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☆ Bitcoin may see a 'supply shock' as available tokens hit their lowest level since 2018 with a potential ETF likely to jolt demand, analyst says
▼ + stars: | 2023-10-27 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

That could set up a supply shock with potential approval of a spot bitcoin ETF looming, an analyst said. AdvertisementAdvertisementThe world's largest cryptocurrency by market capitalization might run into a shortage of liquid supply, especially with potential approval of a spot bitcoin ETF poised to boost demand. Bitcoin balance on exchanges and price of bitcoin CoinDesk, GlassnodeThe supply crunch could set up bitcoin for another price spike. Earlier this week, bitcoin hit $35,000, the highest since May 2022, on hopes that a spot bitcoin ETF would get regulatory approval soon. AdvertisementAdvertisementUnlike a regular currency, the supply of bitcoin was designed to be finite, capped at 21 million tokens.

Persons: Bitcoin, —, Matt Weller, CoinDesk, there's, bitcoin, Weller, haven't Organizations: Service

☆ Strong GDP growth isn't a sign the US has escaped a recession, and interest rates are a big headwind to economic activity, top economist Mohamed El-Erian says
▼ + stars: | 2023-10-26 | by ( Aruni Soni | ) www.businessinsider.com time to read: +3 min

The strong GDP report isn't a sign the US has dodged a recession, Mohamed El-Erian said. High interest rates still pose a big threat to households, business, and the US government. AdvertisementAdvertisementWhile the GDP numbers underscore US "exceptionalism," El-Erian said, high interest rates are impacting all corners of the economy, and that's something to watch out for. "Secondly, what's been happening in the interest rate market is really problematic. Expecting interest rates to remain higher for the foreseeable future, the bond market has witnessed a historic sell-off in recent months.

Persons: Mohamed El, Erian, —, it's, I've Organizations: Service, Fed, Treasury

☆ The stock market is riskier and more volatile than it was in past decades. Here's why.
▼ + stars: | 2023-10-26 | by ( Aruni Soni | ) www.businessinsider.com time to read: +4 min

The S&P 500 has become more volatile in recent years, according to research firm DataTrek. The bigger factor is the massive growth of big tech stocks that make up more and more of the S&P 500. "The S&P 500 has become noticeably more volatile over the last +60 years, but returns have not increased commensurately," DataTrek said in a note published Thursday. AdvertisementAdvertisementHere's why the research firm sees higher risk in the stock market today than in past eras. Unexpected developments hit harderAnother explanation is that the market in recent years has had an outsized reaction to unanticipated developments relative to past eras.

Persons: —, DataTrek, Apollo, Torsten Sløk Organizations: Service, Apple, Microsoft, Nvidia, Tesla, Big Tech, Data, GameStop

☆ Western Digital and Japan's Kioxia call off merger talks - Nikkei
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Ann/File photo Acquire Licensing RightsTOKYO, Oct 26 (Reuters) - Western Digital Corp (WDC.O) and Japan's Kioxia Holdings have broken off talks to create one of the world's biggest chipmakers, the Nikkei newspaper reported on Thursday. The companies were also unable to agree on conditions with top Kioxia shareholder Bain Capital, the report added. Western Digital, Kioxia and Bain Capital did not immediately respond to Reuters' requests for comment. Shares of Western Digital sank 12% on the news. Kioxia and Western Digital have held merger talks since 2021 but the negotiations have often stalled over a series of issues, including valuation discrepancies.

