⛔️ Kim K crypto crackdown
Hey Snackers,
We might be in a recession, but at least things are looking up over at Olive Garden: the garlic-bread icon is bringing back its Never Ending Pasta Bowl for the first time since 2019. It’s all about the abundance mindset.
Stocks surged to kick off the new quarter, with the S&P 500 up 2.6%. Oil prices rallied on word that OPEC+ is considering slashing output. Meanwhile, the UN called on the Fed and other central banks to stop their aggressive rate hikes to avoid a global recession.
Kim Kardashian agreed to pay a $1.3M fine as the SEC cracks down on celeb crypto promos
Keeping up with the crypto… Kim K is used to making headlines, but this one’s gonna cost her. Kardashian has agreed to pay the US Securities and Exchange Commission a $1.3M fine to settle charges related to an Insta post she’d made promoting alt coin EthereumMax (not to be confused with ether). Kim used the #ad hashtag but failed to disclose she was paid $250K to promote the coin to her 330M+ followers — a violation of the Securities Act. The reality star turned billionaire entrepreneur was also barred from promoting crypto for three years. She’s not the first to get SEC attention:
- Bad-vertising: In 2018 Floyd Mayweather and DJ Khaled had to pay hundreds of thousands of dollars for failing to disclose how much they were paid to promote initial coin offerings — the first time the SEC dished out an ICO-related charge.
Crypto’s red carpet… From Matt Damon to LeBron James to Gwyneth Paltrow, celebs have jumped on the crypto bandwagon, with some collecting big checks to promote digi-assets. Regulators are paying more attention to celeb crypto promos now that scams are proliferating: crypto scams have cost people $1B+ since last year, with nearly half of the victims saying they first heard about crypto on social media.
Regulators are marking their territory… Although industry insiders argue that crypto isn't a security, the SEC increasingly appears to disagree — and the US’s top regulators are starting to hold it accountable to the same rules. SEC Chair Gary Gensler tweeted to warn investors against celeb- and influencer-endorsed assets. Kim’s coin-related fine is a splashy indication of regulators marking their ground.
Credit Suisse shares swing wildly as skeptical investors await restructuring plans
Credit where it’s due… Credit Suisse pulled off a rocky rebound yesterday, but it’s not out of the woods just yet. On Friday the Swiss bank’s credit risk hit a record high after liquidity rumors spread, spooking investors. CEO Ulrich Koerner later told investors the bank has a $100B capital buffer, but the reassurance backfired:
- Shaky shares: C-Suisse’s stock plunged as much as 12% yesterday morning to a record low, before mostly rebounding. But the bank’s stock is still down 60% this year, and it’s struggling to regain investors’ confidence.
- It’s no “Lehman moment”: Analysts say C-Suisse is unlikely to default on investors, much less pose a systemic risk to wider markets. But the bank faces an uphill battle to claw back this year’s steep losses.
Risky business… Credit Suisse has a well-earned reputation for taking big risks: the bank lost over $7B on investments in hedge fund Archegos and lender Greensill, both of which collapsed last year. Cue: C-Suisse posted a huge loss again last quarter (while rival investment banks UBS, Morgan Stanley, and Goldman Sachs posted profits). Now investors are anxiously waiting for Credit Suisse to announce a restructuring plan.
Confidence is a valuable asset… and Credit Suisse may have overdrafted from its investors. When the beleaguered bank announces its turnaround plan — expected this month — analysts say it may need to raise up to $4B to finance its restructuring. But given the floundering finance giant’s recent track record, investors may be reluctant to fork over more cash.
What else we’re Snackin’
- Musky: Tesla’s quarterly deliveries rebounded to a record 344K, but shares fell 9% (Wall Street expected better). The EV titan will have to deliver even more cars this quarter to meet its annual target.
- Pilton: Peloton will stick its fancy spin bikes in all 5.4K Hilton-branded US locations (at least one bike per hotel gym). It’s a lucky stroke for struggling Peloton as demand for home-fitness hardware sags.
- OhShip: Consumer demand is cooling ahead of the holidays. US freight boats have seen a 20% drop in shipping orders, from blenders to decorative rugs, an ominous sign for the economy.
- Access: Wallets are tight, so Amazon launched an “Access” hub for customers to explore affordable options (think: discounts, coupons, and SNAP EBT payments) — and make it easier for shoppers to spend.
- Chevy: GM sold 556K cars last quarter (up 24% from a year earlier) as supply headaches eased. The auto OG plans to boost electric production after its Bolt EV had its best quarter ever.
Tuesday
- Paris Fashion Week wraps
- Earnings expected from Acuity Brands
Authors of this Snacks own: shares of Amazon, GM, and Tesla
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