January 31, 2023

The remarkable rally of the dollar shows no signs of slowing down. Indeed, the flamboyant message from the Federal Reserve has given it new momentum.

The strong dollar is a concern for US multinational corporations, affecting the value of international revenue. Both Accenture and Adobe Marked a hit for earning In recent days, while Apple increased the prices of the App Store in all countries using the euro. And that’s just A.

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It also creates problems for countries around the world, whose currencies are hitting new multi-decade lows day by day. The British pound fell below $1.11 to a new 37-year low on Friday and the euro fell below $0.98 for the first time since 2002. The Indian rupee hit a record low against the dollar.

Japan, at least, decided that was enough Thursday as it intervened to buy the yen for the first time since 1998. This was after falling to a 24-year low against the dollar as countries’ polar opposite monetary policy paths reinforced. ,

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Japan’s unilateral action is unlikely to reverse those trends, but it could still be symbolically significant. America’s response could be just as important. Far from it, there was no harsh rebuke. “We understand Japan’s actions,” a Treasury spokesman said.

The dollar’s strength isn’t likely to ease anytime soon, at least as long as the Fed is moving further and faster than everyone else. Coordinated intervention between countries may eventually become the course of action – as it was in 1985 plaza agreement And again in 2000.

It’s a bit far at the moment. But the US response to Japan’s plight may be the first step towards that.

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,Callum Keon

*** Join Investment Integration Project CEO William Burkart this afternoon for a discussion with Penta senior author Abby Schultz about private market approaches to investing in renewable energy. register here,

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Boeing’s $200M SEC Settlement Another Step for the 737 MAX

Boeing takes another step to reverse 737 MAX crash tragedies in Indonesia and Ethiopia, reaching a $200 million settlement With the Securities and Exchange Commission over alleged misleading statements by the company and then-CEO Dennis Muilenburg.

What will happen next: Boeing shares fell 3% in after-hours trading following the announcement. That’s down 70% since early March 2019, but investors will be glad there’s one less thing to track about Max. Boeing has a backlog of about 4,200 orders for Max planes.

,Liz Moyer and Al Root

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Costco beats expectations but margin contracts

Costco Wholesale‘s
The fiscal fourth-quarter earnings report beat analysts’ expectations, but a gross margin of 10.1% fell from last year and CFO Richard Galanti said The Warehouse Club continued to see pressure from higher prices for wages, commodities and transportation costs. . Shares were down 2.6% after hours.

What will happen next:
Target is offering holiday discounts through October 6, extending its price matching guarantee, and planning to hire 100,000 seasonal workers, the same number as last year.

,Janet H. Cho and Teresa Rivaso

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FedEx shares slip even though official earnings don’t disappoint again

FedEx shares indicated a low early Friday after the company published its official quarterly earnings following a pre-release, which sent the stock to fall more than 20%, its worst day since 1978.

What will happen next: Investors will now be watching how quickly FedEx can cut costs to maintain profit margins. FedEx says it will generate $2.7 billion in cost savings in fiscal year 2023. It also said that it will increase shipping rates by 6.9% from January 2.

,Al Root and Brian Swint

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Luxury home sales falter amid high rates, more listings

pre warm luxury housing market Inflation has been faltering due to recessionary concerns and rise in mortgage rates. According to Redfin, sales of luxury homes, defined in the top 5% by value, fell 28.1% for the three months ended August, the biggest drop since at least 2012.,

What will happen next: The growing popularity of remote work means that people do not need to move to expensive cities like San Francisco to get their jobs. “Now you can take that job basically anywhere in the country,” Daryl Fairweather, Redfin’s chief economist, told The Wall Street Journal.

,Janet H. Cho

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US Latinos as Group Rank Fifth in World GDP

According to a Latino Donor Collaborative Report published with Wells Fargo, the total economic output of America’s Latino population, if it were split off as a separate country, would be the fifth largest in the world.,

What will happen next: The report says that hot spots of Latino economic growth can be found in unexpected places. Latinos drive economic growth in California, Arizona and Texas, but their biggest impact in the coming years will be in places like Idaho, North Dakota, Ohio and Tennessee.

,Janet H. Cho

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Do you remember this week’s news? Take our quiz about this week’s news below. Tell us how you did in email [email protected]

1. Hertz Global plans to expand its electric vehicle offering by purchasing 175,000 luxury and compact vehicles and mid-sized SUVs from which of the following companies:

One. General Motors

b. ford motor

C. Tesla

D. stellantis

2. Chamath Palihapitiya, the so-called “SPAC King,” will wind up two special-purpose acquisition companies and return more than $1.6 billion in cash to shareholders after failing to find companies to acquire. Which of the following has he made public:

One. Virgin Galactic

b. opendoor technologies

C. clover health

D. all of the above

3. The Federal Reserve raised interest rates again this week as it works to tame inflation and says it will not give up until the job is done. By how much did it raise its benchmark rate this time?

One. 0.50%

b. 0.75%

C. 1.00%

D. 1.25%

4. Logistics giant FedEx is increasing shipping rates across most of its services starting in January as it faces a global slowdown in business. How much rate is it increasing on average?

One. 6.3%

b. 6.9%

C. 7.5%

D. 8.1%

5. New York’s attorney general filed a civil suit in state court against former President Donald Trump, his three oldest children, and Trump Organization officials, alleging he inflated the values ​​of properties for pecuniary gain ?

One. His Triplex at Trump Tower

b. mar-a-lago

C. 40 Wall Street

D. all of the above

Answer: 1(a); 2(D, 3(b); 4(b, 5(D)

,baron’s staff

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-Newsletter edited by Liz Moyer, Rupert Steiner, Steve Goldstein and Brian Swint