Stocks are mostly weaker on Wall Street; crypto trading platform cuts 1,100 jobs |

Stocks plunge deeper into the bear market

NEW YORK — Wall Street closed mostly lower on June 14, a day after falling in a bear market on fears high inflation could cause central banks to tighten the brakes on the economy too tightly.

The S&P 500 slid 0.4% after another choppy trading day, and the Dow Jones Industrial Average fell 0.5%. The Nasdaq composite index rose 0.2% on gains from several big tech companies, including Oracle.

Treasury yields climbed again, reaching their highest levels in more than a decade.

Investors are preparing to see the magnitude of the interest rate hike the Federal Reserve will make on Wednesday.

Coinbase Global plans to cut 18% of its workforce

NEW YORK – Coinbase Global announces that it plans to cut about 1,100 jobs, or about 18% of its global workforce, as part of a restructuring to help manage its operating expenses in response under current market conditions.

The cryptocurrency trading platform said in a regulatory filing that it expects to have around 5,000 employees by the end of its current fiscal quarter on June 30. The restructuring is expected to be substantially complete in the second quarter. The company reported last month that monthly active users fell 19% in the first quarter due to falling crypto values.

Cryptocurrencies soared at the start of the pandemic as ultra-low rates encouraged some investors to pile into risky investments. Bitcoin, the largest cryptocurrency based on market value, tumbled and briefly fell below $21,000 in Asia on Tuesday from a high of $68,990 late last year.

Coinbase estimates that it will incur approximately $40-45 million in restructuring costs, primarily related to severance and other severance payments.

The first remote company was founded in 2012 and has no headquarters. It went public in April 2021. Shares closed on day one at around $328. In pre-market trading on Tuesday, the stock fell 7% to $48.40.

Wholesale inflation soars with energy spikes

WASHINGTON — U.S. producer prices jumped 10.8% in May from a year earlier, underscoring the lingering threat to the economy from a surge in inflation that shows no signs of abating .

The June 14 report from the US Department of Labor showed that the producer price index – which measures inflation before it reaches consumers – rose at a slightly slower pace last month than in April, when it jumped 10.9% from a year earlier, and is down from an annual gain of 11.5% in March.

The numbers indicate that rising prices will continue to erode Americans’ paychecks and upend household budgets in the months ahead.

Spirit engages with JetBlue ahead of vote

NEW YORK — Spirit Airlines, the target of a low-cost airline bidding war, said Tuesday it was in talks with JetBlue over last week’s takeover bid while remaining engaged with Frontier Airlines, with which Spirit has already signed a merger agreement.

Spirit said it gave JetBlue and Spirit equal access to its information and Spirit’s board expects to complete its due diligence on both offers and provide an update for shareholders before voting. on the agreement to be concluded at the special meeting of June 30. .

JetBlue offered more cash than Colorado-based Frontier’s stock and cash offer, but Spirit’s board pushed back against JetBlue, saying such a tie-up would be more likely to be shot down by regulators federal antitrust due to JetBlue’s alliance with American Airlines in the Northeast.

The bidding war for Miramar, Fla.-based Spirit has escalated over the past month as JetBlue tries to dispel fears the United States is blocking its acquisition.

The New York airline last week offered a $350 million reverse severance package payable to Spirit if a deal between the two is not reached for antitrust reasons, exceeding its previous contingency plan of $150 million. of dollars.

Last month, JetBlue turned hostile in its bid to buy Spirit, pitching its offer directly to the airline’s shareholders. Spirit CEO Ted Christie said JetBlue was more interested in breaking a deal with Frontier than owning Spirit.

JetBlue and Frontier say expanding by acquiring Spirit would help them compete with the country’s four dominant airlines: American, Delta, United and Southwest.

Musk will address Twitter employees on Thursday.

AUSTIN, Texas — Elon Musk will address Twitter employees on Thursday for the first time since the billionaire and Tesla CEO offered $44 billion to buy the social media platform.

Musk struck a deal to acquire Twitter in April, but has since clashed with the company on several occasions over the number of bots, or fake accounts, that exist on the social media platform. Musk said he was suspending the deal on May 13, saying he needed more data from the company on those bot accounts. It’s unclear whether this week’s meeting means the two sides have come together to resolve these issues.

Towing the famous floating restaurant in Hong Kong

HONG KONG — An iconic floating restaurant that fed Queen Elizabeth II, Tom Cruise and millions of other diners has been towed out of Hong Kong after falling victim to the pandemic.

Jumbo Floating Restaurant’s parent company couldn’t find a new owner and lacked the funds to maintain it after months of COVID-19 restrictions.

The restaurant designed like a Chinese imperial palace on Aberdeen Harbor was known for its Cantonese cuisine and seafood dishes. It closed in 2020 and its staff were laid off, but owners said they were still spending a fortune in inspection and maintenance.

Tugboats towed the restaurant on June 14 to dock elsewhere while waiting for a new operator.

The Turkish carrier will be called “Türkiye”

ANKARA, Turkey – President Recep Tayyip Erdogan has said Turkey’s national airline will change its name to ‘Türkiye Hava Yolları’ instead of ‘Turkish Airlines’ as part of a campaign to have his country known internationally as of “Türkiye” instead of “Turkey”.

Earlier this month, Ankara sent a letter to the United Nations, officially registering the country’s name as “Türkiye” – as it is spelled and pronounced in Turkish. Erdogan’s government says the name “Türkiye” better represents Turkish culture and values, though observers say the move is part of an effort to disassociate its name from the bird.

Erdogan said on June 14 that “Turkey no longer exists. It’s Turkey.”

Garland K. Long