Business and Tech News - 4.8.24

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Skool Projekt Staff
April 08, 2024

Oil Prices Rise as Middle East Tensions Escalate

Crude oil futures rose last week, with WTI and Brent hitting their highest levels since October 20th amid escalating tensions in the Middle East and President Biden's criticism of Israeli actions in Gaza. Israeli embassies were put on high alert, and the IDF canceled leave in response to threats from Iran, signaling growing regional unrest. The surge in oil prices is attributed to these geopolitical tensions, the potential for conflict in the Middle East, and disruptions to Russian oil infrastructure.

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Boeing Engine Part Fell Off During Southwest Flight

A Southwest Airlines flight had to return to Denver International Airport after an engine cowling detached and struck a wing flap during takeoff, leading passengers to be placed on another flight that arrived in Houston three hours behind schedule. This incident, now under FAA investigation, contributes to the ongoing scrutiny of mechanical issues within the aviation industry, particularly affecting Boeing's reputation for quality control and safety. 

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Tesla Struggles With Rising Competition and Musk's Image Issues

Tesla experienced its first post-pandemic annual sales decline, affected by both external challenges and internal issues, including an aging vehicle lineup and CEO Elon Musk's controversial actions. While the overall EV market has slowed, competitors such as Ford and Audi have seen significant sales growth, contrasting with Tesla's performance. The brand's declining appeal, coupled with a reduced market share in the U.S., highlights the impact of Musk's reputation and the urgency for new Tesla models.

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99 Cents Only Shuts Down All of Its Stores

99 Cents Only Stores, facing post-pandemic operational challenges such as rising costs and increased losses from errors and shoplifting, is shutting down its operations across California, Texas, Arizona, and Nevada. The discount chain is liquidating its merchandise and assets, including 371 stores, through an agreement with Hilco Global, amidst significant challenges including COVID-19, inflation, and shifts in consumer demand. With CEO Mike Simoncic stepping down, Chris Wells has been named the chief restructuring officer to oversee the company's closure process.

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Key Inflation Report Coming This Week

Traders forecast the U.S. inflation rate to stay within 3.2% to 3.4% over the next five months, amidst expectations of no significant depreciation in asset prices. The combination of robust fiscal support and increased immigration is poised to fuel economic strength, potentially resulting in more asset inflation than consumer inflation. This scenario suggests inflation won't achieve the Federal Reserve's 2% target soon, leading to complex policy decisions in an economy increasingly divided between sectors like technology firms, which may emerge as beneficiaries, and those facing greater challenges.

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Here’s how the markets closed on Friday:

 

 

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Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices.