⏱️ TikTok, on the clock
A TikTok ban nears...JPMorgan fined $350 million; Apple acquires DarwinAI; White House announces aid to Ukraine; Dollar Tree closes 1,000+ stores; Cisco officially acquires Splunk; and more.
Good morning fellow enthusiasts 👋,
Guess what? We reached 200 subscribers!
A huge thank you to the 17 new enthusiasts who joined J. Nicholas this week, as well as everyone who’s tagged along since the beginning. We now have 205 subscribers (20.5% to our 1,000 subscriber goal). 🎊
Let’s keep this momentum going shall we? (PS: Happy early St. Patrick's Day holiday for all the Newfies and Labradorians.)
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IN THIS ISSUE
🏦 JPMorgan fined $350 million
🍎 Apple acquires DarwinAI
🇵🇹 Portuguese election results
On this day. On March 15, 44 BC, after a series of political reforms, Roman dictator Julius Caesar was assassinated by a group of nobles. (Among whom were Cassius and Brutus.)
FEATURED STORY
⏱️ TikTok, on the clock
For the third time, the US is considering banning TikTok. But this time, it might actually happen.
The US House of Representatives passed a bill on Wednesday that, if also passed by the Senate, could result in a nationwide ban on TikTok. The vote was passed 352 to 65, and is based on worries that TikTok's Chinese parent company, ByteDance, could be forced to share user data with the Chinese government under law.
The bill mandates TikTok to completely sever ties with ByteDance within five months or face removal from all US app stores.
China’s Foreign Ministry spokesperson Wang Wenbin said the US has “never found evidence that TikTok is a national threat to itself” and that this bill “undermines international investors’ confidence in the investment environment” and will “eventually come back to bite the US itself.”
Some argue that this deal could harm competition in the social media space, with Meta (Facebook) potentially becoming a monopoly in the US market. (Even more so, now that Instagram is the most downloaded app in the App Store.)
“If they pass it, I’ll sign it.” — Joe Biden
International TikTok problems
🇨🇦 Canada: In the midst of all the TikTok drama, the Canadian federal Liberals revealed that they had already initiated a national security review of TikTok back in September. Details were not disclosed, though nearly 30% of Canadians use TikTok.
🇮🇹 Italy: This week, Italy’s competition watchdog fined three TikTok subsidiaries a total of €10 million ($11 million) for careless content checks that could harm underage users. The fine is related to videos promoting the "French scar" challenge. (A challenge that involves purposely bruising yourself by pinching your cheeks.)
Fun fact: ByteDance is the world’s most valuable private company ahead of SpaceX with a valuation of over $225 billion.
FINANCE
🏦 JPMorgan fined $350 million
JPMorgan Chase & Co, the largest bank in the United States (and the world), was fined $348.2 million this week by U.S. regulators, including the Federal Reserve and the OCC, for a lack of quality in monitoring trading activities between 2014 and 2023.
The bank reported incomplete trading data and failed to monitor billions of trades globally. As a result, the OCC ordered JPMorgan to revamp its surveillance program and undergo a third-party policy review, requiring regulatory approval for any new trading venue they want to create.
🙅♂️ Dollar Tree closes 1,000 stores
Dollar Tree plans to close nearly 1,000 U.S. stores after unexpectedly reporting a $1.71 billion fourth-quarter loss this week. Approximately 600 Family Dollar stores will shut down, along with 370 Family Dollar and 30 Dollar Tree stores in the coming years.
The retail chain has encountered difficulties since its $8 billion acquisition of Family Dollar in 2015, and this decision alone will result in a $950 million devaluation of Family Dollar. As reported by CBC, over $594 million will be spent on closures or rebranding. Shares of Dollar Tree dropped by over 14% following the earnings announcement.
BUSINESS
🍎 Apple acquires DarwinAI
Apple Inc. has acquired Canadian AI startup DarwinAI, setting grounds for its plans to integrate generative AI features into its iOS 18 software later this year. DarwinAI's technology focuses on making AI systems smaller and faster, as well as on-device AI processing—exactly what Apple is interested in adding to their devices (as hinted by Apple CEO Tim Cook earlier this year).
DarwinAI is based in Waterloo, Ontario, and had gained over $15 million in funding since 2022. It also had notable partnerships with companies like Lockheed Martin and Intel. From this acquisition, Apple aims to catch up to competitors like Google and Microsoft in the generative AI space. All DarwinAI's employees will be joining Apple's AI division.
🛜 Cisco officially acquires Splunk
After announcing it’s mindblowing $28 billion all-cash deal in September, Cisco Systems has offically secured unconditional EU antitrust approval for its deal with cybersecurity firm Splunk. The deal is Cisco's largest-ever and aims to strengthen its software business and fuel AI growth.
The European Commission found that there were no competition concerns, and that there were a significant number of alternative players in the cybersecurity market. According to Reuters, the deal was reported to be cleared without conditions on March 5, 2024.
Did you know? At the height of the dot-com bubble in March 2000, Cisco passed Microsoft to become the most valuable company in the world, with a market cap of more than $500 billion.
POLITICS
🇵🇹 Portuguese election results
After a snap election, Portugal's Democratic Alliance party (AD), led by Luis Montenegro, emerged victorious in the general election. The AD and its allies secured at least 79 seats, narrowly surpassing the incumbent Socialist party. Another party, the Chega party, quadrupled its representation in parliament.
Together, the AD and the Chega party could potentially command a majority. Incumbent President Marcelo Rebelo de Sousa is expected to invite Montenegro to form a government soon.
🏛️ White House announces aid to Ukraine
On Tuesday, the White House announced $300 million in additional weapons for Ukraine through presidential drawdown authority, after Ukraine mentioned that they were running out of key supplies.
The aid includes anti-aircraft missiles, ammunition, artillery rounds, and anti-armor systems, but some items like long-range ballistic missiles may not be included. As reported by NBC, House Speaker Mike Johnson's refusal to bring a $60 billion aid bill contributed to the funding challenge.
Thank you for reading today’s issue of Weekly Brief. I’ll be back in your inbox on Wednesday for a Deep Dive on swing trading.
— ☕️ Jacob
📚 Book of the Week
Note: I don’t recommend books that I haven’t read or that I would never read. The books I recommend are books I have already read or that I will eventually read.
The Alchemist — Paulo Coelho
Book Description:
Combining magic, mysticism, wisdom and wonder into an inspiring tale of self-discovery, The Alchemist has become a modern classic, selling millions of copies around the world and transforming the lives of countless readers across generations.
Paulo Coelho's masterpiece (originally written in Portuguese) tells the mystical story of Santiago, an Andalusian shepherd boy who yearns to travel in search of a worldly treasure. His quest will lead him to riches far different—and far more satisfying—than he ever imagined. Santiago's journey teaches us about the essential wisdom of listening to our hearts, of recognizing opportunity and learning to read the omens strewn along life's path, and, most importantly, to follow our dreams.
As of Jan 31, 2024, (resulting from my Amazon.ca Associates account being terminated) I do not earn any affiliate commissons from the links below.