CLO Executive Centre

Nvidia briefly hit US$4 trillion in market value, making it the first publicly traded company ever to do so, reports CNN (9 July, Eadicicco, Towfighi), beating Apple and Microsoft to the mark. The US chipmaker entered 2025 as the world’s most valuable company at nearly US$3.9 trillion. Its shares have increased by around 21 percent this year, thanks to its leading role powering the artificial intelligence boom. Nvidia generated US$44.1 billion in revenue for the quarter that ended in April, up 69 percent from the same period a year ago. Nvidia hit US$1 trillion in May 2023.

From "Nvidia Beats Apple and Microsoft to Become the World’s First US$4 Trillion Public Company"
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China imposed export controls Wednesday on eight companies tied to Taiwan’s military, reports the Associated Press (9 July, Mistreanu). China’s Commerce Ministry added eight Taiwan-based organizations including aerospace and shipbuilding companies to an export control list, citing national and regional security concerns. The banned companies include defense supplier Aerospace Industrial Development Corporation (AIDC), drone maker Jingwei Aerospace Technology Co., and CSBC Corporation, Taiwan’s largest shipbuilding company. The new rules, effective immediately, prohibit the export to the listed enterprises of “dual-use items,” which can be used for both civilian and military purposes.

From "China Imposes Export Ban on Companies Tied to Taiwan’s Military"
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Hundreds of thousands of workers across India went on a nationwide strike on Wednesday in opposition to Prime Minister Narendra Modi’s efforts to privatize state-run companies and other economic reforms, reports the Associated Press (9 July, Roy, Nagpal). A coalition of 10 major trade unions that represent laborers and several other groups that speak for farmers and rural workers called for the one-day industrial action, dubbing it Bharat Bandh,” Hindi for “Shut Down India.” Unions that helped organize the strikes say that coal mining operations were halted in several states while some trains came to a halt as protestors blocked the network, and that banks, insurance companies, and supermarkets were disrupted. The workers’ demands include higher wages, halting privatization of state-run companies, withdrawal of new labor laws, and filling vacancies in the government sector. Modi’s government has opened some sectors of the Indian economy to foreign direct investments and offered billions of dollars in financial incentives to attract local manufacturing. It has also aimed to bridge the budget deficit with a drive to privatize loss-making state-run companies and unveiled new labor laws that promise workers higher statutory minimum wages, social security, and healthcare.

From "Indian Workers Go on Nationwide Strike Against Economic Reforms"
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The Wall Street Journal (9 July, Weaver, Mathews) reports that the US Department of Justice's criminal healthcare fraud unit is investigating UnitedHealth Group’s Medicare billing practices, including how the company deployed doctors and nurses to gather certain lucrative diagnoses that bolstered its payments. In Medicare Advantage, the program through which private insurers administer the benefits of the federal program for seniors and the disabled, the companies are paid more if their enrollees have certain health conditions. Earlier in the year, it was reported that the fraud unit was overseeing a probe of the company's Medicare business, an investigation that dates back to at least the summer of 2024. More recently, ex-UnitedHealth employees said they have been questioned by prosecutors working for the healthcare fraud unit. The FBI and the US Department of Health and Human Services' Office of Inspector General also took part in some of the interviews, say the former employees.

From "Prosecutors Question Doctors About UnitedHealth’s Medicare Billing Practices"
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Reuters (9 July, Santhosh) reports that Merck has inked a nearly US$10 billion to purchase UK-based Verona Pharma. The acquisition will strengthen the US company's presence in respiratory treatments as it readies for the patent expiry of its blockbuster cancer drug. Keytruda, the world's top-selling drug with nearly US$30 billion in revenue last year, is nearing key patent expirations from 2028, and Merck has doubled down on efforts to reshape its portfolio. Since 2021, the company has nearly tripled its late-stage pipeline, combining in-house development with acquisitions such as the US$11.5 billion purchase of Acceleron in 2021, which netted the pulmonary arterial hypertension drug Winrevair. Wednesday's acquisition is Merck's first of the year and its largest since its US$10.8 billion buyout of Prometheus Biosciences in 2023.

