🇨🇳 China changes its Tesla tune

✖️ What did Elon give up to get this deal done?

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📰 Market Headlines

  • Stocks edged higher yesterday, gearing up for a busy week that includes a Federal Reserve decision, a monthly jobs report, and more big tech earnings.

  • Tesla stock catapulted up 15% after CEO Elon Musk secured approval for Full Self-Driving in China and reportedly struck a deal with Baidu. [Ed: what did Elon have to give up to make this deal happen?]

  • Paramount Global CEO Bob Bakish stepped down and will be replaced by a trio of executives.

  • The IPO market is showing signs of life with Morgan Stanley expecting 10 to 15 more tech IPOs in 2024.

🕶️ Market Vibes

🎰 Market Forecasts and Futures

Forecasts via Kalshi, the prediction market.

GDP forecasts bounced back as vibes overtook logic and or reason.

😱 Fear and Greed Index

🎤 What you said last time

📈 Trends you need to know

Search volume for Tesla in China

Interest in Tesla in China peaked in late 2022 but looks like it may be making a comeback.

🧠 What do you think?

💬 Have your say

Over the last few years, Beijing has done a lot to improve the competitiveness of domestic electronic vehicles both domestically and abroad.

This has both directly and indirectly hurt Tesla sales in China. Tesla shares plummeted last month due to disappointing sales there.

Trade tensions between the US and China are at an all time high, so it’s not surprising Beijing has been sidelining the American automaker.

But then we see a sudden about-face.

How did Elon pull it off?

How did Elon secure this big win in China

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📊 Stocks

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Winners and losers

Earnings, upgrades, and acquisitions

  • Paramount beat estimates, but revenue missed expectations; shares rose nearly 1%.

  • Apple shares surged 2.5% after Bernstein upgraded the stock to "outperform."

  • Philips shares surged 29% to a two-year high after settling US lawsuits for $1.1 billion.

  • SoFi Technologies shares fell 9.9% after its Q2 revenue guidance missed analyst expectations.

  • Domino's Pizza stock surged 5.62%, extending its rally to a potential sixth month.

  • Chegg shares tumbled 4% despite a modest Q1 EPS beat, as Q2 guidance was weak.

Market movers

  • NBC’s Peacock is hiking prices by $2 per month starting this summer.

  • WeWork reached a settlement with creditors and secured new funding, rebuffing a $650 million bid from co-founder Adam Neumann.

  • Meta's Oversight Board confirmed layoffs are coming that will impact its research support staff.

  • Saudi Arabia insisted all NEOM megaprojects will proceed as planned despite reports of scaling back. [Ed: what is strange drama ]

  • Whirlpool began the second phase of layoffs on Monday, part of the 1,000 job cuts announced in March.

Ideas, trends, and analysis

  • 78% of corporate earnings beat estimates by an unusually wide 9.5% margin, despite threats from a slowing economy.

  • Gold hits new record highs in April, outpacing silver due to slower Chinese growth and tighter central bank policies.

  • Spotify CEO Daniel Ek sold $176.3 million worth of stock this year as the company's shares have skyrocketed 60% year-to-date.

🌍 Global Perspectives

📊 Crypto

  • Bernstein says the Bitcoin ETF slowdown is a "short-term pause" and maintains its $150,000 price target for 2025.

  • The Australian Securities Exchange is expected to approve the first spot Bitcoin ETFs before the end of 2024.

  • Hong Kong's spot Bitcoin and Ether ETFs, launching April 30, will allow in-kind subscriptions and redemptions.

🧠 Errata

📺 What to Watch Today

This is quite good.

That’s all for today. Did I miss anything? Smash the reply button to let me know.

Cheers,

Wyatt

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