Officials from seven departments including the Cyberspace Administration of China have been sent to Didi’s business on Friday to conduct the cybersecurity review that has derailed the stock since its blockbuster US IPO.
The CAC, Ministry of Public Security, Ministry of State Security, Ministry of Transport, Ministry of Natural Resources, the State Taxation Administration and the State Administration for Market Regulation have all sent representatives in, suggesting it is coming under some serious regulatory pressure.
The investigation was launched just days after Didi raised $4.4 billion in New York and also saw the company’s ride-hailing app removed from app stores across the country.
Intel is reportedly considering launching a $30 billion bid for semiconductor maker GlobalFoundries, according to the Wall Street Journal.
The report suggests Intel is yet to approach GlobalFoundries directly and that the deal could have been prompted by the current shortage in chips that is plaguing industries around the world.
Intel is one of only a handful of companies that both designs and makes its own chips, but is keen to start to producing chips for other companies to rival the likes of Taiwan Semiconductor. It announced earlier this year that it would invest up to $20 billion in expanding its capacity in the US.
Autoliv, the largest producer of airbags and seatbelts in the world, missed expectations in the second quarter and drastically reduced its targets for the rest of the year.
Net sales almost doubled to $2.02 billion from $1.04 billion. Operating income of $164 million was much improved from the $234 million loss booked the year before, but was significantly lower than the $186 million expected by analysts.
Autoliv said it is now expecting to deliver organic sales growth of between 9% to 11% and an operating margin of 9.0% to 9.5%. It was previously expecting 20% sales growth and a margin of around 10%.
There are more problems for Boeing after US regulators told airlines and operators of planes in the 737 series to conduct inspections amid concerns over potential problems with the switches controlling pressure in the cabin.
The directive applies to over 2,500 planes registered in the US and over 9,300 planes based overseas. It has been ordered after one operator flagged that the switches had failed on three different 737 models last September.
Boeing said it supported the decision as it had already asked operators to inspect the potential problem last month.
Kansas City Southern
Kansas City Southern said revenue jumped in the second quarter as the freight market picked up.
Kansas City reported an operating loss of $431.7 million in the second quarter compared to a $180.4 million profit the year before. However, adjusted operating profit rose to $289.1 million from $190.9 million. Revenue jumped 37% to $749.5 million thanks to greater volumes, a higher fuel surcharge and a weaker dollar relative to the Mexican peso.
Kansas City is currently in the process of merging with Canadian National Railway, with regulators currently reviewing the deal, after shunning a rival offer from Canadian Pacific.
Moderna will join the S&P 500 next Wednesday and replace Alexion Pharmaceuticals, which is merging with London-listed outfit AstraZeneca.
The merger will leave a gap in the index and Moderna, known for its coronavirus vaccine, will take Alexion’s place. This will become effective on July 21.
Biogen remains in focus as pressure continues to build around its Alzheimer’s drug Aduhelm, which was controversially approved for use earlier this year.
Reports suggest that several large hospitals are choosing not to use the drug and that some insurers are delaying providing coverage on it until they get more clarity. The FDA approved the drug in June but sparked a debate about its efficacy, and has since asked for independent probe to be carried out about how its representatives interacted with Biogen during the approval process.
The drug is priced at $56,000 per patient per year.
The White House press secretary Jen Psaki laid into Facebook yesterday, lambasting the social media network for failing to stop the spread of misinformation about coronavirus vaccines.
Psaki said 12 people had been responsible for creating the bulk of misinformation on vaccines and that all of these still remained active on the platform. The US surgeon general Vivek Murthy also said the misinformation was making it harder to fight the virus and said ‘American lives are at risk’ as a result.
Psaki has called on Facebook to take swifter action in removing misinformation and those that create it. Facebook has said it has removed of 18 million pieces of misinformation about the coronavirus and removed accounts that consistently breaks its rules.
FedEx has announced it is making a $100 million investment in Indian startup Delhivery as part of a plan for the two companies to ‘unlock India’s international trade potential’.
FedEx said India is a strategic priority for the company and is hoping its global scale and network can help Delhivery expand by bringing new products and services to market. Delhivery will offer FedEx services and provide pick-up and delivery services, while FedEx will focus on the actual import and export.
SAIC-GM-Wuling, a joint venture firm between General Motors and SAIC, is recalling over 1.4 million cars in China over issues with a component of the engine, according to the country’s market regulator.
The cars being recalled are from the Wuling and Baojun brands.
Italian outfit Stevanato Group, which makes vials for coronavirus vaccines and other healthcare products, completed its IPO and raised $672 million priced at $21 per share, giving it an initial valuation of around $6.3 billion.
The IPO price was at the lower end of its $21 to $24 price range. It has listed on the New York Stock Exchange and issued 32 million shares as part of the listing.
Stevanato is the world’s second largest producer of glass vials and the market leader in cartridges used for insulin pen injectors. Net sales amounted to EUR662 million in 2020.
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