📈 Could Big Tech layoffs keep growing?

Good Morning!

As January comes to a close, investors are closely watching big tech companies as they continue to announce their holiday earnings. Apple is the only big tech company that hasn't reduced it's payroll so far, but is this about to change? 

There might be some good news for the economy. The Federal Reserve's preferred inflation measure has slowed down in December, which points to the possibility of a slower pace of interest rate hikes in the future.

And over in Asia, Gautam Adani, one of the worlds richest men is having a bad start to the year and has lost $26 billion as his war of words with US based Hindenburg Research escalates.

Markets

Could Big Tech layoffs keep growing? (8 minute read)This week, the tech industry will be in the spotlight as big tech companies announce their holiday earnings results. Investors will be paying close attention to Amazon, Apple, and Meta Platforms, which were among the top five market value losers in 2022. The results of Microsoft and Tesla, which reported last week, were not encouraging after the announcement of mass layoffs. Apple is the only big tech company that hasn't reduced its payroll so far.

Key Inflation Gauge Cools Further, Paving Way for Smaller Fed Rate Hike (3 minute read)Good news for those hoping for some relief from interest rate hikes! The Federal Reserve's preferred measure of inflation slowed down in December, while consumer spending also decreased. This is all pointing to the possibility of a slower pace of interest rate hikes. According to the Commerce Department's data, the core Personal Consumption Expenditures (PCE) price index, which doesn't include food and energy, increased by 4.4% in December compared to the previous year. The overall PCE gauge increased by 5%, which is still higher than the Fed's 2% target, but the pace has slowed down since late 2021.

Billionaire Gautam Adani Loses $26 Billion (4 minute read)Gautam Adani, a 60-year-old Indian businessman, rose to fame last year as one of the few billionaires to see a significant increase in their net worth during the global economic downturn. According to the Bloomberg Billionaires Index, Adani's fortune rose by $40 billion. However, on January 24th, Hindenburg Research, a New York-based investment firm, announced that they have shorted stocks of the Adani conglomerate through U.S.-traded bonds and non-Indian-traded derivative instruments. Hindenburg claimed that this bet is based on allegations of illegal practices within Adani's conglomerate, Adani rebuts the report.

Investing

Fidelity again cuts its Twitter valuation (2 minute read)According to new data, Fidelity has adjusted the value of its Twitter stock by over 60% since Elon Musk's acquisition of the company at the end of October. Fidelity, which helped finance the $44 billion takeover, reduced the price of its shares by 9.58% between November and December. Despite this decrease not being as significant as the initial drop, the trend continues to decline. Despite Musk's intentions to transform Twitter into a tech-focused social media platform, revenue has reportedly dropped 40% YoY.

The future of Chinese tech stocks: Is it time to invest in them again? (5 minute read)China's stock market has faced tough times over the past two years. Regulatory crackdowns and Covid-19 lockdowns resulted in significant losses for China's tech companies and businesses. But change is on the horizon! The Chinese government is taking steps to recover from the economic impact of the pandemic by loosening control measures and introducing new regulations.

Bitcoin Tops $24k As "Capitulation Has Clearly Unfolded" (3 minute read)Bitcoin is experiencing a surge, with a 55% increase from its November lows and currently trading at around $24,000. Meanwhile, Ethereum is also thriving but has lagged behind Bitcoin in recent weeks, leading to significant support levels in the ETH to BTC ratio. The outcome of this month's weekly and monthly closes could determine if this January will be Bitcoin's best in a decade. According to Bitcoin Magazine's Dylan LeClair, on-chain indicators suggest a classic bottom in the Bitcoin price, as market extremes are where these indicators have proven to be most useful in the cryptocurrency's short history.

Money

Why is Gold Valuable? (12 minute read)Have you ever pondered the value of gold? From its association with wealth and power, to its use as currency and a store of value, gold has a long and fascinating history dating back to ancient civilizations. Interestingly, gold has little intrinsic value and its worth comes primarily from its rarity and cultural significance. Over 90% of global gold demand is for jewelry and investment, rather than industrial use. Despite its limited practical applications, gold remains a sought-after commodity. But why gold? Why not aluminum or iron? And what makes gold a worthwhile investment?

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