2023 will make or break Tesla wannabes like Rivian and Lucid. Here’s what they need to do if they want to survive.

Business Insider 

Startups like Rivian are running out of room to make excuses for production woes.

Electric vehicle startups have a big year ahead after a challenging 2022.
Investors are expected to lose patience with ‘stupid mistakes.’
Startups have to make good this year on promises that won them lofty valuations.

After a challenging and humbling 2022 riddled with supply chain constraints, production hurdles, stock drops, and talent turnover, EV startups Rivian, Lucid, and more are staring down some big deadlines for success in 2023.

After these startups made promises that won them several-billion-dollar valuations, investors may lose patience with their struggles — especially as legacy players like Ford and GM crowd into the market.

“Excuses around the production of new vehicles will grow tired for startups in the coming year,” said Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions. 

“As the pressure on the supply chain eases, investors can point to a General Motors and say, ‘They’re building without a problem, why can’t you?'”  

A brutish 2022

Essentially all of today’s budding startups have blamed a majority of their troubles on broader industry disruptions in 2022.

Some of these problems included getting enough supply or the right supply for flagship vehicles, exacerbated by less-established supplier relationships for startups just getting their assembly factories on line. 

On top of that, the pending battery crisis also worried the younger carmakers even more than it did companies such as Ford, GM, Volkswagen and more. 

And the turn of the calendar won’t wipe away the problems. During quarterly earnings calls, executives at Rivian and Lucid cautioned investors of more trouble heading into 2023 as they raced to ramp up production and their logistics processes in hand. 

Rivian, for example, warned of a “significant discrepancy” in the number of vehicles it produced in Q4 versus deliveries as it grapples with changes to the production schedule, a shift to using shipping vehicles by rain instead of by truck, and an expected slowdown in demand during the holiday season.

Others fought just to start production. Both Canoo and Fisker began building vehicles on November 17, while Faraday continued to struggle and was not able to start its assembly line. 

Accordingly, stock prices have been sinking from blockbuster IPO and SPAC highs, with many EV startups’ shares down as much as 80% from earlier last year. As investors begin to shy away, a cash crunch is materializing. Reserves are shrinking as startups burn cash on the pricey proposition of manufacturing expansions. 

Ways to find success this year

There are some bright spots for startups this year, experts say — if these companies can nail down production and conserve cash.

Rivian reported Tuesday it fell a few hundred vehicles short of its goal to build 25,000 electric cars in 2022. The startup built 10,020 vehicles in the fourth quarter to finish the year at 24,337 for the full year. Lucid, which has not yet released its Q4 deliveries, dropped its production target twice and churned out 3,687 by that period — while only delivering about 66% of those.

If the startups want to succeed and regain investor faith, they have to get closer to meeting their numbers in 2023.

On the cash front, Morgan Stanley’s Adam Jonas said in a December 28 note that 2023 will be a “reset year” for the EV space — so long as they have the money to do so.

“We believe players that are self-funded (non-reliant on external capital funding) with demonstrated scale and cost leadership throughout the value chain,” Jonas wrote, “can be relative winners.”

Finally, investor patience for returns is going to wear thin this year as the economic landscape becomes tougher and interest rates make investing a more expensive proposition, said Fiorani.

“Investors are going to expect more for their money,” he said. “Making sure there aren’t any stupid errors going forward will be the bare minimum.”

Not everyone, however, is confident the startups can do this.

“After an extremely difficult year of equity performance for upstart EV manufacturers,” Garrett Nelson, senior equity analyst at CFRA Research, said in a late December note, “we see little reason for optimism when looking ahead to 2023.”

Read the original article on Business Insider

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Samsung's 2023 Neo QLED and OLED TVs Aim to Impress

Samsung’s taking the stage ahead of CES 2023’s kickoff and unveiling its new line of TVs at its “First Look” event. For 2023, the tech giant and TV leader is sticking with what has been working in the space.

We have new Neo QLED 4K and 8K TVs, an update to its OLED offering, and a few new accessories for The Frame.

