(Julian Stratenschulte/Getty Images) |
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In the world of AI, the one who cannot be named is apparently David Mayer. The internet has been investigating why putting that name and some others into ChatGPT causes the bot to crash. Stocks inched up yesterday, driven by tech. Palantir led the pack, with shares up 7%, after boosting its ability to sell cloud services to the US gov't. South Korea's finance ministry said the country's stock market was stabilizing after President Yoon Suk Yeol lifted a martial-law order hours after abruptly imposing it. |
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100K autoworkers strike in Volkswagen's biggest German walkout in years |
No punch backs… A year after the UAW went on strike against Detroit carmakers, autoworkers are driving another big labor movement. Nearly a third of all Volkswagen employees in Germany (~100K workers) participated in "warning strikes" on Monday and Tuesday to protest wage-cutting proposals put forth by Europe's leading carmaker. Workers at nine of Volkswagen's factories in Germany walked off the job for several hours, threatening to expand their strike if an agreement isn't reached. It's just the latest headache for the Beetle icon as European car sales slump and costs spike. |
- Bug problems: VW has the lofty goal of slashing $11B in costs by the end of next year to stay competitive with rivals like Tesla and China's BYD. Its proposals include a 10% pay cut for workers and closing German factories for the first time in its history.
- Stalled out: Negotiations between VW and workers haven't gone well. Last week the union proposed forgoing wage hikes for two years in exchange for job security, but VW rejected the pitch.
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A foot on the labor gas… Autoworkers have been at the forefront of reinvigorated labor momentum. Aside from last year's historic UAW strikes against Ford, GM, and Stellantis, the union expanded into the largely nonunion South early this year by organizing a Tennessee VW plant. More recently, workers at battery plants co-owned by major automakers have also unionized. |
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Labor's tired of footing the bill… Central to the VW dispute: workers' resistance to being a cost that can be easily cut. A representative for Germany's chancellor said that autoworkers, the backbone of the country's most important industry, shouldn't have to pay for poor management decisions. |
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Your investments could be too. And if you haven't explored index options, now is the perfect time. Cboe® index options allow you to trade your view of the broad market, like the S&P 500, and come with many unique benefits including cash settlement, potential tax savings, and no risk of early assignment. You won't get that with stock or ETF options. When it comes to trading you may need… better options. Get to know your options with index options. |
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China bans rare-minerals exports to the US — threatening everything from chips to EVs |
Supply-chain standoff… China's testing the Biden admin's mettle by restricting the US's access to rare minerals used to make semiconductors, solar panels, and EV batteries. FYI: China produces about 60% of the world's rare minerals and processes 85% of them. Beijing's ban came a day after the Biden admin further restricted China's access to advanced US tech. The tit-for-tat trade war between the US and China is expected to only escalate if President-elect Trump follows through on his hefty tariff proposals. |
- Hold your tungsten: Both countries say their mounting restrictions stem from national-security concerns — namely, that the other nation could use its exports to build advanced military tech.
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Turning the (periodic) tables… Beijing's ban will cut the US off from China's supply of valuable elements including gallium and germanium, which China is the largest producer of. Those two minerals are essential for making products like chips and cars. FYI: the US relies on China for more than half its germanium and a fifth of its gallium, which it hasn't mined in nearly four decades. China's also banning exports of antimony and tungsten, which the US relies on to make bullets, shells, and explosives. The ban could also affect EV makers: China said it would more closely monitor exports of graphite, a component in EV batteries |
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Bans can backfire… The US could struggle to shore up its supply of rare minerals without imports from China. But mainland mineral companies will also lose a major buyer in the US, and that could become permanent if America figures out its own supply in China's absence (which could take years). After China temporarily blocked Japan's access to its minerals in 2010, Japan slashed its reliance on Chinese supply by 33%. |
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"This is probably the first time in their history that the US is deeply reliant on Mexico." Read more. |
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- Budget carrier Frontier Airlines is adding first-class seats to compete for premium passengers after rival Spirit filed for bankruptcy.
- Booze biggie Constellation Brands is selling off its Svedka vodka brand as wine and spirits struggle (its Modelo beer is thriving, though).
- In a positive sign for the labor market, US job openings grew by 372K in October and layoffs fell by the most in over a year and a half.
- Banks including Citi and Barclays raised rates and added fees on store-branded credit cards ahead of pro-consumer regs that experts now say likely won't go into effect.
- RTFKT, a Nike-owned NFT company (picture: digital sneakers), said it'd close shop as the NFT market has largely missed out on the recent crypto rally.
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| - ADP employment
- Fed Beige Book
- Earnings expected from Chewy, Foot Locker, Dollar Tree, Cracker Barrel, Campbell, Hormel, American Eagle Outfitters, and Five Below
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Authors of this Snacks own shares of: GM, Target, Tesla, and Walmart |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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