Elon Musk Stalls Deal to Buy Twitter – Closing Bull June 10th, 2022
In this week’s Closing Bull, the CPI report showed prices had risen 8.6% year over year. US chicken prices have gone up 16%. Avian flu has spread through major production regions, increasing boneless chicken breast prices by 68%. African swine fever has also swept through global pig herds. Elon Musk has put his deal to buy Twitter on hold. Twitter stock has fallen by 20% since the signing of the takeover.
Key News This Week:
CPI report rising prices of 6.8% year over year.
Chicken prices in the US have gone up by 16%.
Avian flu has increased boneless chicken prices by 68%.
African swine fever has impacted global pig herds.
Elon puts his deal to buy Twitter on hold.
Twitter stock has suffered a 20% loss since the signed takeover.
Read the Transcript
Hi and welcome to my financial markets’ re-cap for the week.
A quiet week for our Prophetick Market forecast this week, and a good thing too. No trades allowed us to miss the turmoil this week and I am glad for that. Another swing higher coming soon we believe. More news on that next week.
That was the system update, what is happening in the news?
The market was pretty flat this week, slightly down until the jitters started last night regarding what the Core Consumer Price Index was going to show at 8:30 am this morning.
Well, that report hit the news wires and it was even worse than expected really.
The CPI came in at its highest level since 1981. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices.
Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3% for the main index and 5.9% for the core index. So even more elevated than expected, yikes!
Talking of inflation, if you like Buffalo wings, get used to paying more. Chicken prices are through the roof. US chicken prices have surged up 16% in April from a year before.
Chicken is the world’s most popular meat by far, followed by pork and beef. A series of events have combined to send chicken prices soaring — worker shortages being just the tip of the iceberg.
Avian flu has spread through major producing regions, wiping out 38M chickens in the US alone — where the price of boneless skinless breast is up 68% this year.
Price-sensitive consumers might swap chicken for cheaper pork, but now an African swine fever is sweeping through global pig herds. Good grief! Time to become a vegetarian!
In tech news, last month Elon Musk said the legally binding deal to buy Twitter is on hold until Twitter proves its claim that fewer than 5% of daily users are bots.
Twitter’s stock has fallen over 20% since the takeover was signed, which means Elon’s on the hook for $14B more than the company’s current market value based on the deal that was put forward. Analysts suspect his real goal is to pressure Twitter into renegotiating at a lower price. Let’s see.
That’s it from me, It’s Friday, time to down tools, thanks for watching, and bye for now.
**The risk of loss associated with trading commodity futures contracts (commodities and futures) is substantial. Therefore, you need to carefully consider whether trading in the commodity futures markets is appropriate for you in light of your personal circumstances, risk tolerance, and overall financial situation. Trading in the futures markets is highly leveraged and brings with it large potential risks even though it can bring you potential rewards. You need to fully understand the risks associated with this type of trading and derivative product and you need to ensure you ask questions about these risks. Once a decision has been made to invest after you have asked all your questions and have full knowledge of all the risks, you need to be willing and able to accept the risks in order to invest in the futures or commodities markets. If you lose your entire investment and are asked to put up more money to cover debits in your account and this will impact your personal life in financial terms, you should not be trading with money you cannot afford to lose. This communication is not solicitation or an offer to buy or sell commodity, futures or any other financial interests. You may be told that putting orders in with certain risk measures such as stop-loss or stop-limits orders will protect you. Please note that the use of any stop-loss or stop-limit orders may not limit your losses and you could lose more than your intended amount of money at risk. No representation is being made that any account will or is likely to achieve profits or losses similar to any discussed here. Past Performance of any trading or methodology is not necessarily indicative of future results. Any and all systems, forecasts, methodologies, products, options, materials, services or other communications are for informational, illustrative and educational purposes only and are not to be construed as specific advisory recommendations. We are not responsible for any trades that you may take or any losses that you may incur. Any trades that you may take are taken at your own risk. Like any investment, you should consult your broker or financial adviser before deciding to invest and when placing any trades. Any testimonials are not indicative of future performance, profit or success and may not be representative or indicative of the experiences of others or of your own experience.**
Leave a Comment