“Instead of having the courts chase us, they should be giving us a Nobel prize for economics” — Argentina’s former President Cristina Fernandez. For some background, Fernandez’s administration was marred by a credit default and IMF sanctions for manipulating macroeconomic data. Better luck next year?
- U.S. markets finished mostly lower as oil dropped back down to bearish territory and poor manufacturing data led many to question the strength of the recent all-time high rally
- European markets also dipped, as the financial sector plummeted thanks to the results of European banking stress tests
Alternatives to Watch
- It was a rough day of trading for oil, as the commodity fell below $40 per barrel at one point yesterday amid record high output from OPEC and a huge rise in U.S. rigs
To Achieve His “Master Plan”
…Elon Musk will do whatever it takes. Tesla acquired SolarCity for $2.6 billion yesterday, officially beginning Tesla’s bold transition from electric auto manufacturer to full-blown renewable energy products company. Musk’s grand vision hasn’t stopped conflict of interest discussions from floating around, since Musk is the CEO of Tesla and the Chairman of SolarCity—although both sides have stated that all decisions were merit-based. Fair enough. Up next? Investors speculate that solar cars could be an early project for new-look Tesla, and we’re sure Musk has a few more up his sleeve.
Uber’s Great Battle for China
…Finally comes to a close. After competing for market share for two years, Uber China announced its decision to sell itself to local rival Didi Chuxing. Uber is following in the footsteps of tech giants Google and eBay, which have also recently waved the white flag after failing to take hold in the tough Chinese market. Luckily for Uber, the sale of its Chinese operation means it will get a $7 billion share in the growing Didi Chuxing. Uber may have lost the battle, but not the war.
Verizon is on a Shopping Spree
…And Fleetmatics is its newest toy. For an easy $2.4 billion, Verizon acquired GPS vehicle-tracking company Fleetmatics—all part of the communications giant’s scheme to become more than just a telephone service provider. Verizon has been a busy bee lately with its winning $4.8 billion dollar acquisition of Yahoo last Monday. It looks like the plan is to build an empire, and compete with Google and Facebook in the digital advertising space. Gotta set your goals high.
This May Shock You
…Alphabet wants to use electrical signals to treat diseases. Think biotech implants are a thing of the distant future? Think again. Glaxo, the U.K.’s biggest pharmaceutical company, is teaming up with Alphabet to develop electrical treatments for diseases such as asthma, diabetes and arthritis. The deal comes with $714 million of sweet, sweet capital over a seven year period—and looks to combine Glaxo’s success in pharmaceuticals with Alphabet’s experience with low-power electronics and software to treat chronic disease. Sign us up.
- 50 Cent is developing a superhero series for Starz
- McDonald’s removes artificial preservatives from McNuggets
- Washington state is suing Comcast for $100 million
- Apple replaces the pistol emoji with a water gun
- Monday: AMC (-), Carmike Cinemas (-) Earnings
- Tuesday: Ferrari, Fitbit, Pfizer, Procter & Gamble Earnings; Motor Vehicle Sales; Personal Income and Outlays
- Wednesday: Square, Tesla Earnings; ADP Employment Report
- Thursday: Kellogg, LinkedIn, Kraft Heinz Earnings; Weekly Jobless Claims; Factory Orders
- Friday: Employment Situation; International Trade
IT’S ON THE HOUSE
The best kind of tuition? Free tuition. Thanks a certain former presidential candidate, there’s been a lot of talk in 2016 about free college tuition—and a solid amount of support, too. According to a new survey of 1,000 adults by Princeton Survey Research Associates International, free higher education is backed by the majority of Americans. Love it or hate it, let’s dig deeper:
- Of those surveyed, 62% say they support debt-free university tuition. 79% of millennials support free college, as the average undergraduate borrower faces $28,950 in loans.
- 64% of Gen Xers and 49% of baby boomers support free college. Getting a $50,000 bill in the mail can’t be fun for anyone.
- Of those opposed, 26% would be willing to support making college debt free for families that earn less than $50,000 a year.
- It’s a great idea, but who is going to pay for it? 48% of those surveyed said they would not be willing to pay more in taxes to fund free college. Nothing is truly free, folks.
INTERVIEW QUESTION OF THE DAY
The day before yesterday I was 25 and the next year I will be 28. What day is my birthday?
BUSINESS TERM OF THE DAY
Canine Liability Exclusion — A clause in homeowners insurance that prevents the insurer from being liable for injuries or property damage caused by a canine owned by the insured. Canine liability exclusion may apply only to certain breeds of dogs that insurers consider to be more aggressive, and thus more likely to cause injury or property damages.
FOOD FOR THOUGHT
Lesson of the day: don’t defame Hulk Hogan. In March, the professional wrestler and entrepreneur won a $140 million court judgment against news company Gawker Media. Just yesterday, Chief Executive of Gawker Nick Denton filed for personal bankruptcy protection. His largest creditor? Yep, the Hulkster.
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