From "Merck to Acquire Verona Pharma for US$10 Billion"
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The Bank of England (BOE) has imposed an £11.9mn fine on Vocalink, an offshoot of Mastercard that operates a key part of UK payments infrastructure, over its “ineffective risk management framework” and weaknesses in internal controls and governance, reports the Financial Times (9 July, Arnold, Al-Khalaf). The BOE said on Wednesday that the fine reflected Vocalink’s failure to comply with the central bank’s requirement for it to fix a number of weaknesses in its systems and controls identified by supervisors by February 2022. The fine represents the first of its kind levied by the BOE on a financial market infrastructure provider.

From "Bank of England Fines Mastercard’s Vocalink £11.9mn for Risk Management Failings"
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Genelux Corporation, a clinical-stage immuno-oncology company, has appointed Eric Groen as the company’s new general counsel, corporate secretary, chief compliance officer, and head of business development, reports Governance Intelligence (9 July, Bannerman). Groen previously served as general counsel of Rani Therapeutics, a clinical-stage, publicly traded biotech. Prior to this he spent 20 years in the legal department at the biotech company Amgen.

From "Eric Groen Named GC at Genelux"
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Wireless carrier T-Mobile US said on Wednesday it is ending its diversity, equity, and inclusion (DEI) programs, reports Reuters (9 July, Shepardson), as it seeks regulatory approval for two major deals. T-Mobile said in a letter to US Federal Communications Commission (FCC) Chair Brendan Carr made public on Wednesday that the wireless company is ending its DEI-related policies "not just in name, but in substance." T-Mobile said it will no longer have any individual roles or teams focused on DEI, is removing any references to DEI on its websites and has removed references to DEI from its employee training materials. T-Mobile is awaiting FCC approval to buy almost all of regional carrier United States Cellular's wireless operations in a deal valued at US$4.4 billion. The FCC is also weighing a separate transaction in which T-Mobile would establish a joint venture with KKR to acquire internet service provider Metronet. T-Mobile plans at closing to invest about US$4.9 billion to acquire a 50 percent equity stake in the joint venture and all of Metronet’s residential fiber retail operations and customers. The FCC in May approved Verizon Communications' US$20 billion deal to acquire fiber-optic internet providers Frontier Communications after the largest telecom company agreed to end its DEI program and after the FCC opened an investigation. Carr told Comcast in February he was opening a probe into the company's promotion of DEI programs.

From "T-Mobile Ending DEI Programs as It Seeks FCC Approval for Two Deals"
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The New York Times (9 July, Isaac) reports that Linda Yaccarino, the CEO of X, is leaving the company after joining the social media platform from NBCUniversal two years ago. Yaccarino's departure caps a tumultuous period at X, which owner Elon Musk has substantially remade since he acquired the platform in 2022 for US$44 billion. Since then, he has shed roughly 75 percent of the company's staffers and greatly loosened speech restrictions on the platform.

From "X Chief Says She Is Leaving the Social Media Platform"
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Bloomberg (9 July, Wagner) reports that Meta Platforms purchased a minority ownership interest in EssilorLuxottica SA, the world's largest eyewear manufacturer. The move deepens the technology giant's commitment to the smart glasses industry. According to the sources, Facebook's parent acquired just under three percent of the Ray-Ban maker, a stake worth nearly €3 billion. The two companies have worked together for several years to develop AI-powered smart glasses. Meta currently sells a pair of Ray-Ban glasses, first debuted in 2021, with built-in cameras and an AI assistant that provide image-captioning or real-time stock prices.

