MARKET RECAP → All three major US stock indexes closed lower on Wednesday, snapping a 9-day winning streak as investors mulled whether stocks are overheating. While the reason for this pullback is not exactly clear, it also feels quite natural and some might view this as a healthy move… Bitcoin (BTC) rose today in its predictably unpredictable fashion. BYE BYE BIRDIE → ? Once a $2.5 billion high-flyer, Bird (BRDS) crashes into Chapter 11 bankruptcy, struggling post-pandemic and post-NYSE delisting, while its Canadian and European wings keep soaring separately. FEDEX FALTERS → ? FedEx’s (FDX) shares nosedive over 12% amid a lower revenue forecast, yet the company clings to profitability with net income bump to $900M, thanks to cost-cutting acrobatics in a demand-dizzy market.
WHISKEY TARIFFS AVERTED → ? U.S. whiskey makers toast as EU extends a tariff truce until 2025, dodging a 50% tax bullet, even as they grapple with shifting American tastes favoring tequila and mezcal. XI’S TAIWAN ASSERTION → ? At the San Francisco summit, Xi Jinping firmly told Joe Biden about China’s inevitable reunification with Taiwan, intensifying the geopolitical tensions. |
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| Sean Horgan Head of Investor Relations @ MoneyLion
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? Bird (BRDS), the electric scooter company once soaring at a $2.5 billion valuation, filed for Chapter 11 bankruptcy in Florida. The company, which experienced a surge in popularity pre-pandemic, struggled to rebound post-lockdown. Bird’s plan involves a “stalking horse” agreement with lenders, setting a minimum bid for its assets, and aims to complete an asset sale within 90 to 120 days.
? After a high-flying 2019 with over $275 million raised, Bird’s journey hit turbulence. The pandemic lockdowns clipped its wings, leading to a plummet in usage. The company’s public debut in 2021 via a SPAC merger couldn’t stop the nosedive, with its share price crashing and eventually leading to a delisting from the New York Stock Exchange in September 2023.
? Despite the bankruptcy, Bird Canada and Bird Europe remain unaffected and will continue normal operations. The parent company’s bankruptcy filing doesn’t include these branches, indicating a selective approach to restructuring. Meanwhile, Bird’s stock trades at under $1, reflecting its steep descent from once lofty heights. |
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? FedEx (FDX) shares plummeted over 12% Wednesday following a revenue forecast downgrade due to weaker demand. The company now anticipates a low-single-digit revenue decline for the fiscal year, a stark contrast to their previous expectation of flat sales. Analysts had predicted a less severe drop, marking this as FedEx’s second consecutive quarter of lowering sales outlook. The Express unit, their largest, faced particular challenges with reduced demand and customers opting for cheaper services.
? Despite lower revenue, FedEx reported net income of $900 million, up from $788 million a year earlier. This was attributed to successful cost-cutting measures, which led to a 25% rise in adjusted earnings per share, although still falling short of expectations. Revenue dipped 3% to $22.17 billion, underscoring the company’s struggle amidst an uncertain demand environment. ? FedEx CEO Raj Subramaniam highlighted the company’s resilience, noting two consecutive quarters of operating income growth and margin expansion despite revenue challenges. This was seen as evidence of FedEx’s effective transformation in navigating a volatile market. The company’s focus on cost reduction has been a key factor in maintaining profitability amid fluctuating customer demand. |
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? U.S. whiskey distillers celebrated as the European Union extended the suspension of a 50% tariff on U.S. whiskey until March 2025, averting a significant tax that was set to kick in with the new year, stemming from a broader steel and aluminum dispute.
? The EU’s initial 25% tariff on American whiskey, a response to U.S. metals levies, had caused a 20% drop in exports to the EU from 2018 to 2021. However, exports rebounded by 29% in 2022, reaching pre-dispute levels, after the tariff suspension in October 2022.
? Despite this reprieve, American whiskey faces challenges in its home market, with tequila and mezcal overtaking it as the second-fastest growing spirits category in the U.S., reflecting changing consumer preferences. |
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?? Chinese President Xi Jinping bluntly informed President Joe Biden during their San Francisco summit that Beijing plans to reunify Taiwan with mainland China, though no specific timeframe was set. Xi expressed a preference for peaceful unification over forceful means. ? Despite the summit’s aim to ease tensions, Xi’s remarks, consistent with his past public comments on Taiwan, raised concerns among U.S. officials due to China’s increasingly aggressive stance towards Taiwan, especially ahead of Taiwan’s crucial presidential election next month.
? The meeting, their first in a year, was part of efforts to manage the competitive relationship between the U.S. and China rationally and avoid conflict. The U.S. maintains its “one China” policy, recognizing Beijing as China’s sole legal government while keeping unofficial relations with Taiwan. |
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Exclusive: Sam Altman quietly got $75M from the University of Michigan for a new venture capital fund earlier this year (Fortune)
Xfinity data breach affects more than 35 million — what we know (Mashable) Ransomware gang ‘unseizes’ its site and issues new threats (The Verge) |
And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife) |
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