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In this week’s recap, we find several relevant and decisive events for the world economy, such as the approval of the stimulus package for coronavirus in the US for a value of $1.9T dollars. During the week, US equities were steadily lower as investors sought less risky assets, yet they rallied strongly on Friday. Global stocks were mixed.

Oil prices surge to the highest level in 14 months on Friday, as OPEC & its allies extend production cuts for another month, despite a recent price surge, thus choosing to limit supply, until the global economic recovery is more firmly established. Its supply cut amounts to nearly 8M barrels per day, including the extra 1M Saudi contribution. (U.S.) +2.98% at $65.73 & (Brent) +3.16% at $68.85.

The U.S. to soon have to settle a Bitcoin issue with a decision that could have far-reaching implications, for the virtual currency industry. Concerns last-minute rules proposed by the outgoing Trump administration that would create new requirements for financial services firms to record the identities of holders, to lessen attempts to use Bitcoin & other cryptocurrencies for money laundering or to finance illegal activities. If adopted, could cause cryptocurrency prices to plunge.

Tesla’s market share in the critical European battery-electric-vehicle is crumbling. Volkswagen Group actually sold the most electric vehicles of any firm, in the key European market, during January 2021. In 2019, Tesla sold over 109K vehicles, making up 31% of the European EV market, in 2020 it was just 13%. At the same time, China is now reclaiming top ranking in the global Electrical Vehicle race.

UK-EU trade deal still with no vote date; General Motors further increases production cuts due to semiconductor shortages; Texas Governor Allows Businesses to Open at 100% Capacity; Zoom shares rose earlier in the week after Q4 results topped estimates; the number of Americans filing new claims for unemployment benefits rose last week.

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In this week’s recap, we see that global stocks finished mostly higher, with the NASDAQ achieving a record high and the S&P 500 reaching a record close, as investors reacted favorably to President Biden agreeing to a roughly $1T infrastructure plan, in hopes it will further stimulate the economy. Asian shares rose further on Friday, tracking gains from the U.S. on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed +0.58%, & the Japanese Nikkei 225 jumped +0.7% in afternoon trading to above 29K, after President Biden announced a bipartisan deal on infrastructure spending. A recovery in the U.S. economy is a boon for this export-driven region.

Data firm IHS Markit said Wed. its flash U.S. manufacturing PMI rose to a reading of 62.6 in June. The highest since the survey was expanded to cover all manufacturing industries in October 2009 & followed a final reading of 62.1 in May. However, manufacturers are still struggling to secure raw materials & qualified workers, substantially raising prices for both businesses & consumers alike.

Bitcoin falls below $30K, Tues. morning for the 1st time since Jan. It dropped another -8% of the valuation, after falling some -10% yesterday. Bitcoin down -54% from its mid-April peak of $64,788.00, paring its 2021 gain to just +4.4% & its market cap down to $554.78B. There has been an overall drop of over -$1.3T in market value, for the broader crypto market since the peak in May.

Panasonic shares rise after selling all of its Tesla shares; U.S. manufacturing orders increased in May; BuzzFeed would go public with an implied value of $1.5 billion; Biden infrastructure bill boosts Caterpillar shares; California governor to face recall election; India is diversifying its oil imports; Canada extending travel restrictions until at least July 21; record heatwave set to hit Northwest; shutdown at Iran’s sole nuclear site (china nuclear as well).

The post Recap June 27: Another Bitcoin Scam, Gavin Newsom Recall, Record Heat In Oregon (Recap Ep129) appeared first on Investing & Day Trading Education: Day Trading Academy.

Stay up-to-date with Marcello’s weekly recap! This time, we’re exploring the latest developments surrounding Tesla’s challenges, eclipse conspiracies, and a controversial water related decision in California. Morgan Stanley’s adjusted forecast for Tesla’s vehicle deliveries is causing a stir, while Xiaomi’s bold entry into the electric car market sparks intense competition in China. As the April 8th eclipse draws near, travel restrictions and safety concerns mount, with NASA and CERN preparing for scientific investigations. Meanwhile, California’s approval of Bill Gates’ sewage-to-drinking-water plan is causing people to debate.

