Hey Snackers,
Tesla couldn’t ship the Cybertruck in time (new ETA: 2023), but it did launch an equally crucial product: an in-car karaoke mic. Tesla says the $188 TeslaMic lets you “wander the sea of music.” It sold out in China in one day.
Stocks jumped today to end a roller coaster month. The market-tracking S&P 500 index had its worst month since March 2020 (aka: when Covid lockdowns hit), falling 5% as investors braced for higher interest rates. Meanwhile, a Danish study found that the new Omicron variant is more infectious than the OG Omicron.
On your mark, get set… Go digital. China will promote its state-run digital currency at the Winter Olympics, which kick off on Friday in Beijing. The digital yuan (#digi-yuan) is Earth’s first major central bank-backed digital currency. China started rolling it out in 2019, and even tested expiration dates to fuel spending. This month, China opened it up to all citizens and launched a digi-wallet app (it already has 261M users).
Watch the throne… Digi-yuan could threaten the US dollar’s global trade dominance and soften the effect of US sanctions, especially on China. The USD’s reliable rep has made it the world's "reserve currency" for international purchases (think: Canada buys oil from Mexico... in USD), making US sanctions a nightmare for impacted countries. Also: USD is used in 88% of foreign exchange trades. But the dollar’s share of global payments is falling as euros, yuans, and cryptos gain. And now, China is positioning the digi-yuan for international use.
The race to digi-dominance is on… 87 countries are developing digital currencies, which settle instantly, are less expensive to create, and are more accessible for people without bank accounts. Of the five biggest banking systems, the US is furthest from going digital – though it’s exploring a digital dollar. But there are concerns with digi-currencies: surveillance states like China could use them to automatically fine citizens for things like jaywalking (it’s already using facial recognition cameras to send fine notifications via text).
Spoti-fiasco... Spotify’s getting heat for "The Joe Rogan Experience," aka: the world's largest pod. In December, Rogan interviewed Covid vaccine critic Dr. Robert Malone. Cue: 270 medical experts called on Spotify to curb misinfo on its platform. Then, Neil Young demanded that Spotify remove his tunes or remove Rogan — Spotify nixed Young. The streamer reportedly paid $100M to make JRE Spotify-exclusive, as pods play a growing role in its growth (FYI: it reports on Wednesday). As its pod biz booms, Spotify could face more pressure to define its moderation policies.
Yellow Cab meets Jetsons... Electric flying taxis (think: futuristic helicopters) are taking off. Boeing-backed startup Wisk just sealed a deal with Blade’s urban mobility network to fly autonomous taxis in the US. Earlier this month, Toyota-backed Joby said its prototype completed a high-speed flight. ETA for passenger service: 2024. Houston, LA, and Orlando have announced plans to establish air taxi “skyports.” But first, flying taxis need the FAA’s greenlight to fly commercially. And companies still face several hurdles — from air traffic control challenges, to public support.
Tech in the red... The tech-heavy Nasdaq index is still in a correction (down 14% from its November record). Now, all eyes are on earnings coming up from Amazon, Alphabet, and Meta. Amazon’s hot holiday profits could get dinged by wage hikes, while Meta plans to finally break out results for its AR segment. Investors are curious to see if the tech biggies can keep up their streaks, after pandemic thrivers like Netflix and Peloton reported slowing growth. Still, Microsoft's big earnings beat and Apple’s record quarterly sales are encouraging.
Rattling some pills… The FDA halted distribution of Regeneron’s and Eli Lilly’s Covid treatments last week because the drugs haven’t been working against Omicron, which makes up 99% of US cases. Bad news for the drugmakers, since those antibody drugs drove nearly a third of their sales last quarter. Meanwhile, Merck's pioneering Covid pill is showing promise in treating the variant, and is expected to generate $7B in sales this year. We might get updates on how pharma views Omicron variant #2 (it’s a thing) when they report this week.
Authors of this Snacks own: Bitcoin, and shares of Apple, Amazon, Microsoft, Ford, Snap, GM, Netflix, Tesla, Spotify, and Google
ID: 2014975