Amazon in talks to join Arm's IPO as an anchor investor. Minnesota's success in taming inflation through housing boom. Disney raises prices for streaming services. Current state of equity trades and concerns about recession and investment ideas.
Amazon is considering becoming an anchor investor in Arm Ltd.'s IPO, aligning with other tech companies.
Disney is raising prices for its streaming services, driven by a focus on growing revenue per user and concerns about inflation and consumer spending.
Deep dives
Equity markets react to rates and inflation concerns
Equity markets continue to be influenced by the rates picture and concerns about inflation. If rates move higher or inflation increases, sectors such as tech may be negatively affected. The upcoming CPI report is being closely watched by investors, who are also keeping an eye on the treasury auctions due to the amount of debt being issued. Uncertainty in the markets is leading to reactive buying and selling.
Disney raises streaming prices amid inflation worries
Disney has announced that it will be raising prices for its streaming services, including Disney Plus and Hulu. The price of the ad-free version of Disney Plus will increase from $11 to $14 per month, while Hulu's ad-free version will rise by 20% to $18 per month. This move by Disney reflects its focus on growing revenue per user and making its streaming business profitable. It also highlights concerns about inflation and its impact on consumer spending.
Energy sector outperforms as oil hits nine-month high
The energy sector is experiencing a boost as oil prices reach a nine-month high. Geopolitical tensions and supply concerns, such as possible disruptions to Russian oil exports or production cuts by Saudi Arabia, are pushing energy prices up. This increase in oil prices can contribute to inflation and impact consumer spending as higher energy costs are passed on. Investors are closely watching the inflation data and are concerned about the potential implications for the soft landing scenario and the Federal Reserve's monetary policy.
Investors exhibit caution amidst inflation fears
Investors are exhibiting caution in response to inflation concerns. The fear of inflation rising, along with the uncertainty of treasury auctions and the potential downgrade of the US, contributes to market hesitancy. Tech stocks may be particularly vulnerable to rising rates and inflation, leading some investors to trim their positions. The upcoming inflation data is being closely monitored as it may impact consumer spending and the Fed's decision-making.
Bloomberg News Technology Reporter Matt Day and Bloomberg Businessweek Technology Editor Joshua Brustein talk about Amazon in talks to join other tech companies as an anchor investor in Arm Ltd.’s initial public offering. Bloomberg News Real Economy Team Reporter Mark Niquette shares the details of his story First US City to Tame Inflation Owes Its Success to Housing Boom. Bloomberg Intelligence Technology and Media Analyst Geetha Ranganathan discusses Disney raising the prices of its streaming services, including a 27% increase for the advertising-free version of the flagship Disney+. And we Drive to the Close with Paul Christopher, Head of Global Investment Strategy at Wells Fargo Investment Institute. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.