Musk’s Deal With Twitter Is Again On (For This Week at Least)

October eleventh, 2022

Final week’s market abstract (October Third-Seventh, 2022):

• S&P 500: +0.83%
• Dow: +1.53%
• Nasdaq: -0.06%
• Bitcoin: +2.54%

Hey Junkies,

Blissful belated Columbus Day! I used to be fortunate sufficient to have off yesterday for the vacation (yep, I am rubbing that in) in order that’s why our e mail is popping out a day later than standard.

With out additional ado, here is what we’re overlaying right now:

Maintain studying to be taught extra about every of those tales and to get a take a look at upcoming financial occasions that ought to be in your radar.

Clint, Editor-in-Chief

What Everybody’s Been Buzzing About

1. Musk Recommits to Shopping for Twitter – However The Timing Is Curious

In an October fifth SEC submitting, Elon revealed that he did, in truth, intent to shut his buyout take care of Twitter. However to ensure that that to occur, he wanted the choose to delay the courtroom proceedings (which it simply so occurred had been scheduled to begin on October sixth).

So does Musk actually need to purchase Twitter or is he simply delaying issues till he can provide you with a greater authorized excuse to again out of the deal? Who is aware of. In spite of everything, it is Musk that we’re speaking about right here and his actions typically appear as unpredictable as the worth of his beloved Dogecoin.

For what it is value, Twitter buyers favored the event. The corporate’s inventory shot up practically 25% on Tuesday after information broke of Musk’s sudden change of coronary heart.

2. Wall Road Choked on September’s “Goldilocks” Jobs Report

For its inflation-fighting efforts to work, the Fed wants the red-hot economic system to decelerate. But when the job market declines too fast and too quick, it may additionally thrust the U.S. right into a steep recession.

With this in thoughts, many analysts had been hoping for a “Goldilocks” jobs report that wasn’t too sizzling cot or chilly, however quite heat or (even higher) cool. By many accounts, that is precisely what we acquired on Friday. The 263,000 new jobs that had been created got here in under the consensus estimate of 275,000. However on the flip aspect, the unemployment price was 3.5% which was a dip from August’s price of three.7%.

So buyers ought to have been completely satisfied proper? Not so. As a substitute the S&P 500 fell by 2.80% and the Dow by 2.11% on Friday. What offers? Wall Road professionals appear hyper-focused on that unemployment quantity. So long as it is taking place, they’re to not purchase into the concept that Fed’s price hikes are working.

3. “Ghost Cattle” Rip-off Lands Rancher in Jail for 11 Years

Our IJ workforce has heard of all types of investing scams and crypto scams, however that is the primary time that we have heard of a “ghost cattle” rip-off. Final week, rancher Cody Easterday obtained an 11-year jail sentence for scamming Tyson Meals out of $244 million.

Apparently, Easterday obtained about $2 billion in complete from Tyson that was meant for use to buy and lift cattle. It seems that padded his invoices by about 10% to assist cowl his mounting commodity buying and selling losses. In complete, he invoiced for 260,000 heads of non-existent (ghost) cattle.

Because of firms like Agridime, “cattle investing” has been rising in reputation lately. However between a cattle Ponzi scheme that was busted in August and now this, this budding asset class appears ripe for fraud.

4. OPEC Reduce Its Oil Manufacturing, Angering Everybody However Russia

OPEC, the intergovernmental oil conglomerate led by Saudi Arabia, agreed final Wednesday to chop oil drilling by 2 million barrels per day. The choice was framed as a technique to stem the slide of oil costs — that they had fallen roughly $40 per gallon since June — however politicians all over the world suppose there’s extra to it.

In December, worth caps on Russian oil had been set to enter impact in addition to a European Union ban on Russian oil. These strikes had been meant to scale back worldwide dependency on Russian crude, however the OPEC transfer implies that international locations may face extreme provide restrictions over the winter. And that probably means greater costs for shoppers.

The transfer could not come at a worse time for President Biden who had repeatedly taken credit score for the current worth reduction on the pump and hoped that the decrease costs would rally assist for the Democrat occasion within the November midterms. Biden blasted OPEC’s transfer and mentioned that the U.S. is “options,” however no retaliatory strikes have been introduced as of but.

Study extra >> Oil vs. Renewable Power Shares: Which Ought to You Spend money on In the present day?

5. It is Not Supply, It is…a Pizza Robotic?

Jay-Z’s Marcy Enterprise Companions led a $16.5 million funding spherical final week for robo pizza truck firm Stellar. The meals truck firm, which is based by former Area-X workers, makes use of robots to make the pizzas that are then delivered to prospects’ houses by a human driver.

The pizza robots can put together a pie in lower than 5 minutes and the vans can at present deal with a max every day capability of 420 pizzas. Stellar is only one of a number of startups that wish to get into the robot-powered pizza enterprise. Others embrace Picnic Works, PizzaHQ, and Piestro.

What To Maintain Your Eye on This Week

Listed here are just a few noteworthy financial occasions which can be coming this week:

• Tuesday, October eleventh: NY Fed 5-Yr Inflation Expectations | October
• Thursday, October thirteenth: Client Worth Index (CPI) | September
• Friday, October 14th: Retail Gross sales | September
• Friday, October 14th: Import Worth Index | September

Employees Favorites

At IJ, we’re effectively conscious that many different information groups and web sites are creating nice private finance content material. So every week we wish to name out just a few current tales from our colleagues that we felt had been fascinating, eye-opening, difficult, inspiring…or simply humorous.

Listed here are our picks for this week:

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