Bloomberg - Evening Briefing - FTX blows up

Bloomberg Evening Briefing

Sam Bankman-Fried’s digital-asset empire filed for Chapter 11 bankruptcy, capping the downfall of one of crypto’s wealthiest and most influential moguls and his collection of high-flying ventures, including exchanges and a massive trading operation. More than 130 entities tied to, FTX US and trading firm Alameda Research were listed in filings at federal court in Delaware, with the Alameda petition denoting assets and liabilities of at least $10 billion each. That easily makes it the biggest bankruptcy in the US this year, affecting investors and other counterparties around the world. The Securities and Exchange Commission and the Justice Department are already looking into the matter. 

Here are today’s top stories

For a little while, it appeared some of FTX’s American customers might escape the worst-case scenario: then the worst happened. “The company and Sam Bankman-Fried seemed trustworthy,” said Justin Zhang, a 34-year-old engineer. “I thought FTX US was different because of all the regulations put in place, but it’s not.”

When US President Joe Biden accused Saudi Arabia of siding with Russia over oil, Riyadh cast itself as an emerging power that stands up to Washington and looks after its own interests. And that’s been winning the kingdom some cheerleaders

It’s increasingly likely US lawmakers will return to Washington next week without knowing who will wield majority power. Three days after Americans voted, Democrats appear to have an edge in the Senate and Republicans in the House, but control of both is still very much in play.

 After firing half of Twitter’s employees, and then asking a few to come back, Elon Musk has seen many more flee the ship of their own volition, including very senior people. Now Musk and his lawyers are trying to convince those who remain they won’t go to jail. You know things are going badly at a company when theories swirl that its new owner is trying to run it into the ground. True or not, Parmy Olson writes in Bloomberg Opinion that we may be witnessing Musk’s destruction of Twitter in real time.

Elon Musk as he addresses guests at the Offshore Northern Seas 2022 meeting in Stavanger, Norway on Aug. 29  Photographer: Carina Johansen/AFP

US natural gas futures plunged as traders tried to make sense of an unconfirmed tweet on the state of the massive Freeport LNG export terminal in Texas that has been shut since a fire broke out in June.

Stocks extended a rally sparked by a slowdown in inflation last month, but equity analysts have only gotten more pessimistic about what’s to come. Analysts project S&P 500 earnings to decline 0.39% year-over-year in the fourth quarter, down from August’s expectations of 6% growth. Nevertheless, stocks on Friday capped their best week since June. Here’s your markets wrap.

Ukrainian troops entered the southern city of Kherson after Russian forces abandoned the regional capital and fled across a major waterway, a significant setback for Moscow. “Today is a historic day,” Ukraine President Volodymyr Zelenskiy said. “We are returning the south of our country. We are returning Kherson.”

Ukrainian soldiers work repair a damaged tank on the way to Kherson on Nov. 9.  Photographer: Metin Aktas/Anadolu Agency/Getty Images

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

 What you’ll need to know tomorrow

  • China eases quarantine, ends flight bans in “Covid zero” shift.
  • Binance reserves show almost half of holdings are its own tokens.
  • Covid bailouts are a big reason why Americans have $5 trillion in cash.
  • Elizabeth Holmes of Theranos asks for an 18-month sentence—at home.
  • A telehealth giant drew the addicted. Overdoses and deaths followed.
  • Bloomberg Opinion: Burned by crypto? Don’t learn the wrong lesson.
  • As firings accumulate, it’s best to know how not to write your resume.

This NYC Developer Is Hunting for Homebuyers

A New York real estate developer is trying a different tactic to sell apartments at a time of skyrocketing borrowing costs: an offer to pay down the buyer’s mortgage rate. Reducing a buyer’s potential borrowing costs—an incentive used by homebuilders this year as the market has shifted—is a more unusual perk for New York City’s competitive housing market. But these are unusual times.

A bedroom at a home in One Manhattan Square. Photographer: Evan Joseph/M18PR

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