Cocoa futures surged above an unprecedented $10K a metric ton this week an all time high with prices of the key chocolate ingredient doubling this year. Cocoa has more than tripled in cost over the past year. The market is being hit by poor crops in key West African growers, putting the world on course for a 3rd straight annual supply deficit. The world is facing the largest cocoa supply deficit in +60 years & chocolate consumers will see the effects w/higher prices soon. The International Cocoa Organization forecasts a supply deficit of 374K tons for 2023-24 season, a 405% increase from a deficit of 74K tons in the previous season.

Investment banker Morgan Stanley’s head of global auto & shared mobility research Adam Jonas, cut his forecast for Tesla vehicle deliveries saying he expects the electric vehicle behemoth to raise prices to compensate. He now expects Q1 deliveries of 425,400, a 9% decrease from his previous forecast of 469,400. Jonas’ new forecast still implies +0.6% y/y delivery growth. He also lowered his full-year delivery estimate to 1.95M, down from 1.99M, or 8% year-over-year growth.
Chinese smartphone company Xiaomi stated on Thursday it will sell its 1st car for far less than Tesla’s Model 3, as price wars heat up in China’s hotly competitive electric car market. Xiaomi CEO Lei Jun said the standard version of the SU7 will sell for 215,900 yuan ($30,408) in the country, a price he acknowledges will mean the firm was selling each car at a loss. Tesla’s Model 3 starts at 245,900 yuan in China. Lei claimed the standard version of the SU7, beats the Model 3 on over 90% of its specifications, except on 2 aspects that he said it might take Xiaomi at least 3 to 5 years to catch up with Tesla on.

The disgraced cryptocurrency mogul Sam Bankman-Fried was convicted last fall in the Southern District of New York on federal fraud & conspiracy charges related to his role in the collapse of his crypto exchange firm FTX in November 2022. On Thursday he was sentenced to 25 years in prison, after A jury found Bankman-Fried illegally used FTX depositor funds to bankroll a lavish lifestyle, purchasing luxury properties & private planes as well as making huge political donations.

Krispy Kreme shares surged +39.36% on Tuesday at $17.35, its best day on record for the stock. McDonald’s plans to sell the company’s doughnuts at its restaurants nationwide by the end of 2026, with the initial roll-out beginning later this year. McDonald’s shares were little changed during the session. Krispy Kreme stock is higher by +14.98% in 2024 & 11.58% year on year, with a market cap of $2.1B.

A report from the U.S. Labor Department on Thursday showed initial claims for unemployment benefits fell 2,000 to a seasonally adjusted 210K for the week ended March 23. Initial filings for unemployment were slightly lower than the 211K that economists had predicted.

The post March 31: Tesla in Trouble? Eclipse Conspiracies, California Drinking Water From Sewage (Recap ep271) appeared first on Investing & Day Trading Education: Day Trading Academy.

In today’s Recap, Marcello talks about Elon Musk’s Starlink, the satellite internet venture, that has stunned analysts with a projected revenue surge to $6.6 billion by 2024, showcasing its meteoric rise and disruptive force in the satellite communications industry. Meanwhile, a looming solar storm illuminated the skies with spectacular auroras, captivating observers with nature’s awe-inspiring display but also being a heads up on the risk this might pose to the electronic networks of the earth. On another front, the cost of robusta coffee beans has skyrocketed by over 60%, driven by a confluence of factors including adverse weather in Vietnam and rising competition from export crops like durian to China, foreshadowing potential changes in consumer habits and supermarket shelves worldwide.

