Electronic music DJ David Solomon also works as the CEO of Goldman Sachs in his spare time. Some Goldman investors think that his DJing is a distraction and is one reason why the firm has underperformed during his reign. Underlings are also unhappy and describe David as a ‘prick’. For the moment, he retains the support of the board, but it looks like a trying week for the DJ. I hope yours is better.

The lowdown

• 🎧️ Goldman Sachs CEO David Solomon faces pressure to resign but currently retains the support of the board.

• 🇨🇳 China has delivered smaller rate cuts than expected: a 10 basis point cut to its one-year lending rate and no cut to its five-year lending rate.

• 🏢 Chinese property developer Evergrande files for bankruptcy, with Country Garden also at risk of default.

Flex your finance muscle 💪

Reverse stock splits

When a company undertakes a reverse stock split (aka stock consolidation), it reduces the number of its outstanding shares in the market without changing the overall value of a shareholder's equity. For example, in a 1-for-40 reverse split, an investor who previously held 40 shares would now hold just 1 share. The value of that one share post-split would be roughly equal to the combined value of the 40 shares pre-split.

So what exactly is the point you might ask? Well, WeWork is undertaking a reverse stock split to continue to meet the NYSE’s listing requirements. Specifically, that a company’s share price remains above $1. If a company's stock price falls below this threshold, it risks being delisted.

Featured story

SoftBank buys Vision Fund’s stake in Arm

SoftBank has purchased the 25% stake in chipmaker Arm that it didn't already own from its Vision Fund at a valuation of $64 billion. SoftBank originally bought Arm for $32 billion in 2016 and later sold a 25% stake to the Vision Fund for $8 billion in 2017.

Because of this acquisition, SoftBank is anticipated to sell fewer shares of Arm in the forthcoming IPO ($), likely retaining a 90% stake. This means that the total capital raised from the IPO will likely be lower than the previously expected range of $8 billion to $10 billion.

The deal mitigates potential concerns about Arm's stock post-IPO, as the Vision Fund had intended to gradually sell its shares following the listing whereas SoftBank has committed to being a long-term investor.

The content we're consuming today

• Odd Lots podcast: Here’s How the New Weight Loss Drugs Could Change Everything.

• WSJ: A Rare Look Into the Finances of Elon Musk’s Secretive SpaceX ($).

• Apricitas Economics: Have Rising Mortgage Rates Frozen the Housing Market? ($).

Off-balance sheet items

• Have you heard of Pickleball? Well, it’s the fastest growing sport in the US but I can’t tell if it looks fun or lame. Here is a primer on how the game works, why people love it and why some people really hate it.

The bottom line