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In today’s edition:
- Ripple Labs won against the SEC
- Disney is planning to sell India business
- Elon Musk and xAI
- Mexico is now the largest US trading partner
Market Snapshot
US inflation in June was 3% compared to the same month last year, the slowest growth since March 2021. This might mean that the period of high-interest rates, which negatively affected the stock market last year, is close to ending.
Data as of market close 14 Jul 2023
The week ended on 14 Jul 2023. Source: AlphaScreener
News Summaries
Crypto company Ripple Labs won a case against the Securities and Exchange Commission (SEC), which is good news for other crypto exchanges like Coinbase, who are dealing with similar lawsuits. The court decided that Ripple’s cryptocurrency, XRP, isn’t a security (something that needs to be registered with the SEC). This is a significant development as for a long time the crypto industry has sought clarity on this issue. Following this victory, prices for cryptocurrencies like Bitcoin increased, and Coinbase’s stock value went up by 25%.
Disney is considering selling or forming a partnership for its Star India business. This change of plans comes after Star India lost the streaming rights of the popular cricket league, Indian Premier League (IPL). When Disney added its streaming service, Disney+, to Star India’s existing streaming service, Hotstar, in 2020, it gained more than 60 million subscribers, more than anywhere else in the world. But because the service is cheap in India, Disney didn’t make sufficient profits. After losing the cricket streaming rights, Disney+ Hotstar lost more than 4 million subscribers and could lose up to 10 million more. So, it’s not surprising that Disney is thinking about changing its approach in India.
Elon Musk, the CEO of Tesla, has launched a new company called xAI that focuses on artificial intelligence (AI). The team at xAI includes engineers who have worked at other big tech companies and have experience with AI technologies such as large language models and neural networks. With AI becoming more popular, Musk might use his platform to lead discussions about it. This could help set his new company apart, especially as other social media platforms like Threads become more popular.
Mexico has overtaken China to become the United States’ biggest trading partner this year. Lower trade with China could mean higher costs for US businesses and customers, and it might also impact US-China relations. This change comes as Mexico’s manufacturing industry grows and more work is moved closer to the US, especially in the auto industry. Trade between the US and Mexico is more balanced, with manufacturing often being started in the US, finished in Mexico, and then brought back to the US.
