In today’s recap, Marcello tries to explain how Chat GPT, which recently announced a paid version, has the potential to become the latest billion-dollar venture for Elon Musk; UAE and India are talking about using rupees instead of dollars to settle non-oil trades, which adds pressure on the dollar as a global reserve currency; and a new study suggests that the earth’s core may have stopped spinning or may even be spinning backwards.
U.S. orange juice prices are expected to rise to over $6.00 a gallon. Lowest crop in Florida in 90 years expected. First there was Hurricane Ian, followed by frosts, then Hurricane Nicole & then a greening disease working its way across the state. There will be 18 million boxes of 80 pounds each. 56% less than last season. Lowest since the 1936-37 season. There were 24 million boxes at the peak in the industry.
Shares of U.S. based credit card company American Express rose +10.54% on Friday at $172.31, despite weaker-than-expected results for Q4. It reported $2.07 in EPS on $14.18B of revenue, but guidance for 2023 was better than anticipated for earnings & revenue. Also says it will be increasing its dividend by 15%. The stock is up +16.62% in 2023, but still down -2.68%, with a market cap of $128.76B.
Shares of Tesla +10.97% Thursday at $160.27, after beating on the top & bottom lines, despite mixed analyst sentiment about the EV manufacturer’s outlook. It reported automotive revenue of $21.3B in Q4 & adjusted EPS of $1.19. January is seeing the strongest orders YTD than ever in history according to Elon Musk. He claims Tesla is currently seeing orders of almost twice the rate of production. The stock has risen +30.11% in 2023, but remains -43.19% y/y, with a present market capitalization of $456.07B.
Shares of India’s Adani Enterprises sank nearly -20% on Friday, as a report by a U.S. short seller triggered a rout in the conglomerate’s listed firms, casting doubts on how investors will respond to the firm’s record $2.45B secondary sale. 7 listed companies of the Adani conglomerate, controlled by 1 of the world’s richest men Gautam Adani, have lost a combined $48B in market capitalization since Wednesday.
On Wednesday U.S. tech giant IBM announced job cuts, saying they were related to the previously announced spinoff & sale of 2 business units. Some 3,900 positions, or 1.5% of its global workforce, are expected to be let go. The move will cost IBM about $300M this quarter, a spokesperson has confirmed.
President Biden announced on Wednesday, that the U.S. will send 31 M1 Abrams tanks to Ukraine, matching a German decision to immediately provide Leopard tanks that Ukrainian government says are essential in their fight against Russia. The Abrams tanks are not expected to reach the battlefield for months related to the time needed to procure the tanks & carry out the training necessary for Ukrainian forces.
Shares of U.S. based Sherwin Williams engaged in the manufacture & trade of paint & coatings fell -8.92% on Thursday; Despite high inflation, rising interest rates & an energy shock U.S. gross domestic product (GDP) grew +2.1% in 2022.