Elon Musk's X Accused Of Slowing Traffic to Sites Criticized By Him, Federal Approval For Coinbase's New Futures Offering, Tower Semiconductor Deal Falls Prey to US-China Tensions: Today's Top Stories

Washington Post

Elon Musk's X Accused Of Slowing Traffic to Sites Criticized By Him, Including New York Times, Instagram

• X, formerly Twitter, was reportedly accused of limiting traffic to sites that Elon Musk, its owner, criticized. Users observed slower speeds when accessing links from several websites, such as The New York Times, Meta Platforms Inc's META Instagram, Facebook & Threads, Bluesky, Reuters, and Substack. 
• However, this lag seemed to be rectified by Tuesday afternoon. Musk has previously expressed his disapproval of these sites. 

Benzinga

Coinbase Gets Federal Approval For New Futures Offering: Set To Tap Into 75% Of Global Crypto Trading

• Cryptocurrency exchange Coinbase Global Inc COIN on Wednesday announced that it had secured approval to offer federally regulated crypto futures trading to eligible customers in the United States.
• This development comes after the company filed an application with the National Futures Association (NFA) in September 2021 to register as a Futures Commission Merchant (FCM).
• Coinbase stated that the global crypto derivatives market accounts for approximately 75% of crypto trading volume worldwide, making it a critical access point for traders.

Tower Semiconductor Falls Prey to US-China Tensions, Stock Plunges

• Tower Semiconductor Ltd TSEM is trading lower Wednesday after it mutually agreed with Intel Corp INTC to terminate its takeover pending regulatory approval.​ 
• Intel will pay a termination fee of $353 million to Tower.
• On February 15, Intel agreed to acquire Tower Semiconductor at a 60% premium. 

Occidental Petroleum Inks $1.1B Acquisition Deal To Accelerate Net-Zero Strategy

• Occidental Petroleum Corp OXY inked a definitive deal to acquire all the outstanding equity of Carbon Engineering Ltd for around $1.1 billion.
• The company will make three equivalent annual payments, with the first to be done at closing.
• This transaction is expected to close by 2023, subject to Canadian court reviews, Canadian and U.S. regulatory approvals, and other customary closing conditions.
• After the deal closure, Carbon Engineering would become a wholly owned subsidiary of Oxy Low Carbon Ventures.

Emerson Electric To Acquire Flexim, Expanding Its Automation And Measurement Portfolio

• Emerson Electric Co EMR has entered into a definitive agreement to acquire FLEXIM Flexible Industriemeßtechnik GmbH (Flexim), a maker of clamp-on ultrasonic flow measurement for liquids, gases, and steam.
• Flexim has an installed base of more than 100,000 flowmeters and approximately 450 employees.
• The transaction will expand Emerson's automation portfolio and measurement capabilities, complementing its existing flow measurement positions in Coriolis, differential pressure, magmeter, and vortex flow measurement.

Earnings

Target Stock Soars On Q2 Earnings: Higher Margins, Lower Inventory And More

• Target Corp TGT reported a second-quarter FY23 sales decline of 4.9% year-on-year to $24.77 billion, missing the analyst consensus of $25.18 billion.
• Adjusted EPS of $1.80 beat the analyst consensus of $1.39. Inventory at the July end was $12.7 billion, down 17% Y/Y.
• Outlook: Target lowered FY23 adjusted EPS guidance from $7.75-$8.75 to $7.00-$8.00 (consensus $7.79) and expects comparable sales in a wide range around mid-single-digit decline for the remainder of the year.
• It sees Q3 adjusted EPS of $1.20 - $1.60 against the Street view of $1.84; expects a mid-single-digit decline in comparable sales.

TJX Companies Shares Gain On Solid Q2 Earnings Beat, Raised FY24 Guidance

• TJX Companies Inc TJX reported second-quarter FY24 sales growth of 8% year-on-year to $12.76 billion, beating the analyst consensus estimate of $12.45 billion.
• Overall comparable store sales increased 6% versus last year, with Marmaxx store sales increasing 8% and HomeGoods climbing 4%.
• EPS of $0.85 beat the analyst consensus of $0.77.
• Outlook: TJX now plans overall comparable store sales to be up 3%-4% (prior view up 2%-3%) for FY24.

JD.com Surpasses Q2 Expectations, But Stock Falls With Broader China Index

• JD.com, Inc (NASDAQ: JD) reported second-quarter FY23 revenue growth of 7.6% year-on-year to $39.7 billion, beating the consensus of $38.7 billion.
• Non-GAAP net income per ADS of $0.74 beat the consensus of $0.66.
• JD.com generated $6.14 billion in free cash flow and held $33.5 billion in cash and equivalents.

Financial Times

How In-game Purchases and Subscriptions are Shaping the $60B Gaming Industry

• The video game industry, valued at around $60 billion, is amid an evident shift in revenue generation channels. There has been a surge in the popularity and financial contribution of virtual in-game goods, like those in Fortnite, and subscription services like Microsoft Corp's MSFT Game Pass. 
• These alternatives to conventional standalone game purchases mark a pivotal moment in the evolution of gaming.
• This shift is so pronounced that according to Ampere Analysis, gamers will likely spend nearly $21 billion on in-game items and subscription services in the current year, comparable to what they would shell out for game downloads and physical discs. 

Cheaper Alternatives of Weight-Loss Drugs? Chinese Pharma Companies Are Working On a Local Version

• Chinese pharma firms are reportedly working on producing local equivalents of advanced weight-loss medications, challenging Western pharmaceutical giants in a significant global market. 
• As they aim to rival Novo Nordisk A/S NVO, these companies target China's enormous overweight and diabetic demographics. Successful endeavors could also present more affordable alternatives in Western markets. 

Reuters

No Credit Card? No Car! Avis Budget Fined $275K For Turning Away Customers

• Avis Budget Group Inc CAR was reportedly fined $275,000 by New York state for refusing to rent vehicles to customers who did not have credit cards.
• Notably, last year, a customer complained that 74 out of 106 Avis and Budget locations across New York insisted on credit cards, while 32 accepted debit cards.
• Investigators stated calling several Avis locations and the company's national call center. They were repeatedly told that a "major credit card" is required for booking.

Federal Court Reopens Lawsuit Accusing Walgreens Of Medicaid Fraud Over Hepatitis C Drugs

• The 4th U.S. Circuit Court of Appeals in Richmond, Virginia, reinstated a lawsuit where the U.S. and Virginia allege Walgreens Boots Alliance Inc WBA fraudulently claimed some patients qualified for costly hepatitis C medications. 
• The unanimous decision paves the way for Walgreens to confront accusations of breaching the federal False Claims Act and Virginia state regulations.
• The lawsuit centers on a Walgreens clinical pharmacy manager in Kingsport, Tennessee, who reportedly altered patient records between January 2015 and June 2016.