how are you? (July 10-16)
Twitter plays an attack
In Elon Musk’s Twitter story, the end of one chapter is just the beginning of another. Mr. Musk was sued on Twitter shortly after he announced that he had withdrawn his contract to buy a social media company. The company accused him of violating their agreement “intentionally, intentionally, intentionally and materially.” Mr. Musk’s lawyer said on Friday that Twitter’s request in the proceedings for a speedy trial in September was unreasonable and demanded that it be postponed. When the case is brought to justice, and if so, a judge in the Chanceley Court of Delaware decides whether Mr. Musk’s allegation that Twitter withheld information about spam accounts on the site is valid. .. Mr. Musk could have settled the two by paying damages. Or, if his funding fails, he can get out of his transaction by paying a $ 1 billion split fee. Another possibility is that the threat of Mr. Musk leaving would cause Twitter to renegotiate with him, which could result in him buying the company at a discounted price. Worried shareholders will hear about how much damage Mr. Musk did when Twitter announced its earnings for the second quarter of this week.
Inflation accelerates
According to the latest Consumer Price Index report, prices that had already soared last month rose again. Fresh inflation data showed June prices soared 9.1% from a year ago. Record gas prices were a major factor in high inflation. After that, it fell sharply. This is a factor that could lead to signs of mitigation in the July report.President Biden focused on this possibility and called them in response to his new number. “Obsolete.” But even so-called core inflation, which removes volatile food and energy costs, was higher than expected, at 5.9%. And overall, there was little light in last week’s report, experts said, which presented significant challenges for the Federal Reserve and US consumers.
Euro fall
After the euro reached the same level as the dollar last week, one euro became one dollar for the first time in 20 years. Currencies have fallen since the beginning of the year due to trade turmoil, sanctions on Russia’s energy after the invasion of Ukraine, and soaring food and commodities in the euro area. And as the euro fell, the dollar strengthened, supported by investors who turned to the US currency as a safe haven in the turmoil of the global economy. This dynamic seems to persist even when the United States is dealing with its own economic tensions.
What’s next? (July 17-23)
Rising interest rates on the agenda
The European Central Bank will announce a rate hike on Thursday as the euro’s depreciation makes the continent’s economic situation look even more dire. This is the first time the ECB has raised interest rates in more than a decade and is on the same positive path as many other central banks around the world. Last week, the Bank of Canada raised interest rates by 1 percentage point. The Federal Reserve is also heading for a sharp rate hike as inflation continues to run at a pesky pace. Federal Reserve Board Christopher Waller said he was in favor of another three-quarters change this month, but a much larger, perhaps one-point increase is possible.
Netflix Key Quarter
Netflix is already preparing shareholders for the second quarter of this week’s financial statements. But that doesn’t mean the news is easier to swallow. In April, Netflix struggled to stay competitive among various streaming options after announcing the loss of 200,000 subscribers, potentially losing another 2 million in the next three months. I warned that there was sex. Since then, the company has been laid off multiple times during the plunge in stock prices. As streaming giants try to recover, they plan to partner with Microsoft to create a cheaper, ad-supporting subscription tier. However, this move does not guarantee a calmer waters for the company.
Recession odds
The potential for an imminent recession depends on who you ask. Talking to Wells Fargo’s Chief Economist, he would say that the recession in 2023 “seems more likely than not.” Asking the S & P Global Ratings, the potential for a serious recession is basically Tosap. Last week, some thought of clear warning signs, but JP Morgan Chase and Morgan Stanley said they haven’t seen a recession yet. Despite the various outlooks, most people, including analysts, economists, and the general public, think about it and look for clues to indicators such as yield curves, inflation data, quarterly earnings, and investor attitudes. And as the Fed tries to put a brake on the economy, concerns will continue to grow that it could put the country in a serious slowdown.
what else?
Bank of America has been fined $ 225 million by federal regulators for mishandling its pandemic unemployment allowance. In the midst of travel turmoil, Delta flew an empty plane to London’s Heathrow Airport, picked up the leftover luggage and brought it back to the United States. Heathrow Airport said it would limit passenger numbers until the end of summer due to a shortage of staff.
