Trading/Investing Thread - Page 111

On July 01 2022 01:17 {CC}StealthBlue wrote:
This is the definition of the start of a recession:

https://twitter.com/Fxhedgers/status/1542538605305860096

Latest estimate: -2.1 percent — July 1, 2022

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2022 is -2.1 percent on July 1, down from -1.0 percent on June 30. After this morning's Manufacturing ISM Report On Business from the Institute for Supply Management and the construction report from the US Census Bureau, the nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth decreased from 1.7 percent and -13.2 percent, respectively, to 0.8 percent and -15.2 percent, respectively.

Rivian Automotive Inc. is planning hundreds of layoffs to trim its workforce in areas where the electric-vehicle maker has grown too quickly, according to people familiar with the matter.

The cuts will focus on nonmanufacturing roles, including teams with duplicate functions, said the people, who asked not to be identified discussing private information. The actions could be announced in the coming weeks, the people said.

The company, which has more than 14,000 employees, could target an overall reduction of around 5%, the people said. The layoffs are still in the planning stage and nothing has been decided. Rivian has operations in California, Michigan and Illinois, where its plant operates, as well as a presence in the UK and Canada.

Rivian didn’t immediately comment.

The company is pulling back after roughly doubling its headcount over the past year to support a ramp-up in production. Rivian, which makes electric pickups and SUVs in addition to delivery vans, notched one of the biggest-ever US initial public offerings in November as it emerged as a leading challenger to market leader Tesla Inc.

Rivian has stumbled as it grappled with global supply-chain breakdowns and parts shortages. Automakers now face broader hurdles as vehicle sales, including those of EVs, soften with consumers put off by high sticker prices.

Rivian’s shares tumbled about 69% this year through Friday’s close.

The Irvine, California-based manufacturer is poised to join companies across corporate America pruning their operations amid growing worries about an economic downturn. Tesla is cutting 10% of its salaried workforce, while protecting manufacturing jobs, after Chief Executive Officer Elon Musk said he sees a recession as inevitable.

As of the end of March, Rivian had almost $17 billion in cash and restricted cash on its balance sheet to help weather the storm. The fledgling EV maker is backed by investors including Amazon.com Inc. and Ford Motor Co. Rivian has a contract with Amazon to build 100,000 battery-electric delivery vans by the end of the decade.

On July 12 2022 22:06 zatic wrote:
Also equal to 1 CHF.

Can we just keep this, seems easier for everyone.

JPMorgan Chase & Co. temporarily suspended share buybacks and reported second-quarter results that fell short of analysts’ estimates, driving the stock lower.

The buyback pause is needed to quickly meet higher capital requirements and “allow us maximum flexibility to best serve our customers, clients and community through a broad range of economic environments,” Chief Executive Officer Jamie Dimon said in a statement Thursday.

The results offer the first look at how Wall Street fared in a tumultuous three months characterized by changing outlooks on prospects for the economy. Dimon warned of an economic “hurricane” last month, citing the challenges the Federal Reserve faces as it tries to rein in inflation.

Investment-banking fees declined 54%, more than the 47% drop analysts predicted, as dramatic market moves in the quarter stymied dealmaking. That division was also hurt by $257 million of markdowns on held-for-sale positions in the bank’s so-called bridge book, according to the earnings statement.

Trading revenue jumped 15% to $7.8 billion, the New York-based company said, while analysts had expected a 17% increase.

Shares of JPMorgan, which fell 29% this year through Wednesday, declined 2.4% at 7:22 a.m. in early New York trading.

JPMorgan said regulators will require its common equity Tier 1 ratio to be 12.5% by the first quarter of next year, due to a harsher stress-test result and a previously flagged increase to its buffer for systemic importance. That’s up from a minimum of 11.2% at the end of June, and significantly higher than the 11.7% requirement that the firm told investors just two months ago to expect for early 2023.

Federal Reserve officials look on track to raise interest rates by 75 basis points for the second straight month when they meet later in July, after policy makers pushed back against a bigger move.

Investors reversed bets on a full percentage-point move after wary comments from officials including Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard, plus a rare bit of good inflation news.

Shortly after they both spoke Friday morning, data showed US consumer long-term inflation expectations declined in early July by more than forecast to 2.8%, versus 3.1% the month before.

Pricing in interest-rate futures contracts currently implies a roughly one-in-six chance that the Fed will hike rates by a full point this month, with a 75 basis-point hike regarded as certain.

“Based on what I have heard, absent the most important voice at the table, there seems to be a rally around 75 basis points” of tightening in July, said Mark Spindel, chief investment officer at MBB Capital Partners LLC, referring to Chair Jerome Powell. “But as we learned last month, the chair is more than capable of moving the target almost at his whim.”

The Fed in June raised the federal funds rate target by 75 basis points -- the biggest hike since 1994 -- to a range of 1.5% to 1.75%, after previously signaling it would hike by 50 basis points.

Powell told reporters after the meeting that they went bigger after an unexpectedly hot consumer price index reading for May, published shortly before the gathering when officials were in blackout, and that 50 or 75 basis points was on the table for July.