Rates traders are now betting on no Fed rate cuts this year, vs swaps markets pricing in ~40 bp of easing, per BBG. You have to keep your head on a swivel—remember 4Q23 when we expected early 2024 cuts and many of them?
For every time Musk promised something that didn’t happen, I would be a lucky gal. Now he’s saying Tesla will roll out affordable EVs by the end of this year or early next year, which is WAY faster than the prior target of late 2025. Robots. Robotaxis. Cheap EVs tomorrow. This is at the same time Tesla is laying off 2,700 employees at its Texas factory (Yahoo Finance)—and Musk is telling investors that Tesla is now an AI company, per BBG. And they missed on sales and profits. So…..you be the judge. To be fair, I did see a large Tesla truck turn into the parking lot here in Silicon Valley, and it did look pretty cool. I have no idea about the feasibility of its use, but the guy makes cool stuff.
I’ll be talking about this today on Wall Street Beats. So, check it out. Some of my favorite folks are on today: Macke, Russell, Paul, Ben, Herb…and I can see they’ve got good stuff to share too.
Axios is reporting that the tech industry still can’t explain Gen AI use, with critics saying it doesn’t have much practical use yet. We better find some strong use cases, guys….otherwise you won’t just have egg on your face, you’ll be living in a frittata. Cooked and nobody’s favorite.
And sprinkle on some butter and Chinese 5 spice. The Senate passed the TikTok divestment-or-ban bill, and Biden is going to start the 270-day countdown to the deadline, per the FT. It’s really happening folks. From influencers freaking out to the company scrambling to the Chinese gov preparing for tech war to the US gov throwing the hatchet…this is probably a peak into our future geopolitics.
Chinese speculators supposedly are fueling gold’s rally, with bullish positions popping, per the FT.
About 60% of homeowners will probably wait to think about selling their home. Just under 39% are mortgage free. So, most folks want to get cheaper financing for the next one.
Airlines will have to provide automatic refunds for travelers if their flights are cancelled or altered significantly under new DOT rules. So, if your departure or arrival time moves by >3 hrs, you’re getting the green. Being downgraded to a lower class than purchased? Boo-yah. Change of departure or arrival airport, thanks! More connections, show me the money? Crap that hurts people with disabilities? Giving them their money back. Also you get checked bag fees back if your bag is lost and not delivered within 12 hours domestically or 15-30 hours internationally. Paid for WiFi but it doesn’t work? You’re good as well.
Boeing is up because they posted a lower cash-burn than expected. The yen keeps weakening. Israel struck around 40 Hezbollah sites in South Lebanon, raising geopolitical risks. Kering (Gucci owner) was down given slower sales there. Biogen had a solid quarter—good signs for its Alzheimer’s drug. UBS is crying to their gov about capital ratios. Volvo missed on earnings, so yet another car company having trouble.