DOJ’s Google breakup remedy puts tech world on notice
New developments in the US Justice Department's battle with Google (GOOG, GOOGL) sent shockwaves through the tech world on Wednesday.
Yahoo Finance's Alexis Keenan reports:
The US Justice Department said in a new court filing that it may recommend a break up of Google (GOOG, GOOGL) as an antidote to unhealthy competition in the search engine market, showing just how far Washington is willing to go to rein in Big Tech.
DOJ lawyers used a 32-page document to outline a framework of options for DC District Court Judge Amit Mehta to consider, including "behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search."
Google in a blog post said that "DOJ’s radical and sweeping proposals risk hurting consumers, businesses, and developers."
Read more here.
Wed, October 9, 2024 at 2:34 PM GMT+1
Stocks little changed at the open
US stocks stalled on Wednesday as the risk of a Google breakup prompted a pause for thought in the wait for more Federal Reserve clues to the chances of a "soft landing."
The Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) slipped just below the flat line, while the Dow Jones Industrial Average (^DJI) dropped just more than 0.1%.
Wed, October 9, 2024 at 2:22 PM GMT+1
TSMC Q3 sales jump 40%, countering fears of a slowdown in AI spend
Taiwan Semiconductor Manufacturing Co. (TSM) posted quarterly revenues of NT$759.7 billion ($23.6 billion) on Wednesday, beating the NT$748.3 billion expected in Bloomberg consensus estimates.
US-listed stock in the Taiwanese company, which makes chips for Nvidia (NVDA) and Apple (AAPL), edged up 0.7% in premarket trading.
Rival Samsung (005930.KS) fell nearly 2%.
TSMC's third quarter revenue is 40% higher than the prior year, and nearly 13% higher than the prior quarter. The results counter fears of a slowdown in AI spending, as companies continue to buy hardware to power generative artificial intelligence tools. TSMC releases its full report on third-quarter results on Oct. 17.
Looking ahead, Wall Street analysts expect TSMC to report full year revenue of NT$2.8 trillion ($87.4 billion), a 30% increase from the prior year. Some 94% of analysts recommend buying the stock and expect its US-listing price to rise to $215 per share over the next 12 months. It closed Tuesday at $197.91 per share
Wed, October 9, 2024 at 1:52 PM GMT+1
Boeing withdraws contract proposal after union talks break down
Boeing (BA) shares were set to open lower on Wednesday after negotiations with its machinist union broke down and the aircraft maker withdrew its contract proposal.
Following a third round of bargaining talks that included two days of negotiations this week, Boeing'a COO Stephanie Pope told employees in an email that "further negotiations do not make sense at this point and our offer has been withdrawn."
Members of the International Association of Machinists and Aerospace Workers (IAM) have been on strike since Sept. 13 after voting down a tentative labor contract.
The union said Boeing refused to propose any wage increases, vacation or sick leave accrual, and would not reinstate a benefit pension, among other issues.
The labor talks breakdown occurred on the same day that rating agency S&P placed Boeing on CreditWatch, increasing the probability of a credit downgrade should the strike continue into the end of the year.
Boeing shares were down more than 1% in premarket trading.