Persons: David Dolan, Aditya Soni, Juby Babu, Chavi Mehta, Shweta Agarwal Organizations: Taipei, REUTERS, Rights, Western Digital Corp, Japan's Kioxia Holdings, Nikkei, SK Hynix, Bain Capital, Samsung Electronics, South Korean SK Hynix, Kioxia, Western Digital, Western, Thomson Locations: Taipei, Taiwan, U.S, Kioxia, Bengaluru

Alphabet (GOOGL.O) and Snap surpassed third-quarter revenue expectations on Tuesday, with the tech giant seeing strong growth both at its core Search and YouTube units. Meanwhile, Snap's efforts to revamp its ad targeting tools with technology also paid rich dividends, as average revenue per user increased in the third quarter. "We expect the larger platforms like Meta and Google to lead the wallet share growth at least initially in this ad spend recovery," analysts at Evercore ISI said. Meta has also leaned heavily on AI-powered marketing planning and ad measurement features in recent years to drive its growth. "Facebook/Instagram's tools for creating a (marketing) campaign are vastly quicker and easier to use" than smaller rivals including Snap, RBC analysts said, which could potentially give Meta an edge.

Persons: Arnd, Philipp Schindler, Max, Samrhitha Arunasalam, Aditya Soni, Sriraj Organizations: REUTERS, Google, Facebook, YouTube, Evercore, Meta, RBC, Thomson Locations: Zurich, Switzerland, Middle East, Bengaluru

☆ The US is headed for recession, but a key difference from past downturns could make it milder, Apollo chief economist says
▼ + stars: | 2023-10-25 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

The US economy is headed for a recession, but it's likely to be milder than prior slumps, Apollo's chief economist said. That's because any potential slowdown this time around would be "engineered" by the Fed, Torsten Sløk told CNBC. When recession arrives, the Fed can undo the measures it took that initially slowed the economy, he added. Another recession is coming, but this time around the culprit is also the savior, making it a lot less harmful, according to Apollo Management's chief economist, Torsten Sløk. "Here today, this is all engineered by the Fed, the slowdown," Sløk said.

Persons: Torsten Sløk, —, Apollo, Sløk Organizations: CNBC, Service, Fed Locations: It's

☆ Microsoft extends cloud lead over Alphabet with focus on OpenAI, big clients
▼ + stars: | 2023-10-25 | by ( Aditya Soni | ) www.reuters.com time to read: +4 min

In the battle to tap the next growth driver for the cloud business, Microsoft has focused on its core business clients that already use many of its software services, while Google has turned to startups. The results show cloud spending is coming from enterprise clients, whereas smaller businesses are reducing their expenditure, he said. Strong AI use was responsible for a 3 percentage point boost to the Microsoft's cloud business in the September quarter. "Unlike many others who are touting their AI story, Microsoft is capable of delivering meaningful AI products to their customers," brokerage D.A. Many analysts were also optimistic about strength in Alphabet's core search business, but they warned the weakness in the cloud business would continue.

Persons: Morningstar, Ali Mogharabi, Krishna Chintalapalli, Satya Nadella, Davidson, Bernstein, Sundar Pichai, Aditya Soni, Akash Sriram, Arun Koyyur Organizations: Microsoft, Google, Parnassus Investments, Fortune, Thomson Locations: Bengaluru

☆ Treasury bond auctions may eventually fail because investors will see federal deficits as too unsustainable, Columbia finance professor warns
▼ + stars: | 2023-10-24 | by ( Aruni Soni | ) www.businessinsider.com time to read: +4 min

Ballooning government deficits could lead to failed Treasury auction soon, a Columbia Business School professor said. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . "One of the possibilities that's driving bond yields higher is the concerns about inflation risk related to the cumulative effect of debt," Calomiris said in a CNBC interview on Monday. Investors, who are increasingly worried about mounting US deficits, choose to keep their money out of Treasurys.

Persons: —, Charles Calomiris, Calomiris, Ed Yardeni Organizations: Treasury, Columbia Business School, Service, CNBC, Fitch

☆ Nvidia says U.S. speeded up new export curbs on AI chips
▼ + stars: | 2023-10-24 | by ( ) www.reuters.com time to read: +1 min

A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsOct 24 (Reuters) - Chip designer Nvidia (NVDA.O) said new U.S. export curbs on the sale of its high-end artificial intelligence chips to China came into effect on Monday as regulators advanced the deadline. The restrictions were supposed to come into play 30 days from Oct. 17 when the Biden administration unveiled measures to stop countries, including China, Iran and Russia, from receiving advanced AI chips designed by Nvidia and others. The restrictions bar exports of Nvidia's modified advanced AI chips A800 and H800 - both of which were created for the Chinese market to comply with previous export rules. The Nvidia A100, H100 and L40S chips are also impacted by the curbs.

