Wall Street Breakfast Podcast: India to Provide Subsidies -LSB

Electronic technician holding tweezers and assembling a circuit board.


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Dell, HP (HPQ), Foxconn (OTCPK:FXCOF) and others about it get subsidies to make IT equipment in India. (00:23) SEC fees Kraken for operating as an unregistered crypto exchange. (01:23) Texas AG sued Pfizer (PFE) for alleged Medicaid fraud over ADHD medication. (02:23)

This is an abridged transcript of the podcast.

India will offer subsidies to nearly 30 technology companies, including Dell (NYSE:vein), HP (NYSE:HPQ), Lenovo (OTCPK: LNVGY), Foxconn (OTCPK:FXCOF), Asus (OTCPK: ASUUY) and Acer (OTC: ACEYY).

This is happening under a manufacturing-linked incentive scheme for IT hardware aimed at boosting domestic manufacturing.

According to a government STATEMENT, 27 companies expected to invest ~$359.9 million, with the value of IT hardware production estimated at $42 billion.

India’s electronics and IT minister Ashwini Vaishnaw said 23 companies are ready to start production from day zero.

The move is part of Prime Minister Narendra Modi’s drive to make India a global high-tech manufacturing hub. The PLI scheme covers laptops, tablets, all-in-one PCs, servers and small form factor devices.

These subsidies come at a time of increased scrutiny of Chinese companies in India, due to geopolitical tensions between China and India.

The US Securities and Exchange Commission on Monday Kraken Charged Cryptocurrency Exchanger for allegedly commingling client money with its own money while acting as an unregistered securities exchange, broker, dealer and clearing agency.

The regulator’s complaint accused San Francisco-based Kraken of this hundreds of millions of dollars illegally facilitating the trading of crypto-asset securities since at least September 2018.

The director of the SEC’s Division of Enforcement said in a statement that Kraken’s decision to do so “resulted in a business model fraught with conflicts of interest that put investors’ funds at risk.”

The lawsuit echoes the SEC’s allegations against other trading platforms Binance and Coinbase (coins) made at the beginning of this year.

The complaint against Kraken, filed in federal district court in San Francisco, seeks injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains plus interest and penalties.

The Texas Attorney General’s Office is suing Pfizer (NYSE:PFE), Tris Pharma and its CEO Ketan Mehta for allegedly defrauding the state’s Medicaid program.

suit says they did so by providing improperly manufactured medication to children enrolled in the program for attention-deficit/hyperactivity disorder, or ADHD.

Ken Paxton’s office said on an outing on Monday afternoon that Pfizer had contracted with Tris to manufacture the ADHD drug Quillivant XR. Paxton’s office alleges that Tris and Pfizer then manipulated product testing for several years “to conceal poor manufacturing practices and defraud the Texas Medicaid program.”

The AG’s office said that during that time, the families complained that the medication was not working. The office added that Pfizer and Tris allegedly benefited from “misrepresentations and concealments” while receiving taxpayer-funded Medicaid reimbursement for the medication.

According to the complaint, the plaintiffs, who include the state of Texas and Tris’ former chief technology officer, are seeking monetary relief in excess of $1 million.

Other items to watch out for in your Alpha quest:

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In ours catalyst hours for the day

  • MDU Resource Group (MDU) will host an investor day event at the New York Stock Exchange. Management plans to provide updates on the company’s operational strategy and finances.

  • 9 a.m. Lowe’s (LOW) will hold its earnings conference call. Besides Home Depot, stocks with a high degree of trade correlation with Lowe’s on earnings day are Floor & Decor (FND), RH (RH), and Tractor Supply (TSCO).

  • 5:00 PM Nvidia (NVDA) will hold its earnings conference call. Options trading implies a share price swing of 8% per share after earnings are taken out. Over the past year, the stock that has most correlated with Nvidia on earnings day is Marvell Technology (MURLY).

U.S. stocks on Monday extended a three-week winning streak that has seen the benchmark S&P 500 (SP500) post gains on every day of November so far barring two.

Nasdaq (COMP.IND) led gains among major indexes, rising 1.13%. S&P 500 (SP500) climbed 0.74%, while the Dow (DJI) added 0.58%.

Of the 11 S&P sectors, nine finished in the green, led by Tech. Utilities and Consumer Staples were the two losers.

The 10-year yield (US10Y) fell by 2 basis points to 4.42%. 2-year yield (US2Y) increased by 1 basis point to 4.92%.

Now let’s take a look at the markets since 6 am. Ahead of the opening bell today, the Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.16%, the S&P 500 is down 0.1% and the Nasdaq is down 0.03%. Crude oil fell 0.8% to more than $77 a barrel. Bitcoin is up 0.5% and still above $37,000.

In global markets, the FTSE 100 is down 0.6% and the DAX is up 0.2%.

of the biggest movers for pre-marketing of the day: Symbotic (NASDAQ:SYM) is up 23% behind the company beat expectations in fourth quarter results. And MorphoSys (NASDAQ:MOR) is down 27% after Phase 3 study results for its myelofibrosis drug, pelabresib.

In today’s economic calendar:

Editor’s Note: This article discusses one or more securities that are not traded on a major U.S. stock exchange. Please be aware of the risks associated with these stocks.

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