This week ahead || Nov 6th - Nov 10th 2023
Here's some news for the week ahead.
Stocks look to build on best week in a year: What to know this week
In the upcoming week, investors will focus on a series of corporate earnings reports, with Disney leading the way, followed by Uber, Rivian, Occidental Petroleum, and Warner Brothers Discovery. The economic calendar is relatively quiet, with the University of Michigan's first reading of November consumer sentiment being the notable release. Stocks are entering the week after experiencing their best week in roughly a year, driven by increased confidence that the Federal Reserve's rate hikes may be coming to an end. The labor market showed a slowdown in job growth, which aligns with the Fed's goal of maintaining price stability. Fed Chair Jerome Powell's comments have led the market to believe that further rate hikes are less likely, with markets now pricing in a 95% chance that the Fed won't raise rates at its next meeting. The earnings season has largely been better than expected, with many S&P 500 companies reporting growth in sales and earnings for the third quarter, marking the first time since the fourth quarter of 2022. As a result, stock markets have responded positively, with bond yields declining from recent highs. These factors are contributing to a more optimistic market outlook in the near term.
UAW President Shawn Fain sees ‘ugly’ labor strife ahead at Ford battery plants
The United Auto Workers (UAW) President, Shawn Fain, has indicated a potential labor dispute at Ford Motor Co.'s jointly-owned electric battery plants, as Ford has chosen not to follow its competitors in agreeing to ease the unionization process. Fain mentioned that agreements with Stellantis and General Motors (GM) have bought labor peace, while negotiations with Ford might become challenging. The key point of contention is that the joint ventures with South Korean firms are considered separate entities, outside the master contract governing wages and benefits for auto workers. GM and Stellantis have adopted a card-check process for quicker and easier unionization at their joint ventures, and new employees there will get 75% of pay rates in the master agreement, with plans to eliminate the gap by the 2028 renegotiation. Ford CEO Jim Farley previously accused the UAW of holding the deal hostage during a strike over battery plants. Fain is confident that the UAW will eventually organize workers at all Big Three joint ventures and possibly competitors like Tesla.
Telecom Italia gives green light to KKR's grid bid, sources say
Telecom Italia (TIM) directors have approved the multibillion-euro sale of the company's domestic fixed-line grid to U.S. fund KKR. The deal, supported by Italy's Prime Minister Giorgia Meloni, is part of TIM CEO Pietro Labriola's strategy to revive the debt-laden former state monopoly. The offer values TIM's fixed line at around €20 billion ($21.5 billion), which could rise to €22 billion if a merger with state-backed fiber optic rival Open Fiber occurs. TIM plans to proceed with the sale without a shareholder vote, despite calls from top investor Vivendi for one. Vivendi has expressed concerns about the deal's price and the sustainability of TIM's remaining domestic service business.
Qualcomm's Snapdragon 8 Gen 4 promises superior performance in 2024
Qualcomm has unveiled its upcoming Snapdragon 8 Gen 4 chipset, set to launch in 2024. The chip uses TSMC's N3E low-power-optimized process and boasts self-researched architecture, promising superior CPU and GPU performance. It features Nuvia-based Oryon CPU cores and an Adreno 830 GPU. Benchmark tests suggest the Snapdragon 8 Gen 4 will surpass Apple's M2 PC chipset by 10% in the 3DMark Wild Life Extreme score. Meanwhile, Qualcomm's Snapdragon 8 Gen 3, which powers many high-end Android phones, offers significant improvements in performance and efficiency over its predecessor. Despite the Snapdragon 8 Gen 4's arrival, the Gen 3 chip is expected to power smartphones throughout 2024.
