June 27, 2023

📰 News Organizations

• Blackstone Sells Warehouses to Prologis, Strengthening Market Presence. In a $3.1 billion deal, Blackstone Inc. has agreed to sell warehouses and industrial properties to Prologis Inc., expanding Prologis' footprint* in key markets such as Atlanta and parts of California.

• Supreme Court Rejects Apple in Caltech Patent Dispute. The Supreme Court's denial paves the way for a damages-only jury trial to determine the compensation Apple and Broadcom should pay for infringing Caltech's wireless technology patents. The verdict is expected to recalculate the damages* previously awarded.

• Japan-Backed Fund to Acquire Semiconductor Firm JSR for $6.3 Billion. The Japanese Investment Corporation, supported by the government, plans to purchase JSR for approximately $6.3 billion, as countries aim to secure their own semiconductor supply chains and bolster domestic chip industries.

• Databricks Acquires MosaicML in $1.3 Billion Deal for Generative AI Expansion. Databricks has entered into an agreement to acquire MosaicML, an artificial intelligence startup focused on generative AI, in a deal worth around $1.3 billion. The acquisition aims to meet the growing demand from businesses to build their own language models.*

• Lucid Collaboration Accelerates Aston Martin's EV Plans. Aston Martin will collaborate with Lucid, the Silicon Valley electric-vehicle startup, to acquire components for its EV initiatives.* Lucid will receive $142 million and approximately 3.7% ownership in Aston Martin, aiming to capitalize on the growing adoption of electric vehicles.

• Bond Market Volatility Expected as Traders Respond to Powell's Inflation Focus. Bond traders are acknowledging the Federal Reserve's intensified focus on combating inflation rather than being overly concerned about higher interest rates impacting the US economy. This suggests that the extraordinary bond market volatility witnessed in the past 15 months is likely to persist, with the majority of respondents predicting an inverted US yield curve* through 2024.

• Apple's Upcoming Products: New Apple Watch Ultra and Future Developments. Apple's product roadmap for the next year includes the introduction of the Apple Watch Ultra alongside the iPhone 15 this fall. Additionally, the company is reportedly working on a second-generation Vision Pro, a lower-end model, M3-powered laptops, and plans to ship new OLED-screen iPads by the following year.

🐦 Twitter

• Streaming companies having to focus on profits rather than user growth will have downstream cultural benefits. We won’t bring the monoculture back but we’ll get fewer shows that have to focus on larger [ad-supported] audiences to be viable. Source.

• Spread between 2y and 10y Treasury yields reversing deeper into negative territory; now inching back towards recent trough seen in early March. Source.

• $700 billion increase in US National Debt since the debt ceiling was suspended 3 weeks ago under the "Fiscal Responsibility Act of 2023." Only the government could get away with naming a plan to borrow and spend trillions of dollars "fiscally responsible." Source.

• There’s a great arb to be had right now for Manhattanites looking to move to class A apartments in temporarily oversupplied markets in Nashville/Charlotte/Austin/Phoenix. Source.

📓 Online Publications

• Pfizer Shifts Focus, Abandons Obesity Pill due to Liver Enzymes Concerns. Pfizer has decided to halt the development of its experimental obesity and diabetes pill, lotiglipron, due to elevated liver enzymes. Instead, the company will concentrate on its fully enrolled phase two clinical trial for the oral obesity drug danuglipron, joining other drugs in the same class that have generated public interest.

• Rental Market Sees First Year-over-Year Decline Since COVID-19. Landlords across the US asked for lower rents compared to the previous year, with prices nationally dropping by 0.5% in May 2023. The median rent in the 50 largest metropolitan areas decreased to $1,739 per month, marking a $38 decline from the peak prices seen in July last year.

• Amazon's Practices Raise Concerns of Unfair Competition. The FTC argue that Amazon's practices, such as making it challenging for consumers to cancel subscriptions, provide the company with an unfair advantage over competitors. By making it more difficult for customers to switch to alternative services, Amazon can stifle competition and hinder new businesses from entering the market.

🎧 Podcasts

• Wagner troops withdraw as Russian uprising leaves Putin weakened. The Wagner group’s coup attempt in Russia ended as quickly as it began. The mercenaries had been fighting on behalf of Russia in Ukraine. But this weekend, the head of Wagner, Yevgeny Prigozhin, pushed his troops toward Moscow. By Saturday night, Prigozhin and his troops withdrew, ending the short insurrection. Source(0:41)

• Investor skepticism remains after Turkey’s ‘baby step’ towards ending crisis. Turkey might be able to build back confidence with foreign investors. Years of unorthodox policies like keeping interest rates low during high inflation has made investors worried. But last week, Turkey’s central bank finally raised rates by six and a half percentage points. Source(7:41)

• Flagship Crops Decline and Hurting Consumers. Extreme weather conditions and the spread of diseases have caused significant damage to the orange harvest in Florida and the peach crop in Georgia. Florida's orange harvest has plummeted to 18 million boxes compared to a peak of 250 million in the early 2000s, while Georgia has suffered a staggering 95% destruction of its peach crop, posing immense challenges for the citrus industry in both states. Source(6:31)