Market Munch 🍔| July 8 2022🚀
A Chinese rival beats Tesla at their own game, BoJo says bye-bye to the UK government and fruits become luxury in Erdogan’s turkey.
Good morning Munchers!
Here is your daily dose of the news that matters - In 4 minutes and 12 seconds.
Let’s dive in
What’s hot, what’s not?
Market Commentary
US Stocks rose for the fourth straight day as rate-hike fears decrease.
Fed acknowledged the ‘larger than anticipated’ effect of rate hikes on the economy. No one wants a recession.
Unemployment metric (claimant count) came in higher than expected.
Headline Roundup
The UK Government slowly crumbles (1/5)
Within two hours, 50+ members of Boris Johnson’s government resigned - and his political authority went up in smoke.
He got stabbed in the back by his own chancellor Nadhim Zahawi - who wrote that “The country deserves a government that is not only stable, but which acts with integrity.”
Most of this has been piling up over the years - but the trigger point seems to have been BoJo’s mishandling of sexual assault by a senior MP.
Takeaway?
Ikea has better cabinets than the UK government.
BoJo out.
A new rival to Tesla hops on the EV scene (2/5)
In the depths of the 2008 financial crisis, Warren Buffett placed a bold $232 million bet on Chinese electric vehicle maker BYD.
Flash forward to today, that investment is now worth just shy of $12 billion.
BYD beat Tesla for first quarter vehicle deliveries - bringing 638k to market compared to Tesla’s 560k.
This means they win where almost everyone else has failed - and Tesla is going to be playing a costly game of catchup.
BYD is the market leader in China and as the Western world gets to grips with their products, they’ll start dogfighting in America too.
Electrifying times.
Fruit becomes a luxury in hyperinflated Turkey (3/5)
“There is no government that cannot be overthrown by an empty cooking pot.”
And an empty cooking pot is exactly what a lot of the Turkish population is looking at - official inflation soared past 75%.
Instead of using normal contractionary policy, president Erdogan is playing with the country - and economists around the world are calling it an 'experiment’.
Grade 6 economics textbooks tell you that rate hikes are what is needed to slow the economy down and reduce inflation - but Erdogan tried something new. He cut rates. And cost of living skyrocketed.
The fact that people can barely eat is putting a big dent in Erdogan’s reelection hopes.
Inflation nation. With lives at stake.
Amazon takes a healthy bite out of Grubhub (4/5)
Amazon’s just gobbled a 2% sized piece of Grubhub stock up - and is giving it’s prime members free access to the food delivery service for a year.
Grubhub was the delivery market leader in 2019 - and Amazon’s betting on them overcoming this recessionary period in flying colors.
CEO Adam DeWitt is confident that the Amazon deal will grant them access to many many new diners - which bring many many new commissions.
Amazon is in the business of shaking things up - so we’ll surely see a dip into cloud kitchens and ghost brands, all serviced by Grubhub.
IMF Chief turns bearish on the global economy 😭 (5/5)
IMF Head Kristalina Georgieva said that outlook for the global economy has ‘darkened signifcantly’.
In short, she cited -
Universally rampant inflation
Substantial hikes
Slowdown in Chinese growth
Escalating sanctions around the world
Generally “choppy waters”🤔
This comes right after JPow said that the US was willing to bring prices down “even if doing so risked an economic downturn.”
Let’s pray for our leveraged tech portfolios once more.
Aaaand that’s a wrap!
Thanks a ton for reading. Any feedback is open - positive or negative. Hit my line at aryaansh.rathore@gmail.com or https://www.linkedin.com/in/aryaansh/.