July 17, 2023

📰 News Organizations

• Twitter Begins Revenue Sharing Program with Creators. Twitter has launched a program that enables creators on its platform to receive a share of ad revenue generated from ads placed in replies to their tweets, allowing them to earn directly on the platform. The program is being rolled out to an initial group of creators and will expand further later this month.

• Wall Street Prepares $1.9 Billion Debt Sale to Support Apollo's Arconic Buyout. Wall Street banks plans to initiate a $1.9 billion debt sale next week to provide financial support for Apollo's acquisition of Arconic Corp. JPMorgan Chase will lead the financing package's $1 billion leveraged loan portion, while Wells Fargo will manage a $900 million bond sale.

• Binance Considers Layoffs Amidst DOJ Probe. In response to an ongoing Justice Department investigation and charges from the SEC and CFTC, Binance is reportedly considering laying off between 1,500 and 3,000 employees throughout the year. Founder Changpeng Zhao has downplayed concerns regarding the probe.

• UnitedHealth's Stock Rises Despite Increased Medical Costs. UnitedHealth's stock experienced a jump after the company reported earnings that surpassed estimates. The company also raised the lower end of its full-year adjusted earnings outlook, alleviating investor concerns caused by an increase in surgeries and outpatient services demand.

• Tucker Carlson Plans to Launch New Media Company. Carlson is seeking funding to establish a new media company that would potentially utilize Twitter as its foundation. The company aims to offer longer versions of Carlson's free videos, which he has been regularly posting on Twitter since his departure from Fox News, and may introduce subscription-based models.

• Pfizer’s $43 Billion Seagen Takeover Faces EU Investigation. The proposed $43 billion takeover of Seagen Inc. will face an investigation from the European Union’s merger enforcers as the bloc continues to scrutinize large biotechnology deals. Seagen disclosed in a regulatory filing late Friday that both firms have referred the deal to the European Commission.

🐦 Twitter

• Just 2% of the nation's 200 largest housing markets saw a seasonally adjusted month-over-month (MoM) home price decline in June. At the height of the correction in September, 79% of major markets saw a MoM decline. Source.
  

• Energy was the decisive laggard today while Health Care was in the top spot; YTD leaders took a bit of a breather but are still up MTD. Russell 2000 Value reversed lower today and is now in the same performance spot as NASDAQ MTD Source.
  
  

• US Consumer Sentiment rises to its highest level since September 2021. Drivers: falling inflation, continued strength in employment, and a booming stock market. Source.
  
  

• Interest payments on the $32 trillion in U.S national debt are about to reach an annualized rate of $1 trillion per year. Source.
  
  

• Some $11.6 billion flowed into global stocks over the past week, led by US funds: BofA & EPFR data. Some $12.1 billion flowed into bond funds, while investors pulled $17.6 billion from cash. Tech has the biggest inflows among sectors; health care & energy see the biggest outflows. Source.

📓 Online Publications

• Low Inflation Bodes Well for Mortgages and Housing Market. Inflation reached its lowest annual rate in over two years in June, and according to NAR Chief Economist Lawrence Yun, this could translate to low mortgage rates. The deceleration of consumer prices is expected to gradually boost home sales and stimulate increased home production in the coming months.

• Demand For Urban Homes Will Be 'Muted' For Years: McKinsey. Consulting firm McKinsey & Company has found that pandemic-induced hybrid work setup ensures permanent consequences for real estate in larger cities. The migration of people to suburbs has led to muted demand growth in urban cores, resulting in potential decreases in home prices and rents.

• AI Software Revenue Is Rocketing Toward $14 Trillion. Ark Invest estimates that AI software revenue will increase by 42% annually to reach $14 trillion by 2030. AI software-focused companies could capitalize on this demand. CrowdStrike is the market leader in endpoint security and cybersecurity software while UiPath is the market leader in robotic process automation software and intelligent document processing.

🎧 Podcasts

• UK Invites Saudi Crown Prince for Autumn Visit to Boost Investment. The UK has extended an invitation to Saudi Crown Prince Mohammed bin Salman to visit London in the autumn, signaling its intention to attract more investments from the oil-rich Gulf region. The visit aims to strengthen ties, despite the controversy surrounding Prince Mohammed's last visit in 2018. Source(0:40)

• US Regulators Investigate ChatGPT Maker for AI Risks. The FTC is conducting an investigation into the company responsible for developing ChatGPT, OpenAI. The FTC has expressed concerns over potential harm caused by AI chatbots, including the creation of false information about individuals, and is also examining OpenAI's privacy and data security practices for any potential deceptive practices. Source(4:47)
  
  

• Recession Risks and Wage Growth Dynamics. The recession risks were overestimated due to the decline in wage growth adjusted for inflation, which allowed companies to pay lower labor costs and set higher selling prices. However, the current trend of wages growing faster than selling prices could pose challenges for the labor market in the future. Source(4:48)
  
  

• Bond-Equity Correlation Disrupts Market Dynamics. There has been an unprecedented phenomenon where there is a negative correlation between bond yields and equity prices, which was not the case before quantitative easing. Equities now rally due to liquidity while bonds tend to sell off with rising liquidity, creating a peculiar relationship. Central banks a