More Holes Than Swiss Cheese

Credit Suisse has had its fair share of problems over the years, and that’s putting it lightly. 🙄

This week, shares of the Swiss Bank fell more than 20% on news that the company is searching for fresh capital for the fourth time in seven years.

It started speaking with investors about the move in recent weeks, considering a variety of options. One of the more drastic options includes exiting the U.S. market entirely. This would mean selling its U.S. investment banking and asset management businesses. Though, the company has said it will not exit the U.S. market.

As the global economy weakens and rates rise, what’s clear is that struggling companies like Credit Suisse will have a harder time executing their turnaround strategy. They no longer have cheap financing and rising equity markets as a backdrop. Instead, they face the most challenging business and financing environment in over a decade.

The company’s next steps remain to be seen. But so far, investors don’t appear to have a lot of optimism as shares fell 12% today to a new all-time low. 😬

Ford Flops On Supply Chain Warning

After yesterday’s close, Ford warned investors that inflation and supply chain issues would cost it an extra $1 billion during the third quarter. 🔺

Parts shortages have prevented 40,000-45,000 vehicles from reaching its dealers, mainly high-margin trucks and SUVs. However, it expects to be able to ship those vehicles during Q4.

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American Airlines Gains Some Altitude

American Airlines reports results on October 20th. However, today it preannounced that its third-quarter sales are likely better than previously expected.

The company said revenue for the quarter that ended September 30 will be up 13% from Q3 2019, above its July forecast of a 10%-12% increase. The strong summer travel demand helped it cover rising costs. 💪

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Some High-Profile Headlines

There were some major Wall Street players in the news today; let’s find out why. 👀

The first is Elon Musk, who revived his deal to buy Twitter at the original $54/share price just days before they were due in court. The news sent shares soaring towards that buyout price before they were halted for about three hours, opening again briefly before the market closed. Twitter confirmed that it received Musk’s letter of intent to complete the transaction at $54.20/share and intends to close the deal with him.

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EU Delivers Another Blow To Meta

The market continues to pummelMeta ($META), with the most recent hit coming from the European Union (EU). Regulators in the EU, citing EU privacy laws, have allegedly ruled that users don’t have to agree to personalized ads based on their activity. 📝

A public ruling hasn’t been published yet, but the market is trading down based on its potential impact. That’s because analysts and investors fear the EU may create more roadblocks in Meta’s ability to use targeted ads, which are a key part of its business.  

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