ECJ: Apple Must Pay

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ECJ: Apple Must Pay

The Cupertino company [AAPL] has been ordered by the European Court of Justice (ECJ) to pay €13bn in unpaid taxes to Ireland, following the European Commission’s ruling that the country had provided Apple with illegal tax advantages. Despite Ireland’s longstanding opposition to the repayment, the ECJ’s decision is final, requiring the Irish government to recover the taxes. Apple expressed disappointment. Elsewhere, the company has unveiled its iPhone 16, featuring an external camera button and internal upgrades enhanced with artificial intelligence (AI).

EU Trims EV Tariffs

Bloomberg reports that the EU is set to slightly lower proposed tariffs for electric vehicles (EVs) imported from China, including adjusting the rate on those produced byTesla [TSLA] from 9% to just under 8%. Meanwhile, nearly 900 Chinese auto suppliers and EV makers, including BYD [BYDDF] and Geely [GELYF], are showcasing their products at the Automechanika trade fair in Frankfurt, highlighting China’s efforts to broaden its global footprint despite trade barriers and domestic profit challenges.

Citi Recommends Barbell

Citi Research has advised investors to hold onto ‘magnificent seven’ stocks, according to Seeking Alpha, although for broader tech exposure the firm recommends a barbell strategy incorporating both mid-cap traditional and non-traditional tech stocks. The magnificent seven will remain critical to the S&P 500’s performance, but their performance will be less stratospheric than it has been of late. “Still, the set-up is for solid magnificent seven growth in 2025 with a high single-digit rate for the other 493,” said Citi’s Head of US Equity Strategy, Scott Chronert.

Encouraging News From TSMC

The Taiwan Semiconductor Manufacturing Co [TSM]reported a 33% revenue increase in August, reaching $7.8bn. Despite a slowdown from July’s 45% growth, Q3 revenue is projected to rise 37%, indicating a recovery from 2023. This result may alleviate fears abouta drop-off in AI infrastructure spending, Bloomberg reported. Meanwhile, Taiwan’s exports hit a record $43.64bn in August, up nearly 17% year-over-year, driven by the AI boom and a rebound in exports to China.

Uber Embraces Autonomy

The ride-hailing giant [UBER] is fully committing to autonomous vehicles and aims to create a marketplace in which it can remain as “pure-play as possible,” according to CEO Dara Khosrowshahi, speaking at the Goldman Sachs Communacopia and Technology Conference. The company is collaborating with 10 autonomous vehicle partners, including Alphabet-backed [GOOGL]Waymo andGM’s [GM] Cruise. In addition, Uber is focusing on growing its advertising segment, particularly in sponsor listings and grocery sectors, and is expanding its presence in international markets.