Netflix is preparing investors and users for more price hikes in 2024

Netflix is claiming that it is improving its content, such as adding WWE Raw for 10 years, and the added content necessitates a price increase. Despite its crackdown on password sharing back in November 2022, Netflix has more than 260 million global subscribers after adding 13.1 million in the fourth quarter. This is the company’s most significant fourth-quarter addition. Netflix’s prices have not gone up since 2022, so they feel “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the company told investors.

https://www.cnbc.com/2024/01/23/netflix-is-preparing-investors-and-its-user-base-for-more-price-hikes-in-2024.html

How sovereign wealth funds are affecting industries and macroeconomics

To first explain how sovereign wealth funds (SWF) are changing industries, we must first define what a SWF is. SWF's help during investing opportunities in financial assets like stocks, bonds, real estate, entertainment, and other resources. The key feature to this is that they are invested globally and are a fairly regular occurance (rather than a rarity). It currently stands that investors want financial managers to release capital from older investments from making any future endeavors. 

SWF's function signficantly in emerginf markets because the mass of wealth accumulated can diversify and expand upon sectors, which in turn protects the economy during its grwoth periods and strengthens their respective nations in the long term. Examples include stabilizing banks durig crisis and shaping future industries as a whole. 

One of the most well known SWF's is Saudi Arabia's Public Investment Fund (PIF). Sporting events amoungst other sectors have brought in over 800 billion of assets BUT are not even close to the 1.5 trillion SWF of Norway or the 1.2 trillion and 1 trillion coming from China and Hong Kong respectively. 

Link to Article

Mortgage rates drop to lowest level since May by CNN

The housing market is something that greatly impacts the economy and so what this article talks about is how mortgage rates have been falling specifically this past week. A year ago the rates were almost 1% higher so it's great for homebuyers and people looking to invest. That being said, just because the interest rate trend is going down, it does not mean it's not a competitive market.  I found this article interesting because as someone who wants to be a future homeowner, it's important to look at the interest rates and track when the best time to invest in a home is. After reading this article I was curious to see what previous rates were so I looked up what mortgage rates were in 2018 (pre-pandemic).  To my surprise, it was around 3-4% which is a lot lower than it has been in the past few years. 

 https://www.msn.com/en-us/money/other/mortgage-rates-drop-to-lowest-level-since-may/ar-AA1nbVLD

Inflation still not completely down

According to the Consumer Price Index (CPI) data for November 2023, headline inflation is moderate and has increased by 0.1% on a seasonally adjusted basis. Notably, core inflation—which does not include volatile food and energy prices—remains persistently high at 4% per year. A 6% decrease in gas prices was countered by rises in used vehicle and hotel costs. A little increase in food costs contributed to the ongoing core inflation. According to the survey, housing expenses have increased by 0.5%, while used vehicles and trucks have increased by 1.6%. According to the November Survey of Consumer predictions, there will be a little decrease in inflation predictions to 3.4% after a year. Analysts point out that a Fed rate decrease in March 2024 looks less probable despite the deceleration, highlighting the difficulty of striking a balance between inflation control. 

Source: https://www.jpmorgan.com/insights/outlook/economic-outlook/cpi-report-november-2023#:~:text=While%20Wall%20Street%20tends%20to,same%20period%2C”%20Snyder%20observed.

Dow closes at new record highs

 The Dow Jones Industrial Average closed above 37,000 for the first time as Federal Reserve Chairman Jerome Powell suggested a halt in interest rate hikes and potential cuts. Powell mentioned being at or near the peak rate for the current cycle, with projections indicating the possibility of three rate cuts. The Dow gained 1.4%, marking its first record close since January 2022. Analysts, including Wharton University's Jeremy Siegel, see this as positive for the equity market and the U.S. economy, predicting a potential rate cut in March. Notably, UnitedHealth Group contributed the most points to the Dow, while Apple reached a $3 trillion market cap. Inflation, though easing, remains a concern for policymakers.

