The reason is simple. About 55% of Walmart sales come from its grocery business, and these sales are relatively low margin. In order to generate better profits, Walmart’s effort is to increase the income from advertising, business-to-business activity, and third party sellers on its marketplace. Delivery services from stores and other activities are also under consideration as sources of additional profits.

“The company will shift more attention to advertising sales, third party income, and business-to-business sales to improve its bottom line. More vendors want to spend advertising money with Walmart because it attracts so many shoppers. The advertising revenues typically fall into the 70 to 80 percent range and can change the composition of the company’s profit and loss statement.”
Insider Intelligence expects Walmart’s ad revenues to grow +42 percent in fiscal 2023.
John David Rainey, CFOCFO of Walmart, speaking at a recent Raymond James Institutional Investors Conference.

https://www.forbes.com/sites/walterloeb/2023/03/10/walmart-profits-to-depend-more-on-advertising-and-other-income/?sh=31a29dc754b8

Credit Suisse and UBS have entered into a merger agreement on Sunday following the intervention of the Swiss Federal Department of Finance, the Swiss National Bank and the Swiss Financial Market Supervisory Authority FINMA (FINMA). UBS will be the surviving entity upon closing of the merger transaction. Under the terms of the merger agreement all shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. Until consummation of the merger, Credit Suisse will continue to conduct its business in the ordinary course and implement its restructuring measures in collaboration with UBS. The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity. On March 19, 2023, Swiss Federal Department of Finance, the Swiss National Bank and FINMA have asked Credit Suisse and UBS to enter into the merger agreement. Pursuant to the emergency ordinance which is being issued by the Swiss Federal Council, the merger can be implemented without approval of the shareholders. The consummation of the merger remains subject to customary closing conditions.

Credit Suisse and UBS have entered into a merger agreement on Sunday with UBS being the surviving entity. After negotiations that took place during the weekend leading up to the signing of the merger agreement, UBS and Credit Suisse concluded that it would be in the best interest of their shareholders and their stakeholders to enter into the merger. This move comes after the Swiss Federal Department of Finance, the Swiss National Bank and FINMA asked both companies to conclude the transaction to restore necessary confidence in the stability of the Swiss economy and banking system.

The merger transaction provides for the following key terms:

All shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse as merger consideration. This exchange ratio reflects a merger consideration of CHF 3 billion for all shares in Credit Suisse.

The merger transaction remains subject to customary closing conditions. Both parties are confident that all conditions can be met. The merger is expected to be consummated by end of 2023 if possible.

The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity.

For the purpose of a seamless integration of Credit Suisse into UBS, UBS is expected to appoint key personnel to Credit Suisse as soon as legally possible.
Credit Suisse continues to operate in the ordinary course of business and implement its restructuring measures in collaboration with UBS.
UBS has expressed its confidence that the employment of the staff of Credit Suisse will be continued.

On Sunday, Credit Suisse has been informed by FINMA that FINMA has determined that Credit Suisse’s Additional Tier 1 Capital (deriving from the issuance of Tier 1 Capital Notes) in the aggregate nominal amount of approximately CHF 16 billion will be written off to zero.

In consideration of the unique circumstances affecting the Swiss economy as a whole, the Swiss Federal Council is issuing an emergency ordinance (Notverordnung) tailored to this particular transaction. Most importantly, the merger will be implemented without the otherwise necessary approval of the shareholders of UBS and Credit Suisse to enhance deal certainty.

Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse said: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome. This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”

Credit Suisse

Credit Suisse is one of the world’s leading financial services providers. The bank’s strategy is built on its leading Wealth Management and Swiss Bank franchises, with strong Asset Management as well as Markets capabilities. Credit Suisse seeks to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. The bank employs more than 50,000 people. The registered shares (CSGN) of Credit Suisse are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Cautionary statement regarding forward-looking information

This document contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:

our statements as to the proposed transaction between Credit Suisse and UBS;
our plans, targets or goals;
our future economic performance or prospects;
the potential effect on our future performance of certain contingencies; and
assumptions underlying any such statements.

Words such as “may,” “could,” “achieves,” “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, targets, goals, expectations, estimates and intentions expressed in such forward-looking statements. Additionally, many of these factors are beyond our control.

These factors include, but are not limited to:

