— Lyft Struggles for Profit, to Lay Off 30%; Credit Suisse Loses $69B in Deposits; Bed Bath & Beyond Files for Bankruptcy; CBOE Launches Next-Day VIX Index; Manhattan Cash Buyers Surge; Coca-Cola Revenue Beats Estimates; Queens’ Tallest Tower Secures $60M Loan
1. Lyft Struggles for Profit, to Lay Off 30%
Sources revealed that in order to reach profitability quickly and better compete with Uber, ride-hailing company Lyft Inc. plans to lay off at least 1,200 employees in a new round of job cuts—approximately 30% of its workforce.
The Wall Street Journal previously reported that this layoff round could help the company reduce costs by about 50%.
Newly appointed CEO David Risher, who was named last month, will begin work this week, and the layoffs are part of his restructuring plan.
Last Friday, David sent a letter to employees stating that all offices will be closed on April 27, and employees will be informed that day whether they are laid off.
Founded in 2012, Lyft has been increasingly marginalized in the ride-hailing market by Uber, which currently controls 75% of the U.S. market. Uber’s rapid expansion is credited to its broader services including food and beverage delivery.
In addition, YipitData reported that Lyft ride prices have increased 31% compared to 2019—significantly higher than Uber’s 20%.
Lyft’s market share continues to shrink, and both pricing and service scale lag far behind Uber.
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2. Credit Suisse Loses $69B in Deposits
Credit Suisse, a 167-year-old bank, revealed in its Q1 earnings report today that clients withdrew $69 billion in deposits. Meanwhile, key divisions such as wealth management continued to post losses and lose clients.
UBS, which recently acquired Credit Suisse, may struggle to retain these important clients and assets.
Last month, a key Saudi investor announced it would no longer provide capital support to Credit Suisse. As a result, both high-net-worth and retail clients lost confidence in the bank and withdrew billions of dollars. The Swiss government, fearing bankruptcy, facilitated the UBS acquisition.
Analyst Thomas Hallett wrote in a note to investors that Credit Suisse’s business has been severely damaged and may be a drag on UBS for years to come.
UBS will acquire Credit Suisse for approximately $3.37 billion, even though the latter holds $60 billion in book value.
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3. Bed Bath & Beyond Files for Bankruptcy
On Sunday, home goods retailer Bed Bath & Beyond Inc. (BBBY) formally filed for Chapter 11 bankruptcy protection.
In recent months, BBBY attempted to restructure its massive debt and warned it may not remain a going concern.
According to court filings, BBBY plans to immediately liquidate inventory from 360 Bed Bath & Beyond stores and 120 Buy Buy Baby stores, while seeking buyers interested in part or all of its assets.
As one of America’s most well-known home goods chains, BBBY’s collapse could jeopardize thousands of jobs and retirement plans. The company currently employs 14,000 people in the U.S. and Puerto Rico, with $76 million in outstanding payroll and benefit obligations.
One year ago, BBBY’s share price was $17. Today, it has fallen to $0.14.
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4. CBOE Launches Next-Day VIX Index
In recent years, the evolution of equity derivatives markets has led to doubts over the effectiveness of Wall Street’s fear gauge, the VIX. In response, the Chicago Board Options Exchange (CBOE) will launch a new next-day volatility index today—VIX1d.
VIX1d will measure expected volatility in the S&P 500 Index over the next single day, unlike the standard VIX, which reflects one-month volatility.
CBOE Head of Product Innovation Rob Hocking said that since 2020, short-term options trading volume has surged nearly fourfold, making the VIX less effective in reflecting true market volatility—whereas VIX1d may offer better clarity.
This month, nearly half of all S&P 500 option trades involved contracts expiring the same day. Traders often use same-day expiration options to capitalize on major events like Fed meetings or economic data releases—none of which are captured by the traditional VIX.
Ultra-short-term options trading is becoming increasingly prevalent, and such trades are typically not reflected in the standard VIX index.
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5. Manhattan Cash Buyers Surge
New data shows that in Q1 of this year, 57% of homebuyers in Manhattan paid entirely in cash—the highest proportion since 2014.
Douglas Elliman real estate broker Frances Katzen said that liquidity is tight in today’s housing market, and in such an environment, cash is king.
Compared to one year ago, the median sale price has fallen 9.7%, and the number of transactions is down 38%, creating opportunities for cash buyers.
Cash buyers also have stronger bargaining power during negotiations with sellers, since they are not delayed by mortgage approval processes.
From $700,000 studios to multimillion-dollar luxury homes, the share of cash buyers has increased across all price tiers.
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6. Coca-Cola Revenue Beats Estimates
According to Coca-Cola’s latest financial report, Q1 organic sales—excluding currency effects and acquisition impacts—rose 12% year-over-year, beating the 9.6% analyst forecast.
Q1 revenue reached $10.98 billion, exceeding expectations.
CEO James Quincey stated that the company’s sales system has never been so well-coordinated and agile, and expressed confidence in meeting this year’s revenue targets.
CFO John Murphy noted that while inflation has eased for lumber and steel, prices for sweeteners and juices—both key ingredients—have risen. The company has implemented hedging strategies, and global supply remains secure.
Consumers have gradually adapted to a high-inflation environment, and Coca-Cola’s price increases have outpaced volume growth.
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7. Queens’ Tallest Tower Secures $60M Loan
The U.S. subsidiary of Hong Kong real estate firm Risland Holdings has recently secured a $60 million inventory loan for Skyline Tower—the tallest residential building in Queens.
New York-based bridge lender Emerald Creek Capital provided the loan for the 67-story landmark tower. Nine months ago, Risland had purchased apartments in the building worth $161 million.
Modern Spaces, the firm responsible for condo sales in the tower, said that sales activity has picked up in the last six to eight weeks.
Over the past five years, Skyline Tower’s 800 units have generated $700 million in condo sales, with about 30% still unsold. The average sale price is approximately $1,500 per square foot.
Risland is one of three equity holders with condo ownership in Skyline Tower, alongside Xu Xiaoshu’s United Construction & Development Group and FSA Capital.
Many Chinese investors have purchased condos in Skyline Tower as investment properties.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.