Squawk on the Street Regional Banks After the Sell-Off, Apple's "Formula," Trump Weighs on Obesity Drug Stocks 10/17/25
Oct 17, 2025
The hosts delve into the aftermath of a sell-off in regional banks, exploring credit concerns and liquidity issues. Apple makes headlines with a blockbuster deal to stream Formula 1 races, hinting at a new sports strategy. Market reactions intensify as President Trump pushes for lower prices on obesity drugs, impacting stock values of major pharmaceutical companies. Analysts also discuss the potential hidden risks in the banking sector and review American Express's strong earnings. Meanwhile, optimism around Oracle's future and AI investments paints a dynamic market picture.
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Opacity Fueled Regional Bank Panic
- The regional bank sell-off reflected opacity around off‑balance-sheet and non‑deposit lending rather than broad systemic credit failure.
- Market anxiety spiked because private credit and opaque loan structures hide underwriting risks from public view.
Private Credit ETF Plunge Signals Risk
- Business development company ETFs and alternative asset managers plunged, signaling investor concern about private credit exposure.
- That weakness helped trigger broader anxiety about underwriting standards and contagion risk in regional banks.
Apple Acquires U.S. Formula 1 Rights
- Apple secured U.S. streaming rights to Formula 1, signaling deeper sports content ambition beyond its movie play.
- F1's revenue mix (sponsors, promotion, shared TV rights) makes the U.S. market high potential but different from typical TV‑rights models.