Category: 3. Business

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First Brands has sued its founder and longtime chief executive Patrick James, alleging he engaged in “fraudulent conduct” at the now bankrupt automotive parts supplier.

James enriched himself and his family by “misappropriating hundreds of millions (if not billions) of dollars from First Brands,” said the lawsuit filed in a Houston federal bankruptcy court on Monday.

“James . . . secretly pilfered some of the company’s assets to fund his and his family’s lavish lifestyle”, according to court documents.

First Brands crashed into bankruptcy in late September after the company was unable to refinance its debt. The company, which had a $12mn cash balance when it entered bankruptcy, revealed in court that it had racked up $12bn in both conventional loans and off-balance-sheet financing.

Lawyers for two different creditor groups have accused First Brands of “massive fraud” in court filings. 

The lawsuit against James, who resigned on October 13, stems from an investigation launched by the company’s newly appointed chief executive and directors.

“Mr. James categorically denies the baseless and speculative allegations contained in the First Brands complaint,” said a spokesman for the founder.

“Mr. James was given no opportunity to respond before the complaint was filed and he intends to immediately challenge it. Mr. James has always conducted himself ethically and is committed to doing everything he can to support First Brands’ stakeholders during the restructuring process.”

On Monday, Quinn Emanuel lawyers representing James said in a court filing that he was in support of a third-party examiner to investigate the company’s financial practices leading up to the bankruptcy filing.

The lawsuit against James alleged he “commandeered the enterprise to engage in a fraudulent conduct to enrich himself and his family at the expense of debtors and their creditors”.

In one example, First Brands said that James transferred $8mn to his son-in-law’s “wellness” company to help “cover payroll”. “It is unclear if fair value was received by First Brands for the funds transferred,” said the court documents.

The lawsuit detailed cash transfers from the company to James that appeared to fund a New York City townhouse, as well as a “celebrity personal trainer” and a “private celebrity chef”.

First Brands also alleged in the court documents that in “certain instances the Debtors sold erroneous or fabricated invoices to the third-party factors”.

In one example listed in the lawsuit, a package of invoices was sold to Japan’s Katsumi Global for $11mn when the associated sales were just $2mn.

The First Brands implosion has put the spotlight on the arcane practice of working capital finance where companies sell or borrow against accounts receivable or inventory in order to quickly raise cash to recycle into the business.

The company’s debt load includes billions of dollars that flowed through off-balance-sheet special purpose vehicles.

First Brands has told the court that it plans to sell the company and it has secured a $1.1bn bankruptcy loan as it goes through the Chapter 11 process.

However, several of its creditors have said in court filings that they are concerned senior lenders at First Brands will quickly bid for the company’s assets, making recovery of the missing cash a lesser priority.

Later this week, a hearing is scheduled to take place in Houston in which First Brands is expected to outline how the case will move forward and hear creditors’ concerns.

By Claudia Assis

‘Active discussions’ being held, telehealth company Hims & Hers says

Wegovy pens at a Chicago pharmacy. Telehealth company Hims & Hers says that it could be selling the GLP-1 medication on its platform soon.

Telehealth company Hims & Hers Health Inc. said late Monday it is in “active discussions” with Denmark’s Novo Nordisk A/S to make Wegovy available on its platform.

The discussions are about both Wegovy injections and an oral Wegovy, which is under evaluation in the U.S. and would be the first pill formulation of a GLP-1 medication if approved. The Food and Drug Administration is expected to rule on the oral Wegovy by the end of the year.

Hims & Hers said that the discussions with Novo Nordisk (DK:NOVO.B) are ongoing, that “no definitive agreement” has been reached, and that the two companies may not reach one. Nonetheless, Hims & Hers shares (HIMS) shot up 5.7% in the after-hours session Monday, after ending the regular trading day down more than 2%.

The disclosure of talks around the GLP-1 drug came as Hims, known for its streaming-TV commercials about erectile dysfunction, hair loss and other ailments, reported its third-quarter earnings.

The company reported third-quarter per-share earnings of 6 cents on revenue of $599 million, up 49% year over year. The EPS came in line with FactSet consensus, while revenue topped views.

Hims also reported a 21% growth in the number of subscribers in the quarter, to 2.5 million people.

The company said it expects revenue between $605 million and $625 million in the fourth quarter, and of $2.335 billion to $2.355 billion for the full year. Both outlooks are above expectations.

