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The U.S. Centers for Medicare & Medicaid Services announced a new group of branded drugs from Eli Lilly, Pfizer, and AbbVie for the third cycle of Medicare's Drug Price Negotiation Program. This marks the first time products reimbursed under Medicare Part B have been included in the negotiation process.

• This is the third cycle of the Medicare Drug Price Negotiation Program, expanding the scope of price negotiations
• For the first time, the program includes drugs reimbursed under Medicare Part B, which typically covers physician-administered medications
• Major pharmaceutical companies Eli Lilly, Pfizer, and AbbVie will face government price negotiations on selected branded drugs

Logitech International reported its highest quarterly profit since the pandemic, with Q4 sales rising 6% year-over-year to $1.42 billion and adjusted operating income jumping 17% to $312 million, both beating analyst estimates. The computer peripherals maker was driven by strong demand for video conferencing equipment, educational technology products, and traditional computer accessories.

• Adjusted operating income of $312 million exceeded consensus estimates of $287 million and represents Logitech's best quarterly performance outside of pandemic peak years (2021-2022)
• The company completed its strategic shift away from China manufacturing, reducing U.S.-bound production in China from 40% to less than 10% to mitigate tariff impacts, while implementing 10% price increases in the U.S.
• Logitech forecasts Q4 sales growth of 6%-8% to $1.07-$1.09 billion with operating income of $155-$165 million, signaling continued momentum across consumer and business channels

U.S. officials are preparing to issue a general license that would ease sanctions on Venezuela's energy sector, according to three sources. This represents a policy shift from the previous approach of granting individual company exemptions for doing business with Venezuela. The move would broadly lift some restrictions on Venezuelan oil operations.

• The general license approach marks a change from the prior strategy of issuing case-by-case exemptions to individual companies
• The license is expected to be issued soon, though specific timing was not disclosed
• The policy shift could facilitate broader U.S. commercial engagement with Venezuela's energy sector

LVMH, owner of Louis Vuitton and Tiffany, exceeded fourth-quarter sales expectations with 22.7 billion euros in revenue, up 1% on a like-for-like basis versus forecasted decline. The results were boosted by a recovery in China's domestic market, though annual operating profit fell 9% due to currency effects, tariffs, and high gold prices. The performance offers cautious optimism for the luxury sector's rebound from a protracted downturn.

• Fourth-quarter sales of 22.7 billion euros beat expectations (1% growth vs. forecasted 0.3% decline), with watches and jewelry up 8% but fashion and leather down 3%
• Annual operating profit declined 9% with margins pressured by currency moves (over half the decline), U.S. tariffs on alcohol, and record gold prices increasing jewelry import costs
• Chinese domestic sales rose in the quarter confirming recovery, while weaker dollar led to 2% decline in European sales as U.S. tourists spent less; CEO Arnault expressed caution about the year ahead

Amazon announced plans to close its Fresh supermarkets and Go convenience stores, converting some locations into Whole Foods Market stores. The company described this as a 'difficult decision' made after a careful evaluation of the business and how to best serve customers. This represents a significant shift in Amazon's physical retail strategy.

• Amazon will shut down its Amazon Fresh supermarkets and Amazon Go convenience mart formats entirely
• Select closed locations will be converted and reopened as Whole Foods Market stores
• The move follows Amazon's evaluation of its physical retail business performance and customer service strategy

Sysco Corporation raised its annual profit forecast and exceeded second-quarter earnings and sales estimates, driven by strong U.S. foodservice demand and higher restaurant customer visits. The food distributor, which supplies chains like KFC and Subway, benefited from robust demand for premium food products, particularly among higher-income Americans, while implementing cost-cutting measures to offset rising input costs.

• Sysco reported quarterly adjusted profit of 99 cents per share and net sales of $20.76 billion, with U.S. foodservice segment sales up 2.4% versus 1.4% a year earlier
• The company achieved positive 1.2% local case volume growth in the quarter, marking its third consecutive quarter of improving growth
• International business outperformed with sales rising 7.3% and gross margin expanding 42 basis points to 20.8%, while overall quarterly gross margin expanded 15 basis points to 18.3%

Boeing and Israel's Technion university announced a partnership to develop Sustainable Aviation Fuel (SAF) from feedstocks including green hydrogen and CO2. The initiative supports Boeing's commitment to deliver aircraft capable of flying on 100% SAF by 2030 and the aviation industry's goal of net-zero emissions by 2050. SAF currently remains 2-5 times more expensive than conventional jet fuel and is expected to account for only 0.7% of total jet fuel in 2025.

