Former SVB CEO Blames Fed & Media Hype For Collapse, FTC Plans Lawsuit to Block Horizon Therapeutics $28B Takeover, Home Depot Lowers Annual Outlook: Today's Top Stories

Benzinga

Former SVB Chief Blames Fed, Media Hype For Bank's Devastating Collapse

• Greg Becker, the former CEO of SVB Financial Group, the parent company of Silicon Valley Bank, attributed the bank's collapse to a combination of factors, including rapid rate hikes by the Federal Reserve and negative sentiment amplified by social media. 
• This marks the first public statement by Becker since SVB was placed into receivership on March 10.
• In a written testimony for a U.S. Senate Banking Committee hearing, Becker emphasized the role of media comparisons between SVB and Silvergate Capital Corporation, which had announced its plans to wind down.

Home Depot's Q1 Performance: Lumber Deflation, Inclement Weather Hits Revenue, Lowers FY23 Outlook

• Home improvement retailer Home Depot Inc HD reported a first-quarter FY23 sales decline of 4.2% year-on-year to $37.26 billion, missing the analyst consensus estimate of $38.31 billion.
• Customer transactions for the quarter fell by 4.8%. Comparable sales decreased by 4.5%, and comparable sales in the U.S. dropped by 4.61%.
• EPS of $3.82 beat the analyst consensus of $3.80.

Philips Says Test Results Show Recalled Sleep Devices Unlikely To Cause Harm

• Koninklijke Philips NV PHG released an update on a comprehensive test and research program related to the recalled respiratory devices. 
• The company says the risk assessments are completed for 95% of the first-generation DreamStation, System One, and DreamStation Go devices. 
• The test and research program has been conducted with five independent, certified testing laboratories. The results have been reviewed and assessed by third-party experts, Philips Respironics, and an external medical panel. 

Stellantis Puts $3.7B Canada Battery Plant On Ice, Jeopardizing Jobs Of Thousands

• Automaker Stellantis NV STLA halted construction at its C$5 billion ($3.7 billion) battery plant in Windsor, Ontario, claiming the Canadian government has not met its financial commitment to the company.
• Stellantis halted construction at the plant on Monday and said it would begin its contingency plans with LG Energy Solution.
• "As of today, the Canadian Government has not delivered on what was agreed to therefore Stellantis and LG Energy Solution will immediately begin implementing their contingency plans," the EV maker told Benzinga on Monday.

Baidu Tops Q1 Backed By Robust Marketing Revenue; Remains Invested In AI

• Baidu Inc (NASDAQ: BIDU) reported a first-quarter FY23 revenue growth of 10% year-on-year to $4.535 billion, beating the consensus of $4.310 billion. 
• Baidu's Non-GAAP earnings per ADS of $2.34 beat the consensus of $1.79.
• Baidu's adjusted EBITDA margin expanded by 700 bps to 26%. Baidu Core's adjusted EBITDA margin increased by 600 bps to 30%.

3M Lets Go Off Executive For Inappropriate Personal Conduct

• 3M Co MMM has fired its Group President and Chief Business & Country Officer, Michael Vale, for inappropriate personal conduct and violation of company policy.
• 3M said Vale was terminated for cause, effective May 12, 2023. The company has initiated a search for Vale's successor. 
• Vale was elevated to a newly created role on the company's corporate operations committee in April, reporting directly to the CEO.

$10B Buyout Goes Bust: Envision Healthcare Backed By KKR Files Bankruptcy

• The doctor staffing company Envision Healthcare declared bankruptcy five years after KKR & Co Inc's KKR $10 billion leveraged purchase that took Envision Healthcare private. 
• The move will likely wipe out the $3.5 billion stake that private equity firm KKR acquired in the physician-staffing company in 2018.
• The company attributed the filing to sharp decreases in patient volumes due to the COVID-19 pandemic, its exclusion from health insurer networks and inappropriate reimbursement for care provided, "flawed implementation of the No Surprises Act," and a national clinician shortage, and rising inflation.

Why Are Vodafone Shares Trading Lower Tuesday

• Vodafone Group Plc VOD stock dropped on Tuesday after sharing dismal preliminary FY23 results. 
• Vodafone reported revenue growth of 0.3% YoY to $49.05 billion, missing the consensus of $49.73 billion, driven by growth in Africa and higher equipment sales, offset by lower European service revenue.
• Vodafone shared plans to slash 11,000 roles over three years, work to turn around its German business and initiate a "strategic review" of its Spanish unit.

Reuters

Amgen-Horizon Therapeutics Deal Regulatory Overhang: FTC Plans Lawsuit to Block $28B Takeover

• The Federal Trade Commission is expected to file a lawsuit in a bid to block Amgen Inc's AMGN $28 billion takeover of Horizon Therapeutics PLC HZNP.
• Amgen said it was unaware of any decision made by the agency. "We will provide any appropriate updates when we have more information."
•  U.S. Senator Elizabeth Warren's letter to the FTC earlier this year expressing her concerns about pharmaceutical deals, including the Amgen-Horizon deal.

Bloomberg

Morgan Stanley To Lay Off 7% Of Asia Investment Bank Jobs

• Morgan Stanley MS is considering reducing its Asia-Pacific investment banking personnel by 7%, with China bearing the brunt of the cuts.
• The bank may reduce over 40 bankers in the region, mainly China focused as deteriorating relations with the U.S. and weaker economic growth curb dealmaking.
• The cuts are part of Morgan Stanley's plan to reduce about 3,000 jobs globally by the end of this quarter amid rising recessionary pressure.

Delta Air Lines In Talks With Airbus For Wide-Body Aircraft Order

• Delta Air Lines Inc DAL is reportedly engaged in talks with aircraft manufacturer Airbus SE EADSF EADSY for a huge wide-body aircraft order.
• A gain in demand for long-haul flying has nudged Delta to revamp older planes and boost post-COVID networks.
• The center of the confidential talks is A350 and A330neo twin-aisle jets.

Wall Street Journal

Wells Fargo Settles Class-Action Lawsuit With $1B Payment

• Wells Fargo & Co WFC has reportedly agreed to pay a $1 billion settlement to resolve a shareholder lawsuit. 
• WFC was accused of overstating its progress in cleaning up after its 2016 fake accounts scandal.
• The report added that the shareholders claimed that Wells Fargo and its prior leadership misled them about the swiftness with which they were addressing governance concerns and risk-management systems.

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