ECONOMIC SILUET: 5 things to know before the stock market opens Tuesday

Selasa, 04 April 2023

5 things to know before the stock market opens Tuesday

TUE, APR 04, 2023

MORNING SQUAWK

1. Dimon: 'The current crisis is not yet over'

Jamie Dimon is here to spoil everyone's relief that the banking crisis triggered by Silicon Valley Bank's collapse appeared to be wrapped up. "As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come," the JPMorgan Chase CEO, who was a key player in the response to the crisis, wrote in his annual shareholder letter. Still, he said it's nowhere near as bad as things were during the 2008 financial meltdown. Dimon's letter comes as investors seek clues about the state of the financial system, and its impact on banks' day-to-day business. JPMorgan helps kick off earnings season April 14. Follow live markets updates.

2. Google cracks down on staplers (and other things)

Don't tell Milton Waddams, but Google is coming for the staplers. The tech giant is in the midst of cost cuts. It slashed 12,000 jobs in January, and it's making staff in its cloud division share desks. Now Google is cutting back on services as employees balance working from the office and home with their hybrid schedules. That means slowing down the pace for replacing computers and other equipment, baking fewer muffins on Mondays, and tightly restricting how employees can get tape – and, yes, staplers. "We set a high bar for industry-leading perks, benefits and office amenities, and we will continue that into the future," CFO Ruth Porat said in an email viewed by CNBC. "However, some programs need to evolve for how Google works today."

3. Virgin Orbit files Chapter 11

Virgin Orbit is grounded. The rocket launch company filed for Chapter 11 bankruptcy protection Tuesday after it failed to secure a financial lifeline to keep it afloat. The filing was pretty much inevitable. It came days after CEO Dan Hart told employees that Virgin Orbit would cease operations for the foreseeable future, as CNBC previously reported. The company said it would seek a sale during the bankruptcy process. "At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale," Hart said in a statement Tuesday. How did it get to this point? Read CNBC space reporter Michael Sheetz's deep dive.

4. FTC orders Illumina to ditch Grail

Regulators told DNA sequencing company Illumina that it must divest cancer test developer Grail, the latest, most severe blow against the $7.1 billion acquisition. The Federal Trade Commission said the deal would hamper competition and end up hurting innovation. Illumina said it would appeal the FTC's decision and that it expects a resolution either later this year or early next year. That's around when the company also expects to resolve its appeal of a similar European Union decision. Others have targeted the Grail acquisition, as well, most notably activist investor Carl Icahn. He criticized the company for closing the deal without first getting antitrust approval. Icahn launched a proxy fight and is seeking Illumina board seats while pushing the company to unwind the Grail acquisition.

5. Surrender day

Donald Trump – the real estate tycoon, tabloid scandal sheet denizen, former reality TV star and one-time president of the United States – will turn himself in to New York authorities Tuesday afternoon. He is the first former commander-in-chief to be charged with crimes. In this case, which was brought by Manhattan District Attorney Alvin Bragg and stems from a hush-money payoff to a porn star before the 2016 election, Trump reportedly faces more than 30 counts. He has condemned the case as a "witch hunt," but has also been raising millions of dollars off it as he seeks the GOP presidential nomination next year. This, at least for the moment, is giving pause to wealthy GOP donors and fundraisers. Many on Wall Street would like to back Trump's closest rival for the nomination, Florida Gov. Ron DeSantis, but some are worried about incurring the former president's wrath, CNBC's Brian Schwartz reports.

— CNBC's Mike Calia wrote this newsletter. Jesse Pound, Sam Meredith, Jennifer Elias, Annika Kim Constantino, Dan Mangan and Brian Schwartz contributed.

— Follow Squawk Pod for the best conversations and analysis from Squawk Box in a curated, daily podcast.