In typical Samsung  (SSNLF)  and CES style, these will be arriving later this year with exact sizes and exact pricing coming at a later date. So for now we’re breaking down what’s new and also highlighting some terrific deals on the 2022 models.

The Arena Media Brands, LLC and respective content providers may receive compensation for some links to products and services on this website.

What You Need To Know: Neo QLED 4K and 8K TVs

Quantum Dots have been a staple of Samsung’s TVs for years now and that’s not changing in 2023. And on paper the new Neo QLED 4K and Neo QLED 8K TVs should deliver a picture that is even more vibrant and detail packed, while also being held together in a modern build.

The QN900C is the flagship Neo QLED 8K model with basically an all-screen front. It pushes Samsung’s “Infinity Design” language to the edge–excuse the pun–with minuscule bezels all around. The large 8K resolution picture is the main focus and boasts a brightness of up to 4,000 nites. And that’s a big part of the story with Neo QLED 4K and 8K for 2023.

Samsung’s improving the picture quality with an improved Neural Quantum Processor that controls the Quantum Mini LED TVs. Brightness levels across the 4K and 8K models are improved and the processor can better control the image being created across the entire screen.

There is also a new AI to better analyze content and upscale it to a bright HDR regardless of the original source. Meaning that if you have an HD or 4K movie in SDR, it will be upgraded to an HDR view. Samsung calls this “Auto HDR Remastering” and we’re eager to see how this performs, in tandem with general content upscaling.

We’re eager to go hands-on with Samsung’s 2023 Neo QLED 4K and Neo QLED 8K TVs as we get closer to launch later this year. We’ll of course report back and share our thoughts, as well as full pricing and availability.

Samsung’s 2023 OLED Spans Three Sizes

The surprise for Samsung in 2022 was its entry into the category of OLED TVs. And they delivered two sizes, a 55-inch and 65-inch, that impressed with a premium, crisp picture in our testing.

For 2023, Samsung’s unveiling the S95C OLED, which sticks with a Quantum Dot OLED panel but tosses in a TFT layer to create more accurate colors and increases the maximum level of brightness. This should all add up to an even better picture that can get brighter for a more immersive view. It’s still under a half an inch thick, but the change is that it will come in three sizes: 55-inch, 65-inch, and a 77-inch.

Like the Neo QLEDs, it’ll run a Tizen interface with various hubs and access to major streaming services. For instance, the Gaming Hub gives you instant access to streaming games from services like Xbox GamePass and Amazon Luna.

Samsung’s The Frame Gets New Bezels

As we hinted at above, The Frame got a serious upgrade in 2022 that has tested quite well. It’s a 4K QLED panel with a special anti-reflective final layer. This aids as The Frame is used just as much for displaying works of arts or photos as it is for watching TV. The result was art that looked more realistic and didn’t show reflections, be them environmental or artificial on top.

For 2023, Samsung is sticking with all of this and not making any changes to the actual TV itself. Rather, they’ll be introducing an easier to use Art Mode meaning you should be able to browse works of art and select them more seamlessly.

Additionally, Samsung is introducing metal bezels and more realistic wooden ones. There is a rotating wall mount that will let The Frame move from landscape to a portrait orientation with the click of a button. We imagine it’ll be similar, if not identical, to the current 55-inch to 65-inch auto rotating wall mount that Samsung currently sells at $349.

We’re waiting for confirmation, but we fully expect that the new bezels will work with the 2022 version of The Frame as well. The auto-rotating mount is already confirmed to work as well.

Best Samsung TV Deals

Now that we’ve gone through the news of what’s forthcoming in Samsung’s 2023 lineup, it’s time to walk through the current deals on the still-great 2022 TVs across the line. For most folks who want a vibrant picture with easy access to streaming or a screen that looks like a work of art, these will do more than just fit the bill.

55-inch S95B OLED ($1,599.99, originally $2,099.99 at Samsung)

If you’re shopping for a totally immersive picture in a room where you have good control over the lighting, an OLED is likely the way to go. While they can’t battle direct brightness of light shining on the screen like a QLED, they offer deep contrast points with incredibly accurate control over a visual.

