The U.K. government on Monday abandoned its plans to cut the 45% top income tax rate following public pushback and market volatility. Late last month, chancellor Kwasi Kwarteng unveiled a range of tax cuts and investment incentives, including a debt-funded £45B ($51B) package, aimed at reinvigorating the U.K. economy. More: - The tax cuts included scrapping the 45% tax on incomes over £150,000 ($166,770), taking the top rate to 40%.
- Following the announcement, the British Pound fell to a record low of $1.03 against the U.S. Dollar, and investors dumped U.K. government bonds.
- The FTSE 100 fell to its lowest level since March.
- During a speech to members of his Conservative Party on Monday, Kwarteng acknowledged the plan had caused some market turbulence and added that they are listening and have listened.
- Kwarteng added that the party needed to move forward with no more distractions and focus on the job at hand to deliver on the plan they had put forward.
- The policy reversal sent the Pound to $1.127 against the U.S. Dollar on Monday, and the 10-year gilt yield fell 1.14% to 3.95%.
- The 10-year gilt hit a record ~4.6% during last week’s market turbulence.
| |
Kim Kardashian has agreed to pay the SEC $1.26M to settle charges for failing to disclose she had received payment to promote a cryptocurrency asset. According to the SEC, Kardashian was paid $250,000 by EthereumMax last year to promote the company's EMAX tokens on her Instagram account. More: - The SEC said Kardashian should have disclosed she was paid when she promoted the tokens on her account.
- Kardashian's Instagram post included a link to EthereumMax's website and instructions for individuals to invest in EMAX.
- Kardashian agreed to return the $250,000 payment and pay a $1M penalty to settle the charges.
- The SEC aims to send a strong message that cryptocurrency and assets are generally securities, and all the traditional rules related to securities still apply.
- Kardashian agreed to settle the SEC charges without admitting or denying any wrongdoing.
| |
A message from KUSTOMER Proactive Support = Customers For Life In a post-pandemic world plagued by inflation and delays, reactive support is no longer the only form of support that consumers expect. CX professionals say that proactively resolving customer issues is now a top priority that creates a customer for life. Today’s brands must: - Anticipate customer needs
- Think proactively
- Turn support functions into differentiators
Access this new guide from Kustomer to learn why customers appreciate proactive brands, and the seven steps to achieve proactive support. Get the guide | |
OPEC+ is considering cutting oil production by more than 1 million barrels a day, its largest cut since 2020. According to sources, voluntary cuts by individual members could come on top of the 1 million barrels being considered. OPEC+ is set to meet on Oct. 5 in Vienna, its first in-person meeting since March 2020. More: - Following news of potential oil output cuts, oil prices jumped more than $3 on Monday.
- International benchmark Brent crude futures rose 4% to trade at $89.53 per barrel.
- U.S. West Texas Intermediate surged 4.8% to trade at $83.26 per barrel.
- According to sources, the upcoming OPEC+ meeting could be as significant as the April 2020 meeting, where the group cut oil production by 10 million barrels a day, or 10% of global supply, due to the COVID-19 pandemic-driven drop in oil demand.
- Energy stocks jumped on the news of potential oil output cuts, with Marathon Oil rising 8%, ConocoPhillips gaining ~6%, and Occidental rising ~5%.
| |
Automakers released their third-quarter sales and delivery numbers over the weekend. General Motors and Tesla reported sizable gains, while Toyota and Nissan saw their sales slip. More: - GM reported a 24% increase in Q3 U.S. auto sales amid ongoing supply chain issues.
- The U.S. automaker sold 555,580 vehicles from July through September, up from 447,000 reported over the same period last year.
- Tesla reported it delivered 343,000 vehicles in Q3, a ~42% increase compared to the same period last year.
- However, the EV maker missed analysts' expectations of 364,660 deliveries.
- Tesla produced 365,000 in Q3.
- Toyota reported a 7% drop, and Nissan reported a ~23% drop in U.S. auto sales in Q3.
- Ford will report its U.S. sales on Tuesday.
- U.S. car buyers' average price for vehicles rose 10% from last year to $45,971, the highest of any quarter on record.
- According to Edmunds, about 14% of auto loans had a monthly payment of $1,000 or more, up from 8% reported last year.
- The average interest rate on a new vehicle in the U.S. was 5.7%.
