Zero COVID hits China’s services economy: https://money.usnews.com/investing/news/articles/2022-11-02/chinas-services-activity-skids-in-october-on-covid-restrictions-caixin-pmi .
Psilocybin depression treatment study: https://www.nbcnews.com/health/health-news/magic-mushrooms-treat-severe-depression-major-study-aims-find-rcna54856 . This drug is already legal in Oregon for this purpose.
Skin cancer treatment: https://bgr.com/science/revolutionary-new-cancer-treatment-uses-light-to-kill-tumors/ . The article does not specifically mention “skin”, but this qualifier is implied.
As expected, Fed hikes rates 75 basis points: https://www.cnbc.com/2022/11/02/real-time-updates-of-big-fed-rate-hike-and-jerome-powells-news-conference.html . In my view, Chairman Powell could not have been clearer this year about the Fed’s focus on inflation and the expected rate hikes. His use of the language “very premature” to consider a pause in hiking rates means, as we have repeatedly said, that rate hikes will continue until data appears showing significant progress toward the 2% inflation goal. The December rate increase will be another 75 basis points unless that data appears.
To refresh our prior discussion, the Fed was at a target interest rate of 5% after hikes. Today Powell said there is a significant possibility they will go higher. My view 6 weeks ago was a terminal rate of 6%, and there is no reason yet to change that view. WSJ: More: https://www.wsj.com/articles/jerome-powell-to-markets-the-destination-matters-not-the-journey-11667427735 . Still more: https://www.wsj.com/articles/fed-approves-fourth-0-75-point-rate-rise-hints-at-smaller-hikes-11667412242 .
In response, Asia-Pacific stock markets also fell: https://www.cnbc.com/2022/11/03/asia-markets-stocks-fed-hike-inflation-caixin-services-pmi.html .
Yield curve inversion strongly predicts US recession: https://finance.yahoo.com/news/countdown-recession-officially-begun-more-201315670.html .
California will become world’s fourth-largest economy: https://www.gov.ca.gov/2022/10/24/icymi-california-poised-to-become-worlds-4th-biggest-economy/ . However, the major contributor to this result is the euro’s decline of about 15% against the dollar: https://www.msn.com/en-us/money/markets/despite-all-the-critics-california-could-soon-rise-to-the-world-s-4th-largest-economy/ar-AA13Fqlg?cvid=39d62217a97649278e65a147279e3a56 . COVID and the war in Ukraine are also significant factors: https://money.usnews.com/investing/news/articles/2022-11-02/covid-ukraine-war-cost-german-economy-420-billion-euros-study .
WSJ: Russia resumes participation in Ukraine grain export deal: https://www.wsj.com/articles/russia-says-it-will-rejoin-ukraine-grain-export-deal-11667385389 . Meanwhile, Russia removes 70,000 civilians from around Kherson: https://www.wsj.com/articles/russian-occupation-authorities-plan-to-move-70-000-from-kherson-area-in-ukraine-11667397434 . Is a Russian military withdrawal coming?
WSJ: Truce in Ethiopian civil war: https://www.wsj.com/articles/ethiopia-tigrayan-rebels-reach-truce-in-two-year-civil-war-11667418320 .
Seven careers on the line over the upcoming midterms: https://thehill.com/homenews/campaign/3714920-the-seven-people-with-most-at-stake-in-the-midterms/ . Record early voting gives the Democrats some hope, but right now the House looks lost to the GOP and the Senate is a toss-up.
Yet more bad news for Twitter: Ad revenue estimates have been revised sharply downward. Twitter’s ad revenue for 2020 was $3.15 billion, and $4.46 billion for 2021, a 41.3% increase. Insider intelligence’s eMarket estimated Twitter’s 2022 ad revenue at $5.6 billion in March of this year, an increase of 25.6%. However, it has just revised that estimate downward to $4.67 billion, an increase of only 4.9%. In other words, Musk’s intent to monetize Twitter’s advantages is rapidly demonetizing the company.
Musk may be a visionary engineer, and he has attracted top engineering talent to Tesla and SpaceX. However, Twitter cannot be fixed, let alone grown with engineering skills. His intent to slash the workforce at Twitter is causing the top talent to head for the exits. I wonder what the call terms are on the loans he has secured for this failed purchase, because a significant amount of his Tesla stock will have to be liquidated to clean up this mess.
A year ago, Tesla stock closed at $409 per share. Today, it closed at $214, a decline of 48% including 5.7% today. To raise $44 billion, you’d have to sell 200 million shares at today’s prices, which are likely to continue to decline. There are 3.16 billion shares outstanding, so it could be 10% or more of the total outstanding stock which has to come to market to pay off the Twitter loans. So the Twitter train wreck has a significant likelihood of spreading to Tesla.
Parkland shooter sentenced to life without parole: https://finance.yahoo.com/video/parkland-shooter-sentenced-life-prison-213242909.html .
Tulsa Race Massacre story continues, with more remains found: https://apnews.com/article/science-tulsa-oklahoma-massacres-5d58965befa5fc022c5af71fd98e1b0b . This incredibly disgusting part of our history desires the fuller examination it is finally receiving.
Feds bust catalytic converter theft ring: https://www.yahoo.com/now/catalytic-converter-theft-ring-made-015723505.html . This has been a huge problem in Portland. However, the sale of over half a billion dollars in parts still shocks the senses.
Orange Julius lawyers targeted Justice Thomas as key to overturning 2020 election: https://www.politico.com/news/2022/11/02/trump-lawyers-saw-justice-thomas-as-only-chance-to-stop-2020-election-certification-00064592 . As usual, this makes utterly no sense, as overturning one state would not have changed the outcome of the 2020 election.
OJ lawyers settle lawsuit after inability to find jurors who didn’t hate OJ: https://www.rawstory.com/trump-tower-lawsuit/ . Now this makes sense.
Bibi Netanyahu headed toward decisive election victory: https://apnews.com/article/middle-east-religion-israel-united-states-01be04f27e55f6178ad9404c73913c97 . Frankly, this story turns my stomach when I think about Orange Julius. More: https://www.bbc.com/news/world-middle-east-63490806 . WSJ: More: https://www.wsj.com/articles/israel-election-puts-benjamin-netanyahu-on-brink-of-comeback-11667380338 .
WSJ: Crow learning: https://www.wsj.com/articles/crows-found-to-be-smarter-than-we-think-11667412092 . Actually, this is humans learning about crows …