🐂 Red Envelopes

Markets

The beginning of October had an eerie beginning for investors, despite a last-minute agreement reached over the weekend to avoid a government shutdown, stocks continued to decline. However, it was a fantastic day for the organization responsible for the Sphere, the recently opened Las Vegas venue headlined by U2. Its stock surged as people across the board marveled at the impressive interior of the massive dome.

Americans’ Growing Reluctance to Quit Their Jobs, in Five Charts

This summer, Americans reduced their job resignations at a notably slower pace compared to the earlier peak of resignations during the pandemic. This shift is historically seen as a concerning trend for the economy.

During the past three recessions, the rate of job resignations declined. Quitting typically signifies dissatisfaction with one's current job but also reflects the confidence in finding a new position elsewhere. When resignation rates decrease, it may indicate that workers are anxious about their future job prospects.

However, present-day Americans are also holding onto their jobs for various other reasons, such as increased job flexibility, better compensation, or simply because they are content with their current positions. This suggests that a decline in job resignations may not necessarily be a sign of an impending economic downturn. In fact, this trend could be an indicator of the economic expansion's resilience, especially considering that there are still significantly more job openings than there are unemployed individuals.

Crypto

SBF’s fraud trial starts today

The criminal trial of Sam Bankman-Fried, once celebrated as the face of the cryptocurrency industry but now a controversial figure, has commenced in New York City. The outcome of this trial carries significant implications for the future of digital currency.

Here's what you can anticipate:

Sam Bankman-Fried has entered a plea of not guilty to seven charges of fraud and conspiracy in connection with the collapse of FTX, the cryptocurrency exchange he established. However, there are allegations by federal prosecutors that he utilized the now-defunct FTX to embezzle billions of dollars from both customers and investors.

Prosecutors claim that he redirected some of these funds towards real estate acquisitions and to cover losses at his high-risk crypto trading company, Alameda Research. All the while, he promoted FTX as a safe platform and secured endorsements from well-known figures like Tom Brady and Larry David.

Prosecutors intend to present an extensive body of evidence, including financial records, text messages, and an audio recording from an internal meeting where Alameda CEO Caroline Ellison (and SBF's former girlfriend) purportedly states that Bankman-Fried approved funneling FTX customer funds into Alameda.

Ellison, along with two co-founders of FTX, has already pleaded guilty to fraud charges and is set to testify against their former leader.

On the other hand, Bankman-Fried's defense is expected to argue that he was merely following the advice of FTX's legal counsel and did not have criminal intent. They may also attempt to shift blame onto Ellison. It's likely that Bankman-Fried has been advised not to testify, even though he had been quite vocal after FTX's collapse.

If found guilty on all charges, Bankman-Fried could potentially face a sentence of up to 110 years in prison. He has been incarcerated since August when the trial judge revoked his $250 million bail due to alleged witness tampering, specifically leaking Ellison's diary entries to the New York Times. Prior to his arrest, he had been staying at his parents' Palo Alto residence (who are being sued by FTX) and had plans for a pickleball court installation, alongside acquiring a dog.

Looking ahead, the collapse of FTX intensified the government's ongoing scrutiny of the crypto industry, resulting in increased pressure on other exchanges like Binance and Coinbase. For those keen on the rise and fall of Sam Bankman-Fried, Michael Lewis's biography of him was published today, revealing intriguing details, such as his consideration of a $5 billion offer to Donald Trump not to run for president.

Politics

Trump trial kicks off

In a New York courtroom this week, SBF won't be the sole individual with a distinctive hairstyle facing allegations of fraud. The trial for the civil case brought by the New York attorney general against the former president began yesterday. The judge has already determined Trump's liability for fraud, alleging that he inflated the value of his real estate assets. However, the trial will address the remaining claims and any potential penalties, with the attorney general seeking $250 million in damages. Trump has denounced this case as a "witch hunt," and it could potentially provide insights into his actual financial status. Anticipated to continue until December, the trial may involve numerous witnesses, starting with Trump's accountant and possibly including his adult children. Interestingly, there won't be a jury involved, as neither side has requested one, as pointed out by the judge.

Science

Scientist wins Nobel for mRNA work no one believed in

Katalin Karikó and Drew Weissman were awarded the Nobel Prize in physiology or medicine yesterday. While their names may not be widely recognized, their groundbreaking work is familiar to all: their research on mRNA paved the way for the development of Covid-19 vaccines.

Karikó's journey to the Nobel Prize was marked by challenges. Originally from Hungary, she joined the University of Pennsylvania in 1989 as a research assistant professor to delve into mRNA research. Despite her persistent efforts, her grant proposals faced frequent rejection, and the scientific community was slow to grasp the significance of her work. Throughout her career, she never earned more than $60,000 annually. Serendipitously, a chance encounter at the photocopier brought her into collaboration with Drew Weissman, who currently serves as the director of the Penn Institute for RNA Innovation.

For years, the two researchers worked together, leading to their groundbreaking discovery in 2005: the manipulation of mRNA that could be injected into the body to trigger an immune response. However, their achievement received little recognition at the time. Prominent academic journals like Science and Nature rejected their paper, and even its publication in a less prestigious journal went relatively unnoticed.

In 2013, facing a lack of recognition, Karikó left the University of Pennsylvania to join BioNTech, which later partnered with Pfizer to develop the Covid-19 vaccine. Their pioneering work became invaluable during the global pandemic.

Thanks to the ongoing contributions of Karikó and Weissman, mRNA vaccine technology continues to hold immense promise. Companies like Moderna and BioNTech are actively exploring mRNA vaccines for a wide range of diseases, including RSV, HIV, Zika, malaria, shingles, influenza, and cancer.

Real Estate

Why there is a proposed law named after Katy Perry

Taylor Swift's tour may have given a significant boost to the US economy, but it was Katy Perry who unintentionally sparked a movement to revise the nation's real estate laws.

The proposed Protecting Elder Realty for Retirement Years (PERRY) Act, set to be introduced in multiple states, aims to grant individuals aged 75 and older a window of up to 72 hours to reconsider selling their personal residence, as reported by Semafor.

This initiative arises from a recent lawsuit that went to trial involving Katy Perry, known as the Queen of Camp, and her fiancé Orlando Bloom. The lawsuit was brought by Carl Westcott, the founder of 1-800-FLOWERS and the father-in-law of Real Housewife Kameron Westcott.

The legal dispute centers on Westcott, who, suffering from a rare neurodegenerative disease, initially agreed to sell his Santa Barbara mansion to the celebrity couple for $14.2 million in 2020 but later attempted to withdraw from the sale just a few days later. Westcott contends that his judgment was impaired when he signed the paperwork due to the painkillers he was taking following surgery.

Interestingly, this isn't the first real estate lawsuit involving Katy Perry and senior citizens. In a separate case a few years ago, Perry was embroiled in a legal battle with elderly nuns over her bid to acquire a former convent.

Expanding the perspective: Westcott's family is advocating for the passage of the PERRY Act, and they claim that 37 elected officials from across the country support this legislation.