Remember here that the picture is created from self-lit pixels, so individual pixels work to create the image and blooming is really a thing of the past. Right now you can save on the 55-inch S95B ($1,599.99, originally $2,099.99) and the 65-inch S95B ($1,999.99, originally $2,799.99).

65-inch QN85B Neo QLED 4K TV ($1,599.99, originally $1,899.99 at Samsung)

Samsung’s entry-level Neo QLED 4K TV for 2022 has a lot in common with the 2023 model. It boasts Quantum Mini LEDs to precisely create an image that is packed with details. You’ll also find that SD and HD content is automatically upscaled up to a 4K resolution here. It also sports the Tizen interface with access to streaming services and the dedicated gaming hub.

Right now, the 65-inch size is $300 off at $1,599.99 and you can also save on the 55-inch, 75-inch, and 85-inch models.

The Frame 2022 (Starting at $599.99 at Samsung)

While the current 2022 The Frame isn’t discounted, it’s basically the 2023 model minus the new accessories and the updated smart interface. You still get a 4K QLED panel with a matte finish and anti-reflective coating, along with a fully-functioning Art Mode. Included in the box is a wall mount to make hanging it a breeze.

Additionally, you can save a bit on the cost by trading in a Galaxy smartphone and scoring up to $470 off the cost of The Frame.

Prices are accurate and items are in stock at the time of publishing.


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FTX Collapse: Sam Bankman-Fried Will Stand Trial in October

TheStreet 

The former crypto king has pleaded not guilty to criminal fraud allegations leveled against him by federal prosecutors.

This is a showdown that should not be missed.

It will be a confrontation between federal prosecutors and Sam Bankman-Fried, the former king of the crypto space who fell into disgrace after the bankruptcy of his empire on November 11th.

This empire was made up of the FTX cryptocurrency exchange and its sister company Alameda Research, a hedge fund that also served as a trading platform for institutional investors. 

Bankman-Fried, known by its initials SBF, filed for Chapter 11 bankruptcy for these two companies because they were short of cash and could no longer meet the massive withdrawal requests of their customers. The case is the biggest scandal in the financial services industry powered by blockchain technology. Last February, FTX was valued at $32 billion but imploded in just a few days. It is this mystery that regulators are trying to unravel.

SBF, the founder of FTX, pleaded not guilty on January 3 to a series of criminal charges including allegations of fraud, filed against him by the Justice Department during a hearing in US District Court in New York. 

The Trial Begins On October 2

He emerged from a black SUV, immediately invaded by a swarm of photographers and television cameras. The 30-year-old former trader wore a blue suit, white t-shirt and blue tie. Unsurprisingly, he later pleaded not guilty before Judge Lewis Kaplan. The federal prosecutors have on their side indicated that they would present the evidence to support their case in the next four months. 

Judge Kaplan then set the trial for October 2.

The not guilty plea will allow SBF and its lawyers, led by the famous defense lawyer Mark Cohen, to have access to the file and to know what the prosecution’s evidence is. It also saves him time. 

Damian Williams, US attorney for the Southern District of NY, has previously reported that the government has interviewed a dozen FTX employees and seized thousands of pages of documents, emails, financial statements and other chats from FTX and its employees. 

The government also secured the cooperation of two SBF lieutenants: Zixiao (Gary) Wang, 29, FTX co-founder and former Chief Technology Officer, and Caroline Ellison, 28, the former CEO of Alameda Research.

They have both pled guilty to multiple federal fraud charges and agreed to cooperate with prosecutors.

“I knew that it was wrong,” Ellison said about her actions, according to a transcript of her plea hearing released on Dec. 23. 

Wang also said the same thing: “I knew what I was doing was wrong,” Wang also said, according to the transcript of his guilty plea.

Aware of the stakes, Willians, who is leading the Bankman-Fried case, announced on January 3 the formation of a task force of veteran prosecutors to work on the FTX rout. This team is made up of prosecutors who have worked on cases related to financial fraud, such as securities and commodities, money laundering and transnational crime.

