🐂 Guilty SBF

Markets

Stocks rallied for a second consecutive day with investors speculating that the Federal Reserve may have concluded its interest rate hikes. The S&P 500 experienced a notably positive day, marking its most significant session since April. Starbucks was among the successful companies on Thursday, seeing a remarkable nearly 10% surge after surpassing Q3 earnings projections, attributing its success to "record-breaking" average weekly sales.

Sharp U.S. Hiring Slowdown Signals Cooling Economy Ahead

October saw a significant slowdown in hiring, indicating a cooling economy during the fall after a robust period over the summer.

According to the Labor Department's report on Friday, U.S. employers added 150,000 jobs in October, a decline from the previous month's revised increase of 297,000. This was the smallest growth since June, primarily influenced by around 33,000 fewer workers in the automotive industry due to the United Auto Workers strike. Concurrently, the unemployment rate climbed to 3.9% from the previous month's 3.8%.

These statistics might prompt the Federal Reserve to conclude its historic series of interest rate hikes as they provide stronger evidence that increased borrowing costs have had a slowing effect on the economy.

Fed officials have been implementing some of the most rapid rate hikes in decades, reaching a 22-year high to manage inflation. Since their hike in July, they've maintained steady rates, even in their recent meeting this week, as inflation pressures relaxed. However, they've refrained from decisively ending the increases, indicating this week that the likelihood of their next move would more likely be an increase rather than a cut.

U.S. stock futures rose while Treasury yields fell. Investors viewed the decreased job growth as a positive signal, suggesting an economic slowdown, potentially enabling the Fed to cease its tightening measures.

Crypto

SBF: So Guilty

Sam Bankman-Fried, once a billionaire hobnobbing with Tom Brady in the Bahamas, now faces financial ruin and the prospect of spending numerous decades incarcerated after being convicted on all seven counts of fraud and conspiracy.

The 31-year-old former CEO of FTX is looking at a potential sentence of up to 115 years in prison following a jury's guilty verdict. Scheduled for March 28, 2024, the sentencing is subject to an expected appeal from SBF.

After a relatively brief deliberation of just over four hours, including dinner, the jury concluded that Bankman-Fried had misappropriated $8 billion in customer funds from FTX. These funds were utilized for high-risk investments, political contributions, and luxury real estate, ending in a conviction that implicated SBF as the orchestrator of a multi-year fraudulent scheme, as testified by three of his top associates, including former girlfriend Caroline Ellison.

In a climactic moment during the trial, Bankman-Fried testified but struggled to convince the court that he had not knowingly embezzled from customers. His repeated claims of not remembering crucial details—over 140 times during cross-examination—were deemed unconvincing.

This downfall represents a stark contrast from his prior stature as the "crypto king," having founded FTX in 2019. The company gained immense visibility during the pandemic's crypto frenzy, extensively using marketing resources, such as renaming the Miami Heat's arena to FTX Arena and securing endorsements from prominent figures like Larry David and Tom Brady for their crypto trading platform.

Bankman-Fried also established a presence in Washington, advocating for regulatory oversight in the crypto industry and participating significantly as a political donor.

However, as the crypto market plummeted in 2022, it was revealed that FTX primarily served as Bankman-Fried's personal financial resource and subsequently collapsed. A key individual tasked with rectifying FTX's situation likened the disaster to the Enron bankruptcy, citing a failure in corporate controls and the absence of reliable financial information.

In essence, this case unveils one of the most substantial financial frauds to date. Although the crypto industry desires to move past the SBF episode, it continues to grapple with ongoing legal battles.

Entertainment

Six Flags, Cedar Fair merging to create $8 billion theme park behemoth

Great Adventure and Knott’s Berry Farm's parent companies are set to merge pending regulatory approval. In a joint announcement, they declared their intent to adopt the name Six Flags while retaining Cedar Fair’s stock ticker, FUN, with a subtle quip hinting at their amusement-focused nature. The unified entity resulting from this merger will possess and manage 27 amusement parks, 15 water parks, and nine resorts spanning 17 states, Canada, and Mexico. This consolidation arrives amid a heightened competitive environment within the industry as it strives to recuperate from the impacts of the pandemic. Notably, both Disney and NBCUniversal have revealed significant expansions in their respective parks businesses.

Finance

Bill Gates: How do you do, fellow kids?

Even amidst the widespread influence of celebrity icons and Gen Z figures, when it comes to financial influence on college students, no one holds more sway than the venerable Bill Gates.

In a survey conducted by Morning Brew/Generation Lab, US college students were asked to name three individuals representing their concept of financial success. Bill Gates was selected by half of the respondents, securing the top spot, while Jeff Bezos followed closely at 40%, and Elon Musk came in third at 35%. Surprisingly, Taylor Swift, a billionaire in her own right, was chosen by more than a quarter of the students (26%), surpassing figures like Mark Zuckerberg and Warren Buffett in the top six, despite not being a current or former CEO.

The findings indicate that young individuals still regard conventional industry giants as symbols of success, even in the era of the influencer economy producing a new wave of extraordinarily wealthy personalities. Kylie Jenner, renowned for her Lip Kit creation, received 4%, placing her between Michael Bloomberg (6%) and George Soros (4%).

Interestingly, college students are turning to more traditional sources for financial guidance. A significant majority (64%) indicated that they rely most on their parents or family members for financial advice, far outweighing the mere 1% seeking guidance from celebrities. About a third of students leverage their personal networks for financial advice, nearly doubling the percentage (19%) who do the same through social media.

Optimism regarding future financial success among college students is apparent, with approximately 45% believing they'll achieve financial success between the ages of 31 and 40, and 21% envisioning success arriving even earlier. Remarkably, the majority (76%) expressed contentment with a net worth of $1 million, illustrating that substantial wealth a la Bill Gates isn't necessary for their happiness.

Retail

Walmarts big makeover

With a resurgence reminiscent of Drake's "How Bout Now," the United States' largest retailer is showcasing a new and improved image.

Walmart is relighting the ambiance in 117 locations spread across 30 states, post an extensive $500 million revamping effort. Those residing near these updated stores can anticipate:

Revamped decor, lighting, and restrooms, alongside more open layouts with unboxed product exhibits. Expanded pharmacy spaces featuring private consultation rooms and enhanced vision centers. Incorporation of digital touchpoints for product information and the introduction of a convenient grab-and-go section offering beverages, sandwiches, and even whole rotisserie chickens.

This significant day marks the retail giant's largest simultaneous "re-grand openings," part of a broader plan. Walmart plans to allocate over $9 billion to renovate more than 1,400 out of its 4,717 US stores, a strategy set to continue until 2024.

In the realm of retail's transformation, Target is investing between $4 billion and $5 billion to elevate its in-store and digital shopping experiences. JCPenney, having recently navigated bankruptcy, intends to channel $1 billion into enhancements for both its physical stores and website.