From "Meta Invests US$3.5 Billion in World’s Largest Eye-wear Maker in AI Glasses Push"
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A Turkish court on Wednesday blocked access to chatbot Grok, operated by Elon Musk’s xAI, reports Politico Europe (9 July, Poyrazlar), after it generated offensive responses about President Recep Tayyip Erdogan, founder of the republic Mustafa Kemal Atatürk, and religious values. The news comes as Grok faces blowback over Nazi statements it produced in recent days. The chatbot has also angered the government of Poland with offensive comments targeting Polish politicians, including Prime Minister Donald Tusk. The Chief Public Prosecutor’s Office in Ankara launched an investigation into Grok on Wednesday "in response to Grok's insults against Atatürk, our esteemed President, and the Prophet," it said in a statement. Under the law of Turkey, such insults are punishable by up to four years in prison.

From "Turkey Bans Elon Musk’s Grok over Erdogan Insults"
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Canada launched a red-tape review to reduce regulatory burdens across its departments and agencies, reports the Toronto Globe and Mail (10 July, Al Mallees). The Treasury Board announced on Wednesday that ministers will undertake reviews of regulations in their own portfolios and propose ways to eliminate excessive bureaucracy, in a bid to scrap outdated and complicated rules, as well as ones that overlap with provincial regulations, that hurt the economy. Ministers are expected to report back with their findings within 60 days. The federal government’s Bill C-5, which passed last month, also aims to reduce regulatory burdens by expediting project reviews and removing federal regulations that limit internal trade. The red-tape review being undertaken by the Treasury Board overlaps with the federal government’s effort to reduce internal trade barriers, given that it will aim to eliminate any rules that duplicate provincial ones. Businesses have long criticized that regulatory hurdles, including the layering of red tape across levels of government, stifle their ability to invest and grow their operations.

From "Canada Launches Red Tape Review, Looking to Scrap Outdated Regulations"
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Shein has confidentially filed for an initial public offering (IPO) in Hong Kong, reports the Financial Times (8 July, Wu), as the online fast-fashion retailer seeks to accelerate a drawn-out listing process and pressure the UK regulator into approving a London listing. The Singapore-based company, which was founded in China, privately filed a draft prospectus last week with Hong Kong’s exchange and sought the blessing of the China Securities Regulatory Commission, according to insiders. Shein, which retains the vast majority of its supply chain in China, filed for a London initial public offering about 18 months ago, but has been unable to secure regulatory approval. UK and Chinese regulators failed to agree on appropriate language to be used in the risk disclosure section of its prospectus. The differences related particularly to Shein’s supply chain exposure to the politically sensitive Xinjiang region, where China has been accused of human rights abuses against the indigenous Uyghur population.

From "Shein Files for Hong Kong IPO to Pressure UK to Save London Listing"
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China has criticized companies and local governments for fueling overproduction that it blames for driving down prices, reports the Financial Times (8 July, Leahy, Haohsiang), as inflation figures this week are expected to show that one of the country’s longest bouts of factory price deflation is running unchecked. Chinese producer prices have been mired in deflationary territory since September 2022, posing a challenge for policymakers accustomed to relying on manufacturing and exports to drive economic growth. In articles across state and party media, Chinese President Xi Jinping and other leading officials have attacked what they call neijuan, or “involution”, meaning excessive price competition. The statements suggest Beijing is growing increasingly wary that surging industrial output, coupled with weak consumer demand at home, is fueling a race to the bottom in prices that is entrenching deflation and fueling tensions with the country’s biggest trading partners. Official data is expected to show on Wednesday that factory gate price growth remained negative in June for a 33rd consecutive month, one of the country’s longest such falls in decades.

From "China Criticizes Manufacturers over Price War"
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Wendy’s CEO Kirk Tanner has been named the new chief executive of The Hershey Company, effective August 18, reports CNBC (8 July, Escobar). Tanner will replace Michele Buck, who is retiring after almost 20 years at Hershey, including almost eight as CEO. Tanner joined Wendy’s in 2024 after more than 30 years at PepsiCo, including leading the company’s North American beverages unit. Wendy’s has named CFO Ken Cook as its interim CEO when Tanner steps down on July 18. Cook has been CFO since 2024 and held senior roles at UPS before that.

