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Take a look and see what's happening in the marketplace.
Here we're going to go Tonita Sokova from Bloomberg newsdnitsa what are you looking at here in the markets?
We have to start with Microsoft. Obviously the big story of this morning. Microsoft and open Ai finalist this new agreement. It's been in the works for a very long time. The ticker, of course is MSFT. The SOCOs up as much as four percent now it's about three percent, clearly one of the big gainers in the SMP. This is removing a layer of uncertainty for both companies. Then under the new pack, Microsoft is getting twenty seven percent ownerships take in open Ai and the price tag of that
is one hundred and thirty five billion. Of course, the agreement clears society major obstacle for all Ai. The company has spent so much time of this year working to restructure and become this traditional for profit company, and that has been an obstacle there. Microsoft will still have access to artificial intelligence startup technology until twenty thirty two, including models that achieve the benchmark of AI General Intelligent, Microsoft will no longer have a right for first refusal on
open air compute. But the start up has made an additional two hundred and fifty billion commitment to buy services.
So yeah, this is clearing a major obstacle.
The really strong reaction in the market, and still even as indices are losing some of the gains there, the reaction remains very positive.
And then it's a ups kind of two stories. They had a strong profit but also big layoffs too.
Big layoffs, yes, but investors who have been reacting positively to that, And obviously is the main number that has really impressed the street is adjusted earnings that came at one door seventy four cents, and the street was expecting one door thirty two cents, So really big positive surprise there. Of course, profit expectations are helping, but cutting costs and eliminating thirty four thirty two thousand jobs has been a major impact here. The tagories ups of course, and shares
are up about five percent. Actually, in urdered trading they jumped as much as thirteen percent, so perhaps some of that euphoria is fading. The cuts to its permanent operational workforce includes drivers and package handlers, and some massive jump from last year is a seventy percent increase from last year.
As part of the sweeping cost saving.
Initiative, UPS has closed a lot of operation ninety three least and on buildings. The shares were under so much pressure this year they were down twenty nine percent. Similar story with FedEx, which was under a lot of trouble. It actually in September it said that in this pate a one billion headwind.
That'd say, we're seeing some relief for both companies.
Today, we're seeing some optimism for four quarter revenue higher than the company previit is expected, but we're still with the under pressure here today, so we're yet to see if that earnings momentum can be maintained.
Really.
Finally, PayPal PayPal It's all open Ai story. PayPal share search after announced a partnership with open Ai and of course a pretty good earnings report. It boosted it's adjusted earnings per share guidance for the full year. What we're seeing is that PayPal raised its twenty twenty five just earning per share forecast. It's about twenty cents higher than before. The ticker, of course, is PYPL. The stock is about eleven percent one of the beginners.
Today.
PayPal is instituting its first dividends It's fourteen cents per share, so perhaps some of the optimism is coming from that as well. The company announced the tie up with open Ai, so they're gonna embed it's digitalality judge GPT. Obviously everyone is using it for searches, and the idea is that the company that users will be able to use PayPal as a payment mental at the checkout and they will also process venors as the instant checkout feature.
So perhaps really big partnership there. But yeah, big jump on the news.
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