1. The competition for autonomous vehicles: SoftBank (SFTBF) and Toyota (TM) are collaborating on a joint venture that aims to leverage driverless technology for new services, including mobile convenience stores and delivery vehicles that prepare food while in transit.
SoftBank will hold just over 50% of Monet, the newly created entity, with Toyota owning the remainder.
This move marks a fresh addition to the ongoing collaborations between tech firms and automotive manufacturers in autonomous vehicle development. SoftBank’s $100 billion Vision Fund has previously pledged $2.3 billion to GM Cruise, the self-driving division of General Motors.
On Wednesday, Honda (HMC) and General Motors (GM) announced they are joining forces to develop a new era of fully autonomous vehicles. Additionally, BMW (BMWYY) has joined the board of Apollo, an autonomous driving initiative led by the Chinese tech company Baidu (BIDU).
2. Facebook under scrutiny: The Irish Data Protection Commission has initiated a formal investigation regarding a recent Facebook (FB) breach that impacted approximately 50 million user accounts.
The investigation will examine whether Facebook adhered to its responsibilities under the European data protection regulations that were enforced in May. Although Facebook stated last week that it had rectified the vulnerability, 90 million users were forcibly logged out as a precautionary measure.
Irish authorities are looking into the matter because Facebook’s global headquarters is located in Dublin.
Questions surrounding the breach remain, such as: Who was responsible for it? And what were their intentions?
3. Bond market selling pressure: The yield on 10-year US Treasuries has surged to its highest point in seven years, driven by favorable economic data releases.
US employment figures released on Wednesday were more robust than anticipated, and positive momentum could persist on Thursday if initial claims data continues the trend. A thriving US economy and the likelihood of interest rate increases from the Federal Reserve are propelling this shift.
“The overall indication is that the US economy is not just stable, it’s thriving,” stated Kit Juckes, a strategist at Societe Generale.
4. CNN embraces business news: Starting Thursday, CNNMoney is rebranding as CNN Business, with a focus on companies, influential figures, and innovations shaping the business landscape.
This rebranding initiative will address the most significant financial narrative of our times: how technology is transforming every facet of the global economy, compelling businesses, employees, and society to adapt quickly or risk falling behind.
5. Overview of global markets: US stock futures are indicating a downturn.
European markets opened lower in response to a negative trading session in Asia, where the Shanghai Composite was closed for a holiday.
The Dow Jones industrial average ended Wednesday with a 0.2% increase, while the S&P 500 saw a 0.1% rise and the Nasdaq climbed by 0.3%.
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6. Upcoming earnings and economic reports: Constellation Brands (STZ) is set to announce earnings prior to the market opening, while Costco (COST) will follow suit after the close.
Shares of Danske Bank (DNKEY) dropped by 3% following the Danish bank’s confirmation that it has received information requests from the US Department of Justice concerning its money laundering controversy.
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7. Scheduled highlights for this week:
Thursday — Costco (COST) earnings report; Launch of CNN Business
Friday — US employment report
CNNMoney (London) Originally published October 4, 2018: 5:07 AM ET
