Your Financial News Roundup
November 2, 2022
- World: This past week, socialist leader, Luiz Inácio Lula da Silva, was elected President of Brazil; a crowd surge in Seoul during Halloween festivities left 150+ dead and 130+ injured; and Russia pulled out of the Black Sea Grain Initiative, putting tens of millions at risk of hunger.
- Tech: Last’s week’s earnings reports unveiled mixed results among Big Tech; drama surrounding Elon Musk’s Twitter acquisition continues; and climate tech app, Joro, raises a $10M Series A.
- Economy: Attrition is at all-time highs under SEC lead Gary Gensler; voters’ top concerns all revolve around the state of the U.S. economy; and NYC follows suit with other major cities and states in enacting salary transparency laws.
🇧🇷 Long Live Lula: Last week, Brazil elected Luiz Inácio Lula da Silva for a 3rd term, following his tenure from 2003 to 2011. Lula beat out far-right incumbent Jair Bolsonaro by a narrow margin — 50.9% to 49.1%. His victory cements Brazil’s role in the “pink tide” of socialist leaders coming into power across Latin America, including Colombia, Mexico, Argentina, Chile, and Peru. He promises a return to liberal policies, including increased social welfare, more protections for the Amazon rainforest, and state-backed economic policies. (Source)
🇰🇷 Halloween Tragedy in South Korea: Amid Halloween festivities in Seoul’s Itaewon district this past weekend, a tragic crowd crush resulted in the death of at least 153 people and 133 more injured, mostly teens and 20-somethings. The Halloween event was the 1st in 2 years in Seoul as Covid-19 restrictions were recently lifted, drawing an estimated 100,000 people. Leaders from the U.S., Canada, Australia, and elsewhere have offered their condolences to the victims and their bereaved families. South Korean officials have vowed to pursue an aggressive investigation into the incident. (Source)
🌾 Sinking Russia-Ukraine Grain Deal: Russia pulled out of the UN-brokered, Black Sea Grain Initiative that ensured the safe passage of grain to world markets. Ukraine and Russia are the world’s biggest grain exporters, providing 1/3rd of global supply. Russia’s move is in response to an attack on its ships in the port of Sebastopol, claiming Ukraine is behind it. Ukraine has not said anything about its involvement but insists that Russian military ships are valid targets. International leaders are calling on Russia to return to the deal, citing the tens of millions of people who would be at risk of acute hunger without these critical grain exports. (Source)
💻 Mixed Earnings Results Among Big Tech: Apple slightly beat out analyst expectations despite slowing growth, leading to its best single-day stock performance in 2 years of 7.5%. Demand for Apple’s premium products is still going strong as its Mac sales grew by 25%. In contrast, Big Tech firms like Meta and Alphabet were hurt by declines in digital ad spending as companies became more prudent about their marketing budgets. Apple’s sales signal that the company’s stock may be a safe haven in a rough market. (Source)
👀 So Elon is Not Firing 75% of Twitter…? Last Friday, “Chief Twit” Elon Musk completed his $44 billion acquisition of Twitter, but the big buy is taking time to sink in for some people. There’s been an abundance of rumors surrounding Elon’s takeover, including that he would fire 75% of the company’s workforce or ~5,600 employees. Elon denies the allegations, but Twitter employees are still worried about his round of pending layoffs. Meanwhile, several high-profile executives were axed, including CEO Parag Agrawal, Legal Affairs and Policy Chief Vijaya Gadde, and CFO Ned Segal, among others. (Source)
🌎 Big Moves in Climate Tech: Sanchali Pal’s carbon emission tracking app, Joro, secured a $10 million Series A from Sequoia Capital and Jay-Z’s Arrive, among other notable investors. Growing its user base by 25% per month, Joro helps people track and offset their carbon footprints. Users receive tips on how to lower their personal emissions and can buy carbon offsets via a subscription (verified by the Joro team). With its cash infusion, the Joro team will work on new ways to help users reduce their carbon outputs that align with its revenue model — acting on users’ requests. (Source)
⚖️ Strained Workforce Under Chair Gary Gensler: A scathing report was issued against SEC lead Gary Gensler for his role in driving record attrition from the agency, prompting Congress to rethink SEC oversight. The SEC is the regulator that sets the rules by which the US stock market operates. Gensler has pushed for faster timelines to write rules and a broader regulatory agenda which could drastically change how the stock market works. Lawmakers and businesses are fighting back against an agency proposal for companies to release their climate risks — seen as a sign of Gensler’s overreach. (Source)
✅ Voters Fixate on Money Issues: This election season, voters are focused on one key issue: the economy. In an October Ipsos/Reuters poll, Americans ranked inflation as the #1 problem facing the U.S., followed by jobs and the overall economy. Despite huge wage gains this past year, it has not kept up with the rising cost of living. Voters and experts alike are also concerned about the possibility of a recession within the next 12 months and the stock market’s lackluster performance. (Source)
💸 Rise of U.S. Salary Transparency Laws: As of November 1, employers with 4+ workers in New York City are now required to disclose salary ranges for job opportunities. Colorado was the 1st state to enact a salary transparency law back in 2019, followed by California, Maryland, Nevada, Rhode Island, Connecticut, and Washington. Proponents of this wave of legislation argue that this will pave the way for more open work environments and address pay disparities that have long plagued the workforce. (Source)
- The 25 Richest Families in the World (Bloomberg)
- Plastic Recycling is a Myth (Boston Globe)
- 5 Useful Budgeting Strategies To Empower Your Life (Finance Futurists)
- A Look Inside the Intense Lifestyle of Esports Powerhouse Team Liquid (LA Times)
- Crypto Law Experts Suggest SEC Likely To Lose Key Case And Discredit Howey Test (Forbes)
- 2022 Chase Sapphire Preferred Review (Finance Futurists)
Tip of the Day
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