Wall Street Breakfast Podcast: Brazil Targets Starlink

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Brazil targets Elon Musk’s Starlink (SPACE) over refusal to block X. (00:29) Volkswagen (OTCPK:VLKAF) says German factory closures possible. (02:06) General Motors (GM) plant in Ecuador to close shop – report. (02:43)

This is an abridged transcript of the podcast.

Shortly after Brazil’s Supreme Court upheld the order to suspend social media platform X, the country’s telecommunications regulator threatened to sanction Starlink.

Reuters reported that Artur Coimbra, the commissioner of Brazil’s telecoms regulator Anatel, said sanctions against Starlink, an Elon Musk company, could include revoking its license to operate in the country.

That’s because Starlink, SpaceX’s (SPACE) satellite broadband unit, refused to comply with Judge Alexandre de Moraes’ order that all internet providers block access to X in Brazil.

Moraes froze Starlink’s Brazilian bank accounts after X failed to pay fines for failing to comply with court orders.

“Unless the Brazilian government returns the illegally seized property of X and SpaceX, we will also seek mutual seizure of government assets,” Musk posted on X.

As we reported on Sunday’s Wall Street Brunch with Kim Khan, Moraes ruled last week that X should be blocked in Brazil because the company did not appoint a local legal representative in accordance with the law and missed the deadline to comply.

That order was upheld by a panel of the Supreme Court on Monday and was supported by Brazil’s President Luiz Inacio Lula da Silva. “Brazilian justice may have given an important signal that the world is not obliged to put up with Musk’s far-right ideology just because he is rich,” Lula told CNN Brasil.

Moraes and Musk have been locked in a public feud for months over X’s refusal to comply with court orders to block accounts accused of spreading misinformation and hate.

Volkswagen ( OTCPK:VLKAF ) said on Monday it could not rule out closing factories in Germany as the automaker looks for ways to cut costs.

The company has determined that a large vehicle factory and a components factory in Germany are obsolete, according to its works council, which has vowed to resist the executive board’s plans.

Volkswagen ( OTCPK:VLKAF ) is also facing pressure to end its job security program, which began in 1994 and prevents layoffs until 2029.

“The situation is extremely tense and cannot be overcome by simple cost-cutting measures,” Thomas Schaefer, head of the Volkswagen ( OTCPK:VLKAF ) brand, said in a written statement cited by Reuters.

General Motors (NYSE:GM) announced the closure of its Ecuador manufacturing plant, citing increased competition from local firms.

Reuters reported that the factory, located in Quito, will cease production on Friday, September 6, 2024.

The OBB plant in Quito accounts for 51 percent of Ecuador’s auto production, the report said.

The closing will affect more than 300 workers who for years assembled Cadillac and Chevrolet vehicles.

“I have mixed feelings – I’m welding my last truck for General Motors in Ecuador. It’s going to affect us a lot. Not all of us will have the same chance for a new job,” said welding team leader Antonio Oramas, who joined. factory in 2004.

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catalyst clock:

• Philip Morris International (PM) will host a live webcast of a fireside chat session at the Barclays Global Consumer Staples Conference with CEO Jacek Olczak.

• The three-day UAV Trade Expo in Las Vegas will include a deep dive into the state of the drone industry.

• Intel (INTC) will host an event in Berlin to launch the next generation of Intel Core Ultra processors.

Now let’s take a look at the markets starting at 6 am. Ahead of today’s opening bell, the Dow, S&P and Nasdaq futures are all in the red. Crude oil fell 1.6% to $72/barrel. Bitcoin rose 0.8% to $58,000.

In global markets, the FTSE 100 was down 0.3% and the DAX was down 0.3%.

Highlights for the day ahead: Shares of Boeing (NYSE:BA) fell nearly 3% after Wells Fargo downgraded the stock to Underweight from Equalweight, citing concerns about cash flow, development costs and potential stock dilution if there is an increase in equity. . Analyst Matthew Akers set a new low price target of $119, implying a 32% decline from Friday’s close.

In today’s economic calendar:

• 9:45 am PMI Manufacturing Final

• 10:00 ISM manufacturing index

• 10:00 Construction costs

• 11:00 Treasury redemption announcement

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