The Eastman Kodak Company gave its CEO 1.75 million stock options just one day before the company’s stock soared amid news that it would receive a $765 million federal loan to manufacture critical drug components, the New York Times reported Friday.

When news of the White House deal went live earlier this week, Kodak’s shares ballooned by more than 1,000%, topping out at around $60 (they’ve since fallen to about $21, still a hefty jump from their average $2-3 cost). As a result of this incredibly fortuitous timing (wink), Kodak CEO Jim Continenza saw the value of his stock options soar to $50 million in less than 48 hours after receiving them, per the outlet.

Look, it’s no secret that some of the fattest cats in the industry have been leveraging this pandemic to grow even more grotesquely obese. But can they at least try not to be so obvious about it while people are literally dying?

A Kodak spokeswoman declined to comment on this profitable coincidence and instead reminded the outlet that the value of Continenza’s stock options could very well change before he decides to cash them in for Kodak shares.

While Kodak may have been a titan in the film industry at one time, it’s been floundering for years in an attempt to reinvent itself after coming out from bankruptcy protection in 2013. Recently, the company’s found a new foothold by pivoting into the pharmaceutical industry, leveraging its more than hundred-year history of chemical know-how to begin manufacturing drug components that can then be refined and sold by pharmacies.

In May, the Trump administration began talks with several companies, Kodak among them, about financing America’s healthcare industry with federal loans both in response to the coronavirus outbreak and to curb reliance on foreign marketplaces in case of future health crises, according to a Washington Post report. Trump authorized the move via an executive order that invoked the Defense Production Act, which allows the federal government to mandate how domestic companies produce and distribute essential goods.

“We are truly doing this to help tighten and fix the supply chain of pharmaceuticals in America,” Continenza told the Post after the federal loan’s announcement.

It should be noted that around that same time the White House entered talks with Kodak, the company gave an additional 240,000 stock options to its board members, now worth an estimated $4 million, per the Times. Gee, I guess lightning does strike twice.

As the Times points out, Kodak isn’t the only company turning federal support into profit with some dubiously well-timed stock wagers. Shortly after corporate insiders at the California biotech firm Vaxart were granted stock options, the company announced that a federal agency would be testing its potential coronavirus vaccine among others. The news caused share prices to skyrocket, and one hedge fund partially operated by Vaxart pocketed more than $200 million in profits.

[The New York Times]

The Eastman Kodak Company gave its CEO 1.75 million stock options just one day before the company’s stock soared amid news that it would receive a $765 million federal loan to manufacture critical drug components, the New York Times reported Friday.

When news of the White House deal went live earlier this week, Kodak’s shares ballooned by more than 1,000%, topping out at around $60 (they’ve since fallen to about $21, still a hefty jump from their average $2-3 cost). As a result of this incredibly fortuitous timing (wink), Kodak CEO Jim Continenza saw the value of his stock options soar to $50 million in less than 48 hours after receiving them, per the outlet.

Look, it’s no secret that some of the fattest cats in the industry have been leveraging this pandemic to grow even more grotesquely obese. But can they at least try not to be so obvious about it while people are literally dying?

A Kodak spokeswoman declined to comment on this profitable coincidence and instead reminded the outlet that the value of Continenza’s stock options could very well change before he decides to cash them in for Kodak shares.

While Kodak may have been a titan in the film industry at one time, it’s been floundering for years in an attempt to reinvent itself after coming out from bankruptcy protection in 2013. Recently, the company’s found a new foothold by pivoting into the pharmaceutical industry, leveraging its more than hundred-year history of chemical know-how to begin manufacturing drug components that can then be refined and sold by pharmacies.

In May, the Trump administration began talks with several companies, Kodak among them, about financing America’s healthcare industry with federal loans both in response to the coronavirus outbreak and to curb reliance on foreign marketplaces in case of future health crises, according to a Washington Post report. Trump authorized the move via an executive order that invoked the Defense Production Act, which allows the federal government to mandate how domestic companies produce and distribute essential goods.

“We are truly doing this to help tighten and fix the supply chain of pharmaceuticals in America,” Continenza told the Post after the federal loan’s announcement.

It should be noted that around that same time the White House entered talks with Kodak, the company gave an additional 240,000 stock options to its board members, now worth an estimated $4 million, per the Times. Gee, I guess lightning does strike twice.

