Weekend roundup

Here’s what you missed while you were living your best life:

• 🎧️ Hipgnosis backs $1.6 billion private equity takeover by Blackstone. The owner of music back catalogues including Shakira and the Red Hot Chili Peppers says it’s recommending the improved offer, which beats a rival bid by US-based royalties fund Concord Music.

• Philips surged by 30% after settling a US respiratory device case. The Dutch medical devices giant agreed a $1.1 billion settlement linked to some of its sleep apnea devices, which were recalled in 2021 over concerns that components carried potential cancer risks.

• 💄 L’Occitane’s billionaire owner is reportedly close to a $7 billion buyout bid. Bloomberg reports Reinold Geiger is considering an offer for the shares of the Hong-Kong listed skincare brand that he doesn’t already own. The offer could value L’Occitane at about €6.5 billion ($6.95 billion).

Featured weekend story

Tesla strikes China self-driving deal with Baidu

Elon Musk wrapped up his surprise visit to China two steps closer ($) to introducing self-driving cars to the world’s biggest auto market. Tesla will partner with Chinese tech giant Baidu for mapping and navigation functions to support what it calls Full-Service Driving (FSD), according to Bloomberg. The company’s locally made cars also passed a key data security and privacy requirement.

Musk met with Chinese Premier Li Qiang, who as the Chinese Communist Party secretary for Shanghai helped Tesla set up its operations in the city. The plant has become the company’s biggest manufacturing site outside the US, producing about half of its vehicles.

FSD approval in China would be a boost for Tesla, which recently reported its first year-on-year quarterly revenue drop since 2020. The company is cutting at least 10% of jobs and looking to accelerate new models, including cheaper vehicles. Driver assistance has also been problematic in the US – the auto-safety regulator is investigating the company’s Autopilot system after 20 crashes occurred since December.

What to watch this week

European stocks started the week higher as investors look ahead to a busy week of US central bank action. The yen rebounded after falling to a 34-year low versus the dollar, triggering speculation that Japanese authorities intervened to support the currency.

Indices at 12:00 AM (ET)

Here are your upcoming market events:

• 🇺🇸 Fed rate decision. The Federal Open Market Committee makes its policy announcement on Wednesday followed by a press conference with Chair Jerome Powell. Rates are expected to stay where they are.

• 🍎 Apple and Amazon earnings. More big tech names report. It’s been a mixed picture so far. Meta fell more than 10% following softer-than-expected 2Q revenue guidance, while Alphabet jumped more than 10% after announcing a cash dividend program.

• 💼 Jobs day. Friday brings May’s non-farm payroll number. It’s expected to show 250,000 jobs were added to the US economy, with unemployment holding steady at 3.8%, according to Bloomberg.

Off-balance sheet items

Here’s what we’re reading this week:

• 🔥 Could Jerome Powell be fired? (Yahoo Finance). It’s a question that would become more than academic if Donald Trump becomes president this November.

• 📀 Why you shouldn’t throw out those DVDs and Blu-Rays (Popular Science). Streaming services probably won’t have all your favorite shows for ever.

• 📱 iPhone password reset attacks are real – how to protect yourself (Mashable). A guide to avoiding getting hacked via MFA bombing.

Aquire new customers and drive revenue by partnering with us.

Balance Sheet is rapidly growing with 1,500+ readers working in the world’s leading organizations. You can learn more about partnering with us here.

The bottom line