• Boeing has committed to delivering commercial airplanes capable of flying on 100% SAF by 2030, while the commercial aviation industry targets net-zero emissions by 2050
• SAF production remains significantly more expensive than traditional jet fuel (2-5 times the cost) and IATA forecasts it will represent only 0.7% of total jet fuel in 2025
• Boeing separately partnered with Ben-Gurion University to establish a cybersecurity research center for next-generation aviation and aerospace systems

Pinterest announced plans to lay off less than 15% of its workforce and reduce office space as part of a strategic shift toward artificial intelligence. The company is reallocating resources to AI-focused roles and teams, with layoffs expected to be completed by the end of the third quarter in late September.

• The layoffs will affect less than 15% of Pinterest's total workforce as the company restructures its operations
• Pinterest is reallocating resources specifically toward roles and teams focused on artificial intelligence initiatives
• The restructuring includes both workforce reductions and cuts to office space, with completion targeted for late September

Hedge fund Third Point, led by billionaire Dan Loeb, is launching its first activist campaign in three years by targeting CoStar Group, the $28 billion real estate data company. Third Point plans to nominate multiple directors to CoStar's board and push for a strategic shift away from residential real estate back to its core commercial business, citing poor stock performance and excessive CEO compensation.

• Third Point wants CoStar to exit or sell its residential business (Homes.com/Apartments.com) and refocus on its profitable CoStar Suite commercial real estate data platform
• CoStar's stock has fallen 27% over five years while the S&P 500 surged 94%; Loeb privately criticized CEO Andy Florance's bonuses as the 'costliest participation award' he has seen
• The campaign follows the expiration of a standstill agreement signed last year; Third Point ranks among CoStar's 15 largest investors and previously secured board seats in 2024 alongside DE Shaw

Union Pacific reported a nearly 7% increase in fourth-quarter profit on Tuesday, with earnings rising to $3.11 per share. The Omaha, Nebraska-based railroad operator's improved performance was driven by higher pricing and increased fuel surcharge revenue.

• Quarterly profit increased approximately 7% compared to the previous year's fourth quarter
• Earnings per share reached $3.11 for the quarter
• Growth was attributed to higher pricing power and fuel surcharge revenue gains

Meta has signed a deal to pay Corning up to $6 billion for fiber-optic cables to support its AI data center infrastructure. The agreement reflects Meta's aggressive spending strategy as it competes to develop and deploy competitive AI technologies. The deal aligns with Meta's recently announced 'Meta Compute' initiative to expand AI infrastructure and manage its global data center operations.

• The deal with Corning, maker of Gorilla Glass, is worth up to $6 billion for fiber-optic cable supply
• Meta announced its 'Meta Compute' initiative earlier in January to expand AI infrastructure and oversee global data center fleet and supplier partnerships
• The investment is part of Meta's aggressive spending on data center infrastructure to compete in the AI technology race

Kimberly-Clark exceeded quarterly profit expectations through cost-cutting measures and steady demand for essential products like Huggies diapers and Kleenex tissues. The company has streamlined operations by cutting jobs and selling low-margin businesses while expanding affordable product ranges to attract cost-conscious consumers. Despite a slight revenue miss, the company maintained margins and expects 2026 organic sales growth around 2%.

• Organic sales rose 2.1% in Q4 with volumes up 2.7% as consumers stocked up on essentials at warehouse stores, while prices declined 1.1%
• The company maintained an adjusted gross margin of 37% despite previous warnings about U.S. import duties on Chinese goods impacting profitability
• Kimberly-Clark has proposed acquiring Tylenol maker Kenvue for over $40 billion to create a global consumer health company, with the deal expected to close by year-end

TikTok attributed recent U.S. app glitches and content disruptions to a data center power outage, denying accusations of political censorship. The issues emerged after TikTok began operating under a new U.S.-led joint venture structure, with users reporting problems including blocked messages containing the word 'Epstein' and alleged suppression of political content. California Governor Gavin Newsom announced a review to determine if the platform's conduct violates state law.

• Under the new ownership structure, ByteDance retains 19.9% ownership while U.S. and global investors hold 80.1%, with Oracle, Silver Lake, and MGX each holding 15% stakes
• CNBC confirmed that messages containing 'Epstein' triggered error messages claiming community guideline violations, though TikTok says it does not prohibit the name and is investigating
• California Gov. Newsom's office claims to have independently confirmed instances of suppressed content critical of President Trump and has called on the state Department of Justice to investigate potential law violations

The European Commission has initiated proceedings to help Google comply with the EU's Digital Markets Act (DMA). Google expressed concerns that additional rules driven by competitor complaints could compromise user privacy, security, and innovation. The company noted it already licenses Search data to competitors under the DMA and that Android is open by design.