Source: https://www.foxbusiness.com/markets/dow-closes-above-37000-first-time-ever-powell-hints-rate-cuts 

Increase of minimum wage 2023

Four states have boosted their minimum wages this summer: Connecticut, Nevada, Oregon, and Washington, D.C. This change resulted in 765,000 workers getting paid more. It is projected that this rise in wages will total more than $615 million. Since the summer, fifteen cities and counties were scheduled to raise their minimum wage, offering some needed financial relief to low-paid workers who are struggling with the effects of rising costs. 

Those who are living off a lower wage in these states should benefit from a positive wage increase as a result of these increments. Based on the analysis of all workers impacted—both those who will directly benefit from the increased minimum wage and those who will be indirectly impacted when employers modify their pay structures—it is projected that the average hourly wage change in Nevada, Oregon, Connecticut, and Washington, D.C. will be $0.40, $0.42, $0.57, and $0.74, respectively. These adjustments should result in a $675 increase for the average full-time minimum wage worker in Oregon and a $1,354 increase in Washington, D.C.

Bitcoin Has More Than Doubled This Year In Resurgence

 https://www.bloomberg.com/news/articles/2023-10-25/bitcoin-has-more-than-doubled-this-year-in-unforeseen-resurgence

Goldman Sachs says India will overtake the U.S. to become the world’s second-largest economy by 2075

India is poised to become the world’s second-largest economy by 2075, leapfrogging not just Japan and Germany, but the U.S., too, says Goldman Sachs.

Currently, India is the world’s fifth-largest economy, behind Germany, Japan, China and the U.S.

On top of a burgeoning population, driving the forecast is the country’s progress in innovation and technology, higher capital investment, and rising worker productivity, the investment bank wrote in a recent report.

“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies,” said Goldman Sachs Research’s India economist, Santanu Sengupta.

https://www.cnbc.com/2023/07/10/india-to-become-worlds-second-largest-economy-by-2075-goldman-sachs.html

International Students Contributed Over $40 Billion to US Economy in 2022/23

 

More than one million international students studying in the United States during the 2022/23 academic year contributed $40.1 billion to the American economy, according to NAFSA: Association of International Educators. 

Although it remains below the pre-pandemic record of $40.5 billion in 2018/19, this figure is an increase of $6.3 billion or 19 percent compared to 2021/22, Erudera.com reports.

The NAFSA’s report published on November 13 highlights that the number of international students at US universities and colleges has now recovered from the decline reported during the pandemic era. 

Data showed that international students have supported a total of 368,333 jobs, both within their educational institutions and in their communities. This is a significant increase of almost 10 percent compared to a year earlier and a 20 percent rise compared to the year when the COVID-19 pandemic forced the closure of America's borders.

California benefited the most from international students, with 138,393 students contributing a total of $6 billion to the state's economy and supporting over 55,000 jobs.

https://erudera.com/news/international-students-contributed-over-40-billion-to-us-economy-in-202223/

Macy's mulling $5.8 billion buyout offer

Macy's is facing a $5.8 billion buyout offer valuing it at $21 a share and sees a 32.4% premium to its recent stock price. Shareholders must be feeling hopeful about this potential buyout offer, as it could mean a significant shift in Macy's trajectory. It'll be interesting to see how the company's board responds and whether this offer aligns with their strategic goals. However, it seems like Macy's is at a crossroads with this buyout offer since they have declined to comment on the matter and the offer was extended over a week ago without a confirmed deal taking place. 

Additionally, the potential disruption of a buyout amidst the ongoing holiday season and an impending CEO transition adds complexity to the situation (Tony Spring is set to take over as CEO in 2024). Balancing the offer's financial benefit against the company's standalone potential and the impact on operations during this crucial period presents a challenging decision for Macy's stakeholders. The board, led by seasoned retail veterans, grapples with this offer considering Macy's historic high stock price of $70.99 in 2015 and its substantial real estate assets valued between $6 billion to $8 billion, notably the iconic Herald Square location in NYC worth $3 billion to $4 billion alone.

 Do you feel that Macy's will take the buyout offer considering the value of their assets and track record of success?

https://finance.yahoo.com/news/macys-mulling-58-billion-buyout-offer-source-230606275.html