-Claudia Assis

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TOKYO (AP) — Asian shares were trading mixed on Tuesday after overseas markets got a big lift from optimism over AI technology.

Japan’s benchmark Nikkei 225 dipped 0.5% to 52,163.84, coming off a national holiday on Monday.

Australia’s S&P/ASX 200 shed 0.9% to 8,818.00. South Korea’s Kospi dipped 2.0% to 4,138.88. Hong Kong’s Hang Seng jumped 0.2% to 26,209.39, while the Shanghai Composite lost 0.2% to 3,969.05.

On Wall Street, more gains for Nvidia, Amazon and other AI superstars propped up share prices. The S&P 500 rose 0.2% and pulled closer to its all-time high set last week, even though the majority of stocks in the index sank. The Dow Jones Industrial Average dropped 226 points, or 0.5%, and the Nasdaq composite climbed 0.5%.

Nvidia was the strongest force lifting the S&P 500, just like it has been for the year so far. The chip company rose 2.2% to bring its gain for the year to date to 54.1%.

Amazon was the No. 2 force pushing the market higher. It rallied 4% after announcing a $38 billion agreement with OpenAI, which will use Amazon’s cloud computing services to run its AI workloads.

IREN, an AI cloud service provider, jumped 11.5% after Microsoft announced a $9.7 billion contract with it that will give the tech giant access to some of Nvidia’s chips.

Palantir Technologies, which came into the day with a stunning 165% gain for the year so far, rose another 3.3%. Traders pushed the AI darling higher in the final hours before the data platform company reported its latest quarterly results after trading closed for the day.

Companies across the U.S. stock market will need to hit expectations for growth in profit to justify the big gains for their stock prices since April. Criticism has been rising that the broad U.S. market, and AI stocks in particular, have become too expensive and could be inflating into a dangerous bubble similar to the 2000 dot-com bust.

For the most part, companies have been meeting the high expectations for profits. Four out of every five companies in the S&P 500 have topped analysts’ forecasts so far this reporting season, according to FactSet. With roughly two-thirds of all S&P 500 reports in, companies in the index are on track to deliver healthy growth of nearly 11% versus a year earlier.

On the losing end of Wall Street on Monday was Kimberly-Clark, which dropped 14.6% after it said it would buy Kenvue in a deal valuing it at $48.7 billion. Kenvue, which sells Tylenol, Band-Aids and Listerine, jumped 12.3%.

All told, the S&P 500 rose 11.77 points to 6,851.97. The Dow Jones Industrial Average dropped 226.19 to 47,336.68, and the Nasdaq composite rose 109.77 to 23,834.72.

In the bond market, the yield on the 10-year Treasury edged down to 4.10% from 4.11% late Friday.

A discouraging report on U.S. manufacturing said that activity shrank by more last month than economists expected. Several manufacturers told surveyors for the Institute for Supply Management that President Donald Trump’s tariffs are creating financial pain.

In energy trading, benchmark U.S. crude fell 13 cents to $60.92 a barrel. Brent crude, the international standard, declined 15 cents to $64.74 a barrel.

In currency trading, the U.S. dollar slipped to 153.95 Japanese yen from 154.19 yen. The euro cost $1.1517, down from $1.1525.

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AP Business Writer Stan Choe contributed.

Quantum computers have the potential to model new molecules and weather patterns better than any computer today. They may also one day accelerate artificial intelligence algorithms at a much lower energy footprint. But anyone interested in using quantum computers faces a steep learning curve that starts with getting access to quantum devices and then figuring out one of the many quantum software programs on the market.

Now qBraid, founded by Kanav Setia and Jason Necaise ’20, is providing a gateway to quantum computing with a platform that gives users access to the leading quantum devices and software. Users can log on to qBraid’s cloud-based interface and connect with quantum devices and other computing resources from leading companies like Nvidia, Microsoft, and IBM. In a few clicks, they can start coding or deploy cutting-edge software that works across devices.

“The mission is to take you from not knowing anything about quantum computing to running your first program on these amazing machines in less than 10 minutes,” Setia says. “We’re a one-stop platform that gives access to everything the quantum ecosystem has to offer. Our goal is to enable anyone — whether they’re enterprise customers, academics, or individual users — to build and ultimately deploy applications.”

Since its founding in June of 2020, qBraid has helped more than 20,000 people in more than 120 countries deploy code on quantum devices. That traction is ultimately helping to drive innovation in a nascent industry that’s expected to play a key role in our future.

