Peloton's Management Shakeup Continues

MARKET MOVERS

• Wholesale prices surge again as hot inflation sears the U.S. economy. The Producer price index jumps 1% in January and showed there’s still plenty of inflation engulfing an economy facing its worst cost pressures in four decades. The Fed usually views core price changes as a more accurate barometer of inflation, but they are flashing the same warning signs.

• Global semiconductor sales top half a trillion dollars for the first time. Sales reached a record $555.9 billion in 2021, up 26.2% year on year, the U.S.-based Semiconductor Industry Association (SIA) said on Monday. Demand for semiconductor production is projected to rise significantly in the years ahead, as chips become even more heavily embedded in the essential technologies of now and the future. Read more here.

• MoneyGram International to be acquired by Madison Dearborn Partners, a private-equity firm, in an all-cash transaction valued at roughly $1.8 billion. The deal with Madison Dearborn Partners announced Tuesday will provide MoneyGram with resources to accelerate the advancement of its digital growth strategy, the company said in the press release. Read more here.

• Bitcoin and Ethereum rise as Ukraine-Russia tensions appear to ease. Bitcoin climbed more than 4% while Ethereum rose more than 7% according to Coin Metrics. Almost the entire crypto market was higher on Tuesday. The upward moves follow an announcement from Moscow that the Russian Defense Ministry has begun returning some troops to deployment bases after training exercises near the Ukraine border.

• Foreign investments in real estate exceed pre-pandemic levels. Foreign investors purchased $70.8 billion of U.S. commercial real estate in 2021. That marks the highest total since 2018’s $94.6 billion. Investors were drawn to growing sectors like warehouses, rental apartments, and specialized office buildings for pharmaceutical businesses. They also homed in on the Sunbelt and smaller markets over coastal cities.

• Rental prices for single-family homes grew an average of 7.8% in 2021, an all-time high: CoreLogic data. In December, U.S. home rents jumped 12% year over year for the month, with Miami leading the way with a 35.7% increase.

WHAT TO WATCH

• Intel agrees to a $6 billion deal to buy Tower Semiconductor. Israeli chip company Tower Semiconductor Ltd. makes semiconductors and circuits used in everything from cars and consumer products to medical and industrial equipment. It operates manufacturing facilities in Israel, California, Texas, and Japan. This deal bolsters Intel's plan to make more chips for other companies.

• Peloton management shakeup continues. Three executives overseeing business operations and supply chains have exited the company, signaling a wider management shakeup. Mariana Garavaglia, who oversaw Peloton’s operations, has left alongside Chief Business Officer Brad Olson and supply chain head Jon Adee, according to the report. Read more here.

• Coinbase plans to add 2,000 employees in 2022, saying it sees enormous product opportunities ahead for the future of Web3. It plans to add employees across its product, engineering, and design teams this year. The company is also expanding to include products that host user-generated content like NFTs and plans for the future of  Coinbase Wallet, enhancing security, ease of use, and accessibility.

• The Solana team announced a rebranding of its NFT analysis website, from Solanalysis to Hyperspace. This rebranding came alongside an announcement that this site has raised $4.5 million in seed financing, growth capital the Solana team hopes will drive growth with this network's NFT ecosystem. This near-term catalyst today complements a number of key developments Solana investors remain bullish on.  Read more here.