Benzinga Before The Bell: Jury Finds Tesla 1% Negligent In Model S Crash, Bitcoin Sees $148M Liquidations, Amazon-Backed Zoox Robotaxi Set For Debut And Other Top Financial Stories Wednesday, July 20

Benzinga Before The Bell: Jury Finds Tesla 1% Negligent In Model S Crash, Bitcoin Sees $148M Liquidations, Amazon-Backed Zoox Robotaxi Set For Debut And Other Top Financial Stories Wednesday, July 20

CNBC

Semiconductor Shortage Is ‘Going to Bite’ Longer, Has a Russia-Ukraine Connection

  • Semiconductor supply isn’t likely to improve any time soon, and the war in Ukraine has a role to play in a predicament, Vinay Gupta, Asia-Pacific research director at IDC said, according to CNBC.
  • Chip Slowdown’s Going to Bite: Inflationary pressure and expectations of further monetary policy tightening have led to a consumer-led slowdown in the chip industry, Gupta told the media outlet.
  • The analyst noted that IT spending is slowing, specifically consumer IT spending, even as enterprise spending is holding out.

Reuters

Airbus, Boeing Are Expected To Receive Sizable Air India Jet Deal

  • According to industry sources, Air India is nearing a decision on a $50 billion jet order that will be split between Airbus SE EADSY and Boeing Co BA under its new owners Tata Group.
  • The order is expected to comprise up to 300 narrowbodies and up to 70 wide-body aircraft, including Airbus A350s, Boeing 787s, and Boeing 777s.
  • One source cautioned that the conclusion was still unpredictable, and another claimed that a decision may be “imminent.

Robotaxi Market Heats Up As Amazon Unit Braces For Debut

  • Amazon.com Inc AMZN self-driving technology firm Zoox braced to launch its robotaxi business.
  • Zoox self-certified that the robotaxis came without pedals or steering wheel, met U.S. federal regulations, and applied for a permit in California to test-drive it.
  • Zoox’s vehicle, called VH6, has room for four passengers, with two facing each other, resembling General Motors Co’s GM Cruise’s Origin vehicle, launched in January 2020.

GM South Korea Halts Production At Two Plants On Supply Crunch

  • General Motors Company GM said its South Korea unit had halted production at its two factories in the country.
  • The company took the decision after one of its suppliers refused to supply auto parts.
  • The supplier, ERAE AMS, which makes automotive generators, calipers, and brake parts, has been demanding a price rise for its parts supplied to General Motors’ Korea factories.

Tesla 2018 Crash: Jury Finds Victim 90% Responsible For His Death In Model S

  • Tesla Inc TSLA was found to be just 1% liable in a 2018 car crash that killed two teenagers and injured another, according to a verdict by a Florida jury.
  • A Fort Lauderdale federal jury found the Elon Musk-led electric vehicle maker to be the least responsible for the death of 18-year-old Barrett Riley and his friend, who lost control of a Model S and crashed it into a concrete wall at 116 miles per hour.
  • The jury found Riley 90% negligent, his father 9% negligent, and Tesla just 1% negligent in the death and awarded Riley’s family $10.5 million in damages for pain and suffering.

Malaysia Airlines Might Replace A330 Aircraft With Airbus A330neos

  • Malaysia Airlines is close to a deal to replace its fleet of 21 older-model A330 aircraft with Airbus SE EADSY A330neos, reported Reuters, citing two familiar sources.
  • Izham Ismail, the chief executive officer of Malaysia Airlines, had stated last month that the company hoped to decide on a one-for-one replacement of its A330 fleet by mid-to-late July.
  • The sources told Reuters that the A330neo had been selected as the preferred model.

Wall Street Journal

US CHIPS Bill Gathers Momentum, Senate Votes 64-34

  • A bipartisan bill subsidizing domestic semiconductor production garnered 64-34 votes as lawmakers worked out the details of the legislation.
  • It won enough votes to comfortably overcome a Senate filibuster and advance and move forward with adding the science funding.
  • The legislation would provide $52 billion in subsidies to encourage chip production in the US, reducing its dependence on foreign tech.

Facebook Intensifies TikTok War With Latest Strategy - Read To Know

  • Meta Platforms Inc’s META Facebook migrated resources from its Facebook News tab and newsletter platform Bulletin, focusing more on the creator economy, the Wall Street Journal reports based on senior executive Campbell Brown.
  • Migrating resources from News and Bulletin marks Facebook’s broader shift toward the metaverse and short-form video content creators that can compete with ByteDance Ltd’s TikTok.
  • Brown said the company would shift engineering and product support away from the two products as “those teams heighten their focus on building a more robust Creator economy.”

Financial Times

Ernst & Young CEO Expects $10B From Tech Giant Contracts After Historical Business Split: Report

  • EY’s global CEO said that the business split would win its consulting division as much as $10 billion in extra fees by liberating it from conflicts of curiosity that block partnerships with the world’s largest tech teams.
  • In an interview with the Financial Times, EY’s Carmine Di Sibio mentioned that the agency’s place within the tech audit market was “both a blessing and a curse.”

