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- Market Munch 🍎 | 20 October 2022
Market Munch 🍎 | 20 October 2022
UK economy stays red-hot, Uber tries a hand at ads, and Tesla revenue comes in light. 🔥
Aryaansh Rathore
October 19, 2022
Happy morning, Munchers! 🙏
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 5 minutes and 5 seconds.
That's less time than it takes for the UK economy to remain on fire, Uber to take a dip into ad revenue, and Tesla revenue to come in on the soft side. 🔥
Let’s dive in.
What’s hot, what’s not?
Market Commentary
US manufacturing output grew 0.4%, giving traders a few reasons to be happy.
Weak earnings from the biggest index weights seemed to drag stocks lower. 📉
UK markets seem shell-shocked as Liz Truss's home minister threw in the towel yesterday. 🏳️
Story Roundup
If you told me at the start of this year that British inflation was on it's way to 20%, I'd likely have blocked your number.
But we're a step closer to realising that - UK CPI inflation tipped the scale at 10.1%.
The biggest culprit was higher food prices. That stems from an evil cocktail of higher input costs (fertilizer, fuel, feed).
This is the fiercest rise in prices over the last 4 decades, and it's gonna keep pressure on the government to tighten the economy up before it starts biting more people.
Inflation nation. 🥵
If you're a tech business, all roads lead to ads.
Uber is soon gonna be rolling out advertising space.
You heard that right. Uber, the taxi business.
In the near future, you'll be able to plaster your logo as banners in the app, logos on top of cars, and flyers on the back of seats.
The folks back in California are pretty ambitious too - targeting $1 billion in revenue from ad bookings by 2024.
More hands in more cookie jars = more profit. 🍪
India's 2nd largest IT firm Infosys has bumped pay by 10-13% for all of it's 345,000 employees.
A few high performers have received a bump of 20-22%.
In 2021, major talent gaps forced a lot of service business to pay bumper salaries. In 2022, it's inflation that is forcing HR's hand to sign off on bigger payrolls.
Wages are also the biggest cost head for service businesses - with wages making up 53.2% of all costs for Infosys.
That's a big price tag to inflate. 🏷️
Elon Musk brushed aside Wall Street's worries of a slowdown as he reported Tesla's earnings.
Their revenue fell short of expectations by 5%, citing supply chain problems being a big problem in delivering vehicles.
Earnings pleased the street, coming in about 6% higher than expected.
Elon Musk is the world's richest guy for a reason - he knows that he has to deal with rising competition, higher input costs, and a weakening economy.
Electric. ⚡
Belts are tightening around the world as shoppers' pockets shrink.
These very belts are hitting the world's largest consumer goods firms - as shoppers switch away to supermarkets' own brand products.
Nestle's CEO also warned of further price increases to their products in the coming months due to intensive labour costs and higher energy prices.
So far this year, Nestle's products are up 7.5% while P&G's are up 9%.
It's a big money game. 💸
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Hope you enjoyed this issue of the Market Munch. If you've got any feedback - good or bad (😏) you can hit reply to this email. Thanks a ton for reading!
Cheers, and have a lovely day. 🙏
Aryaansh