In today’s recap, Marcello talks about a report presented by the Federal Reserve that reveals that 722 banks in the U.S. are currently insolvent; the IMF says that a digital currency created in Zimbabwe and backed in gold poses a threat to financial stability; and Elon Musk is stepping down as the CEO of Twitter but will remain chairman and CTO. The new CEO will be former NBC Universal advertising chief, Linda Yaccarino.
U.S. prices of goods & services remained high in April, rising +4.9.% from a year ago. The annual rate of inflation has fallen sharply since hitting a 40-year high of +% last June. April’s rise nearly matched the +5% rise recorded in March. It was the 10th consecutive month the rate has declined, but prices are still rising at a rate that is more than twice the Fed’s target rate of +2% a year. The latest consumer price index (CPI) – a measure of the costs for goods & services have prices up +0.4% over the month, up from a +0.1% increase in March.
China’s market regulator stated on Friday that Tesla will fix software in over 1M vehicles to reduce the chance of accidents. The action is described as a product recall under Chinese regulations, but it was not immediately clear if drivers might need, or would be eligible, to return vehicles to Tesla for refunds. From May 29, the U.S. automaker will issue over-the-air software updates to 1.1M units of its Model S, Model X, Model 3 & Model Y cars, both imported & China-made, according to the State Administration for Market Regulation.
U.S. based Airbnb shares providing an on-line platform for booking accommodations fell -10.92% on Wednesday at $113.19, in largest single session drop since 2020, w/co-founders losing $3B in a single day. The company expects bookings & average daily rates to decline in the current quarter when compared to last year. Revenue came in at $1.8B actual vs $1.79B estimated. Nights & Experiences Booked: 121.1M actual vs 122.4M estimated.The stock is +32.39% in 2023 & -2.37% y/y, w/ market cap at $80.3B.
Shares of entertainment & media giant Disney fell -8.73% on Thursday at $92.31 after it released its fiscal Q2 results.