Market Munch 🍪| July 11 2022

Jul 11, 2022

Hey Munchers!

Good morning and happy Monday. I’ll be beefing up the Monday Munches a little more from now - perfect reading for the week ahead. 🍎

Here is your daily dose of the news that will help you sound smarter during banter in the pantry - In 4 minutes and 36 seconds.

Let’s dive in.

Biggest headlines of the week/end?

50 members of his cabinet all resigned in less than two days.
Most members of parliament asked him to leave “with dignity”.
All of this stems from some sexual misconduct that wasn’t investigated well and a badly times COVID party.

The G20 countries blamed Russia for a food crisis.
This accusation against Russia comes after a supply crunch post-Ukraine invasion, leading to sky-high food inflation.
Russia’s foreign minister said it perfectly - “sanctions designed to isolate Russia amount to a declaration of war”.

American employers hired 372,000 people compared to a 272,000 estimate.
Red-hot demand for workers matches with an increase in average hourly earnings by 5.1%. (still not beating inflation 😉)
Strong demand gives the Fed more impetus to continue increasing interest rates.

Mortgage rates dropped for the second week in a row.
This slowdown comes around because of heightened recession fears and economic concerns.
Regardless, they’re still at the highest levels since the financial crisis. Affordng a home is still hard AF.

Elon’s lawyer wrote to Twitter saying that they won’t be acquiring anymore.
Twitter shareholders and employees are angry - they were promised liquidity and now won’t get it.
They’ll take Elon to court over it - to get a judge to enforce the acquisition. Elon’s offer was at $54.20/share, Twitter is currently trading 40% below that.

Most equity hedge funds are down roughly 12.3% year-to-date, battered by the rout in growth stocks.
Macro hedge funds are up about 9% in the first half, taking advantage of the rough conditions in markets.
A lot of funds have blown up as a result of massive deleveraging - “only when the tide goes out, you discover who’s been swimming naked”

Sri Lanka’s PM and President are both resigning.
Protestors are understandably mad about the insanely high cost of living - so they set fire to the presidential residence.
They saw a 99% decline in foreign reserves and defaulted on foreign debt. Classic China debt trap.

Do let me know if you prefer this edition over others. This is a constantly adapting publication. 😏

Have a great week ahead - and go slow on the coffee. Too much of a good thing is bad for you, as some wise guy said.

Cheers,
A