Good morning. Happy Friday.
The Asian/Pacific markets were mixed, except China, Hong Kong and Taiwan were up big. Europe, Africa and the Middle East are currently mixed. The UK, Greece, South African and Hungary are up; Switzerland and Sweden are down. Futures in the States point towards a positive open for the cash market.
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The dollar is up. Oil and copper are up. Gold and silver up. Bonds are mixed.
Stories/News from Seeking Alpha…
Game on
The biggest tech acquisition in U.S. history is on its way to the finish line following several hurdles from regulators across the globe. Microsoft’s (MSFT) $69B purchase of Activision Blizzard (ATVI) will transform the gaming player into a gaming behemoth, with the company behind Xbox becoming the new owner of popular gaming franchises like Call of Duty and World of Warcraft. Microsoft has gone to great lengths to address concerns about its new market position, committing to “helping bring more games to more people” and “creating more opportunities for gamers and game developers.”
Backdrop: Getting the deal approved wasn’t easy, and the regulatory road was a bumpy one after the transaction was first put forward in January 2022. Microsoft eventually scored approval in the EU, China, and other markets, but faced a prolonged fight with the Federal Trade Commission in the U.S. and the Competition and Markets Authority in the U.K. Following several court losses, the FTC’s suit was eventually dropped, while Microsoft refiled for the merger across the pond with remedies that included the divesture of cloud rights related to PC and console games.
It looks like it might finally be enough. The U.K. said overnight that it now sees “reasonable grounds” for the merger and the restructured proposal “opens the door” to the deal being fully cleared after gathering third-party feedback. Shares of Activision Blizzard (ATVI) rose 2% to $94/share in premarket trading, approaching the $95 price that Microsoft (MSFT) had laid out when it unveiled the industry-rattling transaction nearly two years ago. SA analyst The Gaming Dividend recently wrote that ATVI was a buy whether the deal closes or not, but it looks like investors now have their answer.
What’s in it for Activision? “As I said when we announced the deal, this transaction will help us accelerate our ambitions for the future of gaming and enable us to better serve our players,” CEO Bobby Kotick wrote in a new email to employees. “Microsoft recognizes the commitment to excellence and creative independence that has served us well for the last 30 years. I am confident that their resources, technology, and tools will provide us even greater opportunities to create even better games.”
New chapter
Cementing his son Lachlan’s control of the media empire, Rupert Murdoch is retiring from chairing the boards at Fox (FOX, FOXA) and News Corp. (NWS, NWSA). “For my entire professional life, I have been engaged daily with news and ideas, and that will not change,” said Murdoch, who will remain in the backfield as chairman emeritus. Third Bridge analyst Jamie Lumley said Murdoch’s exit further decreases the odds of Fox and News Corp. remerging, as the synergies are not as apparent as they were before. Murdoch had scrapped a plan to reunite the media outlets earlier this year as it was “not optimal” for shareholders at the time. (9 comments)
Shutdown looms
House Speaker Kevin McCarthy’s third attempt to avert a federal government shutdown has collapsed, with only nine days left before the federal government’s new fiscal year. “This is a whole new concept of individuals who just want to burn the whole place down,” McCarthy said after a group of Freedom Caucus Republicans voted with Democrats to block a vote on a traditionally popular defense funding bill. While Congress needs to pass 12 appropriation bills to fund the federal government, Fear & Greed Trader advises investors not to overreact to the looming shutdown. “Markets are largely unaffected in the lead-up to a shutdown, and on average, continue to rise in the 30 days following a resolution.” (50 comments)
Next steps
The United Auto Workers will announce today which factories will be affected by the broadening of a targeted strike against Ford (F), General Motors (GM) and Stellantis (STLA). Union President Shawn Fain previously warned that the strike would expand unless substantial progress was made. Politicians from both parties have entered the fray, with most calling for a compromise in the middle where the pay increases would be 25% to 30% over the four-year contract. SA analyst Pink Sands Value Investor believes if UAW were to prevail, it would be a Pyrrhic victory as it could lead to American automakers becoming less competitive due to mounting costs. (18 comments)
Today’s Economic Calendar
8:50 Fed’s Cook hearing before the National Bureau of Economic Research Economics of Artificial Intelligence Conference
9:45 PMI Composite Flash
1:00 PM Baker Hughes Rig Count
1:00 PM Fed’s Daly Speech
What else is happening…
Can Cisco (CSCO)-Splunk (SPLK) deal usher in an M&A tidal wave?