Airbus CEO Predicts Supply Chain Issue Will Continue Until 2023: FT

  • Airbus SE EADSY predicts that suppliers will struggle to ramp up output, prolonging the supply chain crisis gripping the aerospace industry until next year.
  • Guillaume Faury, CEO of Airbus, states that the crisis will not be resolved in the next two or three months.
  • “We guess, a year as an order of magnitude. We have difficulties to believe that in two years from now it’s not going to be resolved. This is not unusual. It is just the depth and magnitude of what’s happening [which] is more than what we’ve seen in previous crises,” Mr. Faury told the Financial Times at the Farnborough Air Show.

Benzinga

ASML Clocks 35% Top-Line Growth In Q2; Cuts FY22 Revenue Forecast

  • ASML Holding N.V. ASML reported a second-quarter FY22 net sales growth of 35% year-on-year to €5.4 billion. The Q1 net bookings were €8.5 billion versus €8.3 billion a year ago.
  • The gross margin contracted 180 bps Y/Y to 49.1%.
  • GAAP EPS was €3.54 versus €2.52 a year earlier.
  • Outlook: ASML sees Q3 net sales of €5.1 billion - €5.4 billion and a 49% - 50% gross margin.

Google Bows Down To EU Tech Rules, Cuts Commission In Google Play App Store

  • Alphabet Inc GOOG GOOGL Google looks to slash its commission from 15% to 12% for non-gaming app developers on its Google Play App Store, which switches to rival payment systems, as it moves to comply with new EU tech rules.
  • Google said the fee cut applies only to European consumers. It will expand the freedom to use another payment system for gaming apps.
  • The EU rules, known as the Digital Markets Act (DMA), will be effective in 2023, requiring tech giants to allow app developers to use rival payment platforms for app sales or risk fines of as much as 10% of their global turnover.

Netflix To Buy Aussie Animation Studio Behind ‘Happy Feet’ And ‘Lego’ Movies

  • Streaming giant Netflix Inc NFLX unveiled plans to acquire Australia-based Animal Logic, an animation studio that has worked on Hollywood blockbusters from “Happy Feet” to “The Lego Movies.”
  • Netflix, which has produced several animated titles, including Oscar-nominated films “Over the Moon” and “Klaus,” said the acquisition would accelerate its efforts to build end-to-end animation production capabilities.
  • “Netflix has been investing in animation over the past few years, and this furthers our commitment to building a world-class animation studio,” Amy Reinhard, Netflix vice president of studio operations, said in a statement.

Macau Plans To Reopen Casinos: Read How Stocks React

  • Macao is planning to reopen most non-essential industries and commercial companies, including casinos and venues, for limited operation from midnight of July 23 until midnight of 30 July 2022.
  • Macao had previously suspended casino operations on July 11 to curb the spread of COVID-19.
  • The casino industry accounts for more than 80% of the government revenues.

Google, Twitter Face Ban In Indonesia If They Fail To Signup For New Licensing Rules By Midnight

  • Indonesian Ministry records showed that neither Alphabet Inc’s GOOGL GOOG Google nor Twitter Inc TWTR had complied with the new Indonesian licensing rules that could see their services temporarily blocked in the country.
  • In late 2020, Indonesia introduced new rules under which the sign-up was required to ensure the internet service providers protect consumer data and that online content is used in a “positive and productive” way.
  • The law also gives authorities broad powers to compel giants like Meta Platforms Inc META, Google, and others to disclose data of certain users and take down content deemed unlawful or that “disturbs public order” within four hours if urgent — otherwise, 24 hours.

Bitcoin Sees $148M Liquidations As Price Crosses $23,000

  • Bitcoin BTC/USD traders saw high-value liquidations, in excess of $148 million on Tuesday.
  • According to data from Benzinga Pro, BTC rallied from an intra-day low of $21,683 to a high of $23,666, gaining 10% over the last 24 hours.
  • Both long and short traders bore nearly equal amounts of pain, with $70 million BTC longs and $77 million shorts liquidated.

Netflix Q2 Earnings Highlights: Stock Climbs On Subscriber Beat, Guidance, Ad-Supported Update

  • Streaming giant Netflix Inc NFLX reported second-quarter financial results after market close Tuesday. Here are the key highlights.
  • Netflix reported second-quarter revenue of $7.97 billion, up 8.6% year-over-year. The total came in below a Street estimate of $8.04 billion, according to data from Benzinga Pro.
  • The company reported earnings per share of $3.20 in the second quarter, beating a Street estimate of $2.96.

Judge Grants Twitter Expedited Trial Against Elon Musk: What You Need To Know

  • Delaware Court of Chancery Judge Kathaleen McCormick granted a motion from Twitter Inc TWTR Tuesday seeking an expedited trial in the company’s lawsuit against Tesla Inc TSLA CEO Elon Musk, which aims to force him to follow through on a buyout of the social media platform.
  • McCormick ruled in favor of an expedited five-day trial to take place in October after a hearing conducted via teleconference Tuesday.
  • Twitter is seeking to enforce Musk’s $44-billion acquisition of the company despite Musk’s intentions to back out of the deal.

Photo via Wikimedia Commons

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