✈️👨✈️ JetBlue/Spirit Merger BLOCKED By Judge
Hi all,
Happy (late) Sunday!
I was just in Los Angeles to be on a podcast - the Karat card, if you’re familiar - has their own podcast show! That was a fun experience. I’m also headed to Nashville this Wednesday to be on George Kamel’s show, he is a Dave Ramsey personality so it should make for some juicy personal finance content that I can’t wait to share with you all.
It’s been raining in California here, but still thankful for somewhat manageable temperatures, mostly been watching the NFL games this weekend.
We have a great Sunday Primer for you guys today, and the futures for the market are looking really juicy (up) right now. Also on the YouTube channel tomorrow - a full ranking of my favorite credit cards by salary for 2024! And lastly, I want to leave you with this tweet:
— Humphrey, Tim, & Rickie
Market Report
JetBlue-Spirit Merger Blocked By Federal Judge
A federal judge blocked JetBlue Airways' $3.8 billion acquisition of Spirit Airlines. The merger, which would have created the fifth-largest airline in the U.S., was blocked on grounds that it would eliminate Spirit's role as a low-cost carrier, leading to higher fares and reduced choices for consumers.
The cancellation of the merger leaves Spirit's future uncertain, impacting various regional airports that depend heavily on Spirit for its operations.
Critics argue the merger could have bolstered competition against legacy airlines, but supporters believe it preserves the unique role of low-cost carriers like Spirit in offering competitive fares and serving less mainstream destinations.
JetBlue and Spirit say that they plan to appeal the judge’s decision.
Sports Illustrated Faces Uncertain Future Amid Widespread Layoffs
Sports Illustrated, a long-standing sports media brand, is facing massive layoffs following the termination of its licensing agreement with the Authentic Brands Group, which acquired Sports Illustrated in 2019.
This termination, prompted by Sports Illustrated’s failure to make a $3.75 million payment, led to immediate layoffs of non-guild employees and a 90-day notice period for guild members, potentially leaving the entire staff jobless unless the licensing issue is resolved.
Authentic Brands is now exploring options for new operators, emphasizing a rapid resolution and a commitment to preserving the brand's legacy.
U.S. Retail Sales Rise By Most in Three Months
In December, U.S. retail sales saw their strongest growth in three months, indicating a resilient consumer market despite economic headwinds.
The 0.6% increase in retail purchases, unadjusted for inflation, was broad-based, with significant contributions from clothing, general merchandise, and e-commerce sectors.
Economists anticipate a slowdown in sales during 2024 due to persistent inflation, higher borrowing costs, and diminishing savings.
Big banks to pay $9 billion to cover last year’s regional bank bailouts
Last quarter, JPMorgan, Bank of America, Wells Fargo, and Citigroup, took on significant costs due to special assessments and fees by the Federal Deposit Insurance Corporation (FDIC) to cover the uninsured depositors at Silicon Valley Bank and Signature Bank.
This assessment, totaling $8.6 billion across these banks, was necessary because the FDIC's insurance fund fell below its target ratio, partly due to the unexpected bailout costs for these banks and the increase in insured deposits.
Despite this financial hit, JPMorgan, Bank of America, and Wells Fargo still reported multi-billion dollar profits, whereas Citigroup faced a loss of $1.8 billion.