“This lowers the barrier to entry for a lot of newcomers,” Setia says. “They can be up and running in a few minutes instead of a few weeks. That’s why we’ve gotten so much adoption around the world. We’re one of the most popular platforms for accessing quantum software and hardware.”

A quantum “software sandbox”

Setia met Necaise while the two interned at IBM. At the time, Necaise was an undergraduate at MIT majoring in physics, while Setia was at Dartmouth College. The two enjoyed working together, and Necaise said if Setia ever started a company, he’d be interested in joining.

A few months later, Setia decided to take him up on the offer. At Dartmouth, Setia had taken one of the first applied quantum computing classes, but students spent weeks struggling to install all the necessary software programs before they could even start coding.

“We hadn’t even gotten close to developing any useful algorithms,” Seita said. “The idea for qBraid was, ‘Why don’t we build a software sandbox in the cloud and give people an easy programming setup out of the box?’ Connection with the hardware would already be done.”

The founders received early support from the MIT Sandbox Innovation Fund and took part in the delta v summer startup accelerator run by the Martin Trust Center for MIT Entrepreneurship.

“Both programs provided us with very strong mentorship,” Setia says. “They give you frameworks on what a startup should look like, and they bring in some of the smartest people in the world to mentor you — people you’d never have access to otherwise.”

Necaise left the company in 2021. Setia, meanwhile, continued to find problems with quantum software outside of the classroom.

“This is a massive bottleneck,” Setia says. “I’d worked on several quantum software programs that pushed out updates or changes, and suddenly all hell broke loose on my codebase. I’d spend two to four weeks jostling with these updates that had almost nothing to do with the quantum algorithms I was working on.”

QBraid started as a platform with pre-installed software that let developers start writing code immediately. The company also added support for version-controlled quantum software so developers could build applications on top without worrying about changes. Over time, qBraid added connections to quantum computers and tools that lets quantum programs run across different devices.

“The pitch was you don’t need to manage a bunch of software or a whole bunch of cloud accounts,” Setia says. “We’re a single platform: the quantum cloud.”

QBraid also launched qBook, a learning platform that offers interactive courses in quantum computing.

“If you see a piece of code you like, you just click play and the code runs,” Setia says. “You can run a whole bunch of code, modify it on the fly, and you can understand how it works. It runs on laptops, iPads, and phones. A significant portion of our users are from developing countries, and they’re developing applications from their phones.”

Democratizing quantum computing

Today qBraid’s 20,000 users come from over 400 universities and 100 companies around the world. As qBraid’s user base has grown, the company went from integrating quantum computers onto their platform from the outside to creating a quantum operating system, qBraid-OS, that is currently being used by four leading quantum companies.

“We are productizing these quantum computers,” Setia explains. “Many quantum companies are realizing they want to focus their energy completely on the hardware, with us productizing their infrastructure. We’re like the operating system for quantum computers.”

People are using qBraid to build quantum applications in AI and machine learning, to discover new molecules or develop new drugs, and to develop applications in finance and cybersecurity. With every new use case, Setia says qBraid is democratizing quantum computing to create the quantum workforce that will continue to advance the field.

“[In 2018], an article in The New York Times said there were possibly less than 1,000 people in the world that could be called experts in quantum programming,” Setia says. “A lot of people want to access these cutting-edge machines, but they don’t have the right software backgrounds. They are just getting started and want to play with algorithms. QBraid gives those people an easy programming setup out of the box.”

In a video interview a few hours ahead of Palantir’s earnings, Karp flailed his arms excitedly around as he spoke about the defense tech and AI software company’s results. “These numbers validate we were right. Please learn from us. That’s what these numbers mean,” Karp told Fortune in the interview. 

“These are not normal results. These are not even strong results,” Karp continued later on Monday, during the company’s earnings call. “These aren’t extraordinary results. These are arguably the best results that any software company has ever delivered.”

After soaring roughly 400% over the past year, however, shares of Palantir took a time out on Monday despite the strong results. The stock initially rose after the earnings were released on Monday, according to Bloomberg, but then slid about 3.5% in after-hours trading.

Palantir posted third-quarter revenue of roughly $1.2 billion, up 63% from the year-ago period, and above the average analyst expectation of $1.09 billion, according to Bloomberg. The company’s $476 million in net income, was up 40 percent year-over-year.  While Palantir’s government contracts business remains strong, business from U.S. commercial customers drove the company’s growth in the third quarter, expanding by 121% year-over-year to $397 million.  

