Swipe off (Jakub Porzycki/Getty Images) |
|
| Hey Snackers, Silicon Valley is giving fashion week vibes as tech CEOs ditch boring hoodies for sporty shearling jackets and $7K Alexander McQueen blazers. Lookin' at you, Zuck. The S&P 500 notched a fresh record yesterday, ending the market's three-day losing streak. Investors are waiting for the Fed's fave inflation gauge tomorrow (because it could affect — you guessed it — interest-rate cuts). 🐰 P.S. The US stock market is closed tomorrow for Good Friday; we'll hop back into your inbox on Monday. |
|
|
The plastic cap… After nearly 20 years of litigation, Visa and Mastercard announced a major settlement with US retailers this week to temporarily lower credit-card swipe fees. The charges — a small fixed fee plus a percentage (normally 1% to 3%) of every customer credit-card purchase — cost US merchants $72B last year. It might explain why your local diner has a cash discount. The settlement details: |
- T&Cs: Visa and Mastercard agreed to cut their swipe fees by 0.04 percentage points for three years. The payment networks also agreed to cap the average fee at 0.07 percentage points below their current rate for the next five years.
- Not chipper: If the settlement's approved, retailers — who've blasted the deal as too little, too temporary — could save $30B. Visa and Mastercard (80% of the credit-card market) could get legal relief without a long-term chip in their swipe-fee income.
|
The impact… Swipe fees indirectly fund credit-card rewards perks like cash back and airline miles. While Visa and Mastercard make $$ on every swipe, it's really the banks that issue the credit cards that collect the bulk of swipe-fee revenue (last year JPMorgan made $31B). A major part of the settlement: merchants would be able to raise prices based on the specific card used. Visa and Mastercard premium cards typically come with higher swipe fees, meaning someone using a card like the $550/year Chase Sapphire Reserve could end up paying a premium at checkout. |
- Down the road, this could all influence how consumers choose their cards, how retailers pass on fees, and how banks build their rewards programs.
|
|
|
 THE TAKEAWAY
|
The first swipe isn't the deepest… Even with this settlement, US retailers would still pay the highest swipe fees in the world (which they can pass on to customers). Last year, a bipartisan bill that aims to toughen credit-card competition (hopefully lowering fees) was intro'd in Congress, though passing it may prove tough in an election year. |
|
|
That no-fee feeling. Apple Card lets you spend your way, with no fees (annual, late or foreign transaction) and up to 3% unlimited Daily Cash back on every purchase you make. Spend using Apple Pay, your virtual card number, or your titanium Apple Card — designed beautifully, and made to last. Terms apply. Cash in, daily. Daily Cash is real cash. It'll never expire, and you can do exactly what you like with it: treat yourself, treat a friend, or save it for a rainy day. Terms apply. Apply now and start earning cashback right away via Apple Pay. |
|
|
That no-fee feeling. Apple Card lets you spend your way, with no fees (annual, late or foreign transaction) and up to 3% unlimited Daily Cash back on every purchase you make. Spend using Apple Pay, your virtual card number, or your titanium Apple Card — designed beautifully, and made to last. Terms apply. Cash in, daily. Daily Cash is real cash. It'll never expire, and you can do exactly what you like with it: treat yourself, treat a friend, or save it for a rainy day. Terms apply. Apply now and start earning cashback right away via Apple Pay. |
|
|
Findin' a Holo Charizard… in a shoebox under your bed. In its heyday, FTX snapped up 8% of OpenAI competitor Anthropic for $500M. While FTX went bankrupt, Anthropic's value soared. Now that investment could help former FTX customers recoup $8B in funds that FTX's disgraced founder, Sam Bankman-Fried, was convicted of stealing (FYI: his sentencing is today). This week FTX said it planned to sell two-thirds of its stake in Anthropic for $884M. The AI biz is backed by Amazon and Google. |
- What goes around: The Anthropic sale, if it goes through, could play a major role in FTX's effort to repay creditors. After all, the $8B in missing customers funds was used (in part) to buy crypto, scoop up real estate, and invest in startups like Anthropic.
- Every little bit: FTX has also been selling off its increasingly valuable crypto stash and its portfolio of Bahamian properties as it works to raise cash.
|
A little FT-Xtra… FTX owes $$ to more than 100K creditors, many of whom are former customers who feared they'd lost it all. Now they reportedly may get back 120% to 140% of what their accounts were worth when the biz declared bankruptcy in 2022. But some aren't happy with that. Back when FTX went belly up, bitcoin was worth about $16K, and it's now trading closer to $68K. Creditors would recoup only the dollar value of BTC they had in FTX at the time — not the coins themselves (which are now worth way more). |
|
|
THE TAKEAWAY |
Luck goes both ways… While it looks as if FTX's creditors will likely get paid back, it's not a sure thing. Bankruptcy court still needs to approve. Plus, the current 100K creditors are not necessarily all former FTX customers (some just bought claims from FTX customers who thought their money was as good as gone, selling them for cents on the dollar). And the IRS and the CFTC said FTX owes them a combined $17B (which could be prioritized over customer claims). |
| |
Tax szn is upon us (ICYMI: the federal deadline to file is April 15) and the average refund so far this year is $3.1K — almost enough to cover a month of rent in Manhattan. But as Americans get their 2023 refunds from Uncle Sam, there are still 940K refunds from 2020 that have gone unclaimed... and are about to expire. Even master procrastinators might wanna get a move on this: the IRS said taxpayers may be leaving $1B+ on the table. If the people who haven't claimed their refunds don't submit their returns by May 17, their unclaimed refund will go to the US Treasury. Womp. |
|
|
- WaveSzn: Carnival raised its annual profit forecast as more travelers hit the high seas, including many cruise newbies. Carnival said its 2024 bookings are at record levels, with customer deposits hitting $7B in Q1.
- Disnulu: Disney launched Hulu on Disney+, merging its two streamers to bring hits like "The Bear" and "The Little Mermaid" all in one app. With its bundling strategy, Disney wants to ramp up viewership.
- Floral: H&M stock jumped 14% after the fast-fashion chain crushed Q1 profit expectations. H&M cut costs to boost earnings and added more spring styles to compete with rivals like Shein.
- Brake: Fisker slashed its EV prices as much as 39%. The startup recently halted production, and this week the NYSE paused trading of its stock after the debt-loaded co warned of a possible bankruptcy.
- Relief: Three of the largest inhaler makers agreed to cap out-of-pocket costs for some US patients to $35/month. They're the latest pharma cos to address growing lawmaker scrutiny over high drug prices.
|
|
|
A single ticket won the $1.1B Mega Millions jackpot, the eighth largest US jackpot ever |
|
|
- Sam Bankman-Fried's sentencing
- Major League Baseball's Opening Day
- Earnings expected from Hut 8, Planet Labs, and Walgreens
|
Authors of this Snacks own bitcoin and shares of: Alphabet, Amazon, Carnival, Disney, Planet Labs, and Visa |
|
|
|
