Highlights for this morning: Lululemon CEO departure, blockchain for Wall Street, Reddit vs. Australia

Lululemon CEO Calvin McDonald will leave the company after a period of weak growth and pressure from the founder. The U.S. SEC (Securities and Exchange Commission) takes a step towards digitalization by allowing the U.S. central depository to "tokenize" some stocks and bonds. About these and other topics - in our review of key events for the morning of December 12.

The head of Lululemon Calvin McDonald will leave his post at the end of January, Bloomberg reports. The decision comes amid slowing sales and pressure from company founder Chip Wilson, the agency points out. Despite a weak year and a stock drop of more than 50%, quarterly earnings and comparable sales beat analysts' expectations thanks to international growth, although revenue in the U.S. fell 3%. Lululemon's new full-year forecast was higher than the previous one and consensus on the upper end, but expectations for the fourth quarter were weaker.

Experts believe that the change of CEO could be the impetus for a renewed product strategy, but warn that the company needs to set a course quickly. For now, CFO Lululemon (CFO) Megan Frank and CCO (Chief Commercial Officer) Andre Maestrini will share the responsibilities of the company's head.

The U.S. Securities and Exchange Commission (SEC) has granted DTCC - the key organization that holds and settles most stocks and bonds in the U.S. - a special permit (no-action letter), Bloomberg writes. It allows to start testing a program for "tokenization", that is, the issuance of "digital versions" of securities on the blockchain with the same legal rights as conventional ones. At the first stage, only the most liquid assets, including companies from the Russell 1000 index, large ETFs and U.S. Treasury securities, will be digitized. The service is planned to be launched in the second half of next year.

The DTCC expects that tokenization will allow markets to operate 24/7 and simplify the connection between traditional and digital finance. Eventually, the organization wants to move its entire $100 trillion depository to blockchain, but that will require new SEC approval. Regulatory approval also makes it easier to launch similar projects on other platforms, including Nasdaq, while maintaining standard rules of control, asset protection and the ability to correct errors.

Reddit has filed a lawsuit in Australia's Supreme Court in an attempt to challenge a new law banning children under 16 from using social media, CNBC reports. The platform argues that the measure is excessive, poorly enforced and restricts teens from participating in online political discussions. Australia's ban affects ten major services - from YouTube and Instagram to TikTok and X - and requires them to use age verification methods including behavioral analysis, selfies, document uploads or banking data.

Reddit asks to invalidate the law or exclude the platform from its scope, noting that teenagers participate in the formation of political views of adults, and the platform itself looks more like a forum for "knowledge sharing" than a classic social network. The company argues that access through an account is even safer for minors because it allows them to restrict content. Despite the legal challenge, Reddit says it's not looking to dodge the rules, but is in favor of more pointed and private ways to protect teens online.

The U.S. Treasury Department is set to publish a clarification that would effectively lift restrictions on large companies - from Salesforce and Qualcomm to tech and pharma giants - and allow them to take full advantage of billions of dollars in research and development tax credits from Donald Trump's law, Bloomberg writes.

Right now, this is hindered by the 15% corporate minimum tax imposed under Joe Biden on companies with profits of $1 billion or more, which blocks large R&D deductions (i.e., deductions related to scientific and technical research). The new administration will eliminate this conflict, which will bring significant savings to businesses, the agency points out.

These changes would be another win for corporations, Bloomberg notes: previously, Trump allowed $67 billion in retroactive R&D spending write-offs, and Congress also expanded write-offs on equipment and interest. The Treasury Department has already eased the minimum tax several times, from excluding crypto profits to exemptions for insurers and energy.

- Japan's broad Topix index was up 2.07%, while the Nikkei 225 was up 1.43% in Dec. 12 trading.

- Hong Kong's Hang Seng Index rose 1.75 percent, while mainland China's CSI 300 Index gained 0.63 percent.

- In South Korea, the Kospi index rose 1.05%, while the Kosdaq was almost unchanged.

- Australia's S&P/ASX 200 rose 1.23%.

- Futures on the S&P 500 and futures on the Nasdaq Composite were almost unchanged. At the same time, exchange contracts on Dow Jones Industrial Average grew by 0.26%.

This article was AI-translated and verified by a human editor