Karp described the numbers on Monday’s earnings call as more akin to a venture-backed company than a public one, highlighting the “Rule of Forty” metric in Palantir’s quarterly earnings deck, which is a financial metric calculated by combining the year-over-year revenue growth rate and adjusted operating margin. In general, 40% is considered strong performance. This quarter, Palantir’s “Rule of Forty” was 114%, even higher than its last quarter, which was 94%.

Palantir’s revenue figures are still quite small compared to peers of similar market capitalization. And the company’s rich valuation has stoked skepticism among some investors worried about an AI bubble. Regulatory filings from Monday reveal that Michael Burry, the esteemed short seller known for his big bet against the subprime mortgage market in 2008, has taken out a short position in both Palantir and NVIDIA. Palantir and NVIDIA last week announced that they had struck a partnership, where Palantir will combine NVIDIA chips and software with its tech platform for some of its customers. Palantir said last week that home improvement retailer Lowe’s was already incorporating this into its tech stack, but the software company declined on Monday to share other companies that had rolled that out. 

True to form, Karp delved into a couple touchy subjects on Monday’s earnings call, including the Administration’s recent focus on drug traffickers in South America.

“Let me say something slightly political,” Karp said. “And I’m not saying other people agree with this, but when people are attacking our soldiers for stopping fentanyl from coming into this country, I want people to remember if fentanyl was killing 60,000 Yale grads instead of 60,000 working class people, we’d be dropping a nuclear bomb on whoever was sending it from South America.”

Karp’s shareholder letter from this quarter—his fifteenth musing to shareholders and Palantir enthusiasts—was also biting. In the letter, Karp suggested that there had been a “rejection of any shared and defined sense of common culture, in this nation and others,” and that this “has had significant costs.”

But more than anything, Karp seemed to revel in the numbers themselves—and rubbing them in the faces of those he says have perhaps been too skeptical.

“Some of our detractors have been left in a kind of deranged and self-destructive befuddlement,” he wrote in the letter, before going on to reference a British film director and later the poet William Butler Yeats.

As expected, the Reserve Bank of Australia (RBA) has kept the cash rate steady at 3.6%. Its board unanimously agreed it was better to “remain cautious” on interest rates.

While borrowers may have been hoping for rate relief, the decision came as little surprise to economists and markets, after stronger-than-expected inflation data – something the board’s statement emphasised, along with local and global uncertainty.

“Inflation has fallen substantially since the peak in 2022 […] but more recently, inflation has picked up,” the board noted, describing the September quarter figures released last week as “materially higher than expected”.

For many mortgage holders, this marks another month of frustration. Three rate cuts earlier this year offered some respite, but not enough to offset the sharp rise in interest rates since the tightening cycle began in mid-2022.

There is another RBA meeting in early December. But today’s board statement suggest borrowers have longer to wait for any further relief.

Don’t expect a rate cut soon

Financial markets and the major banks share the RBA’s cautious tone. The big four banks were already expecting the next rate cut in 2026, reflecting their view that inflation will take longer to return comfortably to target.

Market pricing also points to a prolonged pause. Traders have scaled back expectations of near-term easing, and interest rate futures now imply only modest reductions through next year.

Some economists are even warning the RBA might be forced to raise rates, either next year or in 2027.

In short, the era of cheap money isn’t returning quickly.

Inflation still running hot

The latest inflation data released last week showed headline inflation back above the RBA’s 2–3% target band, and the bank’s preferred measure – the trimmed mean – sitting right on the upper edge of that range. Prices are still rising faster than the RBA is comfortable with.

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While prices for some goods, such as furniture and electronics, have eased, costs for housing, insurance, health care and education continue to rise. This persistence explains why the RBA is reluctant to loosen policy.

As the latest board statement put it:

the recent data on inflation suggest that some inflationary pressure may remain in the economy […] Financial conditions have eased since the beginning of the year, but it will take some time to see the full effects of earlier cash rate reductions.

The bank has repeatedly said it needs sustained evidence that inflation is moving towards the midpoint of its target. For now, that evidence is still missing – and today’s decision reinforces that message.