Persons: Dado Ruvic, Nvidia, Biden, Aditya Soni, Arun Koyyur, Anil D'Silva Organizations: NVIDIA, REUTERS, Nvidia, Devices, U.S . Department of Commerce, Intel, Gaudi, Thomson Locations: China, Iran, Russia, U.S, Bengaluru

REUTERS/Mike Blake/File Photo Acquire Licensing RightsOct 23 (Reuters) - The U.S. Justice Department has sought documents and issued subpoenas to Tesla (TSLA.O) as it scrutinizes the automaker's driver assistance system Autopilot and vehicle driving range, among other issues, the company said on Monday. Tesla said in a regulatory filing it has received requests for information "including subpoenas, from the DOJ. These have included requests for documents related to Tesla’s Autopilot and FSD features" and other requests "associated with personal benefits, related parties, vehicle range and personnel decisions." Reuters reported in October 2022 that Tesla was under a Justice Department criminal investigation over claims the company's electric vehicles can drive themselves, citing people familiar with the matter. The company's spending is, however, expected to return to the $7 billion to $9 billion range in the next two years, a regulatory filing showed.

Persons: Mike Blake, Tesla, Elon Musk, Musk, Aditya Soni, Juby Babu, David Shepardson, Maju Samuel, Savio D'Souza, Jonathan Oatis Organizations: Tesla, Beta, REUTERS, U.S . Justice Department, DOJ, Reuters, Justice Department, Street, Chief, Traffic, Administration, Thomson Locations: Encinitas , California, U.S, Mexico

☆ Tesla to top $9 bln spending target this year as it rolls out new models
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +2 min

The logo of Tesla is seen in Taipei, Taiwan August 11, 2017. The company's spending is, however, expected to return to the $7 billion and $9 billion range in the next two years, a regulatory filing showed. He warned that rising interest rates could impact demand at Tesla, on top of a margin-sapping price war this year to maintain sales. Tesla shareholders -- including Gary Black, managing partner of The Future Fund, which owns Tesla stock -- have been calling for the automaker to advertise, saying that price cuts have only had a limited impact on demand. Reporting by Aditya Soni and Juby Babu; Editing by Maju Samuel and Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

Persons: Tyrone Siu, Tesla, Elon Musk, Musk, Gary Black, Aditya Soni, Juby Babu, Maju Samuel, Savio D'Souza Organizations: Tesla, REUTERS, Fund, Thomson Locations: Taipei, Taiwan, Mexico

☆ The stock market's volatility indicator is signaling a trough in the S&P 500
▼ + stars: | 2023-10-20 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

The stock market's volatility gauge is signaling a trough in the S&P 500. Futures for the CBOE Volatility Index indicated more uncertainty about the near term than longer term. Futures contracts tied to the volatility index, also known as the VIX, track the expected amount of market volatility down the line. It speaks to more anxiety about where the stock market is headed amid recession angst, the bond market rout, and mushrooming geopolitical risk. In September, the volatility index was trading at post-pandemic lows, signalling a strong bull market and fizzling recession fears.

Persons: —, Torsten Sløk Organizations: Service, Bloomberg, Apollo Locations: Israel

The world's most valuable automaker was set to lose nearly $50 billion in market value, based on premarket share movements. The comments marked a change in tone from Tesla CEO Musk, who had said his company was "recession-resilient" last year. The EV maker missed revenue estimates on Wednesday by the most in more than three years despite hefty price cuts. Reuters GraphicsOverall, 10 analysts cut their price targets on the stock, pushing the median view to $260, according to LSEG data. Tesla shares fell 6.1% at $227.96 in premarket trading.

