$2 Billion Evaporates? Apple Drops Intel

John Divine


Some of the former hot spots for the virus, perhaps most notably the state of New York, seem to be nicely bringing down their "highly watched" infection numbers. That's great news. The bad news? The pandemic has been moving in geographic waves across the U.S. and across the world, with the intensity of spread depending on population density, social activity and public health.

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As virus trends in states like the Carolinas, Florida, Texas and Arizona worsen, the market remains blissfully apathetic: The Dow Jones Industrial Average added 153 points, or around 0.6%, to finish at 26,024 on Monday. The Nasdaq added 1.1% as it continues to outpace the wider market.

Apple going entrepreneurial again. In its much-anticipated 2020 Apple Worldwide Developers Conference, Apple's (ticker: AAPL) the $1 trillion-plus company announced it would be ditching fellow Dow component Intel ( INTC) as a chip supplier for future editions of its Macs, a move it claims will improve performance.

It's a natural evolution of the bold philosophy Apple's iconic founder, Steve Jobs, set in motion decades ago as he created a totally closed-end ecosystem around the company's products and services.

Worst magic trick ever. In a reminder that financial tomfoolery is still alive and well, the European fintech Wirecard confirmed that, well, the $2 billion hole in its balance sheet was likely real: that money simply isn't there. Here and there, short-sellers had alleged that the German payment processing company was using third parties to inflate its numbers. That view, however, was not at all widely held, and shares plunged more than 40% on Monday.

Softbank liquidating huge T-Mobile stake. Japanese telecom Softbank, which doubles as a financial holding company of sorts, announced it would be selling nearly 200 million shares of its T-Mobile ( TMUS) holdings, raising about $21 billion as it sells roughly 65% of its stake in the U.S. carrier.

It's not simply that some of Softbank's investments have suffered during the pandemic; ill-timed and ill-conceived bets on companies like WeWork have also soured and created a need for cash.