MARKET RECAP → All three major US stock indexes slipped lower on Tuesday as we kicked off this holiday-shortened trading week. One explanation for the downward move in stocks today is the US 10Y Treasury yield ticking back up to above 4%. Bitcoin (BTC) rose modestly as optimism around the recent ETF approval continued to swirl. GLOBAL AI CONSENSUS → ? In Davos, Microsoft’s (MSFT) Satya Nadella champions a unified global AI playbook, while Microsoft backs its AI bet with a hefty $13 billion on OpenAI.
BURGER KING’S TASTY DEAL → ? In a $1 billion whopper of a deal, Restaurant Brands International (QSR) devours Carrols Restaurant Group (TAST), Burger King’s largest franchisee, flipping its strategy to revamp and resell over 600 stores and cook the competition.
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| Sean Horgan Head of Investor Relations @ MoneyLion
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? Satya Nadella, Microsoft’s (MSFT) CEO, highlighted the emerging global consensus on AI at the World Economic Forum in Davos. He emphasized the need for global coordination and standardization in AI, acknowledging the challenges in enforcement and research advancement without a unified approach. Nadella’s comments reflect the growing international dialogue on AI’s role and regulation.
? Microsoft, a key player in the AI race, has invested heavily in OpenAI, the creators of ChatGPT. Their investment, totaling around $13 billion, signifies a major commitment to AI development. Microsoft’s integration of OpenAI technology into its products like Office, Bing, and Windows, coupled with Azure cloud computing support, showcases its strategic focus on AI. ? Addressing AI’s potential risks, Nadella mentioned the need for rigorous evaluations and safety measures, especially for large language models. He suggested a risk-based approach for AI deployment in various sectors, applying relevant regulations like healthcare or financial services. This perspective underscores the importance of tailored safeguards in AI’s diverse applications. |
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? Restaurant Brands International (QSR), the owner of Burger King, has gobbled up Carrols Restaurant Group (TAST), the largest U.S. Burger King franchisee, for a juicy $1 billion in cash. The deal, which values Carrols at $9.55 per share, represents a significant shift in Burger King’s strategy, moving away from its decade-long almost entirely franchised model.
?️ This acquisition is part of Burger King’s $400 million plan to revitalize its U.S. business, which had been trailing behind rivals like Wendy’s. Restaurant Brands (WEN) intends to rapidly remodel 600 of Carrols’ Burger King locations over the next five years, then sell them back to franchisees, aiming to enhance the brand’s image and profitability.
? Post-renovation, Burger King plans to sell off most of Carrols’ locations within five to seven years, retaining a few hundred for strategic purposes like innovation and training. This move comes as Carrols reported a 7.2% rise in same-store sales for its Burger King locations, outperforming some of its US peers. |
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Fed’s Christopher Waller advocates moving ‘carefully’ with rate cuts (CNBC) Judge blocks JetBlue-Spirit merger after DOJ’s antitrust challenge (CNBC) This underused savings tool could earn you guaranteed 5.5% interest—but you’ll want to act quickly (CNBC make it)
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