‘Concerns’

This activism on the part of the government shows that this case is very sensitive. However, it is not excluded that there is an agreement between the government and Bankman-Fried. Very few criminal cases go to trial in the United States.

Justice Department prosecutors filed eight criminal counts against the former trader on December 13. Four of the charges, including conspiracy to commit wire fraud on customers and lenders and wire fraud, indicate that the alleged acts began as early as 2019. This is the year FTX was founded.

“Bankman-Fried was orchestrating a massive, yearslong fraud, diverting billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire,” the SEC alleges in its civil complaint.

Bankman-Fried was extradited to the United States on Dec. 21 by the authorities of the Bahamas, where he lived and where FTX is headquartered. He was released after his parents, both law professors at Stanford University, signed a $250 million recognizance bond pledging their California home as collateral. Two other friends with significant assets also signed, according to news reports.

The government asked Judge Kaplan on January 3 to prohibit SBF from having access to the assets of FTX and Alameda Research. Bloomberg News reported last week that federal prosecutors are investigating a series of crypto transactions tied to digital wallets associated with Bankman-Fried.

“We do have concerns that within a period of a few days additional assets could become inaccessible,” Assistant US Attorney Danielle Sassoon said.

Read More 

Your 2022 Guide to Smartwatches

Smartwatches are becoming commonplace, and as such, there are countless smartwatches available for you to choose from. Between Apple, Garmin, Fitbit, and Samsung alone there are almost too many options.

Truth be told, Apple isn’t the only company with a smartwatch that’s worth considering, especially as it’s the turn of the year and we all resolve to get healthier (and this time we mean it!).

Shopping for a smartwatch can be a confusing experience, but it doesn’t have to be. Below I break down three different product lineups from some of the most well-known smartwatch makers (including Google’s first smartwatch). Each one is made for a specific user in mind, with several different models included. With any luck, it helps you make a decision.

The Arena Media Brands, LLC and respective content providers may receive compensation for some links to products and services on this website.

Taking a Closer Look at the Apple Watch Lineup

The Apple Watch is only compatible with the iPhone, so that limits who can use one before getting into any features or capabilities. But that’s often the way things go with Apple  (AAPL) – Get Free Report–you need to be inside the company’s walled garden in order to use some products.

That doesn’t mean, however, that iPhone users don’t have a choice. Fitness trackers and watches from the likes of Fitbit and Garmin work with both the iPhone and Android devices.

The main differences come down to the experience devices like the Fitbit Versa 4 or Garmin Instinct 2 provide compared to the Apple Watch.

Because Apple controls the entire experience of how the iPhone and Apple Watch interact, there are many advantages Apple Watch owners can take advantage of. For example, if you own AirPods, they automatically pair and connect to your Apple Watch so you can listen to music or podcasts while on a run or bike ride.

With an Apple Watch, you’ll be able to send and receive texts and iMessages directly on your wrist, install apps–both from Apple and third-party developers such as ESPN or Fantastical using the App Store–and have direct integration with Apple’s subscription workout platform, Fitness+.

One downside of using an Apple Watch is that it’s one more device that locks you into using an iPhone for the foreseeable future. Another potential drawback is that some people don’t like that the Apple Watch’s battery only lasts a day, meaning you’ll need to charge it once a day.

However, the Apple Watch Ultra eliminates that need with double the battery life. Apple added sleep-tracking capabilities to the watch in the last couple of years, and the Apple Watch Series 8 has fast-charging capabilities that mean you can wear it to track your sleep and then place it on the charger while you get ready in the morning.

With all of that in mind, let’s take a look at the three Apple Watch models currently in Apple’s smartwatch lineup.

Apple Watch Series 8 ($399 at Amazon)

The Apple Watch Series 8 can be considered Apple’s mainstream smartwatch. It comes in two sizes, 41mm and 45mm, with prices starting at $399 and $429, respectively. There are four different finishes to the watch’s housing for you to choose from, including Midnight, Starlight, Silver, and Product(RED). You can add cellular connectivity that allows you to leave your iPhone behind and still receive messages, alerts and phone calls for an additional $100. You can read our full review of the Apple Watch Series 8 here.

