Avaya nears chapter 11 bankruptcy filing (2 min read)
It was reported that Avaya is close to reaching a chapter 11 bankruptcy filing to restructure its balance sheet and debt load. The company said it is getting doubtful to continue operating as a debt maturity is coming next year. Avaya has previously filed chapter 11 five years ago and then exited bankruptcy a year later. Shares of Avaya dropped more than 54% on Friday. It has fallen about 97% this year to a market-cap of $45 million from more than $2 billion just a year ago.
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Goldman Sachs is planning to cut up to 8% of its employees (2 min read)
Goldman Sachs plans on cutting about 4000 employees or 8% of its workforce across all divisions of the bank in January next year. The plan is still ongoing and the finalized number might be lower. Wall Street banks are adjusting to lower revenues this year and expect the coming year to be even tougher. While most banks have all cut jobs in recent months, Goldman’s upcoming move will be the deepest among Wall Street so far.
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Central banks have now given the markets a clear message (5 min read)
The Fed, ECB, Bank of England, and Swiss National Bank all raised interest rates by 0.5% last week, but their tones for future hikes were slightly different. The ECB said it needs to get significantly higher to bring inflation under control while the Bank of England said it will depend on how the recession unfolds. However, a clear message from the central banks is that financial conditions need to stay tight and the theme for 2023 is to prevent the real rates from falling.
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Chinese firms avert delisting as the U.S. gets full inspection access (4 min read)
The US has officially gained full access to conduct audits on US-listed Chinese companies for the first time. The news offers some relief to the 200 Chinese companies listed on the US exchanges, including Alibaba, which were at risk of getting delisted. The risk of these companies getting kicked off the US exchanges seems to have gotten less likely. However, there are still concerns about what issues the audits might uncover going forward.
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AI-Driven DIP ETF Seeks to Reinvent Active Management (1 min read)
Kaiju ETF advisor launched an AI-Driven ETF last week. The BTD Capital Fund (DIP) aims to find the true dip in individual stocks by using their own proprietary algorithm to process thousands of data per second. DIP will invest in US large-cap equities that the AI or algorithm identifies as oversold in the market. Kaiju’s CEO claims that DIP brings the best of active management and AI-computer algorithm, and the first of its kind in the ETF space.
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Big three ETF issuers slip market shares for a sixth year (3 min read)
Although the big three ETF providers, Vanguard, BlackRock, and State Street, still hold about 79% of US ETF assets, their total market shares have been slipping for six straight years. Their market shares continue to get thinner as new entrants entering the market and large mutual funds converting into ETFs are on the rise. The 10 largest ETF debuts this year are from Dimensional, JPMorgan, and Goldman Sachs, with two being mutual fund conversions.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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