When they run out of Terra Blues chips
Hey Snackers,
Nike says it's not affiliated with blood-stained "Satan Shoes," and is now suing the company that sold 666 pairs of them in a collab with Lil Nas X. Nike's lawyers work hard, but the devil works harder: the shoes sold out in less than a minute.
The Dow closed at a record high, while the broader market lagged. Oh, and the massive ship that was blocking the Suez has finally been moved after six days.
The i-banking equivalent... of defaulting on your mortgage and getting foreclosed on: getting your multi-billion dollar positions sold off after missing a margin call. Trading on margin = trading (partly) with borrowed money (usually from a broker). Margin call = when equity in your margin account falls below a minimum level, and the lender asks you to put up more of your own cash or sell positions to mitigate risk. They can happen when the value of holdings in a margin account plunges.
It's a cascade effect... This big margin default is trickling down from the fund to banks to regular investors. For banks: this could mean billions in losses. Credit Suisse and Nomura warned of significant hits to their quarterly financials — both stocks plunged as much as 15% yesterday. Now, banks' damage-control is causing collateral damage: retail investors.
High roller, high risk... Investment banks like Goldman lend companies billions in cash and stocks — and they make billions from these positions. Trading on margin means greater potential gain, but also much greater potential losses (that can mount fast). Before Monday’s warning, Credit Suisse said its pretax profit in January and February was the best in a decade. Now it could face billions in losses, because it may not have hedged its risk enough.
Came for the free Terra chips... stayed for the all-inclusive resort. JetBlue is known for its East Coast routes and unlimited free snacks (shoutout mini choc chip cookies). Now, it wants to Expedia-fy itself with a new travel booking site called Paisly. JetBlue flyers can book hotel rooms, rental cars, and even theme park tickets through the site. JetBlue plans to expand it to vacation rentals, too.
Like a red-eye to Miami... The travel booking market is already crowded, with companies like Expedia, Priceline, and Kayak. But JetBlue thinks your ticket is its ticket to success.
Platforms = the greatest love/hate relationship in business... Nonna's Pizza Shop loves that people discover its marinara through DoorDash — but hates paying DoorDash a commission. Airlines love that Expedia helps you snag their $356 LAX-JFK flight, but hate giving Expedia a cut. JetBlue would rather keep you on its own website. Paisly adds that all-in-one convenience, making direct booking more appealing.