Apple Watch SE ($249 at Amazon)

Apple recently revamped the Apple Watch SE, updating its exterior, adding new colors to the mix and lowering the price to a starting point of $249. The Watch SE is best for those who don’t care about having the latest and greatest Apple has to offer, but still want a smartwatch that can put alerts on their wrist and track their health and fitness metrics. It’s equipped with hardware that will ensure it runs smoothly for several years, receiving yearly software updates at the same time as the rest of the lineup. 

Prices start at $249 for the 40mm model or $279 for the 44mm model. Again, you can add cellular connectivity to the watch, bumping the price up to $299 for the 40mm version and $329 for the 44mm model. You can see our full thoughts on the second-generation Apple Watch SE here.

Apple Watch Ultra ($799 at Amazon)

The Apple Watch Ultra is the newest addition to Apple’s lineup. It also has the biggest display, the most rugged, the longest battery life, and the most expensive. There’s only one model—a $799 titanium housing with a 49mm case with cellular built-in. While it was designed with extreme sports and outdoor enthusiasts in mind, a lot of Apple Watch users (myself included) are finding it to be the best Apple Watch to date thanks to all of its features and overall size.

Taking a Closer Look at Samsung’s Galaxy Watch Lineup

Samsung has been making smartwatches for as long as anyone else in the industry, and it shows. The company’s latest Galaxy Watch 5 lineup mixes the best of what Google has to offer in Wear OS and the experience and software expertise that Samsung  (SSNLF)  has earned over the years.

Samsung has a handful of devices in the Watch 5 line, including the standard Watch 5 and the Watch 5 Pro. There’s also a Golf Edition that uses GPS and golf course maps to help golfers on the course. Samsung still actively sells the Galaxy Watch 4 and Watch 4 Classic, giving those interested another design option to consider.

Unlike some of Samsung’s Gear line of smartwatches that worked with iPhone and Android phones, the Galaxy Watch 4 and Watch 5 lines only work with Android phones.

Both the Watch 4 and Watch 5 put notifications on your wrist, have the ability to install apps from Google’s Play Store and have several health features.

Let’s take a look at the Galaxy Watch 5, Watch 5 Pro, Watch 4 and Watch 4 Classic.

Samsung Galaxy Watch 5 ($279 at Samsung)

The Galaxy Watch 5 comes in two different sizes and four colors, well, five if you count the Gold Edition. The circular face measures either 40mm or 44mm. The base model comes with Bluetooth connectivity, or you can add LTE for an always-on connection. The Galaxy Watch 5 can measure your body composition, has auto workout tracking, and battery life that will last you a couple of days between charges.

Samsung Galaxy Watch 5 Pro ($449 Samsung or Amazon)

Samsung’s Galaxy Watch 5 Pro is bigger and more expensive than the standard Watch 5. It has a titanium housing compared to aluminum, and a bigger battery for extended use (3 or 4 days isn’t far-fetched), along with a trackback feature for the adventurous. Outside of the bigger look and design, there’s not really a whole lot that sets the Watch 5 Pro apart from the standard Watch 5.

Samsung Galaxy Watch 4 ($169 at Samsung or Amazon)

The Galaxy Watch 4 may be a generation behind the Watch 5, but it runs the same operating system, and is slightly cheaper than the Watch 5. It even boasts the same basic features, both on the smartwatch and fitness tracker side of things. You can get it in 40mm or 44mm sizes, with or without LTE.

Samsung Galaxy Watch 4 Classic ($379 at Samsung)

Samsung’s Galaxy Watch 4 Classic is the best-looking smartwatch Samsung has ever built. There. I said it. Surrounding the 42mm or 46mm screen is a bezel that physically rotates to help you navigate the interface while you’re reading your latest workout stats, fitness info or text and email notifications. Like the Watch 4, the Classic is indeed a generation old at this point, but it uses the same operating system as the Watch 5 models, providing the same experience but on a better-looking watch. Yes, I just doubled down.

