What’s going on? The UK economy grew only 0.1% in July, 1/10 of the rate in June. What does this mean? While June was the end of a notably strong 2Q, which saw the UK economy grow 5%. T Things are now very different in 3Q, however: The government has withdrawn various economic support measures The supply…
Tag: covid
Ep 174: The US’s biggest airlines lower their forecast and the industry’s outlook
What’s going on? 3 of America’s biggest airlines (United Airlines, American Airlines, and Southwest Airlines) warned that a rise in coronavirus cases will impact profits this winter. What does this mean? The Delta variant has been on the rise in the US, which is likely to put everyone off their vacations, which is apparent through the…
Ep 172: PayPal announced to buy Paidy and the Buy-now-pay-later market
What’s going on? PayPal (US payment platform) announced that it would buy Paidy (Japanese buy-now-pay-late with 6m users) for $2.7b. What does this mean? PayPal started offering its own buy-now-pay-later service in 2020, through which customers have made $3.5b worth of purchases. This deal comes as part of Paypal’s longer-term plan to push further into the…
Ep 170: Record-breaking year of M&A and what’s behind
What’s going on? 2021 is on track to become a record-breaking year for M&A, with plenty of companies reporting double or triple-digit % increases in the # of deals they’re striking vs last year. What does this mean? $4 trillion worth of deals have taken place since the start of 2021, more than twice this time…
Ep 169: Zoom’s surprisingly good results and (but) its changing future outlook
What’s going on? Zoom (2020’s most popular communications platform) reported better-than-expected earnings, but investors seem to think it’s already an antique. What does this mean? As kids and adults are getting back to school and offices, investors are worried that Zoom’s once-strong growth is fading when comparing Zoom’s 54% yoy growth in Q2/2021 vs the 191% in Q1/2021….
Ep 166: The US added fewer jobs than expected in September and what it might imply
What’s going on? The US added just 235,000 new jobs in August – far fewer than even economists’ lowest forecast of 400,000 What does this mean? There might be two mitigating factors: The survey was taken in mid-August, when Delta variant fears were probably at their highest. Managers might’ve paused hiring to manage a demand…
Ep 163: Peloton’s bitter results and the gym equipment market
What’s going on? Peloton (American exercise equipment and media company) reported worse-than-expected results, as the latest fitness fad once again ran out of puff. What does this mean? As gyms re-open in Q2, at-home exercise equipment became less attractive and Peloton’s revenue growth dropped dramatically. Along with an expensive treadmill recall, Peloton posted a bigger-than-expected loss….
Ep 162: The Fed’s announcement of slowing the bond-buying program and its effects on the economy
What’s going on? The Fed indicated that it’ll start tapering (slowing) its bond-buying program before the end of 2021 – just like investors expected. What does this mean? In 2020, the Fed cut interest rates to near-0% and started buying up $120b worth of bonds/ month. That flood of cheap money actually helped the economy stay alive…
Ep 155: Disney’s beautiful quarterly result and the streaming & outdoor services outlook
What’s going on? Disney announced stronger-than-expected 2Q/2021 earnings. What does this mean? Disney’s theme parks, experiences, and products segment speaks have been the main drivers that return profitability to Disney for the first time since the pandemic began. Most of the segment’s profit came from people buying merchandise. As Disneylands is getting busier again, it…
Ep 153: Foxconn’s positive quarterly result and the electronics industry
What’s going on? Foxconn (Taiwanese electronics giant) released a surprising pleasant quarterly yoy growth of 30% yoy, while reducing future sales forcast. What does this mean? Foxconn is the world’s largest manufacturer of electronic equipment for other companies, including iPhones for Apple. Strong demand for smartphones and other consumer gadgets helped its profit surge beyond…
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