Big banks’ problem child

• Big banks’ problem child: Losses in Bank of America’s (BAC) $760 billion bond portfolio rose by $25 billion (24%) in the quarter to $131.6 billion. These losses dwarf the bank’s $7.8 billion in quarterly earnings and represent an existential threat to the bank (Reuters)
  

• U.S. tightens china’s access to A.I. chips: The Biden administration announced additional limits on sales of advanced semiconductors by American firms, shoring up restrictions issued last October to limit China’s progress on supercomputing and AI (NYT)
  

• The housing market is almost frozen: The highest mortgage rates in 23 years are dragging down home sales to their lowest levels since the subprime crisis period (WSJ)
  

• Suez canal to raise transit fees: Transit fees for tankers passing through the canal will rise by 15%, a move that might amplify global inflation concerns (Zerohedge)
  

• KKR makes binding offer: KKR (KKR) submitted an offer for Telecom Italia SpA’s landline grid, even as the long-awaited binding bid excluded the heavily indebted company’s subsea cable unit and raised questions about possible delays (Bloomberg)
  

• Netflix profits on password sharing ban: Netflix's (NFLX) crackdown on password-sharing likely boosted subscribers by about 6 million in the Q3 and the company is expected to set the stage for price increases when it reports earnings (Reuters)
  

• Watch your bill: T-Mobile (TMUS) announced to customers that they will automatically move to more expensive rate plans unless they opt out. Those moving to a new plan will usually pay $5 more a month per line for their new service (WSJ)
  

• Tesla recall: The National Highway Traffic Safety Administration (NHTSA) said that Tesla (TSLA) will recall 54,676 Model X vehicles built from 2021 to 2023 because the vehicle controller may fail to detect low brake fluid and will not display a warning light (Fox)
  

• Off the wall: Activist investment firm Engaged Capital has taken a stake in VF Corporation (VFC), owner of Vans and The North Face brands, and is pushing for cost cuts and changes to the board; Shares jumped ~14% on the news (CNBC)
  

• Military industrial complex: U.S. defense contractor Lockheed Martin (LMT) shares are up 2% after reporting better-than-expected third Q3 revenue and profit as geopolitical tensions fueled sustained demand for its military equipment (Reuters)
  

• Open spigot: President Biden is considering a supplemental request of ~$100 billion that would include defense assistance for Israel and Ukraine alongside border security funding and aid to nations including Taiwan (Bloomberg)
  

• Get your merch: Spotify (SPOT) is launching a dedicated in-app Merch Hub that provides personalized merch recommendations based on your listening habits (TechCrunch)

• The techno-optimist manifesto (a16z)

• Science is bringing historic apple varieties back to life (Nature)

• Read my lips, says candidate for President: No taxes at all (WSJ)

• Inflation has a new victim: Girl Scout cookies (NPR)

• Home insurance is so high in this Florida town, residents are leaving (Mansion)

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