Business and Finance News - 6.25.24

EU Accuses Apple of DMA Breach; Opens Probe into App Store Practices, Potential 10% Turnover Fines

• EU regulators accuse Apple (AAPL) of breaching the Digital Markets Act (DMA).

• Apple allegedly restricts app developers from steering customers to alternative channels.

• Apple charges developers fees deemed excessive by the EU for new customer acquisition.

• EU opens a new probe into Apple's third-party app store rules.

• Apple could face fines up to 10% of its worldwide annual turnover if found in breach.

• Apple allows app downloads from websites and third-party app stores in the EU.

• EU questions Apple’s “core technology fee” for apps installed outside its App Store.

*Apple Inc. is a multinational technology company known for its innovative products and services (iPhone, iPad, Mac Computers, etc.).

Bitcoin Plummets 5% to $60,724.45; $1.2B Outflows Hit Crypto ETFs Amid Steady Decline

• Bitcoin's (BTC) price fell 5% to $60,724.45, its lowest in over a month.

• Bitcoin has dropped about 17% from its March record high.

• Crypto investment products saw a second consecutive week of outflows.

• $1.2 billion has flowed out of crypto ETFs in the past two weeks.

• $97.83 million in long bitcoin liquidations occurred in the past 24 hours.

• Bitcoin has been declining since early June, down nearly 10% for the month.

• Analysts still expect Bitcoin to reach another record this year.

*Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without the need for an intermediary such as a bank. It uses blockchain technology, which records and verifies all transactions in a public ledger.

Shein Files for London IPO Amid U.S. Backlash, Forced Labor Allegations, and Uncertain Beijing Approval

• Shein confidentially filed for a London IPO after facing U.S. backlash.

• Shein's U.S. IPO stalled due to forced labor allegations in its supply chain.

• U.S. lawmakers expressed concerns over Shein’s use of the de minimis tax exemption.

• Shein prefers a U.S. IPO but considers London due to lack of American support.

• Beijing’s approval for Shein’s U.S. IPO is uncertain; London listing also pending.

• Shein moved its headquarters to Singapore in 2021, still primarily operates in China.

• U.S. lawmakers scrutinize Shein over potential violations related to Xinjiang products.

*Shein is a global online fashion retailer that specializes in offering a wide variety of affordable and trendy clothing, accessories, and footwear for women, men, and children.

Target Partners with Shopify to Boost Marketplace, Aims for Growth Amid Declining Sales

• Target (TGT) partnered with Shopify (SHOP) to add new brands to its third-party marketplace.

• Shopify merchants can now apply to join Target Plus starting Monday.

• Target aims to boost online traffic and sales growth through new marketplace items.

• Target has experienced four consecutive quarters of declining comparable sales.

• Target's digital sales increased by 1.4% in the first quarter.

• Target Plus has over 1,200 sellers compared to Amazon's 2 million.

• Target Plus's seller and product count have more than doubled in the past year.

*Target is a major American retail corporation that operates a large chain of discount department stores and hypermarkets, offering a wide variety of products.

*Shopify is a comprehensive e-commerce platform that enables individuals and businesses to create, manage, and grow their own online stores.

UPS Sells Coyote Logistics to RXO for $1.025B to Streamline Operations, Boosts RXO to Third-Largest Broker in U.S.

• UPS (UPS) is selling its freight-brokerage business, Coyote Logistics, to RXO (RXO) for $1.025 billion.

• UPS originally paid $1.8 billion for Coyote Logistics in 2015.

• The sale aligns with UPS CEO Carol Tomé’s strategy to streamline the company.

• Coyote Logistics generated $3.2 billion in revenue and $86 million in adjusted EBITDA in 2023.

• RXO will become the third-largest broker in the U.S. after acquiring Coyote.

• The acquisition will increase RXO's high-value customer base by approximately 80%.

• UPS has been divesting non-core units, including selling UPS Freight to TFI International in 2021.

*UPS, or United Parcel Service, is a global logistics and package delivery company that offers a wide range of services.

*RXO is a company that specializes in providing comprehensive freight brokerage and logistics services, connecting shippers with carriers to facilitate efficient transportation and offering end-to-end supply chain solutions.

Here’s how the markets closed yesterday:

• Dow Jones: 39,411.21 +260.88 (+0.67%)

• S&P 500: 5,447.87 -16.75 (-0.31%)

• Nasdaq: 17,496.82 -192.54 (-1.09%)

• Bitcoin (BTC): $60,270.06 (6:30PM PST on 6/24/24)

• Ethereum (ETH): $3,336.94 (6:30PM PST on 6/24/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.327T): 447.67 -2.11 (-0.47%)

• Apple (3.192T): 208.14 +0.65 (+0.31%)

• Nvidia (2.91T): 118.11 -8.46 (-6.68%)

• Alphabet (2.234T): 180.79 +0.53 (+0.29%)

• Amazon (1.931T): 185.57 -3.51 (-1.86%)

• Meta Platforms (1.266T): 498.91 +4.13 (+0.83%)