Taking a Closer Look at Fitbit’s Lineup

Fitbit is rightfully a household name when it comes to activity trackers and by extension smartwatches. The company pioneered the wearable market with its small step counters that have now expanded well beyond the small gadgets you clipped onto your hip.

Fitbit’s lineup spans several different devices with different designs and use cases. Fitbit’s entire lineup will work with the iPhone or Android phones, with similar features across both platforms.

Every Fitbit  (FIT) – Get Free Report, be it a smartwatch or tracker, offers several days of battery life, integration with Fitbit’s workout platform (Fitbit premium), step counting, sleep tracking, activity minutes and heart rate tracking.

With the exception of the Pixel Watch, a common complaint about Fitbit’s approach is the lack of high-quality third-party apps and services. Fitbit has its own app and watch face storefronts within the Fitbit app, but it hasn’t seen mass adoption by developers. Instead, you’ll have to rely on getting alerts from your smartphone pushed to the watch as a way to keep up to date.

Instead of breaking down each Fitbit model (there are many), let’s take a look at just the smartwatches in Fitbit’s lineup, including the Sense 2, Versa 4 and the recently launched Google Pixel Watch.

Fitbit Sense 2 ($229.95, originally $299.95 at Amazon)

The Fitbit Sense 2 is loaded with various health sensors that go beyond measuring the staple fitness metrics we’ve grown to expect from all wearables. For instance, the Sense 2 can detect electrodermal activity that is used as an indicator of your stress level. There’s also an ECG app that can detect atrial fibrillation and a temperature sensor that measures your skin temp to track trends over time.

Fitbit Versa 4 ($179.95, originally $229.95 at Amazon)

The Versa 4 looks similar to the Sense 2 when it comes to design, but it lacks some of the more sophisticated sensors found in the more expensive Sense 2. With the Versa 4 you’re getting a fitness and activity tracking device in a smartwatch form factor. It boasts Sp02 tracking, heart rate monitoring, skin temperature measurements and more.

Google Pixel Watch ($319, originally $349.99 at Amazon)

Fitbit is owned by Google  (GOOGL) – Get Free Report, and as such, the Android maker relied heavily on Fitbit to help create Google’s first smartwatch, the Pixel Watch. The Android-only watch uses all of Fitbit’s fitness tracking prowess, combined with Google’s Wear OS platform for the smartwatch portion of the device. 

I reviewed the Pixel Watch early on and found it to be a promising first-generation watch from Google. You can read the full review here.

Taking a Closer Look at Garmin’s Smartwatch Lineup

Garmin’s smartwatch lineup is full of options ranging from a more traditional smartwatch design and capabilities, to a rugged watch that has a miniature solar panel embedded under the display that can be used to passively charge the watch while you explore the outdoors.

Traditionally, Garmin’s fitness devices have been a hit with hardcore runners and outdoor enthusiasts. The watches work with either Android phones or the iPhone, and span a wide range of different use cases.

Ahead I’m breaking out three options but Garmin  (GRMN) – Get Free Report has a few more smartwatches, each of which with a different design and approach. At the end of the day, they all serve the same primary purpose–track your daily activity, stress level, and sleep.

Again, Garmin’s approach is one that’s mostly been for fitness-focused users and not someone who wants a watch that’s smart. Using the watches will require a learning curve that’s arguably steeper than what you’ll go through with a Fitbit or Apple Watch.

That said, if you’re a fitness buff that wants as much information as possible about your body and daily activity, and capabilities like advanced location tracking or solar charging, then Garmin is where it’s at for you.

Garmin Lily ($189.99, originally $249.99 at Amazon)

Garmin’s $249 Lily smartwatch is smaller, more stylish and designed for women. It tracks all of the standard fitness metrics, including stress, women’s health, hydration, sleep and heart rate.

It’s currently available in gold, purple, and white gold.

