MARKET MOVERS
- Downsizing trend is taking root as home prices rise. New data from Redfin shows that Americans are purchasing smaller homes than they did earlier on in the pandemic. In March, the typical home under contract was 1,720 square feet. That is down 1.8% compared to a year ago and about the same size as homes that were selling prior to the pandemic, according to Redfin’s research. Read more here.
- European lawmakers reach new deal on social media regulations. The European Parliament and EU member states reached a deal early Saturday on the Digital Services Act. The DSA is a landmark piece of legislation. It will require Big Tech firms to quickly rid their platforms of illegal content. Failure to comply with the rules may result in fines of up to 6% of companies’ global annual revenues. Read more here.
- Markets are cranking up their expectations for Fed interest rate hikes. Markets reacted by fully pricing in the 50-basis-point move next month then added further escalation by the end of the year that would take the fed funds rate to 2.75%. Overnight, traders increased the chances for yet another move to 48.2%, a day after Powell said the rate-setting FOMC would entertain a 50-basis-point move at the May 3-4 meeting. Read more here.
- Oil prices log a weekly loss of more than 4% as investors ride supply-and-demand seesaw. One part of this has been played by concerns about demand in connection with the rigid COVID policy in China, which threatens to paralyze the key business hub of Shanghai for a period of several weeks. Sharply rising bond yields, a firm U.S. dollar and falling stock markets are likewise generating headwinds.
- Amex says business travel rebound is gaining momentum. People are looking to get out and not only gather with their own colleagues, but they’re also looking to get out and meet with customers. AmEx reported that spending on its cards for travel-and-entertainment just about matched the prepandemic 2019 level in March. U.S. consumers helped lead the recovery. In the first quarter they spent 20% more on T&E.
- Amazon announced a $1 billion industrial innovation fund. The company will use the fund to invest in startups building solutions for customer fulfillment logistics and the supply chain. Investing in companies that imagine solutions that incrementally increase delivery speed and further improve the experience of employees working in warehousing and logistics field. Source(29:09)
WHAT TO WATCH
- Assassin’s Creed publisher Ubisoft draws buyout interest. The company is attracting preliminary takeover interest from buyout funds. Several private equity firms including Blackstone Inc. and KKR & Co. have been studying the French business. Ubisoft hasn’t entered into any serious negotiations with potential acquirers, and it’s unclear whether its major shareholder is willing to pursue a deal. Read more here.
- Investors are bullish on student housing. Rents in student housing remained high throughout the pandemic, even as many students took classes remote during the early onset. Investors believe the growing demand will spur an increase in rents from the limited construction of student housing. A return of more international students to the U.S., following a decrease early on in the pandemic, will also likely give the sector a boost.
- Zillow expects home value growth to reach 14.9% through March 2023, down from its previous estimate of 16.5% growth. Likewise, in the next three months, Zillow anticipates home values to grow 5.5 percent, down from its previous estimate of 5.9 percent. Driving the downwardly revised forecast are affordability headwinds that have strengthened faster than expected, largely due to sharp increases in mortgage rates.
- Inflation will affect stablecoins the most than other crypto. If a stablecoin is pegged to a fiat currency, your investment will be impacted by inflation and could lose value over time as their reserve currency loses value. Dollar-pegged stablecoins means that they are also affected by 8% inflation. It is not really stable if fiat inflates. On the other hand, Flatcoins are newer and optimizes instead for price flatness versus an on-chain basket of goods. Source(49:20)
