Peloton Will Slash Jobs and Raise Prices

• 3 min read
Peloton Will Slash Jobs and Raise Prices

MARKET MOVERS

  • Peloton is slashing 780 jobs and raising prices. The company told employees Friday that it is slashing roughly 780 jobs, closing a significant number of its retail stores, and hiking prices on some equipment in a bid to cut costs and become profitable. The company did not specify how many of its 86 retail locations it plans to shutter but said an “aggressive” reduction will begin in 2023.

  • Mercedes and CATL partner on a $7.6 billion Hungary battery plant. Europe’s leading automakers are set to become customers too. The plant will have a capacity of 100-gigawatt hours, enough to power more than 1 million cars, and will run on renewable energy, the world’s biggest electric-vehicle battery maker, known as CATL, said Friday. Planned to be built in Debrecen, the facility will be in close proximity to customers BMW AG, Stellantis NV, and Volkswagen AG, CATL said.

  • Manhattan rents hit a record high for the 6th straight month. Manhattan Apartment Rents are clocking in at a median of $4,050There are many factors driving rents higher, but for one, consider this number: 5.22%. That’s the rate for a 30-year fixed-rate mortgage, up from 2.87% this time last year. People who are being priced out of the home buying market are eyeing rentals, boosting already high demand for a thin supply of properties. Read more here.

  • Mortgage rates tick back up above 5%. Another challenge for first-time buyers. The 30-year fixed-rate mortgage averaged 5.22% as of August 11, according to data released by Freddie Mac on Thursday—up 23 basis points from the previous week. Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market. Read more here.

  • Disney passes Netflix. The House of Mouse is firing on all cylinders, and now its total number of subscribers for Disney+, Hulu, and ESPN+ is greater than Netflix. Disney+ on its own already has 150 million subscribers up 17% in the US. ESPN+ has about 22.8 million and Hulu has about 42.6 million. This means they have surpassed Netflix with their total users of 221 million. Source(2:02)

  • Producer-price index’s July logs the slowest pace since last fall. The producer-price index, which generally reflects supply conditions in the economy, increased by 9.8% annually in July, the smallest annual rise since October 2021’s 8.9% increase, the Labor Department said Thursday. Producer prices climbed 11.3% in June from a year earlier.

  • Home bidding wars are fading in the US. Redfin says the number of homes seeing multiple offers has declined for six straight months as higher mortgage rates keep some buyers on the sidelines. There was competition for just 44% of homes in July, the sixth straight monthly decline and a steep drop from the beginning of the year, when 70% of offers written by Redfin agents faced competition. It was also the lowest percentage since April 2020.

  • Investors are fleeing bonds that are protected against inflation. Treasury Inflation-Protected Securities (TIPS) have seen five straight weeks of outflows, the longest stretch since April of 2020, according to Bank of America’s chief investment strategist Michael Hartnett. The selling record came as investors this week welcomed consumer prices slowing and wholesale prices falling. Read more here.

WHAT TO WATCH

  • Five Chinese Companies to Delist From NYSE. Some of China’s biggest state-owned companies, including PetroChina,   Sinopec, and China Life Insurance said Friday they will voluntarily delist from U.S. stock exchanges. The announcements came separately amid worsening relations between the U.S. and China. Two other companies— Aluminum Corporation of China and Sinopec Shanghai Petrochemical—also plan to delist. Read more here.

  • J&J to stop selling talc-based baby powder globally next year. J&J is facing thousands of lawsuits alleging the talc powder has harmed women who had used it for years. Some of the lawsuits have led to costly jury verdicts against the company. J&J has been fighting the lawsuits and verdicts and says its talc-containing powder is safe. The company said Thursday its position on the safety of its cosmetic talc remains unchanged.
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