Persons: Tyrone Siu, Elon, Tesla, Musk, Canaccord, Bernstein, Toni Sacconaghi, Craig Irwin, Aditya Soni, Akash Sriram, Shounak Dasgupta, Anil D'Silva Organizations: Tesla, REUTERS, Ford Motor, General Motors, Reuters Graphics, Ford, Roth Capital, Reuters, Thomson Locations: Taipei, Taiwan, Bengaluru

☆ The market's largest bond ETF hits 16-year low amid a breathless Treasury sell-off
▼ + stars: | 2023-10-19 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

The biggest bond ETF hit a new low since July 2007 as the bond market meltdown continues. The iShares 20+ Year Treasury Bond ETF (TLT) has shed over 50% since its closing high in 2020. Unlike the conventional bond market, bond ETFs are traded on an exchange, like any other stock. Other bond ETFs like the iShares 1-3 Year and iShares 7-10 Year Treasury Bond ETFs have also been trading lower amid the bond market meltdown. Like any other ETF, one bond ETF can offer exposure to large numbers of bonds, giving investors an opportunity to diversify their portfolio.

Persons: —, Jerome Powell Organizations: Treasury Bond ETF, Bond, Service, Treasury

☆ Tesla tumbles as Wall St raises doubt over growth outlook
▼ + stars: | 2023-10-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Tesla is seen in Taipei, Taiwan August 11, 2017. Overall, 10 analysts cut their price targets on the stock, pushing the median view to $260, according to LSEG data. Cash crunches at small EV startups and the ongoing strike at the Detroit Three automakers have also added to the optimism around Tesla. Tesla trades at about 59 times its 12-month forward earnings estimates, compared with 6.3 times for Ford and General Motors' 4.2. Reuters GraphicsReporting by Aditya Soni and Akash Sriram in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Tyrone Siu, Tesla, Elon Musk, Canaccord, Chaim Siegel, Elazar, Cybertruck, Cash, Aditya Soni, Akash Sriram, Shounak Dasgupta Organizations: Tesla, REUTERS, Wall Street, EV, Reuters, Elazar Advisors, Detroit Three, Ford, General Motors, Thomson Locations: Taipei, Taiwan, Bengaluru

☆ Gasoline prices fall as weakening demand sends refining margins crashing
▼ + stars: | 2023-10-18 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

Gasoline prices have been falling amid weakening seasonal demand, driving refinery margins lower. Gas prices were at $3.575 a gallon on Wednesday, according to AAA, down from $3.584 a day ago and $3.881 a week ago. AdvertisementAdvertisementAs winter approaches, it's chilling gasoline prices, too. Because gasoline is made from crude oil, anything that affects the crude oil markets tends to affect gas prices, just like it did when the Russia-Ukraine crisis hit last year. While Israel and Hamas are not major oil producers, an escalating conflict could drive crude oil prices higher, which would change the story for gas prices.

Persons: —, Brent Organizations: Bloomberg, AAA, Service, US Energy Information Administration Locations: Israel, Russia, Ukraine, Gaza, Iran

☆ China boosts Argentina's access to the yuan under currency deal as peso plummets
▼ + stars: | 2023-10-18 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

China boosted Argentina's access to the yuan under a currency swap deal. Argentina's president said the country can now tap $6.5 billion worth of yuan, up from $5 billion. AdvertisementAdvertisementArgentina will have more access to Chinese yuan under a currency exchange deal to help prop up a plunging peso. AdvertisementAdvertisementArgentina's swap deal with China will enable it to replenish foreign exchange reserves, which have all but vanished amid economic crisis. Russia has also been using the Chinese yuan to settle a growing number of trade transactions with other countries.

