In this week’s Recap, Marcello talks about the greenlight that was given to Tesla to build a Gigafactory in Mexico, which is on hold due to concerns about the global economy; Jeff Bezos is moving to Miami; and Japan is banning commercial American cereal snacks that are “causing people cancer”.
Danish shipping giant Maersk founded in 1904 shares & a bellwether for global trade, plunged -15.43% on Friday at $7.29, to its lowest level since October 2020, after stating profits will come in at the low end of guidance & announcing 10,000 job cuts. Q3 revenue dropped from $22.8B in 2022 to $12.1B. The job cuts, which will see its headcount reduced from 110K in early 2023 to below 100K, are expected to result in savings of $600M in 2024 compared with 2023. The stock is down -34.96% in 2023 & -24.82% y/y, with a market cap of $28.29B.
Oil fell for the 2nd consecutive week after the risk premium from the Israel-Hamas war vanished, with the market responding to signs of lower demand. It came after the leader of Iran-backed militant group Hezbollah said it didn’t know about the Oct. 7 attack, reinforcing a view that the war may well remain contained.
WeWork shares plunged -46.49% on Wednesday at $1.22, & another -9.02% on Thursday at $1.11, following a report that the shared NYC based workspace company is planning to file for Chapter 11 bankruptcy protection as soon as next week. The stock, which reached a high of $130.80 this year, is down -87.62% in the past 3 months, -98.06% in 2023 & -98.94% y/y, with a market cap of $64.97M.
Canadian based e-commerce firm Shopify shares +22.36% Thursday at $59.70, highest levels since May, after it beat on the top & bottom lines for Q3, driven by strict cost controls & adoption of artificial intelligence to attract more merchants to its services.
Archaeologists studying an ancient site in the North Sea say they have found a “feat of engineering” nearly 1,000 years older than the famed pyramids of Egypt. The site was initially built around 3,000 BC. Located on the remote British island of Orkney, the find included Neolithic architecture that was considered well ahead of its time, as well as 14 skeletons, offering a glimpse into the builders of this ancient site. The tomb would have been an immense feature in the landscape when it was originally constructed & the stonework inside would have been very impressive.
Fewer US jobs were created in October at 150K vs the 180K expected; U.S. manufacturing contracted sharply in October after showing signs of improvement in prior month.