- Tesla shares fell ~7% by afternoon trading on Monday, while GM was up ~3%.
| |
A message from HONEYBRICKS Invest in Real Estate from Your Crypto Wallet Here’s a new way to invest in real estate - through your crypto wallet! HoneyBricks makes it possible. Here’s how it works: - HoneyBricks wraps high quality U.S. real estate into security tokens.
- Those real estate tokens represent real ownership in physical real estate that generates passive income and capital growth.
- Then, HoneyBricks on-ramps USD and sends you the passive income in your choice of cryptocurrency!
Is it safe? Yes! HoneyBrick real estate tokens are backed by the U.S. legal system with real ownership in the asset through SEC compliant structure. Explore the HoneyBricks marketplace for current offerings. Try HoneyBricks | |
Spreads of Credit Suisse's credit default swaps (CDS) rose sharply on Friday, calling into question the bank's financial health. Credit Suisse senior executives spent the weekend reassuring their major investors and clients about the bank's liquidity and capital position. The Swiss bank denied claims that it had formally approached investors about raising more capital. More: - Credit Suisse shares fell nearly 10% following news of its executives reaching out to top investors and clients.
- The bank's stock is down ~60% YTD.
- Credit Suisse's five-year CDS jumped by more than 100 basis points on Monday.
- In a statement to CNBC on Monday, the bank said it would provide updates at its Q3 earnings call currently set for Oct. 27.
- According to Reuters, the bank is in the process of a strategy review that includes potential divestitures and asset sales.
- Analysts at Deutsche Bank estimate Credit Suisse's restructuring would leave a 4B Swiss Franc ($4B) hole in the bank's capital position.
| |
Defense contractor L3Harris Technologies is buying satellite specialist ViaSat’s military communications business for $1.96B. The business called Link 16 Tactical Data Links is part of ViaSat’s government-systems unit, an integrated network on military aircraft, vessels, vehicles, and bases designed to share voice and data communications securely. More: - ViaSat is based in Carlsbad, California, and provides satellite and broadband services, including home internet and in-flight Wi-Fi for customers like Southwest Airlines.
- Link 16 Tactical Data Links accounts for about one-third of ViaSat’s government business.
- ViaSat plans to use proceeds from the sale to pay down debt.
- As of Friday’s market close, the company had a market cap of $2.3B and more than that in debt.
- ViaSat shares jumped more than 30% following news of the sale.
| |
Quick Hits - The 3 Things to Never Build In Your App: Authentication, Notifications, and Payments.*
- Founder Alex Mashinsky of embattled crypto lender Celsius Network withdrew $10M from the company weeks before the company froze customer accounts and eventually filed for bankruptcy.
- An independent investigation into U.S. women’s professional soccer found reports from players about sexual, verbal, and emotional misconduct by their coaches were repeatedly ignored by the league and federation.
- London’s Heathrow Airport will lift its passenger numbers cap on Oct. 29. The airport placed a cap of 100,000 passengers a day in July during the peak summer travel season as it struggled to meet demand.
- Connected fitness equipment maker Peloton will place its bikes in all 5,400 Hilton hotels in the U.S. The partnership with Hilton includes all 18 of the company’s hotel subsidiaries, including Hampton Inn and Doubletree.
*This is a sponsored post. | |
Upcoming Events - October 11 - AMA with Mike Malone (Smallstep)* (Register Here)
- October 13 - AMA with Ram Bartov (Chief Accounting Officer at TripActions)* (Register Here)
- October 19 - AMA with Zecca Lehn (Responsibly VC) (Register Here)
- October 25 - Meet Our Fund 4, an Inside.com Summit (Register Here)
- November 02 - AMA with Bill Glenn (Executive Chairman at Crenshaw Associates) (Register Here)
- December 07 - Live AMA with Deividi Silva ( Head of Developer Relations at Gun.io) (Register Here)
*This is a sponsored listing. | |
| | Vanessa Omeokachie is a Freelance Writer for Inside.com. She writes the Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, exploring cities, and traveling. Connect with her on Twitter @VanessaOmeo or on LinkedIn. | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
Sign up for our monthly Kustomer newsletter to stay up to date on all things CX. | |
HoneyBricks provides the easiest way to invest in real estate from your crypto wallet. | |