Growth and jobs show resilience

Economic growth remains modest but stronger than expected. The Australian Bureau of Statistics’ gross domestic product figures show the economy grew 1.8% over the year to June 2025 – the strongest result in two years and well above expectations.

Growth continues to be supported by business investment and population gains. Household spending, though soft, hasn’t collapsed despite cost-of-living pressures.

The labour market also remains firm. Unemployment has ticked up but is still low at 4.5% in September.

Ahead of today’s board decision, RBA Governor Michele Bullock also said the jobs market remains “a little tight”, meaning many businesses are struggling to find workers – a factor that keeps upward pressure on wages and prices.

Until the bank sees clearer signs of cooling – such as slower wage growth or a sustained lift in unemployment – it is unlikely to risk cutting rates.

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Bullock has stressed that future moves will depend on the data. With the next quarterly consumer price index data due out in early January, the bank will be watching for clearer signs that inflation in both goods and services is easing.

The bigger picture

Overseas, the US Federal Reserve cut its policy rate at its October 2025 meeting, bringing the target range to 3.75–4.0%. Yet Fed Chair Jerome Powell struck a hawkish tone, warning further cuts aren’t guaranteed and will depend on incoming data.

That cautious stance mirrors the RBA’s own. Both central banks want to avoid declaring victory over inflation too early, especially with ongoing risks from energy prices, supply disruptions and tight labour markets.

With the European Central Bank and Bank of England also adopting a wait-and-see approach, the RBA remains broadly in step with its global peers.

For now, the bank sees more risk in moving too soon than in waiting a little longer. A premature cut could reignite price pressures and undo the progress made since 2023.

For homeowners, that means high borrowing costs are likely to persist for some time yet. It’s a disappointing Melbourne Cup Day for mortgage holders – but for the RBA, caution still wins the race.

At DFA Design for Asia Awards 2025, Canon wins Grand Award for EOS R50 V APS-C mirrorless camera and Silver Award for EOS R1 full-frame mirrorless camera

TOKYO, November 4, 2025—Canon Inc. announced today that it received the Grand Award for its EOS R50 V, an APS-C mirrorless camera, and the Silver Award for its EOS R1, a full-frame mirrorless camera, at DFA Design for Asia Awards 2025 hosted by the Hong Kong Design Centre (HKDC).

The EOS R50 V, which received the Grand Award, is an APS-C mirrorless camera aimed at video creators seeking to broaden their range of visual expressions. Its advanced video shooting capabilities and design optimized for content creation are tailored to meet demand for video recording and livestreaming . The device comes with a smooth grip shape perfect for one-handed selfies or vertical shooting, and allows users to hold the device steadily. Additional features include a tripod screw hole for vertical shooting as well as a new touch-panel UI that automatically adjusts the display orientation based on how the device is held to enable comfortable operability in a variety of shooting scenarios. The viewfinder has been eliminated to achieve a flat and linear design that fits well with video accessories, thereby achieving a design which has been perfectly crafted for video shooting down to the finest detail while appearing simple and stylish.

The Silver Award-winning EOS R1 is a full-frame mirrorless camera intended for professional photographers, and is the first flagship model in the EOS R System series. Thanks to its newly developed image processing system and the use of deep learning technology, it achieves the high level of photographic performance required by professionals. Additionally, its rubber grip features a newly developed cross pattern with a strong grip capability that enhances handling and prevents accidental drops during orientation changes. While inheriting the distinctive silhouette of the first-generation model^*, it incorporates ergonomically designed features and comfortable operability, resulting in a design truly worthy of professional use. The EOS R1 has been widely praised, having received the 2025 Good Design Award (Good Design Best 100) in Japan as well as the Red Dot Design Product Design Award (Best of the Best Award) (Switzerland) and the iF Design Award 2025 (Germany).

Encouraged by the recognition of these awards, Canon will continue striving to create products that expertly blend excellent design with outstanding performance.

About the DFA Design for Asia Awards (www.dfaa.dfaawards.com)

Since 2003, the “DFA Design for Asia Awards” honors design excellence and acknowledges user-centric design projects which embrace the unique Asian perspectives to enhance and improve the quality of life for people in the region. Organized by Hong Kong Design Centre, with Cultural and Creative Industries Development Agency (CCIDA) of the Government of the Hong Kong Special Administrative Region as the Lead Sponsor, as one of the seven DFA Awards programs, the “DFA Design for Asia Awards” has been a platform for design talent and corporates to showcase their design projects internationally.