From "Wendy's CEO Kirk Tanner Tapped to Lead Hershey"
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Seven housebuilders have agreed to pay £100 million to affordable housing schemes after the UK competition watchdog found evidence that they may be sharing commercially sensitive details that affect the price of homes, reports the Guardian (9 July, Almeida). The developers have not admitted any wrongdoing but have agreed to make the combined payment, which will be split between affordable housing programs across the UK. The Competition and Markets Authority opened its investigation into the housebuilders last year after it found evidence of information sharing that “prevented and distorted” competition, including on pricing levels, the number of property viewings, and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.

From "Seven UK Housebuilders to Pay £100m After CMA Investigation"
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Southwest Airlines has sued a group of drugmakers in US court for allegedly participating in a price-fixing conspiracy that caused the airline to overpay for purchases of hundreds of millions of dollars in medications for employees, reports Reuters (8 July, Scarcella). Southwest alleged it was overcharged by generic drugmakers including Sandoz, Teva, and Sun starting in May 2009. The lawsuit, filed in the federal court in Philadelphia, said the companies violated antitrust law by coordinating on pricing. State attorneys general and other plaintiffs are pursuing related antitrust allegations against generic drugmakers in federal court in Connecticut. Related class actions from drug wholesalers and others are pending in the Philadelphia court. Generic drugmakers Apotex and Heritage Pharmaceuticals last year agreed to pay nearly US$50 million to settle claims by Connecticut and other states that accused them of conspiring to artificially inflate prices. Switzerland-based Sandoz in February agreed to pay US$275 million to resolve claims by US consumers and others who had accused the company of conspiring to fix prices. Other employers — including General Motors, Target, and American Airlines — had sued the same defendants last year, claiming billions of dollars in overcharges.

From "Southwest Airlines Accuses Drugmakers of Price-fixing Conspiracy"
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Honeywell yesterday announced it would evaluate strategic alternatives for two of its businesses that serve the transportation and logistics industries as the industrial giant prepares for its three-way split, reports Reuters (8 July, Jain). The company has been streamlining operations, with a split into separate aerospace, automation, and advanced materials units expected to be completed by next year. Honeywell's review of its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses is aimed at further simplifying its portfolio ahead of the split, a company statement read.

From "Honeywell to Review Alternatives for Two Businesses Ahead of 2026 Split"
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The UK Financial Conduct Authority (FCA) has fined digital bank Monzo 21 million pounds (US$28.57 million) for inadequate protection against financial crime, reports Reuters (8 July, Wilkes, Howcroft), including taking on customers who had listed landmarks such as Buckingham Palace as their address. After a 2020 review, the FCA imposed a requirement on Monzo to prevent it from opening new accounts for high-risk customers. But "between August 2020 and June 2022, it repeatedly failed to comply with the terms of the requirement, including signing up over 34,000 high-risk customers," the FCA said. Customers had applied for Monzo accounts with addresses including Buckingham Palace, 10 Downing Street, and Monzo's own business address, according to FCA documents. Other fintechs in Britain have triggered regulatory concerns about their controls to stop financial crime. Starling Bank was fined 29 million pounds in 2024 after the FCA found its anti-money laundering controls and sanctions screening systems left the financial system "wide open to criminals."

From "Monzo Fined US$28 Million by UK Regulator for Inadequate Financial Crime Controls"
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UK companies should be legally required to report major cyberattacks to the authorities, Marks & Spencer (M&S) Chair Archie Norman said while giving evidence to lawmakers on the April cyberattack which forced M&S to suspend online shopping for nearly seven weeks, reports Reuters (8 July, Davey). Norman claimed two recent attacks on large UK businesses in just the last four months have gone unreported. Norman said the group had learned that "quite a large number" of serious cyberattacks never get reported.

From "UK Companies Should Have to Disclose Major Cyberattacks, M&S Says"
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