GlobalFoundries (GFS, Financial) has been granted a significant boost by the U.S. government, receiving a $1.5 billion grant to enhance semiconductor manufacturing within the country. This move is part of the broader U.S. CHIPS and Science Act. The funding will facilitate the expansion of GlobalFoundries' fab in Malta, New York, incorporating advanced technologies from the company's facilities in Singapore and Germany. These technologies are crucial for the U.S. auto industry and other sectors such as aerospace, defense, and AI. A new state-of-the-art fab is also planned for the Malta campus to meet the rising demand for U.S.-made chips. Additionally, the company will modernize its Vermont facility. Over the next decade, GlobalFoundries plans to invest more than $12 billion in its U.S. sites, supported by public-private partnerships and government funding. New York Governor Hochul has announced a $575 million direct funding initiative for the New York State Green CHIPS projects.
JD.com (JD, Financial) is considering a takeover of London-based electronics retailer Currys, potentially triggering a bidding war. This follows the rejection of a proposal from Elliott Investment Management by Currys. The Chinese e-commerce giant is contemplating a cash offer, which has already caused Currys' stock to surge by approximately 33%. JD.com's own shares, however, dipped by around 4% following the news. Elliott's initial offer, which valued Currys at about £700 million, was deemed too low by the British company, citing significant undervaluation.
Early Super Bowl betting data has revealed a record-setting year for U.S. bookmakers, with betting handle up 27% year-over-year in key states. Flutter Entertainment's (FLUT, Financial) FanDuel led the surge with a 43% increase in betting handle, reaching a record $307 million. MGM Resorts International (MGM, Financial) and Entain's (GMVHF, Financial) BetMGM also reported a substantial 30% increase in handle. However, gross gaming revenue margins were impacted by many sportsbooks' exposure to the Kansas City Chiefs' victory in a high-scoring game.
Major earnings reports are on the horizon with companies like Walmart (WMT, Financial), The Home Depot (HD, Financial), Medtronic plc (MDT, Financial), Transocean Ltd. (RIG, Financial), and DigitalBridge Group (DBRG, Financial) expected to release their results before Tuesday's market open. A plethora of other earnings are also slated for release, which could influence market movements and investor sentiment.
Global hedge funds have shifted their focus to China, generating positive returns overall. Hedge funds gained 1.2% in January, with notable net buying of Chinese equities (FXI, MCHI, ASHR), despite China's markets posting losses. The Shanghai Composite (SHCOMP) fell 6% in January, continuing its decline from the previous year. All strategies reported positive performance, with fundamental equity long/short and systematic managers leading the gains.
AstraZeneca (AZN, Financial) has shared promising results from the LAURA Phase III trial, where TAGRISSO showed a significant improvement in patients with Stage III epidermal growth factor receptor-mutated non-small cell lung cancer. The trial will continue to assess overall survival as a secondary endpoint. In related news, Daiichi Sankyo (DSNKY, Financial) announced that its biologics license application for datopotamab deruxtecan, filed with AstraZeneca, has been accepted in the U.S., with a PDUFA date set for December 20, 2024.
XPeng (XPEV, Financial), a Chinese electric vehicle manufacturer, is set to hire 4,000 people and invest 3.5 billion yuan in AI research and development. The company, supported by Volkswagen (VWAGY, Financial), plans to introduce around 30 new or revised models over the next three years. XPeng's CEO has expressed optimism about the company's future, despite the current economic climate, and anticipates a high-speed positive cycle to begin by the fourth quarter of 2024 or earlier.
iQIYI (IQ, Financial) reported a significant increase in AI search usage during the Chinese New Year holiday, with viewing times for variety shows and the new drama 'Always on the Move' soaring. The company has been experiencing consecutive sessions of losses, but this uptick in engagement could signal a change in fortunes.
