Apple’s Buy Now Pay Later, FTX Founder Bribery Charge, UBS Appoints Sergio Ermotti

Adidas Objects to BLM

Adidas (XETRA:ADS) lawyers have asked America’s trademark regulators to reject the logo submitted by Black Lives Matter, an anti-racist foundation, citing that BLM’s design, three yellow stripes, could easily be mistaken for Adidas’ famous motif. The German sportswear giant has previously admitted to having too few black staff members, following employee criticism.

UK Broadcasting Rule Overhaul

The UK government has announced its biggest overhaul of broadcasting rules in 20 years. Makers of smart speakers, including Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG), will be required to offer all licensed UK radio stations access to their platforms. The new media bill, set to regulate online streaming platforms for the first time, will also update the rules for traditional broadcasters such as the BBC, ITV, and Channel 4. Regulator Ofcom will now have oversight of content available from services such as Netflix and Disney, leveling the playing field for UK-based broadcasters.

Apple’s Buy Now Pay Later

Apple (NASDAQ:AAPL) has launched its long-awaited buy now, pay later programme in the US, expanding further into finance and challenging incumbents such as Klarna and Affirm (NASDAQ:AFRM) . Apple Pay Later is built into the Wallet function of the iPhone and offers zero-interest loans between $50 and $1,000 for online goods and in-app services, paid in four payments spread over six weeks. The finance tool is facilitated by Apple Financing, a wholly-owned subsidiary, with Goldman Sachs (NYSE:GS) playing a role in granting Apple access to Mastercard’s network.

FTX Founder Bribery Charge

Sam Bankman-Fried, the founder of FTX, a now-defunct crypto exchange, has been charged by American prosecutors with bribing Chinese officials. Bankman-Fried allegedly paid $40 million worth of cryptocurrency to regain access to trading accounts worth over $1 billion that had been frozen by Chinese authorities. The founder faces 12 other criminal charges following the implosion of his empire in November, although he has pleaded not guilty to most.

Alibaba’s Empire Split Plan

Alibaba’s (NYSE:BABA) shares have risen by 16% in Hong Kong after announcing plans to split its sprawling empire into six independent units. The companies, except one handling Chinese commerce, will seek outside capital and eventually seek listings. The move is intended to restore the value of Alibaba’s shares following a crackdown on tech companies by Chinese authorities in 2020, which reduced their price by about 70%.

UBS Appoints Sergio Ermotti

UBS (NYSE:UBS) has appointed Sergio Ermotti as chief executive to steer its takeover of Credit Suisse (NYSE:CS), replacing Ralph Hamers less than two weeks after regulators orchestrated the rescue deal. Ermotti, who previously served as CEO for nine years before stepping down in 2020, is expected to start on April 5. UBS cited Ermotti’s previous experience in restructuring its investment bank and his deep understanding of the financial services industry in Switzerland and globally as ideal for pursuing the integration of Credit Suisse.

Big Tech’s AI Staff Cuts

Tech Giants companies, such as Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG), Meta (NASDAQ:META) and Twitter, have been cutting staff from their responsible AI teams, leading to concerns about the safety of the technology as it becomes more widely adopted across consumer products. The responsible AI teams advise on the safety of consumer products that use artificial intelligence, but the numbers of staff affected remain in the dozens and represent only a small fraction of the tens of thousands of tech workers eliminated in response to a broader industry downturn.

Next’s Profit Rise Warning

UK retailer Next (NASDAQ:NEXT) announced a rise in annual profits to £870mn, exceeding expectations. However, the company warned that inflation is driving up costs and predicted a decrease in full price sales of 1.5% this year, resulting in an expected pre-tax profit fall to £795mn. Next’s CEO, Simon Wolfson, called the upcoming year “challenging” due to the combination of inflation and declining sales.

Tesla Loses Market Share in China

Tesla’s (NASDAQ:TSLA) decision to cut prices in China has resulted in a loss of market share to Warren Buffett-backed BYD (OTC:BYDDY), with Chinese carmakers on track to sell more passenger vehicles than foreign competitors for the first time in 2023. This price war has also impacted European, Japanese and US carmakers. In the first two months of the year, BYD sold more than five times the number of units than Tesla did in China.

Multi-Color’s Junk Bond

Multi-Color Corporation, a US labelling company, has broken the drought of issuance in the $1.4tn US junk bond market by completing a $300mn bond issuance. Despite the recent banking sector turmoil that affected investor appetite for risky debt, the company managed to secure the deal, which is due to mature in 2028. While it was not a large transaction, it was significant since Multi-Color was the first US borrower with a subinvestment-grade credit rating to tap the market since the failure of Silicon Valley Bank. The proceeds will be used, in part, to fund a potential acquisition.

UniCredit Shareholder Boost

UniCredit’s (Milan:UCG) plan to return more money to its shareholders has been approved by the European Central Bank. The Italian bank will distribute €5.25bn to investors, a 40% increase on 2021’s levels, through a proposed dividend and a €3.34bn share buyback programme for 2022. This approval is a boost for UniCredit just before its annual shareholder meeting where investors will need to approve the planned dividend and the timing of the buyback programme, amidst the recent banking sector turmoil.

Binance Faces Multiple Issues

Binance, the largest crypto exchange, is facing multiple issues, leading traders to withdraw billions of dollars. The Commodity Futures Trading Commission filed a lawsuit against Binance, accusing it of illegal operations in the US and violating financial regulations. Binance also faced software errors, forcing it to suspend spot trading temporarily, and announced the reintroduction of fees on spot bitcoin trading. In the last seven days, Binance saw a net outflow of $2.1 billion on the Ethereum blockchain, according to crypto data provider Nansen, even though it holds $63.2 billion in its disclosed wallets.

JP Morgan Epstein Lawsuit

JP Morgan’s (NYSE:JP) chief executive Jamie Dimon will be questioned under oath in a civil lawsuit regarding the bank’s relationship with convicted sex offender Jeffrey Epstein. The US Virgin Islands sued JP Morgan, alleging that the bank facilitated Epstein’s sex trafficking by allowing him to remain a client and helping him transfer money to his victims. Lawyers for the US Virgin Islands requested Mr. Dimon’s questioning, but JP Morgan argued that he played no role in its dealings with Epstein.

McKinsey Announces Job Cuts

McKinsey & Co., the consulting firm, is undergoing significant job cuts, with about 1,400 roles to be eliminated. The restructuring will revamp how the company organizes its support teams, either through workforce reductions or by transferring employees to other positions. This cut represents about 3% of the firm’s ballooned headcount, which rose to nearly 47,000 from 28,000 a decade ago and 17,000 in 2012.

Signature Bank Crypto Deadline

The Federal Deposit Insurance Corp. (FDIC) has set a deadline of April 5 for customers of the failed Signature Bank (NASDAQ:SBNY), who hold cryptocurrency deposits, to close their accounts and transfer their funds. Signature Bank’s closure by regulators caused a stir in the regional banking sector, prompting New York Community Bancorp (NYSE:NYCB) to take over most of the deposits and some of the loans. However, the deal did not include about $4 billion of deposits linked to Signature’s digital-assets banking business, according to the FDIC. Customers of Signature Bank’s crypto services should take prompt action to avoid any potential losses.