Research Market strategy
By Swissquote Analysts
Morning News

Netflix Inks Deal for Rights to Sony Movies, Including Upcoming 'Spider-Man' Films

Netflix Inc. has reached a multiyear agreement with Sony Pictures Entertainment for domestic streaming rights to the studio's theatrical movies, the companies said Thursday. The deal will start with Sony Pictures' 2022 movie slate. Among the releases that will land on Netflix after their theatrical runs are future "Spider-Man" movies and other films based on Marvel characters that Sony has the rights to, including Morbius and Venom. Netflix's need for acquired content is growing as it faces greater competition from newer streaming services including Disney+, AT&T Inc.'s HBO Max and NBCUniversal's Peacock. Once big sellers of their content to Netflix, those companies are now keeping more of their movies and TV shows in-house to feed their own streaming platforms.

By
Vincent MIVELAZ
Morning News

Biden Softens Tax Proposal Aimed at Profitable Companies That Pay Little

President Biden's proposed 15% minimum tax on profitable corporations would affect far fewer companies than the version he campaigned on, according to details the Treasury Department released Wednesday. The tax -- aimed at companies that report large profits to investors but low tax payments -- would apply only to companies with income exceeding $2 billion, up from the $100 million threshold used during the campaign. The Biden plan would now also let companies subject to the tax get the benefit for tax credits for research, renewable energy and low-income housing. The result is that just 180 companies would even meet the income threshold and just 45 would pay the tax, according to administration estimates that assume the rest of the administration's plan gets implemented. Nearly 1,100 U.S.-listed companies would meet the $100 million threshold, according to S&P Global Market Intelligence.

By
Vincent MIVELAZ
Morning News

Toshiba Receives Takeover Offer from CVC Capital Partners

Japanese technology group Toshiba has received a takeover offer from private equity firm CVC Capital Partners. Toshiba Corp said it would obtain further details on the offer and examine it carefully, confirming a report in the Nikkei business daily. The latter had reported that CVC wanted to acquire Toshiba for a good 20 billion U.S. dollars and take it off the stock exchange. CVC's offer comes after some of Toshiba's shareholders have questioned the group's corporate governance in recent months.

By
Arnaud Masset
Morning News

Softbank Acquires 40 Percent of Norwegian Autostore

Softbank Group Corp acquires a 40 percent stake in Norwegian warehouse technology company Autostore for $2.8 billion. The Japanese investment holding company is thus focusing on the use of robots and automation in warehouses. Autostore is controlled by private equity firm Thomas H. Lee Partners, with Sweden's EQT AB holding a minority stake. In total, the deal values Autostore at $7.7 billion, according to the companies involved.

By
Peter Rosenstreich
Morning News

J&J Says Covid-19 Vaccine Ingredient Batch Didn't Meet Quality Standards

Johnson & Johnson said one batch of the main ingredient for its new Covid-19 vaccine didn't meet quality standards at a contract manufacturer, and the doses weren't distributed. J&J said it detected the problem while making quality checks at a plant belonging to contract manufacturer Emergent BioSolutions Inc., which was in the process of starting up but hadn't finished making doses. J&J has been making the main ingredient in vaccine doses for the U.S. at one of the company's own plants.

By
Peter Rosenstreich
Morning News

Electric Jet Maker Lilium to go Public via Merger with SPAC Qell

Lilium GmbH, a Munich-based maker of an electric vertical take-off and landing jet, said it is going public via a merger with special purpose acquisition corporation Qell Acquisition Corp. in a deal with an implied $3.3 billion pro forma equity value. Qell, a SPAC or blank-check company, is led by Barry Engle, a former president of General Motors North America, and aims to invest in next-generation sustainable mobility. Once the deal closes, the company will be renamed Lilium and trade on Nasdaq under the ticker symbol "LILM."

By
Peter Rosenstreich
Morning News

Amazon-Backed Deliveroo to Price IPO at Lower End of Range

Deliveroo, the Amazon-backed online food-delivery service, said it would price its initial public offering at the lower end of expectations, signaling a more cautious stance even as demand has surged during the pandemic. The U.K.-based company said Monday it intends to price its shares between £3.90 and £4.10, suggesting a valuation of between £7.56 billion and £7.95 billion, equivalent to about $10.5 billion and $11 billion. It had previously said they could sell for as much as £4.60. The stock is set to start trading in London on Wednesday under the ticker ROO.

By
Vincent MIVELAZ
Morning News

Credit Suisse Expects Significant 1Q Hit After Loss Tied to U.S. Hedge Fund

Credit Suisse Group AG said Monday that it could see a "highly significant" impact on its first-quarter results after a U.S.-based hedge fund defaulted on margin calls made by the Swiss bank. Credit Suisse and other banks are in the process of exiting the positions in question, the bank said. While it didn't quantify the size of the resulting loss, it said it could be significant and material to first-quarter results, notwithstanding the positive trends set out in a business-performance update earlier in March. Credit Suisse didn't mention the source of the expected impact.

By
Vincent MIVELAZ
Morning News

US Banks Will Be Allowed to Distribute More to Shareholders Again as of July

The restrictions for most US banks on paying dividends and buying back their own shares are to fall after 30 June. This is to happen after the financial institutions have documented their resilience in a simulated economic downturn in a stress test, according to the Fed. The banking system remains a source of strength, and the return to the normal rulebook will maintain that strength, Fed representative Randal Quarles said. Banks have hardly been allowed to pay dividends or buy back shares since last summer. This was to ensure that they did not unnecessarily melt down their capital buffers during the pandemic. Buybacks have been possible again since the first quarter of 2021, but they are still restricted.

By
Vincent MIVELAZ
Morning News

Notorious Spread Between VW Ordinary and Preference Shares

If you find two almost identical Volkswagens on a car dealer's lot and one costs 25 per cent less than the other, the cheaper one is usually likely to be the preferred choice. But a surprising number of investors seem to forget that the same logic applies to the stock market. A wide spread has opened up between the price of Volkswagen's ordinary shares, currently around 290 euros, and the price of its preference shares, which are trading at just under 220 euros. For foreign investors, and apparently especially those from the USA, the differences are not always easy to see through. The preference shares are identical to the ordinary shares, but have no voting rights, nor are they bond-like instruments as in some countries.

By
Vincent MIVELAZ