—— Wall Street Scoops Up Credit Suisse Talent; Apple to Spend $1 Billion Annually on Films; Hindenburg Shorts Block; Jobless Claims Drop Again; TikTok CEO Testifies in U.S.; Accenture to Cut 19,000 Jobs; NBA Players Defrauded of $13 Million
1. Wall Street Scoops Up Credit Suisse Talent
This week, UBS made an emergency acquisition of crisis-hit Credit Suisse, resulting in career disruptions for many employees.
According to sources, major investment banks such as Deutsche Bank, Citigroup, and JPMorgan are preparing to absorb Credit Suisse’s investment bankers and wealth managers.
At the time of its collapse, Credit Suisse had around 50,000 employees. UBS may retain the top performers, while competitors aim to seize this rare opportunity to hire strong talent.
Michael Nelson, Managing Director at recruitment firm Quest Group, said many top bankers are receiving outreach from HR daily. Credit Suisse employees are also aware that UBS’s capital markets operations are smaller and are actively seeking new opportunities.
UBS has gained a timely acquisition opportunity, while Wall Street can acquire talent at relatively low cost.
______
2. Apple to Spend $1 Billion Annually on Films
According to sources, Apple Inc. plans to invest $1 billion annually to produce films for theatrical release, aiming to boost its Hollywood influence and attract more users to its streaming platform.
Apple is collaborating with several movie studios and plans to release multiple films this year and beyond, including the spy thriller Argylle starring Leonardo DiCaprio and the historical drama Napoleon.
Compared to budgets from just a few years ago, the $1 billion annual investment is massive. Apple intends for its films to debut in thousands of theaters and run for at least one month.
Currently, Apple TV+ has between 20 to 40 million paid subscribers, lagging behind Disney+ and Netflix.
Apple hopes to strengthen its Hollywood presence while drawing more users to Apple TV+.
______
3. Hindenburg Shorts Block
Short-selling firm Hindenburg Research recently revealed it is shorting Jack Dorsey’s payment company Block Inc., alleging the company misled investors. Jack Dorsey is the co-founder of Twitter and currently serves as Chairman of Block.
Following the announcement, Block’s stock fell 20% in pre-market trading.
Hindenburg had been investigating Block for the past two years and released its report this week via its website and Twitter.
In January, Hindenburg accused Gautam Adani’s companies of fraud and market manipulation, triggering a major sell-off of Adani stocks.
In September 2020, Hindenburg exposed fraud by Nikola Corp. founder Trevor Milton. Milton was formally charged in October of last year. Hindenburg’s investigations have demonstrated both influence and credibility.
Due to the strength of its reports, companies targeted by Hindenburg often suffer sharp stock declines.
______
4. Jobless Claims Drop Again
According to data released today by the U.S. Department of Labor, initial jobless claims fell unexpectedly by 1,000 to 191,000 for the week ending March 18, below economists’ expectations of 197,000.
Currently, there are nearly two job openings for every unemployed American, and industries like food service and hospitality continue to struggle with hiring and retention.
Recently, tech giants like Amazon and Meta have announced new rounds of layoffs, which will soon be reflected in unemployment claim data.
The unemployment rate remains near historic lows, and job openings remain plentiful.
______
5. TikTok CEO Testifies in U.S.
Today, TikTok CEO Shou Chew testified before the U.S. Congress. Facing aggressive questioning from bipartisan lawmakers, he repeatedly emphasized that TikTok’s parent company, ByteDance, is mostly owned by international investors and that most board members are American.
Chew stated there is no evidence TikTok employees have misused American user data.
Committee Chair Cathy McMorris Rodgers said Chew was invited to provide honest answers for the American public. She argued TikTok poses threats to user well-being and data security and should be banned.
Florida Republican Michael Bilirakis also played a video related to suicide.
Chew responded that TikTok takes user mental health seriously, and users who search for such content are redirected to mental health resources.
Rodgers noted TikTok has 150 million users in the U.S., which she called the biggest threat.
______
6. Accenture to Cut 19,000 Jobs
Today, consulting giant Accenture Plc announced it will gradually cut 19,000 jobs—about 2.5% of its workforce—over the next 18 months.
The announcement sent Accenture shares up 8.6%, their biggest jump since December 2021.
Accenture stated that severance and related costs will total $1.2 billion, while office consolidations will cost another $300 million.
The move marks the largest workforce reduction in the consulting sector. Last month, McKinsey also announced plans to lay off around 2,000 employees.
The consulting industry’s health closely follows corporate budgets—more money means more projects.
______
7. NBA Players Defrauded of $13 Million
Today, federal prosecutors in New York formally charged former Morgan Stanley advisor Darryl Cohen, financial advisor Brian Gilder, an NBA player agent, and a former stockbroker.
Prosecutors allege Cohen and Gilder colluded to defraud several unnamed NBA players by persuading them to buy life insurance policies at more than four times the actual price to create arbitrage.
Cohen reportedly used some of the money to pay off credit card debt and gave $200,000 to his romantic partner.
He also allegedly diverted $500,000 from two players’ accounts under the guise of charity and spent $238,000 building a basketball court in his backyard.
The four defrauded NBA players lost a total of $13 million.
A 2021 report by consulting firm Ernst & Young (EY) found that from 2004 to 2019, professional athletes were defrauded of nearly $600 million in total.
NBA players earn large incomes and are often busy, making them vulnerable to financial exploitation.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.