Apple CEO Tim Cook speaks at an Apple event on the campus of Apple's headquarters in Cupertino, Calif., on Sept. 7, 2022. Apple Music is about to reach a huge numerical milestone — offering an eye-popping 100 million songs available on the streaming service. (AP Photo/Jeff Chiu, File)
Here is a rundown of Cheddar News' top market stories of the day.
BIG BANKS REPORT EARNINGS
Three of the biggest U.S. banks reported earnings before the bell on Friday, marking the unofficial start to the earnings season. Both Bank of America and JPMorgan Chase's earnings beat Wall Street estimates, though the latter said it was putting aside extra funds in case of a recession. Wells Fargo, meanwhile, took a massive hit from a $3.7 billion settlement with the Consumer Financial Protection Bureau for illegally assessing fees on borrowers, but nonetheless beat the Street's admittedly low expectation.
TIM COOK'S PAY CUT
Apple CEO Tim Cook is getting a pay cut. According to an SEC filing, shareholders voted on a $49 million pay package for the coming year, compared to $99.4 million in 2022. The compensation committee was partially responding to pressure from institutional investors who have argued for reducing the executive's pay. Going forward, more of Cook's compensation will be tied to stocks. Shares of Apple are down around 23 percent from a year ago.
SEC CHARGES CRYPTO FIRMS
While it may seem like too little, too late for those who called for more aggressive federal regulation earlier, the Securities and Exchange Commission is charging prominent crypto firms Genesis Global Capital, LLC and Gemini Trust Company, LLC for selling unregistered securities. “Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws," said SEC Chair Gary Gensler in a press release. "Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.”
CRYPTO LAYOFFS
In other crypto news, Crypto.com announced that it's cutting 20 percent of its workforce. "The reductions we made last July positioned us to weather the macro economic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry," CEO Kris Marszalek said in a blog post.
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.