The tech roller coaster and Musk spending his weekend on Twitter

The weekend will have been tough in the US and to see how it goes this morning, it might not be better. The Nasdaq in general and the SOX in particular continue to offer us swings worthy of the best roller coaster on the planet, all taking refuge in “value”, while the transport sector is in great difficulty. For the rest, we are beginning to think that the rate hike is really stratospheric in the near future, but it remains to be seen when we will have definitively integrated it. But next week has many surprises in store for us between the CPI and the ECB, including quarterly data.

The audio of April 11, 2022

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King Elon

But before we talk about fundamentals, quarterly data or economic data, we mustn’t overlook the fact that obviously Elon Musk doesn’t know what to do with his weekends. Or he had a lot of Russian billionaire friends and he is no longer allowed to see them, so he is deeply bored. Or his only real relationship in his life, other than his kids all mentioning themselves like a blackboard in a nuclear physics class, is with her cell phone and his Twitter account.

The king of the world has therefore spent his time on the little blue bird giving suggestions to make better money and to correct what is wrong with Twitter – according to him – the world of finance and business is once again wondering how this extraterrestrial is. was able to achieve this, to make corporate communication directly through messages of 240 characters for all to see, when usually the environment tends to do so in the welcoming atmosphere of meeting rooms where only authorized persons can enter to share information which will remain confidential until they benefit greatly first. Once again Musk is disrupting the codes and not everyone is happy.

Lithium Musk

Fortunately, the weekend lasts only two days, because given the number of tweets that Elon Musk has produced and given the consequences this will have on certain sectors, if it had been Easter weekend we would have until May to deal with the consequences. of his tweets. Yes, because Tesla’s CEO wasn’t content with JUST revamping Twitter’s operational structure in several tweets, he also put a huge kick in the Lithium business that will kick off the week with an adrenaline injection straight into the heart muscle.

According to his second round of “tweets,” lithium is starting to be a problem for Tesla and Musk suggests he could get into the business … he’s likely to push a lot of stocks today, stocks that are active in lithium. Albemarle, Livent, SQM, Piedmont Lithium, Lithium Americas and Sigma Lithium are mentioned in passing. In fact, lithium has exploded nearly 80% this year. And the headlines are all well put together already, but if Musk makes us feel he’s going to do something to us on Twitter, we’re not done laughing at the industry. We also note that Piedmont is already in contact with Tesla: since the Musk box buys Piedmontese production from 2020 and when at the time they announced their partnership, the stock had taken 230% of the news. It is unclear what the richest man in the world really intends, for now he has simply implied that if the price of lithium does not return to reality, Tesla will have to interfere to “help the industry”. Apparently the problem is not the rarity, but the extraction and refining processes which are too slow …

Short and demanding week

A fact that should be remembered for the moment: the recent explosion in the price of lithium has raised the price of Tesla by $ 2,000. I am not interested. I don’t drive a Tesla. Elon Musk’s tweets should therefore be the topic of conversation this Monday morning. This and the macroeconomic events that await us. Since the week will be cut short due to the Easter weekend, we will have to concentrate a maximum of information in a minimum of time. We will also start very seriously tomorrow with the CPI data that will surely amuse the gallery. The question will be whether the figure for the month of March is even better than its three predecessors and whether we will break a new all-time high for inflation.

We can legitimately hope for some semblance of improvement, given that oil still did well – eventually – and other commodities calmed down at the end of the month. But anyway, we shouldn’t expect a massive drop in the CPI either and therefore we will be talking a lot about it in the next 48 hours. Also, just at the end of the week, the Bank of America strategist estimated there was a 100% chance of seeing three 0.5% rate hikes, three consecutive 0.5% rate hikes over the next few years. three Fed meetings. Know; May 4th, June 15th and July 27th.

Go out in lagarde

And we will not end up with rates anytime soon, as we will have the ECB meeting on Thursday. The European Central Bank should reveal a little more about its strategy in the face of inflation, which is also a blow in Europe. We know that Dame Lagarde is not too motivated to raise rates in Europe before the end of the year, but the latest figures may have to change her mind – perhaps – and that’s not all. It should not be forgotten that this week is the official launch of the quarterly data season. It is not yet the most important week of the year, but let’s say that we will start to warm up on the subject of pressure on margins, on the cost of raw materials and on what these have caused on the data for this first quarter of the year.

This week it is the bankers who will suffer the brunt and it will not be very representative. Especially since we know that whenever banks publish, the gap between reality and analyst expectations is closer to the Grand Canyon than the big gap.

Asia dressed in red

This start of the week already seems to be on the dark side of the force, as the far eastern indexes of the planet are locked in early this morning. Japan is down 0.9%, while Hong Kong is down 2.45% and Shanghai isn’t faring much better. It must be said that the confinements that are dragging on in the region are beginning to make many doubt. Yesterday we learned about the closure of the NIO production line in China due to COVID. Like what this filthy virus hasn’t finished ruining our lives, even if, for the moment, the financial world seems to be teasing it as its first Hermès tie.

Oil is under pressure this morning and is good for inflation. The barrel is trading at $ 95.94 and gold at $ 1940. Bitcoin is at $ 42,000 and the mega-fiesta on the subject that took place last weekend in Miami must have left more headaches and a hangover. to buy Bitcoin this Monday morning. However, the cryptocurrency has returned to significant support. Support that was previously a resistance. Look carefully.

Daily News

We talk over and over about Dow Jones Transportation continuing to have a bad face with all these companies bearing the brunt of rising oil and fuel prices, not to mention Boeing being fired every time a plane breaks down. in the world. The 757 that broke in half in San José, Costa Rica this weekend, isn’t helping the industry regain its motivation, let alone all the investment banks are lining up to downgrade most of the stocks that make up the famous transport index. Otherwise, France are preparing to experience the 2017 return match between Macron and Le Pen. And everyone wonders what would happen if the French were fed up with this arrogant and contemptuous president. But since that would leave room for the far right, it is wrong to say it and wrong to think about it. Macron gave a speech last night to express his desire to see people gather behind him. A speech that was written by McKinsey for 450,000 euros per 1,000 characters.

If not, again Musk, since we just learned that he refused to join the Twitter board, he just wants to be the largest shareholder in the company and tweet all day to explain to them how they should run the business.

For now, futures are in the red and well in the red, as US indices are expected to open nearly 0.7% lower for now. China’s economic numbers – which also show inflation and the fact that COVID seems out of control there (like inflation for that matter) – are the main concern for the start of the week. . Little is said about Ukraine, but it is mostly talked about in the sense that things are not going forward and that the economy could be cut in two – you didn’t need to be an economist to know, but it’s still something else to be included in the 20 minutes.

As far as I’m concerned, I just have to wish you a great week and a happy Monday! See you tomorrow, as usual! Good day !

Thomas Vellet

“The question is not who will let me; is who will stop me. »-Ayn Rand

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