Wall Street down…Microsoft to buy Activision Blizzard
TOKYO (AP) – Shares are falling at the open on Wall Street today, following global markets lower as the S&P 500 extended its slide into a third straight week. Big banks including Goldman Sachs and Morgan Stanley are leading the decline, while the Dow Jones Industrial Average and the Nasdaq Composite are also dropping. Goldman said its fourth-quarter profits fell by 13% from a year earlier, largely due to the bank preparing to pay out hefty pay packages to staff.
UNDATED (AP) – The airline industry is raising the stakes in a showdown with AT&T and Verizon over the telecom companies’ plan to launch new 5G wireless service this week, warning that thousands of flights could be grounded or delayed if the rollout takes place near major airports. CEOs of the nation’s largest airlines say that interference from the wireless service on a key instrument on planes is worse than they originally thought.
UNDATED (AP) – Microsoft stock is falling after announcing that it’s buying Activision Blizzard for $68.7 billion to gain access to blockbuster games including Call of Duty and Candy Crush. The all-cash deal will let Microsoft accelerate mobile gaming and provide it building blocks for the metaverse, or a virtual environment. The deal comes as Activision shares have plummeted in the past year as the company faces allegations of misconduct and unequal pay. Activision CEO Bobby Kotick will retain his role.
NEW YORK (AP) – Goldman Sachs’ says its fourth-quarter profits fell by 13% from a year earlier, largely due to the bank preparing to pay out hefty pay packages to its well-compensated employees. It’s the latest sign that wages are increasing sharply, especially on Wall Street. The New York-based investment bank earned $3.94 billion, or $10.81 a share. That’s down from $4.51 billion, or $12.08 a share, in the same period a year earlier.
PROVIDENCE, R.I. (AP) – Many states in the U.S. are coming to the conclusion that solar, wind and other renewable power sources might not be enough to keep the lights on as they seek to dramatically cut their use of fossil fuels. Nuclear power is emerging as an answer to fill the gap as they transition away from coal, oil and natural gas to reduce greenhouse gas emissions. A survey by The Associated Press found that about two-thirds of states are including nuclear power in their future energy plans. While nuclear power comes with its own set of potential problems, even the Biden administration wants it as part of the U.S. energy mix as it seeks to dramatically cut greenhouse gases.