What Moved The Markets This Week 📈
Citadel Launches New Crypto Exchange, Student Loan Payments To Restart, PayPal To Offload $44B Of Loans, Rivian To Adopt Tesla Charging, BoE Hikes 50 BPS, and FDX + ACN + FDS Earnings
Sunday Morning Markets
Trading Week 25, covering Monday, June 19 through Friday, June 23. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Student loan payments to restart in October
US housing starts surge 22%
Rivian to adopt Tesla charging, following GM and Ford
KKR to buy $44B of PayPal’s BNPL loans
Bank of England hikes interest rates 50 basis points
Alibaba CEO steps down to focus on cloud
Citadel, Schwab, and Fidelity launch a crypto exchange
Earnings from FedEx, Accenture, Factset — see breakdowns below
US Markets 🇺🇸
Student loan payments to restart in October after a three-year-long pause. Interest will begin accruing on September 1st. Approximately 40M Americans have student loan debt, with an average monthly bill of roughly $350.
US housing starts surged most since 2016 as the number of new residential projects jumped 22% to a 1.63M annualized pace, exceeding estimates of 1.4M units. Applications to build, a proxy for future construction, climbed 5.2%.
Pentagon accounting error gives extra $6B in arms to Ukraine as the military services used replacement costs rather than the book value of equipment. The mistake will leave a surplus of funding that can be used for future packages.
Beauty and tech company Oddity files to go public as the IPO market gains steam. The owner of the Il Makiage and Spoiled Child brands brought in $325M in sales (+46% YoY) and saw a net income of $22M (+56% YoY) last year.
FTC sues Amazon over ‘deceptive tactics’ surrounding the Prime signup and cancellation process. The agency claims Amazon used “dark patterns” to steer users to enroll in Prime, and intentionally complicated the cancellation process.
Goldman Sachs faces big writedown on GreenSky after acquiring the fintech lender for $2.24B in 2021. They are now seeking to sell the business, with KKR, Apollo, Sixth Street, and Warburg Pincus making bids in the first round of offers.
Rivian to adopt Tesla's charging standard giving customers access to the largest charging network (12K Superchargers in U.S. and Canada) and adding momentum to Tesla's bid to set the industry standard.
KKR to buy $44B of PayPal’s buy-now-pay-later loans in Europe. After the deal closes, PayPal expects to allocate roughly $1 billion to incremental share repurchases in 2023. PYPL 0.00%↑ shares are down 14% in the last year.
Rest of World 🌏
Alibaba CEO Daniel Zhang to step down to focus on the cloud division as Eddie Wu, one of Alibaba’s co-founders, will take over as CEO. “Cloud Intelligence Group is now full speed ahead on its spin-off plans”.
Bank of England surprises markets with 50 bps hike as policymakers struggle to tackle the persistent inflation seen in the UK. Markets had been pricing in just a 25 bps hike despite inflation hitting 8.7% in May.
Deepening economic pain leaves ECB in a tough spot as the S&P flash composite PMI dropped to 50.3 in June from 52.8 in the previous month and below the 52.5 expected by analysts.
Crypto ⚡
Citadel, Schwab, and Fidelity launch crypto exchange alongside other investors. It will be called EDX Markets and will use a more regulator-friendly business model compared to the other crypto exchanges.
Invesco reapplies for Bitcoin ETF and argues that the lack of a spot Bitcoin ETF pushes investors toward riskier alternatives, as seen in the insolvencies of FTX, Celsius Network, BlockFi, and Voyager.
Earnings Reports 💰
See more breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
Germany - Ifo Business Climate (JUN)🇩🇪
Earnings Reports: Carnival💰
Tuesday
US - New Home Sales (MAY)🇺🇸
US - Durable Goods (MAY)🇺🇸
Canada - Inflation Rate (MAY)🇨🇦
Earnings Reports: Walgreens💰
Wednesday
Germany - GfK Consumer Confidence (JUL)🇩🇪
Earnings Reports: Micron, General Mills💰
Thursday
US - Jobless Claims 🇺🇸
US - Pending Home Sales (MAY)🇺🇸
Germany - Inflation Rate (JUN)🇩🇪
China - NBS Manufacturing PMI (JUN)🇨🇳
Earnings Reports: Nike, Paychex💰
Friday
US - PCE Inflation (MAY)🇺🇸
US - Personal Income (MAY)🇺🇸
US - Personal Spending (MAY)🇺🇸
Europe - Inflation Rate (JUN)🇪🇺
Earnings Reports: Constellation💰
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