Garmin Instinct 2 Solar ($499 at Amazon)

The Instinct 2 Solar, Tactical Edition is one of the more rugged smartwatches I’ve seen. It’s built to withstand a beating, has three different location tracking technologies built into it for improved accuracy, and the screen doubles as a solar panel to keep it charged while you’re outside.

Garmin Venu 2 ($199.99, originally $349.99 at Amazon)

The Venu 2 looks more like a traditional watch that tracks your workouts, syncs with Spotify and puts your smartphone notifications directly on your wrist (just like the rest of Garmins’ offerings). It also has 11 days of battery life.

Which Smartwatch Is Right for you?

Most of this can be distilled down into this:

If you have an iPhone, the Apple Watch is going to provide the best overall smartwatch experience.

Samsung’s lineup is often considered the best for Android users, and for good reason.

Fitbit’s product lineup does a fantastic job of tracking your health metrics with some unique features, but its software can be a frustration point.

Garmin, on the other, er, wrist, is arguably the best fit for fitness enthusiasts. Heck, the watches have a way to measure your body’s battery and tell you how much energy you have left for the day. It’s crazy.

Prices are accurate and items in stock at time of publishing.


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Fed minutes and US jobs data might drive the first major market moves of 2023. Here’s what you need to know.

Business Insider 

Stock markets suffered in 2022 as surging inflation and steep interest rate hikes battered investor sentiment.

Two key economic releases could influence investors’ outlook this week.
Federal Reserve minutes and US jobs data could fuel the first major market moves of 2023.
Here’s how they could spark a much-needed rally – or lead to further declines for stocks.

As 2023 gets going, investors are keenly searching for clues that could offer some insight into how stocks could perform over the first few months.

Red-hot inflation and rising interest rates hammered equities last year, with the benchmark S&P 500 index tumbling 19% and the tech-heavy Nasdaq plummeting 33%.

This week, two events could set the tone for January by showing whether the Federal Reserve wants – and will be able to – press ahead with its monetary tightening campaign without crushing the US economy.

Here’s why the release of December’s Fed minutes Wednesday and the latest US jobs report Friday could fuel the first major market moves of the year.

Fed minutes

The US central bank raised interest rates aggressively last year in a bid to bring soaring inflation under control, boosting its benchmark rate to between 4.25% and 4.5% from nearly zero in March. The institution lifted its benchmark rate by 50 basis points in December, slowing its pace after four previous increases of 75 basis points each.

The steep rise in borrowing costs over the past year has weighed heavily on stocks, because they make holding cash in a bank account more attractive and erode companies’ future cash flows, lowering their valuations.

The Fed is set to release the minutes from its December meeting at 2PM Eastern Time Wednesday, which could offer investors some insight into whether it’ll look to press ahead with its rate hikes – or ease up on monetary tightening as inflation starts to cool toward its 2% target.

Traders shouldn’t expect any major policy shifts just yet, according to Wedbush Securities – with US inflation coming in at 7.1% in November  and a strong labor market giving the central bank scope for further rate hikes.

“The inflation genie is out of the bottle and the Fed is scrambling to get it back in by continuing its rate-hiking crusade,” strategists David Chiaverini and Henry Coffey said in a research note published Tuesday. 

“While we’ve seen a slowdown in the pace of rate hikes, it does not appear a rate cut will be on the table until we start to see a significant rise in unemployment,” they added.

US jobs data

In 2022, the US’s white-hot labor market tended to be bad news for investors.

To recap: the Fed has a “dual mandate” to keep inflation close to 2% while also maximizing employment, and the labor market’s continued strength has given it a license to raise interest rates aggressively without having to worry about the latter objective.

The release of non-farm payrolls data at 9AM Eastern Time Friday will show how many jobs the economy gained in December – and could set the direction of travel for financial markets for the next few weeks.

Should there be any weakening of jobs data in the coming months, it could become one of the defining stories for investors in 2023 – potentially increasing the likelihood that the Fed will have to pivot from its current policy bias to support the labor market.

