Wall Street Breakfast Podcast: Nippon Steel Firm On US Steel


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Nippon Steel’s (OTCPK:NPSCY) new president committed to U.S. Steel (X) deal, highlights growth potential. (00:25) Microsoft-backed (MSFT) startup Rubrik said to prepare IPO filing. (01:44) Rakuten Group (OTCPK:RKUNY) plans to integrate its fintech business. (02:19)

This is an abridged transcript of the podcast.

Nippon Steel (OTCPK:NPSCY) (OTCPK:NISTF) will press ahead with its proposed ~$15B acquisition of U.S. Steel (NYSE:X) despite President Biden’s calls to maintain U.S. ownership.

The Japanese steelmaker’s new president Tadashi Imai emphasized its deep U.S. roots, pointing to its over 2,000 patents in North America and the access that U.S. Steel (X) would get to its more advanced technologies.

“I am convinced we’re the most useful partner to help U.S. Steel (X) grow in the United States,” Imai told the media, as reported by Reuters.

As for concerns over potential job losses, Nippon Steel (OTCPK:NPSCY) previously pledged there would be no layoffs or facility closures, and it will maintain production within the U.S.

It is continuing talks with the United Steelworkers union about investment plans and boosting U.S. Steel’s (X) competitiveness in efforts to win their support for the deal, Imai said.

The Japanese firm has been facing a lot of flak for the deal, which is especially important in light of the upcoming U.S. presidential election. While Biden called for U.S. Steel (X) to remain an American company, Republican nominee Donald Trump has vowed to block the deal. To note, the USW union endorsed Biden for a second term as president.

Rubrik is planning to file as soon as next week for an initial public offering.

The cloud and data security startup has financial backing from Microsoft (NASDAQ:MSFT).

Bloomberg News reported Friday, citing people familiar with the matter that details of Rubrik’s plans may change, including the timing.

The company declined to comment to the media outlet.

Rubrik may aim to raise $500 million to $700 million in an IPO, Bloomberg News reported. Microsoft (MSFT) in 2021 invested in Rubrik as part of a financing round that valued the startup at $4 billion.

Rakuten Group (OTCPK:RKUNF) (OTCPK:RKUNY) aims to integrate and reorganize its entire fintech business, including Rakuten Bank, Rakuten Card, Rakuten Securities, Rakuten Insurance, and other fintech ventures, into one group.

The fintech business will continue to be the main business division of the Rakuten Group (OTCPK:RKUNF), and Rakuten Bank will remain a significant consolidated subsidiary.

Rakuten Group (OTCPK:RKUNY) is a parent company of Rakuten Bank and owns ~49.27% shares.

The reorganization is expected to take effect in October, the company said.

The integration aims to strengthen customer acquisition across online banking, credit cards, securities, and insurance.

Other articles to look out for on Seeking Alpha:

Microsoft and OpenAI said to be eyeing $100B data center project

Spirit Airlines could get up to $200M in compensation for Pratt & Whitney engine problems

MicroStrategy among most squeezable as crypto short interest climbs

On our catalyst watch for the day,

  • Fortinet (FTNT) will hold its four-day Accelerate 2024 event. Many of the breakout sessions will have a focus on AI applications.

  • Solventum will start trading after being spun off from 3M (MMM) under the symbol SOLV. The new company will separate out 3M’s (MMM) business in health care. 3M (MMM) said the new company amassed $8.2B in revenues in FY 2023 and has an estimated global total addressable market of ~$93B.

  • The FTC regulatory refiling period on Synopsys’ (SNPS) planned $35B acquisition of Ansys (ANSS) will expire.

U.S. stocks on Thursday ended a terrific Q1 on a largely subdued note.

The S&P (SP500) added 0.11% to settle at a new record closing high. The Dow (DJI) climbed 0.12% while the Nasdaq (COMP:IND) slipped 0.12%.

Of the 11 S&P sectors, eight ended in the green.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. Crude oil is flat at more than $83 per barrel. Bitcoin is down 1.1% at more than $69,000.

Today is Easter Monday so markets in Europe are closed today.

The biggest movers for the day premarket: Shares of Li Auto (NASDAQ:LI) advanced 4% after exceeding Q1 delivery expectations.

On today’s economic calendar:

  • 10:00 am Construction Spending

  • 6:50 pm Fed’s Lisa Cook will give acceptance remarks at the Duke University Lifetime Achievement Awards Ceremony held in Washington, D.C.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.


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