NIO (NIO) becomes the first EV maker with its own smartphone.
Google (GOOG, GOOGL) says ‘no change’ to Broadcom relationship.
Bank of England keeps rates unchanged, to shrink balance sheet.
Chevron (CVX) accepts regulator’s plan to end Australia LNG strikes.
W.P. Carey (WPC) to leave office sector through spinoff, asset sales.
US10Y may not fall below 4%, even if Fed eases next year: Bill Gross.
Semiconductor stocks sink as Arm (ARM) breaks below IPO price.
Pfizer’s (PFE) COVID pill Paxlovid efficacy lower in real-world study.
FAA alert warns of GE (GE) jet engines with unapproved parts.
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Good morning. Happy Thursday.
The Asian/Pacific markets got hit hard. The Philippines did well, but Japan, China, Hong Kong, South Korea, India, Taiwan, Australia and Singapore posted big losses. Europe, Africa and the Middle East are posting solid losses. Turkey and the UAE are up, but Denmark, Poland, France, Germany, Russia, Finland, South Africa, Norway, Hungary, Spain, the Netherlands, Italy, Austria, Sweden and Saudi Arabia are down big. Futures in the States point towards a big gap down open for the cash market.
————— VIDEO: Trade Examples – AMZN, BPT, CDLX, TSLA, CARR, CVNA —————
The dollar is up. Oil and copper are down. Gold and silver down. Bonds are down.
Stories/News from Seeking Alpha…
Sit tight
Markets are still digesting the latest messaging from the Federal Reserve, which wrapped up a two-day policy meeting on Wednesday afternoon. “The fact that we’ve come this far lets us really proceed carefully,” said Chair Jerome Powell, emphasizing some recent battles won on the inflation front, but citing risks related to an overly resilient economy and labor market. On that note, the central bank kept rates unchanged for the second time this year, though investors were watching what might come next in the FOMC’s economic projections.
The dots: The median projection for the federal funds rate at the end of the year was 5.6%, implying one more hike – the same seen in the June projection. Policymakers also increased their forecasts for the fed funds rate at the end of 2024 to 5.1%, compared with the previous 4.6%, while the median projection for the end of 2025 rose to 3.9% from 3.4%. Fewer rate cuts were seen in 2024, leading benchmark indices to close the session lower, with the Nasdaq (COMP.IND) sliding 1.5%. The yield on the 2-year Treasury note (US2Y), which reflects interest rate expectations, also hit 5.118%, marking the highest level since 2006.
“Forecasts are highly uncertain. Forecasting is very difficult. Forecasters are a humble lot with much to be humble about,” Powell noted during his press conference. “In terms of inflation, you are seeing – the last three readings are very good readings. It’s only three readings. You know, we were well aware that we needed to see more than three readings. The only concern – and it just means this. If the economy comes in stronger than expected, that just means we’ll have to do more in terms of monetary policy to get back to 2%, because we will get back to 2%.”
What to watch: So far the Fed has seemed to add enough pressure on financial conditions with less fallout for growth and employment compared to previous U.S. inflation battles. That has led the market to price in an economic “soft landing,” which has helped prop up stocks for much of the year, contrary to many of the initial forecasts on Wall Street. The key question is whether that can keep on going. Have the 525 basis points in interest rate hikes delivered since March 2022 already filtered through the economy? Will things hold up if those levels are held through 2024? What about other curveballs like higher energy costs, student loan repayments, damaging labor strikes or a government shutdown?
