Market Minute: Spotify Announces Layoffs, Feds Seize Millions from FTX Founder & Egg Smuggling
Here is a rundown of Cheddar News' top market stories of the day.
SPOTIFY LAYOFFS
Spotify has announced plans to cut around 6 percent of its workforce, placing the music streaming service among other tech firms that have made layoffs in recent weeks, including Microsoft, Amazon, and Google parent company Alphabet. The number of positions potentially on the chopping block is not yet clear. Many tech firms have cut between 5 and 10 percent.
FED'S FTX SEIZURE
Disgraced crypto executive Sam Bankman-Fried's fortune is rapidly dwindling, as federal regulators seized more than $600 million of his assets this month. The forfeitures are related to the federal government's criminal case against Bankman-Fried, who faces charges of fraud and conspiracy — though he has pleaded not guilty. The most recent seizure was a whopping $95 million from an account held at Silvergate Bank.
CITADEL PROFITS
Hedge fund Citadel reported a record $16 billion in profits for clients in 2021. That is the biggest annual return for a fund manager since John Paulson made $15 billion in 2007 betting against the subprime mortgage market, and perhaps one of the biggest plays in Wall Street's history. The sky-high profits came as hedge funds overall underperformed amid 2022's bear market.
EGG SMUGGLING
Customs and Border Protection officials are reporting a surge in egg smuggling from Mexico — with U.S. egg prices up 60 percent in December from 12 months earlier. Smugglers are risking thousands of dollars in fines just to bring eggs, which cost around $3.40 for a 30-count carton in Mexico, compared to as much as $7.37 for just a dozen in America.
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It might not be what investors want to hear… but bringing down inflation could mean interest rates stay higher for (even) longer. But it's not all downside.
President Joe Biden and Chinese President Xi Jinping have discussed Taiwan, artificial intelligence and security issues in a call meant to demonstrate a return to regular leader-to-leader dialogue between the two powers.
April is Earth month, and while the green revolution might feel far away, the founder of climate VC Siam Capital says it’s on it’s way, and, even better: it won't cost you more.
From snow in April to heatwaves in December, it’s hard to plan a trip in a climate change world. Startup Sensible Weather thinks weather-based travel reimbursements are the solution.
Between corporate debt and the widening gap between ‘the haves and the have nots,’ there are reasons to be cautious about the economy, even with interest rate cuts on their way.
If the A.I. hype hasn’t given you enough of a reason to be excited (and a little terrified), the CEO of Zapata AI says the next frontier is designing bridges or creating pharmaceutical drugs.