Elon Musk’s Starlink, the satellite internet venture under SpaceX, is experiencing unprecedented growth, with analysts projecting a staggering revenue increase from $1.4 billion in 2022 to $6.6 billion in 2024. Since its inception in 2019, Starlink has rapidly expanded its constellation to nearly 6,000 satellites, with over 5,200 operational, and has deployed nearly 3 million terminals across 75 countries. This growth trajectory surpasses the combined revenue of the two largest geostationary satellite operators, SES and Intelsat, which recently announced a merger, highlighting Starlink’s disruptive impact on the satellite communications industry.
The cost of robusta coffee, the bean variety used in instant coffee & some espresso blends, has surged +60% over the past year, reaching its highest in nearly 50 yrs, which will be reflected in supermarket shelves. This is due to a combination of bad weather in Vietnam, world’s largest grower of robusta, plus competition with another fruit crop, namely the durian for export into China. Robusta beans had been in demand as roasters anticipated that the cost-of-living crisis, will prompt consumers to switch toward cheaper coffee blends. China is now developing a taste for coffee, ushering in an era, with coffee prices higher for longer.
A severe solar storm is supercharged the northern lights or aurora borealis on Friday, with forecasts indicating that auroras could be seen as far south in the United States as Alabama & northern California in North America. The National Oceanic & Atmospheric Administration’s Space Weather Prediction Center stated on Thursday that a series of solar flares & eruptions from the sun could trigger severe geomagnetic storms & spectacular displays of aurora on Earth from Friday evening through the weekend.
China’s economy is slowing & citizens are moving to buy more gold, as a safe-haven asset to hedge against economic uncertainties, sending prices of the precious metal to new record highs there. The country’s central bank has also joined the movement, adding 60K troy ounces of gold to its holdings in April, according to official data released. It marks the 18th straight month the People’s Bank of China was piling in on gold. The heightened interest in gold is also a pushback to the strong US dollar, which is making it too expensive for emerging nations like China to import goods.
U.S. consumer sentiment fell sharply in May to the lowest level in 6 months, as Americans cited stubbornly high inflation & interest rates, in addition on fears that unemployment will rise. The University of Michigan’s consumer sentiment index, released Friday, in a preliminary version, dropped to 67.4 this month from a final reading of 77.2 in April. May’s reading is still near +14% higher than a year ago. Consumers’ outlook has generally been grim since the pandemic & particularly after inflation first spiked in 2021. Consumers’ willingness to spend is a crucial driver of growth.

The post May 12: Starlink crushes $6 Billion Revenue, Solar Storm lights up world, Coffee prices explode (Recap ep277) appeared first on Investing & Day Trading Education: Day Trading Academy.

The week began with Sri Lanka experiencing a nationwide power outage attributed to a system failure. Meanwhile, a foreboding sentiment emerged as experts warned that the current Christmas season might be the last celebrated in what we perceive as ‘normal’ times. The World Economic Forum added to this sense of unease, predicting that 2024 could bring about “cataclysmic” changes. Further aggravating the situation, a report highlighted a significant shrinkage of the middle class, with only the top 30% of households affording what was once within reach of the top 60% in past decades.

In the commodities market, Saudi Arabia announced a daily production cut of 2.2 million barrels as part of OPEC+. Concerns about oversupply led to the possibility of deeper supply cuts in the first quarter of 2024, and the crude market experienced its lowest levels since late June. Retail gas prices hit their lowest point since January, just ahead of the holiday season. The complex dynamics of the oil market, including a stronger-than-expected US jobs report and plans to refill the Strategic Petroleum Reserve, resulted in the longest weekly losing streak since late 2018.

Financial news featured YouTube personality Logan Paul’s announcement of a $1.5 million plan to compensate investors after his CryptoZoo NFT project experienced a rug pull. In the UK, house prices rose for the second consecutive month, albeit still 1% lower than the previous year. India’s central bank held its key lending rate for the fourth consecutive time as inflation slowed for three straight months, while Russia’s upcoming elections could see Putin retain power until 2030.

On the political front, India’s ruling Bharatiya Janata Party secured victories in regional votes, providing a significant boost to Prime Minister Narendra Modi ahead of the upcoming national election. Venezuelan President Maduro won a sought-after referendum regarding sovereignty over the oil-rich region of Essequibo, though lackluster turnout suggested a declining government influence. Additionally, Putin’s announcement of running for a fifth presidential term in Russia’s 2024 elections drew attention, potentially extending his tenure until 2030.

Economic indicators presented a mixed picture as job openings in the US fell to the lowest level since March 2021, while Japan’s GDP shrank. Corporate news highlighted the struggles of companies like Virgin Galactic, Alaska Air Group, and Shopify, each facing unique challenges and market responses. Meanwhile, Google faced scrutiny for misleading AI presentations, and the European Union took steps to regulate AI use, including in biometric surveillance and systems like ChatGPT.

The post December 10: Last “Normal” Christmas, Blackouts in Sri Lanka, Google fakes Gemini presentation (Recap Ep256) appeared first on Investing & Day Trading Education: Day Trading Academy.