The daily business briefing: November 3, 2023
Jury convicts Sam Bankman-Fried for FTX fraud, Eric Trump denies working on documents that inflated property values, and more
1. Sam Bankman-Fried convicted in FTX fraud trial
A federal jury in New York on Thursday found FTX founder Sam Bankman-Fried guilty of stealing billions of dollars from the collapsed cryptocurrency exchange's customers. The conviction on all seven counts completed a spectacular fall for Bankman-Fried that started with the exchange's sudden collapse a year ago. The 31-year-old former crypto mogul agreed to return to the United States from his home in the Bahamas to face a host of fraud charges. He testified in his own defense, a risky move. Prosecutors had expected to win after depicting Bankman-Fried as a greedy billionaire who lied to customers and pressured underlings to commit crimes. The Wall Street Journal
2. Eric Trump denies working on father's financial documents
Eric Trump said in court Thursday he "did not work" on financial statements at the heart of allegations that former President Donald Trump and the Trump Organization fraudulently inflated property values to get favorable loans. In sometimes combative testimony, Eric Trump, who now runs the company, acknowledged emailing information to the company's controller, but said that was just for the company's general financial records. A day earlier, his older brother, Donald Trump Jr., also testified he wasn't involved in his father's financial statements. An expert witness called by New York Attorney General Letitia James' office said the inflated valuations helped the company get loan rates that saved it $168 million. ABC News, The Hill
3. Moderna shares fall as falling Covid shot demand hurts earnings
Moderna shares fell as much as 18% before recovering and trading down 9% early Friday after the drugmaker reported a bigger third-quarter loss than expected as demand fell for its Covid-19 vaccine. Moderna also issued a disappointing forecast for the rest of the year. The Boston-based biotech company said it lost $3.6 billion or $9.53 per share in the quarter. Analysts had expected a loss of $1.79 per share. The company recorded a big writedown due to its unused Covid shots. Revenue, however, came in at $1.8 billion, beating analysts' expectations of $1.4 billion. Financial Times, CNBC
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4. Ukraine slams Nestlé for Russia operations
Ukraine's anti-corruption agency has designated Nestlé as an "international sponsor of war" for continuing to operate and pay taxes in Russia despite Moscow's ongoing "aggression against Ukraine." Kyiv added the Swiss consumer-goods giant, which makes popular food items like Maggi bouillon cubes and KitKat candy bars, to a list that includes other large companies like Mondelez International, PepsiCo and Unilever, the National Agency on Corruption Prevention told Bloomberg. Nestlé, which isn't violating any Russia sanctions, has said it stands with Ukraine. It has halted advertising and investing capital in Russia, and stopped selling most of its products there. Bloomberg
5. Stock futures struggle ahead of jobs report
U.S. stock futures struggled early Friday ahead of the October jobs report. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.2% and 0.4%, respectively. Apple shares were down 3% after the iPhone maker reported better-than-expected earnings but issued a weak revenue outlook for the fourth quarter. Investors are awaiting a federal October employment report that economists surveyed by Dow Jones expect to show a gain 170,000 jobs, down from September's massive 336,000 increase. The Dow, the S&P 500 and the Nasdaq jumped at least 1.7% on Thursday in a second day of gains after the Federal Reserve signaled it might be done raising interest rates. CNBC, The Wall Street Journal
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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