Oil jumps as Saudi Arabia and Russia extend supply cuts to end-2023 (2 min read) Oil prices jumped about 2% with Brent Crude above $90 a barrel for the first time since November after Saudi Arabia and Russia announced an extension to their output cut. The two largest oil exporters will reduce a combine of 1.3 million barrels per day for another three months through December. Saudi Arabia said they will review the oil output extension on a monthly basis to decide whether to deepen cuts or increase production.
The chances of a US recession are now just 15% according to Goldman Sachs (3 min read) Goldman Sachs has lowered the probability of a US recession again to only 15% from its previous prediction of 20%. The positive outlook was due to Goldman’s increasing confidence that the Fed is done with rate hikes. The combination of lower inflation and slight weakness in the labor market will likely convince the Fed that further hikes won't be necessary. Nothing is for certain, but Goldman believes the chances of a downturn this year have become much slimmer.
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Business & Stocks
SoftBank's Arm aims for over $52 bln valuation in biggest US IPO of the year (3 min read) Arm, a rising chipmaker owned by Softbank, is aiming for a valuation of over $52 billion in its upcoming IPO this month, making it the largest US debut this year. Softbank is looking to sell 95.5 million shares at $47 to $51 each to raise up to $4.8 billion. Its major clients like Apple, Nvidia, Alphabet, AMD, Intel, and Samsung have committed $735 million collectively so far. It will trade under the ticker “ARM” and Softbank will own 90% of the company after the IPO.
Warner Bros Discovery expects earnings hit of up to $500 million as strikes drag on (2 min read) Warner Bros Discovery is preparing for the impact of ongoing strikes by writers and actors if they continue through the end of the year. The company told investors that they expect to earn $300 million to $500 million less this year due to the financial drags on halted TV and movie production. While they expect a hit on their earnings, they are still maintaining high free cash flow expectations due to the recent success of the movie “Barbie”.
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Funds & ETFs
SEC Punts Spot on Bitcoin Applications (2 min read) The SEC has postponed its decision on several spot Bitcoin ETF applications until mid-October, citing it needs more time to assess potential concerns. The SEC has historically rejected ETFs that are directly tied to cryptocurrencies, but it recently lost in a lawsuit against Greyscale Investments which was looking to convert its Bitcoin trust into an ETF. This development led many to believe the SEC’s stance may change and could pave the way for the first actual Bitcoin ETF in the US.
The Best Innovative ETFs of 2023 by Performance (3 min read) Many ETFs have emerged over the years that help investors capture the growth potential of innovative companies. Innovative category ETFs have returned as high as 191.5% so far this year. Most of the leading performers focus are in the area of web3, blockchains, or robotics, with some using leverage to enhance returns. This article shares a list of the top 20 best-performing innovative ETFs and surprisingly, Cathie Wood’s Ark funds are at the lower end.
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