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- Market Munch 🍏 | 5 November 2022
Market Munch 🍏 | 5 November 2022
America's workforce flexes it's muscles, Twitter's revenue starts tanking, and Ukraine secures the bag. 🔥
Aryaansh Rathore
November 05, 2022
Happy weekend, Munchers! 🙏
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 5 minutes and 12 seconds.
That's less time than it takes for America's labour market to show it's strength, Twitter's revenue to tank heavy, and Ukraine to get a big cash injection. 🔥
Let’s dive in. 🚀
What’s hot, what’s not?
Market Commentary
Markets stayed flat as both bulls and bears got tired of tugging at each end.
Copper shot higher on hopes that China would loosen COVID 19 curbs and push demand.
G7 also sneakily announced that a price cap on Russian oil would be ready soon. 💀
Story Roundup
The labour market seems to be immune to the Fed's rapid tightening.
US jobs growth rose by an unexpectedly large number - adding 261,000 new jobs compared to expectations of 200,000.
Despite these gains, unemployment ticked up to 3.7% - just above it's pre-pandemic high.
America's labour market has been hot as a burning coal - and this has put the Fed in a tricky place. Since the Fed tries to hold economic growth back to get inflation in control, an overheated labour market is just another problem for them.
Doesn't look like we'll see softening anytime soon. 🤔
A lot of weird stuff has happened ever since Elon Musk took Twitter's steering wheel.
Yesterday, he began slashing 50% of Twitter's workforce as part of some very aggressive cost cutting.
He also got ready to reverse millions of lifetime bans on users that have said shady things.
Advertisers were NOT happy to hear this news.
Brands like General Motors, Carlsberg, Volkswagen, and General Mills (among others) have paused marketing on Twitter.
They're all scared of a wave of hate speech that is to come - but Elon thinks otherwise.
He's apparently ready to do a "thermonuclear name and shame" of companies that boycotted Twitter.
High-school bullying. 💀
America's gonna be sending Ukraine a large chunk of cash so that they can beef up their air defence.
They're gonna give Ukraine about $400mn as part of an aid package - and it's all going to pay for anti-missile systems and the refurbishment of tanks.
The West seems to be pushing Ukraine's military to newer and newer heights just as Russia's military is showing signs of stumbling.
Just a quick reminder that this is taxpayer money. 😜
This year, crypto markets have taken a big beating.
So naturally, it would take some bulletproof optimism to go all-in on the NFT space.
Enter Meta Platforms.
This week, they announced that creators will be able to sell NFTs to their fans both on and off Instagram.
Meta has spent almost $10bn on metaverse projects this year, and they plan to spend even more next year.
In response, investors have slashed more than 75% off the company's price tag - they just want to see more proven bets, and less experimental ones.
Oh man. 😭
India's forex reserves have logged their biggest weekly jump in a year.
They're now sitting at $531bn - snapping a 12-week long losing streak.
RBI governor Shaktikanta Das also said that India's FX reserves have been strong despite some uncertainty in markets. This is partly because of the RBI's continuous interventions in the FX markets.
A soaring dollar, accelerating US rates, and some cunning geopolitics have all contributed to the Rupee's record fall this year, and it looks like there is more pain to come.
Big, big money. 💸
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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