In today’s Recap, Marcello talks about the negative results of the markets overall; Tesla is “recalling” some vehicles to fix a bug on them; and Russia is said to be ready to use nuclear weapons if necessary.
Electric vehicle manufacturer Tesla is recalling nearly 1.1M U.S. vehicles because the window automatic reversal system may not react correctly, after detecting an obstruction, thus increasing the risk of injury. The National Highway Traffic Safety Administration was told that Tesla will perform an over-the-air software update of the automatic window reversal system. The recall covers some 2017-2022 Model 3, 2020-2021 Model Y, & 2021-2022 Model S & Model X vehicles.
Former Russian President Dmitry Medvedev stated Thursday that any weapons in Russia’s arsenal, including strategic nuclear weapons, could be used to defend territories annexed to Russia from Ukraine. Medvedev, who also serves as deputy chairman of Russia’s Security Council, said that referendums planned by Russian-installed & separatist authorities in large portions (10% to 15%) of Ukrainian territory will take place & there is no going back.
U.S. dollar surged to a new 2-decade high on Wednesday at 111.63, after the Fed raised interest rates by another 0.75% & signaled more such increases at its upcoming meetings. Dollar gains were limited however, since the Fed decision was expected. Since the beginning of 2022, the dollar index has soared nearly +16%, the largest yearly percentage gain since at least 1972, when Refinitiv started the data series. The Euro, the largest component in the dollar index, dropped to a 20-year low, hitting $0.9810.
The struggling British pound fell -2.6% vs the U.S. dollar Friday, after the new U.K. government announced a radical economic plan in a bid to boost growth. Sterling dropped to a low of $1.0963, extending losses it made after the measures were unveiled in the morning. The pound has fallen against the dollar this year, hitting levels this month not seen since 1985, when it fell to $1.042.
Central banks around the world continued raising interest rates on Thursday, following the U.S. Federal Reserve, in a fight against inflation that is sending numerous shock waves through financial markets & the global economy. Japan, the outlier among major developed economies, kept interest rates steady only to be punished as traders pushed the yen to a record low versus the U.S. dollar, prompting the 1st intervention by Japanese authorities to support the currency since 1998.
23-year-old Aiden Pleterski, the self-described “crypto king” of Canada had 5 luxury cars, including 2 BMWs, 2 McLarens & a Lamborghini, seized during bankruptcy proceedings according to a new report from the CBC. The cars are only worth a fraction of the $35M that Pleterski allegedly took from investors who thought he’d make them rich in the cryptocurrency market & it’s not clear whether they’ll ever see their money again.
U.S. housing market slowed for a 7th straight month in August, the longest stretch of declining sales since 2007, as higher mortgage rates continued to undercut buyer demand. Home sales look poised to decline further in the coming months, as mortgage rates recently topped +6% for the 1st time since 2008, when the U.S. was in a recession. Many 1st-time buyers have been priced out of the market, & existing homeowners are opting to stay put, rather than give up their current low rates.
Interest rates rose sharply this week in the U.S.; Uganda confirmed 7 cases of Ebola; Spain’s energy minister said on Thursday, that the capacity of a Spanish-French gas pipeline has been increased & can be used immediately if needed.