In today’s recap, Marcello talk to us about how the recession is “official” since Q1 and Q2 of 2022 were negative; Tesla said they have sold 75% of all their crypto assets; Hanover, a city in Germany, is shutting off hot water to save energy. They are also shutting off lighting in spotlights on public monuments and turning off fountains.
The U.S. is officially in a recession since GDP fell at a yearly pace of -0.9% in Q2, according to the Commerce Department’s 1st estimate of economic growth. GDP had fallen at an annualized rate of -1.6% in Q1. Most economists had expected GDP to fall for the 2nd consecutive quarter, as the economy faced increasing pressure from high inflation, rising interest rates, slowing job growth & falling home sales.
The 3 largest Western oil companies, saw their shares collectively rise on Friday with Exxon/Mobil +4.63%, Chevron Corp +8.90% & Shell +3.67%, as they banked a record $46B in collective profits in the Q2, fueled by highest energy prices in over a decade & lucrative oil-refining margins. Exxon, largest U.S. oil company, stated its Q2 profits rose to $17.9B its highest ever & nearly 4X as much as the same period a year ago, citing rising oil & fuel production, higher energy prices & cost cuts.
Australian inflation hit a 21-year high in Q2 & is likely to accelerate even further as food & energy costs explode, stoking speculation interest rates will need to more than double to bring the outbreak under control. Data from the Australian Bureau of Statistics showed the consumer price index (CPI) jumped 1.8% in the June quarter, just short of market forecasts of 1.9%. The annual rate picked up to 6.1% from 5.1%, the highest since 2001 & more than twice the pace of wage growth.
Inflation is running at +64% in Argentina over the past 12 months & the forecast sees it possibly hitting 90% by the end of 2022, the prognosis is grim in the 3rd most populous country in South America. To combat inflation, Argentina’s central bank has raised interest rates to 42.5%.
JetBlue Airways reached a deal to buy Spirit Airlines, hours after the discount carrier ended its merger agreement with Frontier Airlines. A JetBlue acquisition of Spirit for some $3.8B creates the country’s 5th-largest carrier & also removes a discount airline from the U.S. market. The deal still faces major scrutiny for regulatory approval.
The chase for the 2nd-largest Mega Millions jackpot has ended with a single ticket sold in the Chicago area for the whole $1.337B. 1 ticket bought in Des Plaines hit the top prize in Friday night’s drawing, according to the Illinois Lottery, securing the 3rd-largest jackpot of any US lottery game & ending a buildup that began when Mega Millions last drew a jackpot winner in mid-April.
Luiz Inacio Lula da Silva criticized his rival, Bolsonaro, for treating Brazil’s armed forces as if they were his political tool; The Cuban capital of Havana, home to 20% of the population of 11.2M & center of economic activity in Cuba will begin electricity blackouts in August; The Biden administration on Tuesday said it will sell an additional 20M barrels of oil from the U.S. Strategic Petroleum Reserve (SPR)