• the consummation of the proposed transaction between Credit Suisse and UBS, and the timing and implementation thereof;
• the ability to maintain sufficient liquidity and access capital markets;
• market volatility, increases in inflation and interest rate fluctuations or developments affecting interest rate levels;
• the ongoing significant negative consequences, including reputational harm, of the Archegos and supply chain finance funds matters, as well as other recent events, and our ability to successfully resolve these matters;
• the impact of media reports and social media speculation about our business and its performance;
• the extent of outflows of deposits and assets or future net new asset generation across our divisions;
• our ability to improve our risk management procedures and policies and hedging strategies;
• the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular, but not limited to, the risk of negative impacts of COVID-19 on the global economy and financial markets, Russia’s invasion of Ukraine, the resulting sanctions from the US, EU, UK, Switzerland and other countries and the risk of continued slow economic recovery or downturn in the EU, the US or other developed countries or in emerging markets in 2023 and beyond;
• the emergence of widespread health emergencies, infectious diseases or pandemics, such as COVID-19, and the actions that may be taken by governmental authorities to contain the outbreak or to counter its impact;
• potential risks and uncertainties relating to the severity of impacts from the COVID-19 pandemic, including potential material adverse effects on our business, financial condition and results of operations;
• the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;
• adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other credit-related exposures;
• the ability to achieve our strategic initiatives, including those related to our targets, ambitions and goals, such as our financial ambitions as well as various goals and commitments to incorporate certain environmental, social and governance considerations into our business strategy, products, services and risk management processes;
• our ability to achieve our announced comprehensive new strategic direction for the Group and significant changes to its structure and organization;
• our ability to successfully implement the divestment of any non-core business;
• the future level of any impairments and write-downs resulting from strategy changes and their implementation;
• the ability of counterparties to meet their obligations to us and the adequacy of our allowance for credit losses;
• the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies;
• the effects of currency fluctuations, including the related impact on our business, financial condition and results of operations due to moves in foreign exchange rates;
• geopolitical and diplomatic tensions, instabilities and conflicts, including war, civil unrest, terrorist activity, sanctions or other geopolitical events or escalations of hostilities, such as Russia’s invasion of Ukraine;
• political, social and environmental developments, including climate change and evolving ESG-related disclosure standards;
• the ability to appropriately address social, environmental and sustainability concerns that may arise from our business activities;
• the effects of, and the uncertainty arising from, the UK’s withdrawal from the EU;
• the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
• operational factors such as systems failure, human error, or the failure to implement procedures properly;
• the risk of cyber attacks, information or security breaches or technology failures on our reputation, business or operations, the risk of which is increased while large portions of our employees work remotely;
• the adverse resolution of litigation, regulatory proceedings and other contingencies;
• actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;
• the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;
• the discontinuation of LIBOR and other interbank offered rates and the transition to alternative reference rates;
• the potential effects of changes in our legal entity structure;
• competition or changes in our competitive position in geographic and business areas in which we conduct our operations;
• the ability to retain and recruit qualified personnel;
• the ability to protect our reputation and promote our brand;
• the ability to increase market share and control expenses;
• technological changes instituted by us, our counterparties or competitors;
• the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
• acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets; and
• other unforeseen or unexpected events and our success at managing these and the risks involved in the foregoing.
• We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, including the information set forth in “Risk factors” in I – Information on the company in our Annual Report 2022.

Important Information

This announcement does not constitute an offer of securities for sale, or a solicitation of an offer to purchase or subscribe for, any securities in the United States and does not constitute an offer or invitation to subscribe for or purchase any securities in any country or in any other jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction.

Investors and others should note that we announce important company information (including quarterly earnings releases and financial reports as well as our annual sustainability report) to the investing public using press releases, SEC and Swiss ad hoc filings, our website and public conference calls and webcasts. We also routinely use our Twitter account @creditsuisse (https://twitter.com/creditsuisse), our LinkedIn account (https://www.linkedin.com/company/credit-suisse/), our Instagram accounts (https://www.instagram.com/creditsuisse_careers/ and https://www.instagram.com/creditsuisse_ch/), our Facebook account (https://www.facebook.com/creditsuisse/) and other social media channels as additional means to disclose public information, including to excerpt key messages from our public disclosures. We may share or retweet such messages through certain of our regional accounts, including through Twitter at @csschweiz (https://twitter.com/csschweiz) and @csapac (https://twitter.com/csapac). Investors and others should take care to consider such abbreviated messages in the context of the disclosures from which they are excerpted. The information we post on these social media accounts is not a part of this document.

Disclaimer

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

On March 10, Silicon Valley Bank, one of the most prominent lenders in the start-up ecosystem, collapsed. Federal regulators stepped in to allay fears and limit risk in the broader financial system.

Credit Suisse surged the most on record after the lender tapped the Swiss National Bank for as much as 50 billion francs ($54 billion) and offered to repurchase debt. The announcement followed a frantic trading session in which worries about Credit Suisse’s financial health roiled global markets, alarmed regulators across Europe and the US and prompted some firms to reassess their exposure to the bank. Credit Suisse CEO Ulrich Koerner told his staff to focus on facts as he pledged to rapidly move ahead with a plan to streamline operations. Meanwhile, Credit Suisse’s biggest shareholder said “everything is fine” and the bank isn’t likely to seek more capital, the day after his comments helped spark the biggest-ever slump in the stock.

First Republic Bank, the San Francisco-based lender that was cut to junk by S&P Global Ratings and Fitch Ratings on Wednesday, is exploring strategic options including a sale, according to people with knowledge of the matter. The bank, which is also weighing ways to shore up liquidity, is expected to draw interest from larger rivals, said some of the people, all of whom requested anonymity discussing confidential information. No decision has been reached and the bank could still choose to remain independent, they said. A spokesperson for First Republic Bank declined to comment.

