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How the U.S. fell out of love with Aussie gym chain F45



The Australian fitness giant, F45 Training, which once held a dominant position in the industry, is now facing delisting from the New York Stock Exchange (NYSE), marking a stunning fall from grace.

F45 was born in Sydney’s Paddington, with its first gym founded by Adam Gilchrist and Rob Deutsch in 2012.

The brand quickly expanded into the United States in 2015. In a pivotal moment, Hollywood actor Mark Wahlberg’s investment firm, along with another investor, FOD Capital, acquired a minority stake in the business in 2019.

Before the company’s NYSE listing in July 2021, co-founder Rob Deutsch sold his stake for an estimated US$145 million (A$224 million). At the time of the listing, F45’s shares were valued at $US16 ($A24.75) each, giving the company a total valuation of US$1.4 billion (A$2.17 billion).

However the shares had plummeted to just US$0.047 (A$0.08) apiece, leaving the business with a paltry total value of US$3.85 million (A$5.96 million).

The downfall

The downfall of F45 can be attributed to a series of revenue reporting and accounting errors, leading to the departure of CEO Adam Gilchrist and other key executives and directors in July 2022.

In an official statement, the NYSE announced, “In the opinion of the exchange, the company’s common stock is no longer suitable for continued listing and trading on the NYSE.”

This decision came after F45 was notified that it had violated NYSE listing rules due to delays in filing financial accounts and because its share price had traded below US$1 for more than 30 consecutive days.

HIIT classes

F45, renowned for its high-intensity interval training (HIIT) classes, operates primarily through a franchise model and boasts over 2,000 studios in more than 60 countries worldwide.

In Australia, which has nearly 500 F45 gyms, the brand has faced multiple closures this year, with dozens more gyms up for sale.

Although Adam Gilchrist has departed, Mark Wahlberg still sits on the F45 board and holds the title of Chief Brand Officer.

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What will it take for the Fed to cut rates?



Leading economists anticipate a potential shift in the Federal Reserve’s monetary policy, shedding light on the timeline for an interest rate reduction.

Financial experts and analysts have closely examined economic indicators, which suggest that a change in the Fed’s stance may be on the horizon. Factors such as inflationary pressures, employment rates, and GDP growth have all been scrutinized to ascertain when the central bank might decide to cut interest rates.

The consensus among these experts is that a rate cut could occur within the next six to nine months. They point to the Federal Reserve’s commitment to maintaining a flexible approach, adjusting policies as needed to support economic stability. With inflationary concerns still looming and the labor market showing signs of recovery, the timing of a potential rate cut remains a key topic of discussion among financial circles.

The Federal Reserve’s decision on interest rates can have a profound impact on financial markets, investments, and borrowing costs. As such, investors and businesses are keeping a keen eye on developments in this regard, preparing for potential changes in their financial strategies.

Kyle Rodda from spoke with Ticker’s Ahron Young. #featured

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Bank accidentally deposits $86M into client’s account



A financial institution mistakenly deposited over $86 million into a client’s account, causing shockwaves in the banking industry.

The error came to light when the client, a small business owner, checked their account balance and discovered the astronomical sum. It is being hailed as one of the most significant banking errors in recent memory.

The client, who wishes to remain anonymous, reportedly contacted the bank immediately upon noticing the massive windfall. Bank officials were left scrambling to rectify the error, which has raised numerous questions about the institution’s internal controls and safeguards.

The client’s account, initially holding just a few thousand dollars, suddenly displayed a balance that could buy luxury yachts, mansions, and more.

The incident has prompted investigations by regulatory authorities to determine how such an egregious error occurred in the first place.

While the bank has issued an apology and assured the client that the funds will be corrected to the proper balance, it remains unclear how this mistake could have happened on such a colossal scale.

The financial institution may also face potential legal consequences for the error, as well as reputational damage that could impact its future business.

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Tech giants drive global mega-cap surge amid inflation relief



Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

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