Potential national security review on the Twitter acquisition that could kill the deal (2 min read)
The US government is considering a national security review on Elon Musk’s ventures which includes the Twitter takeover deal. The purchase of Twitter comes with the aid of foreign investors and that raised concerns for the Biden administration officials. The CFIUS that reviews foreign takeover of American business may be involved. If the Twitter acquisition does get reviewed by the CFIUS, then the agency could recommend Joe Biden to end the deal. Twitter’s stocks fell more than 13% in the premarket after the news but recovered and closed 4.86% lower on Friday.
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Why Hawaiian Holdings Stock Is Flying High Today (2 min read)
The parent company of Hawaiian Airlines announced a partnership with Amazon’s Prime cargo operations with the initial 10 planes starting in the fall of 2023. Amazon has been building their air cargo operation by partnering with airlines willing to fly under its branding and Hawaiian became the latest to join the team. This new partnership can provide a new income stream for Hawaiian and help the company better prepare to battle competitors in the years to come. Shares of Hawaiian went up as high as 14% after the news was released.
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Dollar sinks vs yen, BOJ intervention suspected ahead of weekend (3 min read)
The yen rose 1.4% against the dollar on Friday, the biggest daily jump since August. It is on track to snap a nine-week streak of weekly losses against the dollar. Traders and market strategists speculate that the Bank of Japan was involved in saving the yen as they saw lots of dollar selling and yen buying. It would also make sense as Japan is trying to defend their negative rate policy. A newspaper in Japan said the authorities are conducting an operation to intervene in the foreign exchange market but the officials declined to comment on the matter.
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Elon Musk says a global recession could last until the spring of 2024 (2 min read)
In a twitter exchange on Friday, Elon Musk said he thinks the recession will last another year and half. Jeff Bezos, CEO of Goldman Sachs and JPMorgan Chase had also recently warned of economic turmoil ahead. Global GDP growth was at 6.1% last year and the IMF forecast it will decelerate to 3.2% this year and 2.3% in 2023, which makes it the weakest pace of growth since 2001. Elon said he has more confidence in the US economy than other parts of the world like China or Europe. China’s recession is driven by the real estate market while Europe is driven by energy.
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Single-stock ETFs struggle to get past distributors (3 min read)
There are currently 23 single-stock ETFs on the market but the total assets managed is only at $156.5 million, with the two largest ETFs in this category accounting for more than 60% of it. Experts believe that the assets in these products will not be “sticky” as most advisers would not recommend them to their clients. The SEC has also warned about the potential risks involved in these types of products. Single-stock ETF providers are focusing their efforts on teaching and educating investors about these new product types as they try to win more assets.
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Burned by Tech Stocks? Try These 3 ETFs Instead (4 min read)
This article shared three ETF alternatives to help reduce the volatility of investing in individual tech stocks. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) holds 50 stocks in the S&P 500 with a history of high dividend yields and low volatility. The Vanguard Information Technology ETF (VGT) offers a diversified exposure to the tech sector entirely. The iShares Core Aggressive Allocation ETF (AOA) is an ETF of ETFs with the most optimal mix of stocks and has outperformed its benchmark every period in the last 10 years. More on each ETF is available in the article.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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