Hollywood talks
The Hollywood strike could soon end as writers and major studios met face to face on Wednesday, and will meet again today with an aim to finalize a deal. If an agreement is not reached, the strike could extend through the end of the year. Writers have been on strike since May, with actors joining the picket lines in July in a historic double strike, halting production of several TV shows and films. “While Netflix may run out of new content later compared to its competitors, the threat is real,” said SA analyst Luca Socci. Investing Group Leader Stone Fox Capital also warned investors that Warner Bros. Discovery (WBD) may “face a major hit next year without new original content.” (5 comments)
Latest earnings
Shares of FedEx (FDX) rose 5.8% after the close on Wednesday after the company’s sales outlook beat estimates. The package shipping firm posted earnings that easily topped expectations, as it continued to cut costs and poached customers from rivals UPS (UPS) and Yellow (OTC:YELLQ). However, revenue of $21.7B came in just under estimates amid ongoing demand weakness. “Labor negotiations at our primary competitor and the bankruptcy of Yellow disrupted the market,” said CEO Raj Subramaniam, adding that FedEx aims to maintain the majority of the business won. FedEx Express continued to weaken, although cost cuts helped push operating profit higher. (13 comments)
Free tests
The Biden administration is resuming a program to deliver free COVID-19 tests through the mail, according to Secretary of Health and Human Services Xavier Becerra. The federal program had restarted last December in partnership with the U.S. Postal Service, allowing households to order a total of four at-home COVID tests for free. However, plans to preserve the remaining test kits and a decline in hospitalizations prompted officials to pause the program in June. The latest decision to resume the program comes amid a slight uptick in COVID-related hospitalizations in the U.S. Rapid COVID-19 test makers include Abbott (ABT) and Becton, Dickinson (BDX), QuidelOrtho (QDEL) and QIAGEN (QGEN). (38 comments)
Today’s Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Current Account
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
What else is happening…
General Motors (GM) hits back at UAW claims as strike continues.
Cleveland-Cliffs (CLF) refuses to sign deal with U.S. Steel (X).
MGM Resorts (MGM) operations back up after hacking incident.
China pauses review of Broadcom’s (AVGO) VMware (VMW) purchase.
Toshiba (OTCPK:TOSBF) set to end 74-year run as a publicly listed firm.
Senate updates marijuana banking bill ahead of committee vote.
General Mills (GIS) sees higher prices in Q1 offset a drop in volume.
Aquestive spikes as FDA rejects ARS Pharma’s (SPRY) epinephrine spray.
KB Home notches steady demand, but average sales price likely to dip.
Tilray a top pick in Seeking Alpha Quant Ratings despite short interest.
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Good morning. Happy Wednesday. Happy Fed Day.
The Asian/Pacific markets closed mostly down. Indonesia did well, but Japan, China, Hong Kong, India, Taiwan and Thailand were weak. Europe, Africa and the Middle East are posting solid gains. The UK, Denmark, Poland, France, Turkey, Germany, the UAE, South Africa, SWitzerland, Spain, the Netherlands, Italy, Israel, Portugal, Austria and Sweden are doing well. Futures in the States point towards a gap up open for the cash market.
————— VIDEO: Trade Examples – AMZN, BPT, CDLX, TSLA, CARR, CVNA —————
The dollar is down. Oil is down; copper is up. Gold is up; silver is down. Bonds are up.
Stories/News from Seeking Alpha…
House in order?
Housing affordability is becoming a problem in the U.S. and is transforming the market in ways that could be difficult for homebuyers and homebuilders alike. Tuesday’s economic calendar saw housing starts plunge by 11.3% month over month in August to 1.283M, marking the lowest level since June 2020. On a Y/Y basis, housing starts fell a further 14.8%, and well below the 1.435M units expected by economists.
Quote: “High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower,” Robert Dietz, chief economist of the National Association of Home Builders, said earlier this week. The statement came after homebuilder sentiment dropped for the second consecutive month and fell below the key break-even measure of 50.
The latest data may not only spell trouble for current housing dynamics, but future supply as well. Many are sitting on mortgages taken out during the beginning of the COVID pandemic, when rates were at 3% or under, and are not in a rush to exit their current properties. At the same time, builders are concerned about constructing new houses that buyers may not be able to afford, which has pushed many of them to the sidelines. Student loan repayments are also about to restart, which can be another big setback for millennials who are looking to break into the market.
