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- Market Munch 🍪 | 7 September 2022
Market Munch 🍪 | 7 September 2022
Russia buys some bombs from North Korea, UK's new PM is ready to splash cash, and California might have a blackout soon.
Aryaansh Rathore
September 06, 2022
Happy morning, Munchers! 🙏
Halfway through the week - hope it's going well.
Here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 5 minutes and 5 seconds.
Let’s dive in.
What’s hot, what’s not?
Market Commentary
Wall Street dipped as data on a robust service sector paves way for more rate hikes.
The British Pound had it's best day since the start of the year, but it still down 17%.
Japanese yen hit a 24-year low against the USD as they move away from traditional monetary policy. Hasn't paid off yet.
Story Roundup
Western sanctions started to choke Russia's weapon supply - so they turned to the East.
US officials said that Russia will be buying millions of rockets from North Korea.
Reports say that this weaponry is meant to be deployed on Ukrainian battlefields.
Western sanctions are hitting Russia hard - and these purchases indicate some level of frustration.
But what it also shows is that they've found some backup.
Changing world order? 🤫
Liz Truss has officially taken office as the PM of Britain.
Her first order of business is to handle an energy crisis that is threatening consumers, businesses and everyone in between.
She wants to cap household energy bills at 2,900 GBP by subsidizing the surging cost of utilities.
Current household bills sit at almost double that number - so the government will have to splash some serious money on this.
But there's one thing to be scared of - inflation is already sky high, and printing more money isn't gonna tame it.
Fiscally reckless. 💣
A heatwave in California is burdening their electricity grid.
As temperatures slowly tick up, people use more AC to keep cool.
Doing this guzzles a lot of energy - and power use surpassed a high that was earlier only touched in 2006.
The grid operators have had to step in and say that "customers can curtail power use" - as they need a slowdown in energy use "two to three times greater than what we've seen so far".
Increasing temperatures doesn't just hit the poor - California is America's largest economy, and if this doesn't stop - could be on the verge of blackout.
The water's getting hot. 🌡️
Tencent has thrown Ubisoft a lifeline.
They announced that they'll more than double their stake in the developer, from 4.5% to 9.99%.
It's a $198m investment into their future, along with another $99m line of credit to be used to spam into growing the business.
Video game launch delays along with a lot of sexual assault allegations have sent the stock into the mud - down 50% this year.
Shares jumped 17% after this news broke. No more funny business.
Elon Musk got to where he is by thinking of the big picture, then playing it well.
According to him, WW3 was on the cards - which is apparently a valid excuse not to buy Twitter.
As part of a grueling trial that has roiled Twitter's stock price, texts between Musk and his bankers said that "it doesn't make sense to buy Twitter if we're heading into World War 3".
Go fish. 🐟
Hope you enjoyed this issue of the Market Munch. If you have any feedback, positive or negative, hit my line at [email protected] or +971 50 708 8469.
Cheers.
- A