As the Times points out, Kodak isn’t the only company turning federal support into profit with some dubiously well-timed stock wagers. Shortly after corporate insiders at the California biotech firm Vaxart were granted stock options, the company announced that a federal agency would be testing its potential coronavirus vaccine among others. The news caused share prices to skyrocket, and one hedge fund partially operated by Vaxart pocketed more than $200 million in profits.

[The New York Times]

What happened 

Shares of Eastman Kodak (NYSE:KODK) plummeted on Friday after rising as much as 28 times in value earlier in the week. By the close of trading, Kodak’s stock was down 27%.

So what

Eastman Kodak shares surged on Tuesday and Wednesday after the company said it would receive a $765 million Defense Production Act loan to produce coronavirus-related pharmaceutical ingredients. Traders bid up Kodak’s shares from a closing price of $2.10 on Friday, July 24, to as high as $60 on Wednesday.

Since that time, critics have questioned why the Trump administration awarded the loan to Kodak, which is still primarily a technology company, rather than giving it to a pharmaceutical company. Skeptics have also questioned the unusual trading activity in Kodak’s shares prior to the announcement of the loan, and whether the information was leaked or traded upon by insiders. 

Now what

Kodak’s incredible rise was shocking. But after its amazing gains, there should be little surprise that traders are taking profits. Many investors believe Kodak’s shares went too far too fast, and some short-sellers are even betting against Kodak’s stock. 

Investors should expect Kodak’s shares to remain extremely volatile in the days ahead.

James Murdoch has resigned from News Corp, the parent company of the Wall Street Journal and the New York Post, citing disagreements over the company’s editorial decisions.

In a resignation letter filed Friday afternoon, Murdoch said his departure “is due to disagreements over certain editorial content published by the Company’s news outlets and certain other strategic decisions.”

The youngest son of media mogul Rupert Murdoch, James had been on News Corp’s board since 2013.  

News Corp. is one of two media companies owned by the Murdoch family, the other being Fox Corporation, which now owns Fox News, Fox Business and the Fox television network. James was CEO of 21st Century Fox until its sale last year to Disney. 

James, 47, opened up recently about his disagreements with some famously conservative Murdoch family members. 

“There are views I really disagree with on Fox,” he told the New Yorker last year. His older brother, Lachlan, 49, has been running Fox Corporation since 2018.

In January, James and his wife, Kathryn, an activist, publicly rebuked News Corp’s coverage of the wildfires in Australia, which played down the role of human-driven climate change.

In a statement provided to the Associated Press by a News Corp spokesman, Rupert Murdoch and Lachlan Murdoch said: “We’re grateful to James for his many years of service to the company. We wish him the very best in his future endeavors.”

The Associated Press contributed to this report.

Apple, the maker of iPhones, has toppled the world’s biggest company in value, despite the coronavirus pandemic.

Friday, Apple’s stock closed at an all-time high of $425 and change with a market cap of $1.8 trillion, as tracked by the Dow Jones Market Data Group. For the year, shares have advanced 44.7 percent to a fresh record.  Conversely, Aramco’s stock is down 6.4 percent since the end of December.

BIG TECH CEOS DIVIDED ON CHINA TECHNOLOGY THEFT

Aramco, Saudi Arabia’s majority state-owned oil conglomerate’s market value sits at $1.7 trillion. The price of oil has been hammered in the global pandemic as airlines and cruise lines came to virtual standstills amid the height of the coronavirus and with many consumers continuing to work from home and limiting automobile travel.

Apple reported a blowout quarter on Thursday posting an 11 percent jump in revenues to $59.7 billion exceeding Wall Street estimates, despite 25 percent of global stores still closed.

APPLE TO SPLIT STOCK FOLLOWING BLOCKBUSTER EARNINGS

And in an extra bonus, it unveiled a four-for-one stock split that may entice a new crop of investors. The move is offered “to make the stock more accessible to a broader base of investors,” according to the earnings release.

At the close of the market on August 24th, each Apple shareholder of record will get three extra shares for every share held. Split-adjusted trading will begin on August 31. Apple previously had a 7-for-1 stock split in 2014.

Photographer: David Paul Morris/Bloomberg via Getty Images

In another broad bullish sign, CEO Tim Cook, in an interview with FOX Business, said he is optimistic the U.S. economy is headed for a strong rebound.