What to watch: “As long as rates remain high, homeowners will be reluctant to sell. And that lack of homes for sale will keep prices high because it means buyers are duking it out for a limited supply of houses,” wrote Chen Zhao, lead of Redfin’s (RDFN) economics research. In fact, the median U.S. home sale price advanced 3% Y/Y to $420,846 in August, marking the largest annual increase since October, when mortgage rates surpassed 7% for the first time in two decades. Home purchases are also getting scrapped at the highest rate in nearly a year, with nearly 60K home-purchase agreements across the country canceled in August. (39 comments)
Fed decision
It’s showtime for the Federal Open Market Committee, which will announce its latest policy decision at 2 PM ET. Nearly all economists expect rates to remain unchanged, but will take a closer look at economic projections, which will offer a view of how high the central bank may go and for how long. This week’s WSB survey is still open, so if you haven’t taken the poll yet, check out what subscribers think might lie ahead for the remainder of 2023 and 2024. Analysts are also weighing in on today’s big event that’ll feature a press conference from Fed Chair Jay Powell. Alan Longbon explores what to expect at the meeting and how to trade it, though Stratos Capital Partners feels the outcome will have a limited impact on markets. (49 comments)
IPO buzz
Grocery delivery firm Instacart (CART) closed up 12.3% in its market debut, ending the day with a valuation of about $11.5B. Instacart’s rally comes close on the heels of Arm’s (ARM) IPO, in which its shares jumped 25% in its first day of trading. The initial enthusiasm has since faded, with Arm declining in three consecutive sessions. SA analyst The Asian Investor believes traders are overpaying for Arm’s revenue potential, a concern shared by Wall Street analysts. Nonetheless, Arm’s debut was followed by Instacart and marketing automation firm Klaviyo boosting their respective IPO pricing ranges. Klaviyo has priced its IPO at $30 a share, at the top of its marketed range – in a similar fashion to Instacart – and will begin trading today. (41 comments)
Hiring blitz
Ahead of the holiday season, Amazon (AMZN) said it will hire 250K workers in full-time, part-time, and seasonal fulfillment center and transportation roles across the U.S. The e-commerce giant will also invest $1.3B this year toward pay hikes for customer fulfillment and transportation employees, representing a more than 50% increase over the last five years. U.S. retail sales are expected to be resilient this holiday season despite macroeconomic headwinds including inflation, resumption of student loan repayments and higher gas prices. While growth is expected, Deloitte sees holiday sales slowing to 3.5%-4.6%, from last year’s 7.6% growth. (5 comments)
Today’s Economic Calendar
7:00 MBA Mortgage Applications
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
What else is happening…
Disney (DIS) slips after move to double Parks investments to $60B.
Uber (UBER) could hike prices by 40% if EU gig rules are passed.
Intel (INTC) unveils new AI chips, more products at Innovation event.
Will the DOJ move forward with Spirit (SAVE)-JetBlue (JBLU) trial?
Consumer retreat: Goldman (GS) in advanced talks to sell GreenSky.
Philip Morris (PM) evaluates selling stake in pharmaceuticals unit.
Ford (F) reaches tentative deal with Canadian union to avoid strike.
Pinterest (PINS) investor day points to high-teens revenue growth.
WBD to launch Max’s live sports tier Oct. 5 for baseball playoffs.
Earnings watch: FedEx (FDX) earnings on deck, what to expect.
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned down. Hong Kong and Malaysia did well, but China, South Korea, Australia, Singapore and the Philippines were weak. Europe, Africa and the Middle East are currently mixed. Turkey, the UAE, Hungary, Austria and Italy are up; Denmark, Russia, Greece and Sweden are down. Futures in the States point towards a flat-to-down open for the cash market.
————— VIDEO: Trade Examples – AMZN, BPT, CDLX, TSLA, CARR, CVNA —————
The dollar is down. Oil is up; copper is down. Gold and silver are up. Bonds are down.
Stories/News from Seeking Alpha…
Red ink
America’s national debt has topped $33T for the first time, according to the latest figures from the Treasury Department. The record amount of red ink and gloomy fiscal milestone come as Congress braces for another fight over federal spending. Unless lawmakers can agree to pass a dozen appropriations bills by Sept. 30, or ink a short-term continuing resolution to fund the government, the U.S. would face its first federal shutdown since 2019.
Quote: “President [Biden] has proposed a series of measures that would reduce our deficits over time while investing in the economy, and this is something we need to do going forward,” Treasury Secretary Janet Yellen declared. “The statistic or metric that I look at most often to judge our fiscal course is net interest as a share of GDP. Even with the rise we have seen in interest rates that remains at a very reasonable level.”
“Net interest as a share of GDP” refers to net payments the federal government makes on its debt in relation to U.S. gross domestic product. Those interest payments totaled 1.86% of GDP in 2022, which falls in line with the historical average since 1960 of just under 2%, but other factors are causing more alarm. The national deficit for the first 11 months of the latest fiscal year was $1.5T, marking a 61% increase from the same period a year ago, while total public household debt hit a record $17T in Q2, with the U.S. debt-to-GDP ratio reaching 120%. “The U.S. debt situation is out of control, with no responsible body of people in the government willing to address it,” SA analyst John Mason writes in The Fiscal Mess Of U.S. Debt.