Goldman Sachs boosted its estimate of the odds of a US recession to 35% over the next 12 months in response to increased uncertainty over the economic impact of bank stress. The new estimate is still below the 60% median of economists surveyed by Bloomberg. The Federal Reserve’s emergency loan program may inject as much as $2 trillion of funds into the US banking system and ease the liquidity crunch, according to JPMorgan.

European stocks pared an early rally on Thursday and bonds fell as traders braced for a European Central Bank rate decision amid concerns about the outlook for economic growth, even as bank shares rebounded after Credit Suisse’s lifeline. S&P 500 futures pared an early gain to fall 0.1% as of 6:08 a.m. New York time. Nasdaq 100 contracts advanced after the benchmark posted its third day of gains on Wednesday. The euro recovered from a two-month low while an index of the dollar fell.

The ECB’s plan to raise interest rates by another half-point on Thursday has been thrown into question by banking turmoil. With the Fed’s next rate meeting still a week away, the ECB today will give the first indication of what the banking blowup means for monetary policy. Over in the US, 8:30 a.m. data include initial jobless claims, import price index, housing starts and Philadelphia Fed business outlook. Dollar General reports earnings.

Bloomberg

“There are several ways to measure TikTok’s success: It took just four years to reach 1 billion monthly users; its average user in the US spends more time with the service than with Facebook and Instagram put together; and its most popular video, an 18-second clip of someone flying on a magic broomstick, has claimed 2.2 billion views.

But what of TikTok’s moneymaking power? I wrote about the ways that the app’s operators are turning its popularity into a huge business in the latest issue of Bloomberg Businessweek. To rival and outdo social and ad giants like Meta Platforms Inc. and Alphabet Inc.’s Google, TikTok relies on a battle-tested business model that’s unconventional in the west but well-practiced by its Chinese parent ByteDance Ltd. Here’s a look at the ingredients.

At the core of TikTok’s appeal is Its Algorithm, the ability to discern a user’s likes and dislikes from their activity on the platform, picking up on how long you watch, say, a cat video or a cooking tutorial. The same model of content distribution is now being used on ads and sponsored content, helping TikTok serve more appealing ads and triple its ad revenue to an estimated $12 billion this year. Even Meta is now trying to rewrite the algorithms of Facebook and Instagram, so its services can surprise and delight people with videos they didn’t know they wanted to see. It’s a departure from Meta’s old approach of filling a user’s feed based on their social connections.

The other key thing is Branding. TikTok’s most lucrative ad accounts feature companies more interested in building their brands than stimulating direct sales. McDonald’s Corp., for instance, won’t count on TikTok to sell burgers, but it will likely want to use the platform to woo the young people using it. TikTok connects brands with influencers and helps them create viral challenges, goofy camera effects and immersive full-screen videos. That’s why its motto goes, “Don’t make ads. Make TikToks.”

On top of all that, TikTok is jumping into E-Commerce in ways that could challenge Amazon.com Inc. It’s rolled out an in-app marketplace in regions like Southeast Asia and the UK, where users can jump from live streams and short videos to shopping portals without friction. The idea is to create a closed loop where TikTok handles each and every step from a user discovering something to actually purchasing it — instead of directing them to an Amazon listing or a Shopify Inc.-powered web store.

To be sure, TikTok and ByteDance still have enormous challenges ahead. For one thing, commercial success across the globe demands navigating fragmented markets that don’t share the same culture, user preferences, regulations or tech infrastructure. And politics remains a big risk, even after TikTok survived President Donald Trump’s attempted ban. The perceived security threat from TikTok’s handling of US user data probably won’t go away as long as Beijing and Washington keep tussling in the geopolitics arena.”

Source: TikTok Turns On the Money Machine By Zheping Huang

Big investors including Google, Reliance Industries, and SoftBank Group have poured billions of dollars into startups promising to bring that next order of curry-ready chicken, cat food, or crunchy aloo bhujia chickpea snacks within minutes, rather than hours or days. Relying on discounts and free delivery to woo customers who make purchases through mobile apps, the companies fill orders at neighborhood warehouses called dark stores, then use algorithms to send drivers on the fastest routes through the crowded roads of Delhi, Mumbai, Bengaluru (formerly known as Bangalore), and other cities.

Although groceries sold online account for just 2% of all grocery retail sales in India, they’re one of the fastest-growing segments of commerce and are considered essential for anyone dreaming of dominating e-commerce. And in a country where food and daily necessities—categories tailor-made for get-it-now delivery—make up about two-thirds of the $1 trillion in annual retail spending, startups are wagering that quick commerce can change grocery shopping habits and make them rich in the process.

Source: Bloomberg

https://www.bloomberg.com/news/articles/2022-06-22/swiggy-zepto-power-india-s-ultrafast-grocery-delivery-boom?cmpid=BBD062322_TECH&utm_medium=email&utm_source=newsletter&utm_term=220623&utm_campaign=tech