Tesla cutting jobs amid Musk’s “bad feeling”?
According to the latest news, Tesla might not only stop hiring all around the globe, but it might even start cutting jobs by about 10% in the near future. This is supposedly due to a “super bad feeling” about the current economy of the wealthiest man and Tesla’s Chief Executive, Elon Musk.
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Palantir stock (PLTR) soared more than 24% to a $20 billion market cap. This is after the company’s CEO, Alex Karp, announced that they anticipate turning a profit every quarter in 2023. That growth would be fueled by the large interest in its new AI platform.
First Horizon plunges after a canceled deal
The $13 billion takeover of First Horizon by TD Bank has been called off. That caused First Horizon’s stock to drop by almost 40% in a single day. TD Bank will reportedly pay First Horizon a $200 million breakup fee as well as $25 million in reimbursement fees.
Icahn Enterprises tumbles 20% 📉
Icahn Enterprises (IEP) stock dropped 20% after shortseller Hindenburg Research published a new report. Hindenburg stated that the corporation was overvaluing its assets and used a “Ponzi-like” dividend distribution system.
Another significant bank, PacWest Bancorp (PACW), is showing problems as the stock tumbled over 30% today. Trading was halted due to increased volatility.
The trading of First Republic Bank stock was halted. This is after falling another 25% today, citing the market’s volatility. The stock is down 95% so far this year.
JP Morgan thinks AI drove stocks up
According to JPMorgan, AI interest inspired by ChatGPT and other major language models has driven more than half of the S&P 500’s gains this year. Interest has created a $1.4 trillion market cap and 45% gains in 2023. “LLM-innovation” stocks include Microsoft, Google, Amazon, Meta, Nvidia, etc.
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The New Zealand dollar (NZD) fell on all fronts on Friday. NZD/USD is down 1.4% and NZD/JPY dropped 1.2%, while GBP/NZD is up 1.3%.
The annual inflation rate in India dropped from 5.6% in March to 4.7% in April. Brazil’s inflation fell from 4.6% to 4.1%. However, inflation in Spain accelerated from 3.3% to 4.1%, and France’s inflation jumped from 5.7% to 5.9%.
The potential of AI, according to Mark Cuban, is “beyond anything I’ve ever seen,” and he compared ChatGPT to the early days of the internet. Cuban has a straightforward piece of advice for businesses: join the AI race or perish. Cuban stated, “There are two types of companies in the world: those who are great at AI and everyone else.”
BoE lifts interest rates to 4.5%
The Bank of England followed market forecasts and increased the interest rates by 25 bps from 4.25% to 4.5%. This pushed borrowing costs to new heights not seen since 2008, as inflation still sits at double digits.
While the rest of the world still experiences relatively high inflation, China is close to deflation. China’s annual inflation rate dropped from 0.7% in March to 0.1% in April. The Netherlands’ inflation accelerated from 4.4% to 5.2%. Inflation in the Czech Republic fell from 15% to 12.7%. Inflation in Australia jumped from 4.6% in April to 5% in May.
The US Department of the Treasury and the IRS have filed 45 claims against the defunct crypto exchange FTX and its affiliates, totaling $44 billion. Alameda Research LLC was hit with a $20.4 billion tax bill from the IRS for payroll and partnership taxes. They also sued Alameda Research Holdings for over $17 billion.