Japan Airlines Cyberattack Disrupts Flights as Holidays Start.

Morning Stock Market

Dec 26

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Japan Airlines experienced a cyberattack on Thursday that disrupted their network, resulting in delays to over 60 flights and the cancellation of two domestic flights, although the systems were restored later that day.
The airline indicated that they might have been targeted by a distributed denial-of-service (DDoS) attack; however, they confirmed no personal information was compromised and ticket sales resumed swiftly.
Other airlines continued operations without incident, while Japan Post reported disruptions in mail and parcel deliveries due to JAL’s flight delays during the busy New Year holiday period.

Thousands of unionized Starbucks baristas across the U.S. staged a walkout to protest unfair labor practices and stalled contract negotiations, resulting in around 170 locations not opening as expected.
The union, Workers United, claims Starbucks has not provided serious proposals for wage increases while the company asserts that they have made significant progress in negotiations since April, including over 30 agreements on various topics.
Starbucks maintains that their average pay, benefits, and investment in employee experience are competitive, yet the union's demands for substantial wage increases are deemed unsustainable by the company.

Some of the largest U.S. banks and industry groups are suing the Federal Reserve over the annual stress tests that determine required cash reserves, citing concerns over the Fed's lack of transparency leading to unpredictable volatility for banks.
The lawsuit claims that the requirement for banks to hold excess capital harms credit availability, stifles economic growth, and negatively impacts American consumers, while the Fed explores potential changes to the stress test process, possibly including public input and adjustments to capital requirements.
Stress tests were introduced post-Great Recession to ensure banks maintain sufficient funds during economic downturns, stemming from past issues where inadequate capital led to significant financial losses.

Japan's new energy policy seeks to increase renewable energy to 40-50% and nuclear power to 20% of the energy mix by 2040, reversing a previous phaseout of nuclear energy post-Fukushima disaster.
The plan prioritizes a balanced approach to energy security, attributing growth in AI and data center demand as rationale for expanding both nuclear and renewable energy sources.
Experts have expressed doubts regarding the feasibility of these targets, especially in terms of restarting nuclear reactors and reducing fossil fuel reliance by 2040, amid concerns over investment and technological advancements.

xAI, Elon Musk’s AI company, successfully raised $6 billion in a Series C financing round, bringing its total valuation to $45 billion, nearly double its previous worth; Kingdom Holdings invested approximately $400 million in this round.
xAI aims to leverage the funding to enhance its infrastructure and launch new consumer and enterprise products while its flagship generative AI model, Grok, continues to integrate with X (formerly Twitter) and expand functionalities.
As competition in the AI sector intensifies, xAI is positioning itself in the evolving landscape, facing criticism from Tesla shareholders for potential resource diversion, while also planning to further increase its operation scale with upgraded data facilities and expansion in product offerings.

The FDA has approved Eli Lilly’s Zepbound (tirzepatide), marking the first medication to treat moderate to severe obstructive sleep apnea (OSA) in adults with obesity, alongside lifestyle changes such as diet and exercise.
The approval is seen as a significant advancement, particularly for those who struggle with traditional treatments like positive airway pressure, as Zepbound promotes weight loss and has been shown to reduce apnea events.
While the medication presents new treatment opportunities, it also comes with potential side effects and cautions regarding its use in individuals with a history of certain thyroid conditions, emphasizing the importance of consultation with healthcare professionals.

Residents in some states have the right to opt out of personal information sales, sharing, and targeted advertising, with specific processes outlined for doing so, including using a toggle feature on the property's digital platform.
Users need to opt out separately for each digital property of the Walt Disney Family of Companies, and their opt-out choice is based on online cookies, requiring re-selection if cookies are cleared or if another device is used.
Even if a user opts out, they may still see advertisements based on personal information collected before opting out, and can also use various online tools to manage their privacy preferences more broadly.

Nvidia dominates the AI accelerator market with an estimated 80% to 95% market share, but faces increasing competition from Broadcom, which has around 60% market share in custom AI chips and is projecting significant revenue growth from these sales.
Broadcom's CEO hinted at two new hyperscalers likely to become customers by 2027, which could accelerate revenue growth beyond initial expectations, further tightening competition on Nvidia.
Despite the competitive landscape, analysts still forecast Nvidia's market share and earnings growth to remain robust, estimating a 75% market share by 2030 and a 34% annual increase in adjusted earnings through fiscal 2027.