My Investing Muse (02Dec24)
Layoffs & Closure news
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SF payments giant Visa lays off hundreds in Bay Area after turning record $19.7B profit. - SF Gate
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Thyssenkrupp Steel has announced plans to eliminate 11,000 jobs by the end of this decade — about 40% of its workforce — becoming the latest German industrial giant to opt for drastic action to prop up its fortunes. - CNN
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Accounting firm Grant Thornton laid off about 150 U.S. workers across its business lines about six months after selling a majority stake in the U.S. unit to private-equity investors. - WSJ
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Global car giant Nissan is on the brink of collapse after longtime partner Renault revealed plans to sell off its interests in the Japanese carmaker. - Reuters
Below is a summary of layoffs in the USA in recent week - done by GROK:
In the last week, several notable layoffs have been announced across various sectors in the USA:
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Tech Sector: Companies like Meta, IBM, Google, and Microsoft have continued to reduce their workforce. LinkedIn, part of Microsoft, laid off approximately 200 employees.
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Media: NowThis, a news organization in New York, cut about half of its unionized newsroom, affecting 13 out of 21 members of the Writers Guild of America East. Other media entities like CNN, MSNBC, the Los Angeles Times, the Associated Press, and the Washington Post are either implementing or planning significant staff reductions.
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Manufacturing and Automotive: Ford and Bosch have also announced layoffs. Ford's cuts are part of broader cost-cutting initiatives, while specifics on Bosch's layoffs are less detailed.
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Travel and Hospitality: Marriott International and Booking Holdings have announced staff reductions, reflecting ongoing adjustments in the travel industry.
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Other Sectors: Various smaller-scale layoffs have occurred in companies like Packers Sanitation Services, Kronos Bio, Inc., and United Parcel Service, Inc., with cuts ranging from 20 to over 300 employees.
These layoffs have contributed to a significant number of job losses, with reports suggesting over 14,327 known jobs lost in the last week across more than 170 companies. The actual number of layoffs might be higher as not all are publicly reported or announced.
(This is a decent summary done by GROK).
Does America (and the rest of the world) need a DOGE - Department of Government Efficiency?
Pete Buttigieg will leave his post as Transportation Secretary having spent $7.5 BILLION to build 8 EV charging stations. His legacy will be squandering billions on something nobody wants, while millions struggle to afford the things they need.
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NYC IS PAYING PAKISTAN TO HOUSE MIGRANTS IN MANHATTAN Pakistan’s cash-strapped government has found a financial boost from Manhattan real estate. New York City is renting the iconic Roosevelt Hotel—owned by Pakistan’s government—to house migrants, in a deal worth $220 million. Vivek criticized the arrangement, highlighting an issue that DOGE may need to address soon. Vivek: "A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts!" Source: The Economic Times
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Summary of California High Speed Rail Project: -Originally projected (in 2008) to cost $33 billion; now projected to cost between $88.5 and $127.9 billion -Estimated completion date was 2020; as of 2024, zero passengers have been transported and the majority has not even been fully designed -Received $6.8 billion in federal funds -Requesting $8 billion in additional federal funds - DOGE
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The Federal Reserve just reported a $19.9 BILLION operating loss in Q3 2024 up from $16.9 billion in Q2. This marks the 8th consecutive quarter of operating losses for the central bank. As a result, cumulative operating losses reached a massive $210 billion over the last 2 years. This comes as the Fed has been paying hundreds of billions in interest to banks and money market funds. At the same time, income the Fed has earned on Treasuries and Mortgage-Backed-Securities has declined. Even the Fed is losing money.
Is this sustainable? If this is sustainable, is there a need for citizens to pay tax if they borrow to fund the deficit?
DOGE will help the government to reduce wastage and drive productivity - something that is needed for all countries in the world.
Insider Sales
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Buy for one reason but sell for a million. Could it be profit taking or are there concerns?
My final thoughts
PCE has shown that inflation has remained stubborn. The Federal Reserve needs to balance inflation using interest rates and it is getting challenging.
Ukraine is trying to drag other countries into this regional conflict and I hope that level heads will prevail. The USA likely will be feeding these potential black swans. Is this shooting yourself in the foot?
After the recent Thanksgiving reunion, I am reminded other things should be higher in life’s priority and I trust that we can find that place.
Let us continue to invest with research and caution.
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