What to watch: There’s no magic number or level for when a government’s debt begins to hurt its economy, and the U.S. has easily handled a much heavier debt load than was once thought possible – even using those conditions to remain competitive on the international stage. However, a spike in interest rates over the past year and a half has made the cost of servicing the national debt way more expensive, posing significant risks to the fiscal and economic outlook. Extreme partisanship has also left both parties pointing fingers and kicking the can further down the road. The GOP has cited bloated federal spending programs that passed during the Biden administration – like the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act – while Democrats have referenced the “trillions spent on Republican tax cuts skewed to the wealthy and big corporations.”
No peak yet
Top oil executives are voicing support for the global transition to cleaner energy, but said that crude will continue to play a major role for decades to come, in remarks at the World Petroleum Congress in Calgary. Exxon (XOM) CEO Darren Woods and Saudi Aramco (ARMCO) boss Amin Nasser both pushed back against the recent prediction from the head of the International Energy Agency that the era of fossil fuels is ending and demand will peak by 2030, outlining the transition to cleaner energy to fight climate change will require continuing investment in conventional oil and gas. “No matter where demand gets to, if we don’t maintain some level of investment in the (oil and gas) industry, you end up running short of supply, which leads to higher prices,” said Wood – in a view echoed by Nasser. (37 comments)
At the high end
Grocery delivery firm Instacart (CART) has priced its initial public offering at $30 per share, at the top of a previously stated range, giving it a valuation of $10B. Instacart – also known as Maplebear – had boosted its IPO price range to $28-$30 a share to raise as much as $660M, following renewed optimism thanks to Arm’s (ARM) impressive market debut. Instacart, led by former Meta (META) executive Fidji Simo, will issue 22M shares in total, with the stock expected to start trading today on the Nasdaq. While SA analyst IPO Kitchen said the increased pricing range suggests high retail demand, they’re not too confident that Instacart can grow its top line fast enough to justify its premium valuation. (18 comments)
Not messing around
United Auto Workers are planning additional strikes against the Detroit Three if “serious progress” is not made in contract negotiations by noon on Friday, the union’s president Shawn Fain warned, adding, “We’re not messing around.” The new deadline would mark a week since the union announced targeted strikes in factories run by General Motors (GM), Ford (F) and Stellantis (STLA). While a team from the White House is expected to arrive in Detroit this week, Fain downplayed its role in brokering a deal. Separately, Canada’s Unifor extended negotiations with Ford for a 24-hour period to avoid a strike after the contract between the company and the union expired at midnight. (14 comments)
Today’s Economic Calendar
FOMC meeting begins
8:30 Housing Starts and Permits
1:00 PM Results of $13B, 20-Year Bond Auction
What else is happening…
WSB survey results: Fed may not be done with its hiking cycle.
Pfizer sees 24% of eligible Americans getting COVID boosters.
Hedge fund bets on U.S. Treasury futures could spark turmoil.
EV maker NIO (NIO) plans $1B convertible senior note offering.
Gap (GPS) leads drop in mall stocks as retail worries grow.
Credit card delinquencies, net charge-offs trend higher in August.
Amazon mulls new subscription programs in grocery, healthcare.
Lyft (LYFT) to pay $10M to settle Carl Icahn-related investigation.
Tilray (TLRY) slides after new short call from Kerrisdale Capital.
Coke (KO) could be Burger King’s (QSR) India beverage partner.
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets were mostly down. Japan and New Zealand did well, but Hong Kong, South Korea, Taiwan, Australia, Indonesia, Singapore and Thailand were did poorly. Europe, Africa and the Middle East are currently very weak. Denmark, Poland, France, Turkey, Germany, Russia, South Africa, Switzerland, the Netherlands, Italy, Portugal and Saudi Arabia, are down moderately or big. Futures in the States point towards a down open for the cash market.
————— VIDEO: Trade Examples – AMZN, BPT, CDLX, TSLA, CARR, CVNA —————
The dollar is down slightly. Oil is up; copper is down. Gold is up; silver is down. Bonds are down.
Stories/News from Seeking Alpha…
Policy guidance
With the Federal Open Market Committee widely expected to keep rates unchanged at its meeting on Wednesday, investors and economists will keep their eyes trained on the policymakers’ economic projections that are released at the same time. In addition, they’ll be listening for any hints about the likely path at following Fed meetings, especially the last one of the year on Dec. 12-13. Nearly all Fed officials have been repeating Fed Chair Jerome Powell’s mantra of “higher for longer,” but the summary of economic projections (“SEP”) will offer a view of how high the central bank may go and for how long.
