—— BlackRock Announces First Layoffs Since 2019; FTX Finds $4.6 Billion in Liquid Assets; Retail Frenzy Sends BBBY Stock Up 67%; Goldman Predicts $110 Oil; Apple to Manufacture Own Screens; P&G Acquires Haircare Brand; Microsoft to Offer Unlimited Paid Leave
1. BlackRock Announces First Layoffs Since 2019
Today, BlackRock CEO Larry Fink and President Rob Kapito wrote in a letter to employees that, due to ongoing market uncertainty and in order to serve client interests, the firm will lay off about 500 employees globally, or approximately 2.5% of its workforce.
This will mark BlackRock’s first round of layoffs since 2019, highlighting the major impact of last year’s financial crisis. Still, after the layoffs, headcount will remain 5% higher than one year ago.
As of the end of September, the company employed 19,900 people and managed $7.96 trillion in assets.
The scale of the economic crisis has spared no one—ETF and asset management giant BlackRock is now laying off workers.
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2. FTX Finds $4.6 Billion in Liquid Assets
Today, FTX lawyers told a judge that the company has located nearly $5 billion worth of crypto assets and cash, which could be used to repay creditors.
FTX attorney Andrew G. Dietderich said the firm is attempting to liquidate $4.6 billion in book-value assets. Advisors also identified other high-value crypto holdings with poor liquidity.
So far, the team managing FTX’s bankruptcy has identified over 9 million user accounts, but it remains unclear how much money can be recovered or what percentage creditors will ultimately receive.
FTX creditors are unlikely to fully recover their assets—let alone the firm’s group of celebrity investors.
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3. Retail Frenzy Sends BBBY Stock Up 67%
Last week, home goods retailer Bed Bath & Beyond Inc. (BBBY) warned it was likely to file for bankruptcy, sending its share price down 46%.
Today, the stock was swept up in another meme-stock surge, soaring as much as 67% to $3.46. On Monday and Tuesday, shares had already risen 24% and 28%, respectively.
Over 99 million BBBY shares changed hands today—12 times the average daily volume in the past month. Reports said retail investors bought $6 million worth of stock after the bankruptcy warning.
In addition to BBBY, other meme stocks like AMC and GameStop also surged 23% and 13%, respectively.
The explosive rally in meme stocks reflects price action driven by sentiment, not company fundamentals.
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4. Goldman Predicts $110 Oil
Goldman Sachs’ Global Head of Commodities Research Jeff Currie said that China’s full reopening could significantly boost demand for oil across air, rail, and road transportation.
Currie projected that if China and other Asian economies fully reopen, Brent crude could rise to $110 per barrel by Q3.
This week, copper prices broke above $9,000 per ton for the first time since June 2022, and could reach $11,500 by the end of 2023. Trafigura Group forecasts even longer-term price gains for copper.
Today, crude oil futures reached $82 per barrel.
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5. Apple to Manufacture Own Screens
According to sources, Apple plans to start manufacturing its own display screens as early as 2024, reducing dependence on suppliers like Samsung and LG.
Previously, Apple also ended its chip supply deal with Intel for MacBooks, switching to its self-developed M2 chip.
Samsung remains the global leader in display technology and uses its in-house microLED panels in its TVs. Apple’s move to self-produce displays aims to strengthen supply chains and enable more customization.
The first Apple-designed screens will be used in high-end Apple Watches, then rolled out to iPhones.
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6. P&G Acquires Haircare Brand
Today, consumer goods giant Procter & Gamble Co. announced its acquisition of haircare brand Mielle Organics.
Post-acquisition, Mielle will continue to operate independently as a P&G subsidiary. Founders Monique and Melvin Rodriguez will stay on as leaders.
P&G’s beauty division will assist Mielle with market research and product innovation. Mielle is known for its natural ingredients, especially beneficial for Black women.
In recent years, P&G has acquired several innovative and eco-friendly brands, including Tula Skincare and Ouai.
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7. Microsoft to Offer Unlimited Paid Leave
Today, a Microsoft spokesperson confirmed that beginning January 16, all full-time employees in the U.S. will be eligible for unlimited paid time off.
In recent years, Microsoft has explored ways to make work schedules more flexible and has evaluated the pros and cons of the new policy. Netflix employees and senior bankers at Goldman Sachs enjoy similar benefits.
Unlimited leave is advantageous for employers—it reduces managerial workload and eliminates the need to pay out accrued vacation time to departing employees.
As long as work is completed on time, employers benefit from not having to pay unused vacation balances.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.