Persons: —, Alberto Fernandez, Xi Jinping's, Javier Milei Organizations: Service, Argentine, Radio, Reuters, greenback Locations: China, Argentina, Egypt, Russia

☆ Markets are misreading Fed officials' comments, and the central bank could still raise rates, analyst warns
▼ + stars: | 2023-10-17 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

The markets have been misinterpreting recent Fedspeak, a Barclays analyst said. Markets "have read far too much into recent Fedspeak that implied that these higher rates might have done some of the heavy lifting." If a strong US economy is driving interest rates higher, the Fed may have to hike rates again. But I think we've read far too much into recent Fedspeak that implied that these higher rates might have done some of the heavy lifting," she said. The so-called Fedspeak infused markets with optimism that the central bank will be pausing rate hikes.

Persons: —, Meghan Graper, isn't, Powell, Jerome Powell, Graper Organizations: Barclays, Service, Bloomberg, Economic, of New Locations: of New York

A keyboard is placed in front of a displayed LinkedIn logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsOct 16 (Reuters) - Microsoft's (MSFT.O) LinkedIn said on Monday it would lay off 668 employees across its engineering, talent and finance teams in the second round of job cuts this year for the social media network for professionals amid slowing revenue growth. LinkedIn makes money through ad sales and by charging for subscriptions to recruiting and sales professionals who use the network to find suitable job candidates. In the fourth quarter of its fiscal 2023 year, LinkedIn's revenue increased 5% year-on-year, compared to 10% in the previous quarter. LinkedIn in May decided to cut 716 jobs across sales, operations and support teams to streamline its operations and remove layers to help make quicker decisions.

Persons: Dado Ruvic, Krystal Hu, Yuvraj Malik, Aditya Soni, Arun Koyyur, Emelia Organizations: REUTERS, Microsoft, LinkedIn, Thomson Locations: New York, Bengaluru

☆ The Strategic Petroleum Reserve 'would be harder to use,' and the only buffer for oil markets is Middle East production, energy expert says
▼ + stars: | 2023-10-16 | by ( Aruni Soni | ) www.businessinsider.com time to read: +3 min

The SPR "would be harder to use" to balance a spike in oil prices, energy expert Dan Yergin said. The S&P Global vice chairman said that oil prices can spike if the Israel-Hamas war escalates. The SPR, the world's largest reserve of emergency crude oil, is usually used to stabilize disruptions in oil supply. Saudi Arabia, along with Russia, has been cutting crude oil production in an effort to eliminate price "distortions" in the market. In fact, US oil production surged to a record high of 13.2 million barrels a day earlier this month.

Persons: Dan Yergin, —, Yergin Organizations: P Global, Service, CNBC, Strategic Petroleum Reserve, Energy Department, Energy Information Administration Yergin Locations: Israel, Saudi Arabia, Russia, Ukraine, Texas, OPEC, China

☆ Netflix may tap price hikes after success of password-sharing crackdown
▼ + stars: | 2023-10-16 | by ( Samrhitha A | ) www.reuters.com time to read: +2 min

The only profitable major streamer, Netflix has resisted joining rivals like Walt Disney (DIS.N) in hiking ad-free prices this year and instead curbed password-sharing outside households to tap the more than 100 million viewers who use its service without subscribing. "Netflix now closely resembles a utility in many markets," analysts at Bernstein said. So far, most viewers subscribing to Netflix after the password crackdown have opted for the ad-free plans, analysts said. "Using these tactics, Netflix will likely double its ad-supported viewership next year," said Insider Intelligence analyst Ross Benes. Revenue in the third quarter likely rose 7.7% to $8.54 billion, the fastest growth in five quarters, thanks to strong programming that included the latest seasons of "Sex Education" and "Virgin River".

