Intel Files IPO Plans for Mobileye

MARKET MOVERS

• Intel files IPO plans for Mobileye. Intel filed paperwork with the SEC late Friday for an initial public offering for its Mobileye Global unit, which makes chips and software for autonomous driving. The new public filing takes the process one step closer to a public offering. If completed this year, it could mark the end of a lengthy pause in the tech IPO market.

• Elon Musk shows off humanoid robot prototype at Tesla AI Day. Tesla’s AI Day 2022 was mainly a recruiting event, according to CEO Elon Musk. The company showed early prototypes of a humanoid robot and said it’s developing special batteries and actuators for them. Musk said he thinks it will be possible for customers to get an Optimus humanoid robot from Tesla in 3 to 5 years.

• Hurricane Ian will cause a short-term economic hit. The rebuilding and recovery will nudge up economic output over the coming years. The storm could lower Florida’s economic output by about 6 percentage points in the third quarter. That will shave about 0.3 percentage points off nationwide economic growth from June to September and roughly 0.1 percentage points in the fourth quarter of the year.

• Eurozone inflation hits record 10% amid energy crunch. Uncertainty about the currency area’s ability to make it through the winter without power cuts continued to keep energy prices elevated. The acceleration in the rate at which consumer prices are rising is likely to prompt the European Central Bank to raise its key interest rate again next month and will lead to further falls in household spending power. Read more here.

• Geely acquires a nearly 8% stake in Aston Martin. Chinese automotive giant Zhejiang Geely Holding Group Co., known as Geely, which also owns Lotus Advance Technologies Sdn Bhd. and Volvo Car Corp., said that it acquired 7.6% of the ultraluxury brand’s ordinary shares. Geely’s participation is part of Aston Martin’s latest $723 million rights issue, according to a statement by the British company.

WHAT TO WATCH

• Goldman sees US house prices falling 5% to 10%. Their G10 home price model suggests sizable nominal home price declines from the peak of around 15% in Canada, 5-10% in the US, and under 5% in the UK. They now view the risks to these estimates as tilted to the downside. It now appears house prices are falling even though inventory levels are still historically fairly low.

• OPEC+ to hold an in-person oil meeting in Vienna. The 23-nation alliance, led by Saudi Arabia and Russia, is scheduled to meet on Wednesday at its headquarters in Vienna, according to a statement from OPEC’s secretariat. Not all countries may be able to send representatives because of the short notice, delegates said privately. OPEC+ underscored its readiness to steady the market with a symbolic reduction at a previous meeting. Read more here.

• Tesla is set to hit delivery record in the rebound from supply strains. The company is expected to announce record quarterly deliveries as the electric-vehicle giant tries to recover from supply-chain snarls that crimped output earlier this year. The totals are poised for release this weekend once Tesla finishes sales at midnight Friday. Deliveries are one of the most closely watched metrics by investors.

• Credit Suisse issues dire global economic outlook: ‘Worst is yet to come’. The firm’s economists said they expect central banks to continue raising interest rates to cool inflation. That in turn will bring GDP gains to a near-standstill at least until some signs emerge that prices are falling. “The euro area and the UK are in recession, China is in a growth recession, and the US is flirting with recession.” Read more here.

• The markets are bottoming and consolidating, says Chamath Palihapitiya. He thinks that this is the time to start nibbling and start getting ready to really rip the money in. Big tech companies cutting staff and Facebook freezing hiring is an indication that the markets are now starting to stabilize. All the irrational behavior is starting to exit the system and that's a very healthy process for an economy. Source(11:50)