• Google is already licensing Search data to competitors as required under the DMA regulations
• The company argues that further compliance rules are 'often driven by competitor grievances rather than the interest of consumers'
• Google warns that additional DMA requirements could negatively impact user privacy, security, and innovation

Volkswagen is recalling 44,551 ID.4 electric vehicles in the United States due to battery fire risks, the NHTSA announced. The recalls involve two separate issues: overheating high-voltage batteries in 43,881 vehicles (model years 2023-2025) and misaligned electrodes in 670 vehicles (model years 2023-2024). Dealers will update battery software and replace battery packs as needed at no cost to owners.

• The larger recall affects 43,881 ID.4 EVs from 2023-2025 model years where high-voltage batteries may overheat and increase fire risk
• A separate smaller recall involves 670 ID.4 vehicles from 2023-2024 due to misaligned electrodes in battery cell modules that could cause fires
• Volkswagen dealers will provide free software updates and replace battery packs where necessary to resolve the safety issues

Saudi Aramco raised $4 billion through a four-tranche bond offering in its first global debt market entry of the year, drawing over $21 billion in orders from investors. The strong demand allowed the state-owned oil giant to significantly tighten pricing spreads across all maturities. The bond issue comes as Aramco faces falling crude prices, rising debt, and cost-cutting pressures, with 2025 dividends expected to drop 30% from 2024 levels.

• The $4 billion offering comprised bonds with 3, 5, 10, and 30-year maturities, attracting orders exceeding $21 billion and enabling Aramco to tighten spreads by 35-40 basis points below initial guidance
• Aramco's total dividends for 2025 are expected to be approximately $85.4 billion, a roughly 30% decline from 2024, as the company implements cost-cutting and asset divestment measures amid falling crude prices
• The Saudi government owns nearly 81.5% of Aramco directly while the sovereign wealth fund PIF controls another 16%, with the company recently pursuing alternative funding including an $11 billion lease-leaseback agreement for gas facilities

India and the European Union have finalized a landmark trade deal after nearly two decades of negotiations, representing 25% of global GDP and one-third of global trade. The agreement will open India's vast market to free trade with the 27-nation EU, its biggest trading partner, with implementation expected within a year. Both sides are seeking to hedge against uncertain relations with the U.S. amid President Trump's tariff threats and trade tensions.

• Trade between India and the EU stood at $136.5 billion in fiscal year 2025, with the deal described as the 'mother of all deals' by observers
• The agreement follows Trump's imposition of 50% tariffs on Indian goods and the collapse of India-U.S. trade talks last year
• Implementation is expected within a year after legal vetting, which will take five to six months before formal signing

General Motors is reporting fourth-quarter and year-end earnings on Tuesday, with Wall Street expecting $45.8 billion in revenue and adjusted EPS growth of over 14% year-over-year. The automaker will record significant write-downs related to its electric vehicle pullback and China restructuring, though these charges won't affect adjusted results.

• Expected Q4 results show 4% revenue decline to $45.8 billion versus prior year, but adjusted earnings per share up more than 14%
• GM will record substantial write-downs for EV pullback and China restructuring that will impact net income but not adjusted earnings
• Company's 2025 guidance targets $12-13 billion adjusted EBIT ($9.75-$10.50 EPS) and $10-11 billion adjusted automotive free cash flow, representing improvement over 2024

Ford and General Motors are negotiating a potential rescue financing package with First Brands Group, an Ohio-based car parts supplier currently in Chapter 11 bankruptcy proceedings. The automakers aim to keep the supplier operational during its restructuring, according to a Financial Times report citing unnamed sources.

• First Brands Group, a critical auto parts supplier, is operating under Chapter 11 bankruptcy protection
• Ford and GM are pursuing financing arrangements to maintain First Brands' operations during bankruptcy, suggesting supply chain dependency concerns
• Reuters could not independently verify the Financial Times report on the ongoing negotiations

Meta Platforms is testing new premium subscription plans for Instagram, Facebook, and WhatsApp that will offer enhanced features and expanded AI capabilities. The subscriptions, separate from Meta Verified, will include access to Meta's recently acquired Manus AI agents and premium features like advanced versions of Vibes, its AI-powered video platform. This move represents Meta's effort to monetize its significant AI investments, including the $2 billion Manus acquisition.

• Subscriptions will unlock 'more productivity and creativity' through expanded AI capabilities, including access to Manus AI agents from Meta's $2 billion December acquisition
• Premium features include full access to Vibes, Meta's AI-powered short-form video creation tool, while basic versions remain free
• The new subscription plans are separate from Meta Verified (launched 2023) and represent a shift from Meta's open-source Llama models to paid AI services similar to OpenAI and Google