Persons: Dado, Walt Disney, Bernstein, Ross Benes, Samrhitha, Aditya Soni, Sayantani Ghosh, Devika Organizations: Netflix, REUTERS, Hollywood, Writers Guild of America, Intelligence, Wall, Revenue, Thomson Locations: Hollywood, Bengaluru

"I don't think the price cuts are over, mainly for the reason that demand is still weak," said Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments. Tesla has already cut U.S. prices of its Model 3 compact sedan and Model Y SUV in October. The slump will continue into the fourth quarter and margins could dip below 15%, said Wells Fargo analyst Colin Langan. However, that likely falls short of offsetting the price cuts," Langan said. Tesla slashed the technology's price by a fifth in August and analysts said that more cuts could be on the cards.

Persons: Florence, China's, Thomas Martin, Elon Musk, Tesla, Wells, Colin Langan, Langan, Musk, Gary Black, Akash Sriram, Aditya Soni, Sayantani Ghosh, Arun Koyyur Organizations: Fair for Trade, Services, REUTERS, HK, Globalt Investments, Reuters, Visible Alpha, Fund, Reuters Graphics Reuters, Thomson Locations: Beijing, China, Europe, MEXICO, Nuevo Leon, Mexican, Bengaluru

☆ Netflix may hike prices after success of password-sharing crackdown
▼ + stars: | 2023-10-16 | by ( Samrhitha A | ) www.reuters.com time to read: +2 min

The only profitable major streamer, Netflix has resisted joining rivals like Walt Disney (DIS.N) in hiking ad-free prices this year and instead curbed password-sharing outside households to tap the more than 100 million viewers who use its service without subscribing. It could hike prices after the end of the Hollywood actors strike, a media report said earlier in October. So far, most viewers subscribing to Netflix after the password crackdown have opted for the ad-free plans, analysts said. "Using these tactics, Netflix will likely double its ad-supported viewership next year," said Insider Intelligence analyst Ross Benes. Revenue in the third quarter likely rose 7.7% to $8.54 billion, the fastest growth in five quarters, thanks to strong programming that included the latest seasons of "Sex Education" and "Virgin River".

☆ Global smartphone market slumps to lowest Q3 level in decade - Counterpoint
▼ + stars: | 2023-10-16 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Shannon Stapleton/File Photo Acquire Licensing RightsOct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple (AAPL.O) and Samsung (005930.KS) in most developed markets, according to data from Counterpoint Research. Market leader Samsung posted a 13% drop in sell-through volumes in the period. It said the festive season in India, the 11.11 sale event in China and end-of-year promotions across regions would also support the market. So far, emerging markets have been a bright spot for smartphone sales in an otherwise dour year. In the third quarter, the Middle East and Africa were the only regions to record year-on-year growth, according to Counterpoint data.

Persons: Shannon Stapleton, Samsung, Akash Sriram, Juby Babu, Aditya Soni, Pooja Desai Organizations: REUTERS, Apple, Samsung, Counterpoint Research, Reuters, HK, Huawei, Thomson Locations: Midtown, New York City, U.S, United States, Europe, Korea, India, China, East, Africa, Bengaluru

The deal was the biggest test of the CMA's global power to take on the tech giants since Britain left the European Union. "The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers," it said in a statement. Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard's games characters in this illustration taken January 18, 2022. Activision Blizzard said: "The CMA's official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox Team." The European Commission said the new commitments given by Microsoft to the CMA did not interfere with its EU commitments.

Persons: Dado Ruvic, Jeremy Hunt, Sarah Cardell, Ben Barringer, Brad Smith, Activision Blizzard, Paul Sandle, Yadarisa Shabong, Aditya Soni, Foo Yun Chee, Varun H, Kate Holton, Sonali Paul, Jane Merriman, Sherry Jacob, Phillips Organizations: CMA, Microsoft, LONDON, Activision Blizzard, Sony, Activision, Competition, Markets Authority, Ubisoft Entertainment, Britain, European Union, PlayStation, U.S . Federal Trade Commission, FTC, REUTERS, British, Finance, Xbox, European Commission, Thomson Locations: Britain, Cheviot, London, Bengaluru, Foo

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