A $500 Billion Corporate-Debt Storm Builds Over Global Economy (9 min read)
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Richard Cooper, a partner at Cleary Gottlieb, a law firm specializing in corporate bankruptcies, is predicting a wave of corporate debt distress. Global corporate bankruptcies are piling up at a fast pace, with debt loads becoming a heavier burden as central banks raise interest rates. High levels of debt that grew during a period of cheap money are now posing a significant risk. The US, China, and Europe have seen a surge in corporate debt, and repayments may prove difficult for businesses as growth cools and interest rates rise.

UK inflation rate slides to 7.9% in June, below expectations (3 min read)
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UK inflation in June was lower than expected, with an annual rate of 7.9% compared to the projected 8.2%. Monthly inflation increased by 0.1%, lower than the forecasted 0.4%. Core inflation, which excludes volatile prices, was 6.9%, down from May's 31-year high of 7.1%. Falling gas prices contributed to the decrease in inflation, while food prices rose but at a slower pace than last year. The decline in inflation was seen as encouraging and lifted investor sentiment, but efforts to reduce it further will continue.

Global power demand growth to rebound in 2024 after slowdown (3 min read)

The International Energy Agency (IEA) predicts that global electricity demand will grow at a slower pace in 2023 due to economic downturns and the energy crisis caused by Russia's invasion of Ukraine. However, demand is expected to rebound in 2024. The IEA emphasizes the need for a greater focus on renewable energy sources and projects that renewables will generate over one-third of global electricity in 2024, potentially surpassing coal. Fossil fuel-generated electricity is expected to decline as the world transitions to cleaner energy.

Tesla books record revenue with margin declining after price cuts (4 min read)
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Tesla reported its Q2 earnings and revealed a record revenue of $24.93 billion, surpassing the estimate of $24.47 billion. Adjusted earnings per share were 91 cents, higher than the 82 cents expected, while net income was $2.70 billion, a 20% increase from last year. However, Tesla's operating margins were at their lowest in the last five quarters due to its price cuts and the cost of ramping up battery cell production. The company aims to deliver 1.8 million vehicles this year, but Q3 production may be affected by factory upgrades.

Carvana Soars After Reaching Debt Restructuring Deal (3 min read)
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Used-car retailer Carvana has reached a debt restructuring agreement and plans to sell up to $1 billion worth of shares. The deal with bondholders will eliminate a significant portion of Carvana's debt and reduce its interest expenses. This company has been working on reducing expenses and saw some success in the last quarter after facing financial challenges due to its expansion during the pandemic. Shares of Carvana surged over 30% after the news but dipped slightly throughout the day.

Goldman profit falls to 3-year low but shares rise on outlook (3 min read)

Goldman Sachs reported a 60% drop in profits for the second quarter, primarily due to write-downs on its consumer businesses and real estate investments. Analysts had already expected a lower profit of $3.18 per share, but Goldman’s earnings fell even more to $3.08 per share compared to $7.73 per share a year earlier. Despite the decline, Goldman's stock rose as CEO David Solomon highlighted signs of recovery in investment banking, which pulled other bank stocks higher as well.

The First ETF with 100% protection against losses (4 min read)
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The world's first ETF to offer 100% downside protection has been launched in the US. The Innovator Equity Defined Protection ETF (TJUL) aims to protect investors against all market losses over a two-year period by using put and call options based on the S&P 500 index. The fund is an extension of the increasingly popular "buffered" ETF concept. While the ETF offers downside protection, investors may still incur expenses, and the maximum return is determined by market conditions.

Schwab launched a new bond ETF (2 min read)
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Schwab Asset Management launched its ninth bond ETF last week, the Schwab High Yield Bond ETF (SCYB) to meet the demand for low-cost high-yield fixed-income products. SCYB has an expense ratio of 0.10%, which is competitive compared to the industry average of 0.44%. Despite being in a rising interest rate environment, Schwab believes investors should still consider high-yield exposure as part of a diversified portfolio due to its potential for lower correlation with other fixed-income assets.

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