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Microsoft (MSFT)
Tech giant Microsoft is teaming up with asset manager BlackRock (BLK), as part of a group of companies, to launch a fund worth more than $30bn (£22.7bn) to invest in the development of artificial intelligence (AI) data centres and the energy projects to power them.
Chipmaker Nvidia (NVDA) will also be supporting the initiative by providing its “expertise in AI data centers and AI factories to benefit the AI ecosystem,” according to the announcement on Tuesday.
Following an initial $30bn private equity raise, the Global AI Infrastructure Investment Partnership (GAIIP) will seek to use this money to pull together up to $100bn of investments.
Read more: FTSE 100 LIVE: European stocks fall after UK inflation stays at 2.2%
Microsoft CEO Satya Nadella said that the GAIIP would “bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way”.
Shares in Microsoft were up less than 1% in pre-market trading, after ending Tuesday’s session in the green.
This comes after the company announced its board had approved a share buyback programme of up to $60bn.
Microsoft also declared a quarterly dividend of $0.83 per share, an increase of 10% on the previous quarter.
Legal & General (LGEN.L)
Shares in insurance and asset management group Legal & General (L&G) dipped nearly 2% on Wednesday morning following the announcement that it had agreed to sell UK housebuilder Cala Group for £1.35bn to a joint venture run by investment firms Sixth Street Partners and Patron Capital.
L&G said the money from the sale would primarily be used to reinvest in the company but that its board would also consider using it as part of plans to increase returns to shareholders through ongoing share buybacks.
The company said in its half-year results in August that it planned a £200m share buyback this year, followed by similar repurchases in 2025 and 2027.
Read more: What are share buybacks?
L&G CEO António Simões said the sale helped the company simplify its “portfolio to enable a sharper focus on our core, synergistic businesses”.
“Cala has been an important part of L&G for over a decade, with profits increasing ten-fold since our initial investment in 2013,” he added.
L&G shares are down nearly 11% year-to-date, with the company having reported a dip in profits after tax in its half-year results to £223m from £377m for the same period in 2023.
M&C Saatchi (SAA.L)
Advertising group M&C Saatchi was up nearly 3% on Wednesday morning, after the company reported a “significant improvement” in profitability.
It said this was driven by a “global cost efficiency program, local cost actions [and] loss-making business exits (particularly in advertising)”.
M&C Saatchi said like-for-like operating profits grew by 40% in the first half of the year to £17.1m. It also posted earnings per share of 6.4p for the first half, recovering from a 5.2p loss in the same period last year.
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The company said its global cost efficiency programme remained on track to deliver annualised savings of £10m by the of its 2024 fiscal year.
M&C Saatchi said strong first-half performance and solid third-quarter trading to-date underpinned confidence that it would deliver full-year results in line with market expectations.
Zaid Al-Qassab, CEO of M&C Saatchi, said: “Our increasingly diversified revenue provides greater resilience against macro volatility, our higher-margin businesses continue to be our highest growth contributors.
“Whilst there is always more to do, we are excited about the further potential we can unleash.”
Shares in Trump Media retreated in Tuesday’s session, down nearly 7% at market close, after a judge ruled the company had breached an agreement with the ARC Global fund.
The Delaware judge ruled that the fund must now receive more than half a million additional shares before the lock-up period on the stock ends on Thursday, according to Reuters.
The stock rose in Monday’s session following reports of a second assassination attempt on former president Donald Trump on Sunday.
Read more: UK inflation rate holds steady at 2.2% ahead of interest rate decision
Trump Media shares have slid in the run up to the US presidential election on 5 November, practically erasing gains since the start of the year.
A lockup period on the stock is also due to end on Thursday, when early investors will be allowed to start offloading shares.
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