Credit Suisse shares jump after CEO resigns following $1.6bn loss

In today’s top stories, Ulrich Körner (pictured) becomes the new CEO of Credit Suisse, Elliott Management has a stake in PayPal, Cathie Wood’s ARK Invest dumps Coinbase shares, and Twitter reveals plans to hold a vote on Musk’s merger in September. 

Credit Suisse CEO resigns after weak earnings

Credit Suisse reported wider-than-expected losses in its second quarter earnings announcement, with its third consecutive quarterly loss coming in at $1.65bn after revenue was 43% lower year-over-year. On the back of the disappointing result, the bank’s chief executive Thomas Gottstein announced his resignation. His replacement, Ulrich Körner, has promised a “comprehensive” review of the bank’s business.

Elliott Management holds stake in PayPal

Insiders have revealed to TheWall Street Journal that activist investor Elliott Management holds a stake in ecommerce giant PayPal. While the size of the stake and the firm’s intentions were not clear, PayPal’s $89bn market value makes it a significant target. Though shares in the company are down around 60% year-to-date, PayPal revealed better-than-expected Q1 earnings in April. It is set to report Q2 figures next Tuesday.

Cathie Wood dumps Coinbase

ARK Invest star stock picker Cathie Wood sold around 1.41 million Coinbase shares on Tuesday, marking the first time this year that ARK funds have sold the stock. The move was prompted by news that the crypto exchange is the subject of an investigation by the SEC, which caused the stock to plunge 21%. ARK also made the news on Wednesday after Bloomberg reported that two funds betting for and against the Innovation ETF [ARKK] have surged in value.

Twitter holds vote on Musk deal

Twitter plans for shareholders to vote on Elon Musk’s $44bn takeover deal in September ahead of October’s court hearing, the company revealed in an SEC filing. This comes after the social media platform reported disappointing Q2 earnings on Tuesday, with sales down 1% year-over-year on the back of a struggling online advertising market. Alphabet [GOOGL] had also reported a subdued ad revenue increase in its earnings.

Earnings preview: IAG

With thousands of flights being delayed or cancelled as airports struggle to keep up with rising demand, IAG has had a difficult few months. However, improved traffic levels are expected when the company reports Q2 earnings on 29 July, amounting to a “70% sequential increase” according to UBS analysts in a client note seen by Proactive Investors. Revenue is estimated to rise to around €5.2bn, which would be a rise of 136% on the €2.2bn reported in Q2 2021.

Earnings preview: BAE Systems

As aerospace manufacturer BAE Systems prepares to announce its interim results on 28 July, investors will be hoping the company’s strong pipeline of orders is reflected in its half-year figures. According to a consensus of 12 analysts polled by BAE Systems prior to 22 July, H1 sales are expected to come in at £10.4bn, up from £10bn in the year-ago quarter.

Earnings preview: BT

Shares in BT have been dragged down in the runup to its fiscal 2023 first quarter earnings announcement on 28 July. Investors are unlikely to focus on revenue figures when BT reports its Q1 2023 earnings as, once again, they’re expected to be relatively flat this fiscal year. They will, however, be looking for signs of progress being made on reducing costs further.