Wall Street Breakfast: Heading for a Peak?

Are you approaching a peak?

Today, investors are bracing for another inflation report north of 8%, although that figure may provide some relief to those looking for a slowdown in the CPI. While April’s consumer price index is expected to hit a blazing 8.1% year on year, the figure would be down from the 8.5% print seen in March, which marked the highest level of inflation seen since the early 1980s. The CPI provides a snapshot of overall prices – meaning the costs of certain goods may continue to rise – so keep an eye on the inflation figure as well. inflation (which excludes food and energy), as well as on sub-sectors such as cars and rental.

Estimate: “I want every American to know that I take inflation very seriously and it is my top national priority,” President Biden said Tuesday ahead of the closely watched report. “The primary cause of inflation is a once-in-a-century pandemic. Not only has it crippled our global economy, it has completely thrown supply chains and demand out of whack… And this year , we have a second cause: Mr. Putin’s war in Ukraine.

Biden then offered solutions such as “reducing day-to-day costs for hard-working Americans” through negotiation and Medicare price caps, improving operations at ports to reduce traffic jams in the supply chain. procurement and promoting competition to bring small businesses into the market. Reducing the deficit will also be a priority by “calling on big business and the wealthiest Americans not to indulge in price gouging and pay their fair share of taxes.” On cutting high energy prices, Biden said he “led the world in the biggest release of oil from our stockpiles in history,” allowed biofuels in gasoline and at the same time stimulates green investments. as domestic crude oil production near record high. Oil companies also won’t get a “free pass” to unused oil concessions (there are 9,000 nationwide) and will have to pay taxes on them if they don’t produce more oil.

Not on a report: “I will not tell [today’s] The CPI counts by itself. I think the combination of mars, [today’s] and the May data will be kind of the big inflection point,” said Ben Jeffery, fixed income strategist at BMO. 3.20%, or I think that will inspire more bearish interest in investors who have been waiting for signs that inflation is beginning to peak.” (27 comments)

The Luna trash can

It is not easy to design a new currency, especially an algorithmic stablecoin. Terra (UST-USD), the world’s third-largest stablecoin, lost its peg to the US dollar on Monday, falling as low as 69 cents and forcing a slew of investors to liquidate their holdings. Things picked up somewhat yesterday, before falling below 40 cents overnight, sparking widespread panic as the controversial stablecoin (which has a circulating supply of nearly 17 billion tokens) entered a slump free.

Instantaneous: There are basically two types of stablecoins, which use distributed ledger technology to attach the value of tokens to something that already exists. One is backed by cash and assets to hold their value, like Tether (USDT-USD) and USD Coin (USDC-USD), while others have no collateral behind them like algorithmic stablecoins. Instead, the pegs on which these coins are built are supposed to be maintained through an arbitration relationship with another cryptocurrency (in Terra’s case, it’s based on a sister token named Luna (LUNA-USD) ).

The problem is that it doesn’t work (at least for a few days). The relationship hinges solely on the belief that there is a particular floor for currencies, hoping that one can always trade (or print) Luna to secure the $1 peg to Terra. Aware of this dynamic, Do Kwon, the founder of Terraform Labs (which powers the Terra blockchain) has diversified into Bitcoin reserves (BTC-USD) for currency support – in case confidence erodes in Luna. and Terra – but it could also be dangerous if Bitcoin becomes devalued as it has over the past six months. “Close to announcing stimulus package for $UST. Hang in there,” Kwon tweeted in response to the crisis.

Need for regulation: “[With stablecoins,] we see risks, which could threaten financial stability, risks associated with a payment system and its integrity and risks associated with increased concentration if stablecoins are issued by companies that already have substantial market power said Treasury Secretary Janet Yellen during a hearing before the Senate Banking Committee on Tuesday. “A stablecoin known as TerraUSD has had a run and lost value. I think this just illustrates that this is a fast growing commodity and the risks are increasing rapidly. We really need of a coherent federal framework.” (2 comments)

@realdonaldtrump

Questions swirled whether Donald Trump will be allowed to return to Twitter (TWTR) after Elon Musk’s pending $44 billion purchase of the company, and yesterday we got an answer: Musk said he would cancel the permanent ban from the former US president, calling him “morally evil and downright stupid.” Trump was banned from the platform following the attack on the United States Capitol on January 6, 2021, after Twitter cited “the risk of further incitement to violence” and “repeated violations and serious” network policies.

Focus on freedom of expression: “I think it was wrong to ban Donald Trump. I think it was wrong because it alienated a lot of the country and ultimately didn’t stop Donald Trump from being heard,” he said. Musk told the FTConference on the future of the car. “If there are tweets that are false and bad, those should be deleted or made invisible, and a suspension – a temporary suspension – is appropriate, but not a permanent ban.”

While Twitter’s actions were legal — private businesses are not subject to the First Amendment — they highlight corporate influence on public discourse and online conversation more clearly than ever. Musk has called Twitter “a place in the digital city, where issues vital to the future of humanity are debated,” and some fear that limiting the conversation will end up harming society or causing less controversy. interaction between a wide variety of points of view. This could force many users to adopt like-minded echo chambers, which could reinforce their own beliefs and further polarize the political landscape, but unrestrained alternatives can be just as frightening.

What does Trump say? Well, the whole story coincides with the rollout of his TRUTH social network, which publicly trades under the symbol “DWAC”. Trump has previously announced he won’t return to Twitter, saying they’ve “got rid of a lot of their conservative voices,” but things could change quickly before the next election cycles. TRUTH Social has also been plagued by technical issues since launch, as well as executive departures. (210 comments)

End of an era

The MP3 player wars in the early 2000s were fought by Archos, MiniDisc, SanDisk, Zune and others, until the iPod was finally embraced by the masses. Apple (AAPL) won over even more consumers with its robust lineup that included the iPod Classic, iPod Mini and Nano, iPod Shuffle and eventually the iPod Touch. While the iPhone and the streaming era rendered many devices obsolete, the latest iPod Touch stuck around for much of the last decade, until it died out – permanently.

A little history : Apple last updated the iPod Touch in 2019, keeping it for select users. Some people wanted the features of an iPhone (without having a phone), like sending iMessages and FaceTime over a Wi-Fi connection. However, the device which is now in its 7th generation is coming to an end , with an announcement that the latest iPod Touch will only be available in stores “while supplies last”.

“The demise of the iPod is probably the best example of Apple not caring about cannibalizing its own products,” noted Carolina Milanesi, principal analyst at Creative Strategies.

Company statement: “Today, the spirit of the iPod lives on. We’ve built an incredible music experience into all of our products, from iPhone to Apple Watch to HomePod mini, and to Mac, iPad and Apple TV. “said Greg Joswiak, Apple’s senior vice president of worldwide marketing. “Apple Music delivers industry-leading sound quality with support for spatial audio – there’s no better way to enjoy, discover, and experience music.” (17 comments)

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