Hey Snackers,
Even Florida isn’t immune to crypto winter’s chill: Miami nightclubs are mourning the absence of big-spending cryptopreneurs. No more bitcoin-sponsored bottle service?
Stocks sank yesterday after Fed officials hinted that high rates might stick for a while. Crypto had its own rough day as bitcoin and ether slid following news of crypto lender BlockFi's bankruptcy.
’Tis the season to splurge… and inflation-stressed US shoppers still have the urge: shoppers spent a record $9B online on Black Friday, and yesterday’s Cyber Monday sales were expected to hit a record $11B. Thanks partly to deep discounts, sales of Apple MacBooks, Dyson gadgets, drones, and gaming consoles soared, while toy sales quadrupled.
Holiday hype may not last… Strong post-Thanksgiving sales were a bright spot for retailers, which had given cloudy forecasts for this holiday season: Target, Macy’s, Nordstrom, and others reported slow sales in October and early November as consumer sentiment dipped. Now retailers are trying to unload their inventory — and stay rid of it:
More sales ≠ more profits… because discounts mean slimmer margins. Despite this past week’s strong (cough, inflated) sales, analysts actually expect holiday sales to fall this season when adjusted for inflation — which would be the first holiday drop since 2009. That could spell tough times ahead for mega-retailers like Target and Walmart, which may end up with punier profits if they’re forced to keep slashing prices to move merch.
Eruptions in the east… From Beijing to Shanghai, thousands of Chinese residents took to the streets (and social media) over the weekend to protest the country’s strict zero-Covid policies. Some called for President Xi to step down. China has extended lockdowns and tightened restrictions in certain areas after reporting 253K+ Covid cases over the past three weeks. Now things may be reaching a breaking point:
The Covid fallout… Earlier this month China said it would ease some quarantine rules to curb the economic damage. But its plans have been thwarted by outbreaks in 80 of its cities, which generate half of China’s GDP. It’s hurting the economy:
China could be at a tipping point… While its strict Covid policy has crippled global supply chains and companies including Apple, it’s affecting Chinese citizens the most. Though some analysts say the unrest could cause Xi to crack down even further, others are optimistic that the protests could spur the government to unwind some of its policies.
🤧 Like when your coworker shows up to the office with the flu…
Because crypto's so interconnected, one big incident (like a bankruptcy or hack) can act as a "contagion" spreading across the industry and getting others sick. Case in point: crypto lender BlockFi filed for bankruptcy yesterday, citing "significant exposure" to the contagion of bankrupt exchange FTX.
Authors of this Snacks own: bitcoin and ether and shares of Apple, and Walmart
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