what happened? (May 15-21)
Another week, another decrease in inventory
The stock slipped Bear market Insider terminology for Friday’s territory, a drop of more than 20 points from the last peak of the index, before closing slightly that day. Still, the market has fallen for the seventh straight week, with long losses. The pessimism that shakes Wall Street stems primarily from concerns about rapidly changing inflation and how aggressive the Federal Reserve is in trying to curb it.Financial statements from Walmart When Target also aroused these anxieties last week, As the two companies struggled to outpace the price hike, they reported a hard hit in the first three months of the year. The finances of both companies have given investors a reason to believe that central banks have begun to pursue significant interest rate hikes and may fall into recession. Since World War II, the recession has almost always been in close contact with the bear market, with a few exceptions.
Airline bids become hostile
Thursday Spirit Airlines Attempted to block JetBlue’s bid Acquire the company. Bidding became hostile last week after JetBlue announced that it would accept an offer to buy the company for $ 30 per share. Directly to shareholders.. Spirit called JetBlue’s move a “ironic attempt to destroy” and has already agreed to a merger with Frontier Airlines, urging shareholders to refuse to move forward. The February Spirit Frontier Airlines contract will combine two low-cost carriers to make them more competitive with the four largest US airlines.I want to compete with these airlines, JetBlue Intervene with your own offer Last month it valued Spirit over $ 3 billion, while the Frontier-Spirit deal valued the company at $ 2.9 billion. But the spirit hasn’t been tempted so far. Spirit’s CEO Ted Christie said airlines are unlikely to entertain JetBlue’s offer even if shareholders refuse to merge with Frontier.
Social media platform Questions faced About the content moderation policy after the video recorded by the suspect who killed 10 people in Buffalo’s grocery store was widely distributed online. The suspect first streamed the shoot on Twitch, and the platform acted swiftly to remove the footage, but was quickly shared across the Internet. An 18-year-old man accused of shooting said a livestream video of the 2019 murder in Christchurch, New Zealand, urged him to stream his own violent attack in Buffalo.Christchurch video Still live online, Even after years of platform efforts to remove it. The long afterlife of these videos shows how difficult it is for the platform to regulate the violent content shared and uploaded on the site.
What’s next? (May 22-28)
Rethink returning to the office
As Covid’s infection rate rises, businesses may soon reassess their plans to return to the office.Apple on Tuesday Suspended that requirement Due to the latest wave of cases, employees will return to the office at least three days a week this month. The news was a victory for thousands of Apple employees who resisted company policy in May as part of a group called “Apple Together.” The delay was a setback in Apple’s efforts to bring workers back to normal, including returning workers to the $ 5 billion headquarters in Cupertino, California, which Apple opened within a year of the pandemic.Many employers Push forward In their RTO program, however, one may find that their determination to avoid other changes conflicts with the reality of the rapid spread of viral variants.
Interest rates above the Fed
Investors will learn more about how worried the Federal Reserve is doing to curb inflation when the central bank releases this week’s minutes.After the Fed’s meeting earlier this month, bank chair Jerome H. Powell Provided some relief He told investors that the Fed did not consider a very large rise in interest rates. Stocks have had the best day since 2020, when he commented. But more storm clouds are gathering on the horizon — Including downbeat corporate earnings reports Accelerate monthly inflation — Powell may reconsider his stance.
Netflix’s further turmoil
The turmoil on Netflix may not be over.Last week, the streaming company was fired Company-wide 150 people, Or about 2 percent of its workforce. And more layoffs may come.The cut took place about a month after Netflix released the gloomy one. First quarter financial reportAnnounced that it has lost subscribers (of which 200,000) for the first time in 10 years and is expected to lose 2 million in the next quarter. The company’s dark outlook, a longtime leader in global subscribers, is a potential precursor to the industry as a whole, suggesting that the streaming market may be nearing saturation.
Euro is approaching One-to-one exchange rate In dollars.As the shortage of powdered milk continues, lawmakers Encourage reform For the entire industry.World Economic Forum Return to Davos This week is after a two and a half year break.