Apple CFO Transition, Canada Tariffs on Chinese Electric Vehicles, and Ikea's Preowned Launch: Key Updates

Apple CFO Transition

Apple has announced that Chief Financial Officer Luca Maestri will be succeeded by current Apple executive Kevan Parekh on January 1. Maestri, who became CFO in 2014, has overseen a remarkable period of growth, with Apple’s stock surging over 800 percent since his appointment, fueled by strong demand for iPhones.

He will remain with the company, overseeing teams focused on IT, security, and real estate development.

Canada Tariffs on Chinese EVs

Canada will follow the United States and European Union by imposing a 100 percent tariff on imports of Chinese electric vehicles. Additionally, a 25 percent tariff will be applied to imported steel and aluminum from China.

The tariffs will impact all EVs shipped from China, including those produced by Tesla, a Canadian government official said. Canadian imports of automobiles from China through Vancouver surged 460 percent YoY to 44,356 units in 2023, coinciding with Tesla’s shipments of Shanghai-made EVs to Canada.

Ikea's Preowned Launch

Ikea is venturing into the second-hand market with the launch of Ikea Preowned, a peer-to-peer marketplace allowing customers to buy and sell used furniture directly. This move puts the Swedish giant in direct competition with established platforms like eBay, Gumtree, and Craigslist.

The platform will initially be tested in Madrid and Oslo until the end of the year, with plans for a global rollout, as confirmed by Jesper Brodin, Chief Executive of Ingka, the main operator of Ikea stores.

Temu Stock Drop

PDD Holdings, the parent company of the fast-growing Temu shopping app, saw its stock plummet over 30%, wiping out more than $50 billion in market value. The e-commerce giant reported disappointing revenue and warned of intense competition and other challenges that could slow growth and profits.

PDD has faced scrutiny from governments, including the U.S., which appears to be impacting its outlook. Despite rapid growth, with revenue reaching over $13.6 billion, it fell short of analysts' expectations of $14 billion. The company’s executives further unnerved investors by forecasting a tough road ahead.

Nvidia's Financial Results

U.S. semiconductor stocks dropped on Monday as investors braced for Nvidia’s upcoming financial results, set to be released on Wednesday. Nvidia, a major driver of 2024's record stock market run, has seen massive gains thanks to its AI-powered growth.

Analysts expect its second-quarter revenue and earnings to more than double from last year. With Nvidia’s significant influence on major indexes, any big move in its stock could impact the broader market.

Upcoming Apple Event

Apple will host a press event at its Cupertino headquarters on September 9, where it's expected to unveil new iPhones and Apple Watch models. The event will be streamed on Apple’s website and YouTube. Apple traditionally reveals its latest devices in the fall, just in time for the holiday shopping season. Since 2020, the tech giant has opted for pre-recorded video launches.

Edgar Bronfman Jr. Bows Out

Media veteran Edgar Bronfman Jr. has withdrawn from the bidding for Paramount Global, paving the way for Skydance Media to take control of Shari Redstone’s media empire, reported Reuters. Bronfman’s bidding group informed Paramount’s special committee of its decision to exit the process on Monday evening. Bronfman was reportedly unable to come up with the equity financing package required for his bid.

South Korean Budget Increase

South Korean authorities plan to increase government spending next year to support a cooling economy, with a focus on boosting financial support for semiconductors and growing sectors like K-pop entertainment, reported Bloomberg.

According to the Finance Ministry, the government’s 2025 budget will reach 677.4 trillion won ($512 billion), a 3.2 percent rise from this year’s budget. This represents a faster increase compared to this year’s 2.8 percent rise.