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(Bloomberg) -- Facebook and Microsoft deliver solid results, Goldman may have to plead guilty over 1MDB, and Boeing’s chief insists the 737 Max will be one of the safest airplanes ever to fly. Here are some of this morning’s key stories.
Facebook, Microsoft Shine; Tesla Not So Much
Facebook reported glowing results, as first-quarter revenue rose a better-than-projected 26 percent on the strength of its advertising business. Microsoft topped estimates too, raking in $30.6 billion in revenue thanks to a flurry of cloud-computing deals. The results were less rosy at Tesla. While the carmaker reaffirmed its delivery guidance for the year, it lost $2.90 a share for the period, missing estimates for a loss of $1.30.
Goldman Guilty Plea for 1MDB?
Goldman Sachs may have to plead guilty to a crime to settle a U.S. probe into its dealings with 1MDB, the FT reported. Prosecutors recommended the penalty to senior Justice Department officials, who may opt for a less-onerous punishment, it said. The bank has blamed rogue employees for its malfeasance in Malaysia, and a spokesman said charging the institution criminally wasn’t warranted.
Boeing CEO Grilled on 737 Max Debacle
Boeing suspended its 2019 forecast as it grapples with the 737 Max crisis, and CEO Dennis Muilenburg couldn't say when the plane will be cleared to fly. That didn’t sit well with analysts, who grilled the Boeing chief in an earnings call. Muilenburg insists that when the fleet comes back up, the Max will be one of the safest airplanes ever to fly.
Oil Rally Hits a Wall After Surprise Supply Surge
Oil futures ended a two-day rally that had pushed prices to their highest since October due to a surprisingly big jump in U.S. crude inventories. The build was tempered somewhat by the 10th consecutive drawdown for gasoline supplies and a ramp-up in refinery activity. “The market is trying to find its footing and make sense of the heightened geopolitical uncertainty,” said Brian Kessens, a managing director at money manager Tortoise.
Both Sides Claim Victory in Indonesia
A week after Indonesia’s election, the nation remains deeply divided with both candidates continuing to claim victory, prompting the authorities to warn against public displays of discord. President Joko Widodo and challenger Prabowo Subianto both say they’ve won even though a dozen unofficial quick counts showed Jokowi, as Widodo is known, beating his rival by a margin of almost 10 percentage points. The Election Commission is due to release the result by May 22.
What we’ve been reading:
This is what caught our eye over the last 24 hours.
- Australia is about to elect a Labor government.
- Shaving milliseconds off currency trades could make Singapore billions.
- China's $13 trillion bond market will be a trade war winner.
- North Korea's Kim Jong Un rumbles into Vladivostock.
- Taiwan's top stock investor sees tech frenzy getting extreme.
- Rothschilds to sell lavish heirlooms made for royalty.
- Want to make millions and pay no taxes? Try real estate.
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