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Read It And Eat 30/01

Welcome to ‘Read it and Eat’ — your go-to for bite-sized updates on corporate actions in finance, AI and anything I consider newsworthy. Join me twice a week for quick reads, where I serve up the latest insights that matter in the world of business.


Major Headlines


  • Elon Musk’s Neuralink begins Human Trials with first Human Implants

  • In May of 2023, Elon’s neurotech startup, Neuralink, got FDA approval to begin human tests and has been recruiting patients for its first human clinical trials. As of this Sunday, the company made its first implant in a human being and recorded that the patient is recovering fine. Neuralink is developing a brain implant that helps patients with severe paralysis control external technologies using only neural signals, the product Elon is calling Telepathy. [https://www.cnbc.com]

  • JetBlue warns a termination of the $3.8B Buyout of Spirit Airlines after Federal Opposition.

  • JetBlue Airlines was in talks with Spirit Airlines for a potential buyout to the tune of $3.8 billion. However, it may pull out of the deal after a federal judge blocked the deal this past weekend, citing that it would drive the price of fares up as it eliminates the nation’s largest low-cost airline. Spirit is of the opinion that the deal should still proceed regardless and it would continue to meet its obligations to the deal and both airlines have filed their intention to appeal this decision with a higher court. [https://www.bloomberg.com]

  • BlackRock’s Bitcoin ETF becomes the first to reach $2B in AUM

  • The BlackRock iShares Bitcoin ETF (IBIT) on Friday became the first of the recently launched spot bitcoin products to reach $2 billion in assets under management (AUM). This doesn’t include Grayscale’s GBTC, which had nearly $30 billion in AUM at the time of its conversion from a closed-end fund to a spot ETF. Investors added about $170 million to IBIT on Thursday, with the fund purchasing nearly another 4,300 bitcoin (BTC), pushing total tokens held to 49,952. With the price of bitcoin rising well above the $40,000 level early Friday, that brought AUM to above $2 billion. [https://www.coindesk.com]

  • Riot Games to shutdown failed attempt of creating a rival to Twitch

  • Fortnite maker and owners, Riot Games to close project REN (Riot ESports Network) after failing to compete with Amazon-owned gaming and streaming platform Twitch. The move came after the Los Angeles-based developer announced that it is laying off 530 employees, or 11% of its workforce, as part of its overall restructuring. Riot Games said it will be “doubling down” on its core live games rather than expand operations via spin-off titles and other projects. [https://www.bloomberg.com]

Minor Headlines

NEWS OF THE DAY

BOYCOTTS WORK, MIDDLE EASTERN RIVALS THRIVE.


In the wake of the Genocide in Gaza, consumers have decided to tactfully shun all brands that openly and explicitly support Israel and the IDF. In recent weeks, McDonald’s Corp. Chief Executive Officer Chris Kempczinski has warned that his firm is seeing “meaningful business impact” in the Middle East due to “misinformation” spreading about his company. Meanwhile, shares of American Restaurants International Plc- the Middle East franchise operator for KFC, Pizza Hut, Krispy Kreme and Hardee’s- declined as much as 27% on the Saudi stock exchange in the months after the genocide began. Among these companies are Starbucks and Coca-Cola. While such boycotts are certainly having an adverse effect on these companies, the boycotts are likewise creating opportunities for other companies in the Middle East.

One of the companies seeing a surge in business amid the boycotts is Coffeol, a chain of Lebanese coffee shops. Coffeol’s founder, Antoine Tohme, has publicly supported Palestine, and this has resonated well with many in the region. Despite the setback suffered by Starbucks in the region, Coffeol has seen its sales rise by 25%. Another company benefiting from the boycotts is Barbican, a non-alcoholic malt beverage that’s popular in the Middle East. Barbican’s sales have surged by an impressive 100% in Saudi Arabia since Coca-Cola was boycotted. Saudis are said to be turning to Barbican as an alternative to Coca-Cola, which is viewed by some as a company controlled by Jewish interests.

Moreover, in Bahrain, shoppers have been flocking to LuLu Hypermarket, where they are enthusiastically purchasing Turkish and Iranian products. The preference for these brands is partly driven by the fact that these countries openly support Palestine. As a result, LuLu Hypermarket is now expanding its offerings of Turkish and Iranian products.

The boycotts are not going unnoticed by the companies that are being targeted. Coca-Cola, for instance, has taken steps to reassure consumers that it is a company that’s committed to diversity and equality. In a statement released to the public, Coca-Cola said that they are “committed to respecting human rights, including the right to peaceful protest” and that they are “committed to creating an inclusive work environment that values all people, regardless of their race, ethnicity, gender, or sexual orientation.” [https://www.bloomberg.com]


Gen-Z Word of the Day:

Sprinkle Sprinkle

Initially meant “bless your heart” or “blessings”. But after being popularized by viral TikTok star SheRa Seven (sprinkle sprinkle lady), giving financial-oriented dating advice to the girls, “sprinkle sprinkle” became a way to allude to her and her way of approaching dating life.

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