Stockwatch: Week of December 06-10

Intel & Mobileye

The chip giant said on Monday that it plans to take Mobileye public in the United Sates in mid-2022, via an initial public offering (IPO), while maintaining majority ownership of the company. [1]

Intel believes this move "will unlock the value of Mobileye for Intel shareholders" and "will build on Mobileye's successful track record".

Mobileye, which specializes in the increasingly popular market of self-driving and advanced driver-assistance systems (ADAS), was acquired by Intel in 2017. As per the latter's CEO Pat Gelsinger, the move "has been a great success".

INTC.us opened the week strong and rose to its highest level since late October (55.11), but then came under pressure, losing more than 2% on Thursday.

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Lucid Subpoena

The EV start-up revealed on Tuesday that it had received a subpoena from the US Securities and Exchange Commission (SEC), in relation to its SPAC merger.

A day later, it announced a proposed convertible senior notes offering of $1.75 billion, with investors reacting negatively. [2], while more details were published on Friday. [3]

German Automakers

BMW announced on Wednesday, an important agreement with microchip manufacturer INOVA Semiconductors and feature-rich semiconductor foundry GlobalFoundries, that will provide million semiconductors per year.

Its Wolfsburg-based rival, Wolkswagen, strengthened its position in the battery arena, by partnering with materials technology group Umicore, battery specialist 24M Technologies, and clean tech company Vulcan Energy Resources Ltd. [4]

As per Thursday's press release, these three partnership are independent of each other but share the same goal: the industrialization of battery technology and the volume production of even more sustainable, cutting-edge batteries.

Visa and Crypto

The payments processor introduced on Wednesday a Global Crypto Advisory Practice in order to help its partners navigate the Cryptocurrency scene, while noting that the case for Cryptocurrencies is getting stronger for financial institutions. [5]

Visa also released a study titled "The Crypto Phenomenon: Consumer Attitudes & Usage", which found that nearly one-third of respondents have directly engaged with crypto – either as an investment vehicle or as a medium of exchange.

V.us opened higher after the release and closed Thursday above 210.00, heading towards a profitable week, after four losing ones.


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Amazon Fine

Amazon received a fine of more than 1 billion Euros on Thursday, by the Autorità Garante della Concorrenza e del Mercato (AGCM) – Italy's competition authority. This is in regards to the firms e-commerce logistics services, as the authority ruled that it harmed its competitors on the market.

L'Oreal Share Repurchase

The French cosmetics giant announced on Wednesday the repurchase 22.26 million of its own shares from Nestle. The unit price of the L'Oréal share for this transaction is 400.0 euros, i.e. a discount of 5.8% compared to the closing price of December 7, 2021. [6]

After the transaction is complete, Nestle's stake in the capital of L'Oréal will be reduced from 23.3% to 20.1%.

OR.fr closed that day with losses, but not before hitting fresh record highs (434.41) and heads towards a profitable week.


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Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 10 Dec 2021 https://www.intc.com/news-events/press-releases/detail/1509/intel-announces-intent-to-take-mobileye-public

2

Retrieved 10 Dec 2021 https://ir.lucidmotors.com/news-releases/news-release-details/lucid-group-inc-announces-proposed-convertible-senior-notes

3

Retrieved 10 Dec 2021 https://ir.lucidmotors.com/news-releases/news-release-details/lucid-group-inc-prices-1750000000-convertible-senior-notes

4

Retrieved 10 Dec 2021 https://www.volkswagenag.com/en/news/2021/12/volkswagen-enters-into-strategic-partnerships-for-the-industrial.html

5

Retrieved 10 Dec 2021 https://investor.visa.com/news/news-details/2021/Visa-Introduces-Crypto-Advisory-Services-to-Help-Partners-Navigate-a-New-Era-of-Money-Movement/default.aspx

6

Retrieved 03 Jul 2022 https://www.loreal-finance.com/eng/news-release/strategic-transaction-approved-loreals-board-directors-agreement-between-loreal-and

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