“I’m still bullish because we went into this very strong. And I think, I think more stimulus is required, but I’m optimistic that will occur. And yeah I do, I do think that we can, we can have a strong bounce-back” said Cook.

CLICK HERE TO READ MORE ON FOX BUSINESS

What happened

Shares of Apple (NASDAQ:AAPL) leapt 10.5% to a new closing high of $425.04 on Friday, following the company’s expectation-crushing third-quarter results.  

So what 

Despite a host of coronavirus-related challenges, Apple’s revenue jumped 11% year over year to $59.7 billion. The technology giant’s profit growth was even more impressive. Its earnings per share climbed 18%, to $2.58. Wall Street had expected revenue and EPS of only $52.3 billion and $2.04. 

Apple’s stock hit a record high on Friday. Image source: Getty Images.

The gains were broad-based, with Apple experiencing solid growth across its iPhone, Mac, iPad, wearables, and services businesses. 

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” CEO Tim Cook said in a press release. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives, and to Apple’s relentless innovation.” 

Now what

Apple also announced a 4-for-1 stock split to “make the stock more accessible to a broader base of investors.” Shareholders of record at the close of business on Aug. 24 will receive three additional shares for every Apple share they own. Apple’s shares will begin trading on a split-adjusted basis on Aug. 31.

Judging by the stock’s gains on Friday, investors appreciated the news.

Fitch Ratings on Friday turned more negative on the outlook for the gold-plated U.S. credit rating. High fiscal deficits and debt were already on a rising medium-term path before the onset of the huge economic shock precipitated by the coronavirus, the ratings agency said in giving the U.S. a “negative” outlook, while maintaining a AAA rating. The U.S. had the highest government debt of any AAA-rated sovereign heading into the crisis, and Fitch expects general government debt to exceed 130% of GDP by 2021. The U.S. sovereign rating is supported by structural strengths that include the size of the economy, high per capita income and a dynamic business environment. Fitch considers U.S. debt tolerance to be higher than that of other ‘AAA’ sovereigns. Fitch said it expects negative real interest rates and continued loose monetary policy at the Federal Reserve to provide some support to public debt dynamics. The report also looked ahead to the November election. “The odds of Democrats overturning the Republican majority in the Senate have shifted in their favor over the past quarter, but it is unlikely that either party will achieve a 60-seat majority,” Fitch analysts wrote. “A continuation of policy gridlock is a risk. Political polarization may weaken institutions and reduces the scope for bipartisan cooperation, hindering attempts to address structural issues (including some highlighted by the pandemic and protests) but also longer-term fiscal challenges.”

A South Korean resident put a whole new spin on “money laundering” by tossing cash into a literal washing machine — in order to clean off potential coronavirus germs.

The person, identified only by the surname Eom, damaged at least 23 million won ($19,320) near Seoul earlier this year, then contacted the Bank of Korea to ask if it could be exchanged for new bills, the bank said in a statement.

It is unclear exactly how much money was damaged but the bank said it returned 507 of the damaged 50,000-won ($42) bills at half value. Bank rep Seo Jee Woun said the total amount of moolah lost during the sudsy snafu was “considerable.”

Under the bank’s policy, it will provide new cash at face value if damage is minimal, and half value — or not at all — damage is significant.

Earlier this year, a different person with the surname Kim, damaged cash in a microwave during an attempt to zap away coronavirus germs. The bank exchanged Kim’s damaged money with $4,370 in new bills, Seo said.

With Post wires

A South Korean resident put a whole new spin on “money laundering” by tossing cash into a literal washing machine — in order to clean off potential coronavirus germs.

The person, identified only by the surname Eom, damaged at least 23 million won ($19,320) near Seoul earlier this year, then contacted the Bank of Korea to ask if it could be exchanged for new bills, the bank said in a statement.

It is unclear exactly how much money was damaged but the bank said it returned 507 of the damaged 50,000-won ($42) bills at half value. Bank rep Seo Jee Woun said the total amount of moolah lost during the sudsy snafu was “considerable.”

Under the bank’s policy, it will provide new cash at face value if damage is minimal, and half value — or not at all — damage is significant.

Earlier this year, a different person with the surname Kim, damaged cash in a microwave during an attempt to zap away coronavirus germs. The bank exchanged Kim’s damaged money with $4,370 in new bills, Seo said.

With Post wires