Rate path probabilities: Keep in mind that the projections do not represent decisions on a rate path. Rather, they reflect individual Fed members’ expectations of how the economy and policy will unfold. In the June 2023 SEP, the federal funds rate median projection was 5.5% for the end of 2023 and 4.6% for the end of 2024. Its rate currently stands at 5.25%-5.50%. “In the Fed’s dot plot, what you’re likely to see going into 2024 is fewer rate cuts, which has sort of been priced into the market at this point, but I don’t think it has flowed through to investors’ expectations of where interest rates will be,” said Wakefield Asset Management Partner Greg Brittain in an interview with Seeking Alpha.
Overall, though, the economy has remained pretty resilient. A hard landing seems to be out of the cards for now, but that can be difficult to predict over the long term, especially if the Fed is late to react to economic conditions (remember the infamous “transitory” call from 2022?). As a result, the central bank’s dot plot for next year might be more cautious as it continues to play defense on inflation and resist signaling anything that might lead financial markets to get ahead of the Fed on rate cuts.
Wild cards to watch: Uncertainty always looms over the Fed’s economic outlook, but Powell may emphasize that fact even more during his post-decision press conference given the recent auto workers’ strike and a potential government shutdown. The latter possibility may worry the data-dependent central bank even more, as government agencies would stop issuing economic reports during a shutdown. The September jobs report is scheduled to come out on Oct. 6, days after the government’s fiscal 2023 ends on Sept. 30. Take the WSB survey. (28 comments)
IPO fever
Arm Holdings’ (ARM) stellar trading debut has injected fresh optimism in the IPO market, as the first U.S. technology unicorns in nearly two years have both boosted their pricing ranges. Instacart (CART) priced its IPO at $28-$30 a share, as the grocery delivery firm aims to raise as much as $660M, valuing it at $9.3B-$9.9B. Klaviyo (KVYO), a marketing automation company, also raised its IPO price range to $27-$29 apiece, targeting to raise $557M and valuing the firm at around $8.7B. Five IPOs raised a combined $5.4B last week, led by Arm’s blockbuster IPO, according to SA analyst Renaissance Capital IPO Research. (11 comments)
Washington involved
The United Auto Workers’ strike against Detroit’s Big 3 automakers has entered its fourth day, garnering support from President Joe Biden and Democratic politicians, but negotiations remain deadlocked. A team from the White House, who has already been engaging with the parties by phone, will reach Detroit early this week to mediate negotiations. The strike is of particular importance, given the 2024 presidential race as the UAW’s endorsement of any candidate would be key in securing blue-collar votes. Meanwhile, Stellantis (STLA) sweetened its contract proposal, although UAW’s Shawn Fain said it was a “no-go”. Note that Ford (F) laid off 600 workers at its Michigan plant because of the strike. (7 comments)
Giga Turkey?
Turkish President Tayyip Erdogan has called on Tesla (TSLA) CEO Elon Musk to build a new factory in Turkey during a meeting in New York ahead of the UN General Assembly’s meeting that kicks off today. Musk said Turkey will be among the top candidates for a Tesla investment. Erdogan and Musk also discussed Turkey’s AI strategy, as well as the potential cooperation between SpaceX and the country’s space program. SpaceX is planning to seek a license to offer Starlink in Turkey. Musk is also expected to meet Israeli Prime Minister Benjamin Netanyahu in California today to discuss AI. (3 comments)
Today’s Economic Calendar
10:00 Housing Market Index
4:00 PM Treasury International Capital
What else is happening…
California sues Big Oil, claiming decades of deception on climate harm.
Redfin: U.S. home purchases scrapped at highest rate in 10 months.
Biden’s climate goals in jeopardy as offshore wind projects flounder.
TikTok hopes to crash holiday sales party with new marketplace.
E-commerce giant Alibaba (BABA) to invest $2B in Turkey.
The ‘tripledemic’ threat expected to be less severe this winter.
Corteva (CTVA) overtakes Bayer in making soybean seeds for U.S.
Foxconn (OTCPK:FXCOF) aims to double investment in India in a year.
With ecstasy a potential PTSD therapy, psychedelic drugs could take off.
KKR (KKR) to buy 20% stake in Singtel’s regional data center for $800M.
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