“Despite remaining strong in 2022, the labor market is poised to weaken in 2023, as it’s a lagging indicator of which medicine takes the longest to cure,” Interactive Brokers senior economist José Torres said Monday.

Economists expect Friday’s labor report to show that the US economy gained around 200,000 jobs last month, according to Refinitiv. That’d represent a decline from November’s 263,000 figure – but suggest that the Fed still has some scope to carry on tightening without crushing the jobs market.

Read more: The market chaos sparked by Russia’s invasion of Ukraine may finally be over, according to these 5 charts

Read the original article on Business Insider

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Costco Has a Surprising Recall Over Safety Issue

Paddle boarding has been around for a long time and it has been growing more popular in recent years.

The reliability of the equipment is, naturally, paramount, but there have been problems recently with paddle boards that were sold exclusively at Costco Wholesale  (COST) – Get Free Report and are being recalled.

The recall involves Body Glove Tandem Inflatable Stand Up Paddle Boards, ULI Inventor Inflatable Paddle Boards, ULI Zettian Inflatable Supyaks and ULI Lila Inflatable Supyaks, which is a combined stand-up paddle board and kayak hybrid.


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Southwest Airlines Gets Even More Bad News

Holiday travel is stressful under the best of circumstances, but passengers who opted for Southwest Airlines last month had an especially harrowing ordeal.

A winter storm wreaked havoc on America over the holidays, resulting in thousands of canceled flights. But Southwest was hit especially hard, canceling 15,000 flights, or more than 60% of its planned flights, at one point scrapping nearly 2,500 each day.


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Papa John's Finds an Answer to Domino's Dominance

The pizza business continues to be hot and fierce as always. Papa John’s has been building its pizza business since 1984, but much of that progress seemed to go to pieces when the founder was involved in a racially-tinged scandal in 2017, and the business took a nosedive. Papa John’s board of directors subsequently replaced the founder as the CEO of the pizza chain in hopes to begin to make amends. 


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Russia says their troops were killed in a devastating HIMARS strike because some soldiers were using cell phones and gave their location away

Business Insider 

A damaged building in the Donetsk region, eastern Ukraine, on January 2, 2023.

Russia said a Ukrainian HIMARS strike in the occupied Donetsk region in Ukraine killed dozens of its soldiers. 
The Russians say 89 soldiers were killed, and blamed their own troops for using cell phones.
According to the Russians, these cell phone signals gave their soldiers’ locations away.

The Russian Ministry of Defense says so many of its troops died in a recent Ukrainian attack in the Donetsk region, because soldiers were using cell phones and gave their location away. 

On New Year’s Eve, Russian troops came under attack in the Russian-occupied Ukrainian city of Makiivka. The Russians say they were struck by Ukrainian troops equipped with US-provided High Mobility Artillery Rocket System (HIMARS) launchers.

But in a statement posted on the defense ministry’s Telegram channel on Tuesday, the Russians blamed their own soldiers for “allowing the enemy to locate and determine the coordinates of the location of military personnel for launching a missile strike.”

“It is already obvious that the main reason for what happened was the switching on and massive use — contrary to the prohibition — by personnel of mobile phones in a reach zone of enemy weapons,” the statement from the Russian defense ministry read. 

On Tuesday, Russia said 63 of its soldiers died in the New Year’s strike by Ukrainian forces. The defense ministry’s statement on Telegram reported a later death toll of 89. 

Ukraine’s military reported a higher number of Russian casualties from the attack — around 400 — but this figure has not been independently verified.

The use of cell phones on the battlefield by Russian soldiers has become a risk for Russian soldiers. But it’s been a boon for Ukraine, which has used intercepted calls to locate Russian troops since the start of the war.

An investigation from the New York Times released last month found that Ukrainian forces discovered upticks in frantic calls from foreign numbers and used them to pinpoint the location of Russian troops. 

“We listened to the Russian soldiers as they panicked and called their friends and relatives,” a Ukrainian official told The Times. “They used ordinary phones to make decisions about their further moves.”

Representatives for the Kremlin did not immediately respond to Insider’s request for comment.

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