired," among other false claims regarding tariffs and confirmations of other nominees [1][2]. - The AI-generated summaries have been criticized for not reflecting the actual news alerts from reputable sources like the Washington Post [2][4]. - Geoffrey Fowler, a Washington Post columnist, highlighted the irresponsibility of Apple in not disabling the summary feature until the AI improves [3]. Group 2: Industry Reactions - Multiple news organizations have publicly criticized Apple for disseminating false information through its AI summaries [5][6]. - The BBC previously contacted Apple regarding inaccuracies, emphasizing the importance of trust in journalism and notifications [6]. - Apple has acknowledged the issues and stated that updates to improve the news summary feature are forthcoming, indicating that the AI features are still in beta [8][9]. Group 3: Broader Context - Apple Intelligence was introduced last fall as a key feature for new iPhone models amid stagnant sales [4]. - Other tech giants, such as Google, have also faced criticism for inaccurate AI-generated content, indicating a broader industry challenge [10].

If you haven’t noticed, BlackRock — yes, that BlackRock — is going unwoke. It’s also going far from broke, On The Money has learned.Wednesday before the bell, the big-money management firm, the world largest in fact, will report both its fourth quarter earnings and those for the entire year.Both are likely to depict that its business is running at full tilt, my sources on Wall Street tell me.Confluence doesn’t necessarily equate concurrence, of course. But it’s remarkably obvious that at a time when BlackRo ...

Core Viewpoint - Capital One is facing a lawsuit from the US Consumer Financial Protection Bureau (CFPB) for allegedly depriving customers of over $2 billion in interest payments on its "high interest" 360 Savings account [1][7]. Group 1: Allegations and Lawsuit Details - The CFPB claims that Capital One misled depositors by advertising the 360 Savings account as offering one of the nation's best interest rates, while actually freezing the rate at 0.30% despite rising deposit rates nationwide [2]. - The lawsuit states that Capital One failed to inform customers about the launch of the 360 Performance Savings account, which offered a significantly higher interest rate of 4.35% as of January 2024 [3]. - Capital One allegedly instructed branch employees not to inform customers about the option to switch accounts unless specifically asked, which the CFPB argues is deceptive [4]. Group 2: Company Response and Financial Context - Capital One expressed disappointment over the CFPB's lawsuit, asserting that it will vigorously defend itself and claiming that it marketed the 360 Performance Savings account transparently [6]. - As of September 30, 2024, Capital One had $353.6 billion in deposits and $486.4 billion in assets, indicating its significant presence in the banking sector [8]. - The lawsuit seeks civil fines, restitution, and other remedies for violations of the Consumer Financial Protection Act of 2010 and the Truth in Savings Act [5]. Group 3: Future Implications - A trial related to the 360 Savings accounts is scheduled for July 2025 in Alexandria court [8]. - Analysts suggest that the CFPB lawsuit is unlikely to impact Capital One's proposed $35.3 billion acquisition of Discover Financial Services [8].

Google's Legal Issues in Russia - Google was fined $78 million by a Russian court for failing to comply with previous penalties [6][7] - The fine is significantly higher than the usual $39,000 penalty for rule-breaking companies [6] - This is not the first time Russia has imposed an unusually large fine on Google, with a previous symbolic fine of $20 decillion in October [2] YouTube's Challenges in Russia - YouTube has drawn Russian disapproval for hosting content deemed illicit by the country [1][8] - The platform used to attract around 50 million daily users in Russia, but that number has dropped to approximately 12 million [1] - Russia has accused YouTube of blocking content from at least 17 Russian television channels, a practice that increased after Russia's invasion of Ukraine [3] Technical and Operational Issues - Russia has been accused of tampering with YouTube's download speeds to prevent Russians from using the platform and viewing illegal content [4] - Google has denied that the technical issues are due to their equipment, while Russia has blamed the problems on Google [4]

Meta is planning to slash roughly 5% of its staff this year in a move aimed at weeding out under-performers, CEO Mark Zuckerberg revealed on Tuesday.In a memo to employees on Meta’s internal message board, Zuckerberg indicated that the company would hire new workers this year to replace the ousted employees. The Facebook and Instagram boss — who has drawn backlash for scrapping fact-checking on his social media networks in a move seen as an attempt to ingratiate the company with the incoming Trump administr ...

Google's Market Position and Regulatory Scrutiny - Google accounts for more than 90% of all general search queries in the UK and is used by more than 200,000 UK advertisers for search advertising, highlighting its dominant position in the search market [2] - The UK's Competition and Markets Authority (CMA) is investigating Google's position in search and search advertising services to assess its impact on consumers, businesses, advertisers, news publishers, and rival search engines [2] - Google is the first company to face a probe under the UK's new Digital Markets, Competition and Consumers Act, which could designate it as having "strategic market status" and subject it to stricter regulations [4] Regulatory Actions and Legal Challenges - The CMA's probe adds to Google's regulatory challenges, as it is already under intense antitrust scrutiny in the US and Europe regarding its practices in online search, digital advertising, and other business elements [3] - In the US, a judge ruled that Google has an illegal monopoly over online search and is expected to decide on remedies to address this by summer 2024 [3] - The US Department of Justice (DOJ) has formally requested the court to consider forcing Google to sell off its Chrome web browser as part of measures to break its market hold [6] - Google is also facing a separate DOJ trial targeting its digital advertising empire [6] Google's Response and Industry Impact - Google emphasizes that its search services support millions of UK businesses by helping them reach customers in innovative ways and that it will continue to engage constructively with the CMA to ensure new rules benefit all types of websites [7] - The CMA aims to ensure a level playing field for all businesses, including rival search engines, advertisers, and news organizations, to succeed in the digital market [5]

Core Insights - Jennifer Piepszak has decided to step away from the CEO succession race at JPMorgan Chase and will take on the role of chief operating officer, succeeding Daniel Pinto, who will retire at the end of 2026 [1][7] - Succession planning is a significant focus for JPMorgan as CEO Jamie Dimon approaches two decades in his position, with various senior executives being rotated to gain broader experience [3][4] - The current contenders for the CEO position include Marianne Lake, Troy Rohrbaugh, and Mary Erdoes, as speculation continues regarding Dimon's future steps [4][5] Company Developments - Piepszak has expressed a preference for a senior operating role rather than pursuing the CEO position at this time, indicating her desire to work closely with the top leadership [2] - Daniel Pinto, who has been a key figure at JPMorgan for four decades, will relinquish his role as president and COO on June 30, 2023 [1][7] - Doug Petno, co-head of global banking, will succeed Piepszak as co-CEO of the commercial and investment banking business, and he is also considered a potential candidate for the CEO role [7] Industry Context - The leadership transition at JPMorgan is part of a broader trend on Wall Street, where succession planning is becoming increasingly critical as long-serving CEOs approach retirement [3][5] - The challenge of following a long-standing CEO like Jamie Dimon is acknowledged, with concerns that potential successors may prefer to retire rather than take on a demanding role [5]