Tesla will cut more that 10% of its workforce with a few senior executives have headed for the door as well. A hell of slash, but a lot less that what the Elon Musk did over at Twitter. Although, Tesla – unlike X – produces something with a rational use. The stock is down 31% this year, and sales down 8%, as the growth prospects for the sector dims and gets a lot more competitive at the same time. Trade wars and geopolitical tensions are cutting off access to the Chinese market, and European autoworkers just really seem to hate the man. Musk has ordered that the company lean into its “Robotaxi” project to set the company right. And what could go wrong?
Despite some higher-for-longer worries on the horizon, big banks are faring better. Goldman Sachs had an outstanding Q1 with profits up 28%, doing exactly what it said it would do to wind up a failed consumer lending business: which is focus on Wall Street services like underwriting (revenues are up 32%) and wealth and asset management for the truly loaded.
Because… With the general consensus being for a soft landing, CEO’s who’ve stayed on the sidelines since money got expensive are wading back into making deals. A new consensus that rates will stay higher for longer might lead to a slowdown, but don’t discount people just getting used to it.
The world’s bankers are gathering in Washington DC for the spring meeting of the IMF and the World Bank. On the agenda, among other things, is green financing. Middle income countries are asking for money to transition away from fossil fuels that the rich world can’t quit either.
The problem might fix itself… After three days of intense meeting of Israel’s war cabinet, IDF chief said that Iran’s slow-moving attack would be “met with a response” but provided no further details. Would you? Western leaders are pleading with Tel Aviv not to escalate. Still, a widening war might offer a solution to that green transition: If Iran does what it says it’s going to do in a wider war and lock down the Strait of Hormuz, energy prices will triple overnight – putting those green strategies back in the market. Terrifying sure, but effective.
On Monday, in both Hong Kong and the cities across the mainland, they celebrated National Security Education Day, where the public is meant to rally around its out draconian repression in the name of national security. The government hopes the celebrations will foster a “sense of national identity.” It appears that the Maoist understanding of actual humans is suboptimal.
Iran's attack on Israel may have been ill-advised, its attacks on the Strait of Hormuz may be worse.
Richard Murff is the founder of 4717 Insights. For more on the world, how it got here and a stiff drink, head to the 4717. Murff is the author of Pothole of the Gods: On Holy War, Fake News & other Ill-Advised Ideas, Drunk as Lords, and the upcoming World War III Has Started… Dress Accordingly.