DHUnplugged #603: Electrified?

Interesting development with rates - first time in a very long time this happened. YUAN moving - big change of trend Big news from GM - or is it? Stocks slump, bonds up - correlations normalize for once. PLUS we are now on Spotify and Amazon Music/Podcasts! Click HERE for Show Notes and Links DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar. Love the Show? Then how about a Donation? Follow John C. Dvorak on Twitter Follow Andrew Horowitz on Twitter Warm Up - Markets moving to lows - China Jailing Citizens - Currency Moves - USD getting too HOT (Client ports moving to Unhedged bonds) - Something with yields that has not happened in 3 years! - Did they have to use the word "Nuclear" again? --- Yields finally cracking lower a bit Market Update - BIG WEEK for earnings - Twitter Musk - Musk Twitter- VIX > 30 - Market Questioning Growth (Oil, Chips) - Big reversal - hope for change of trend - stuffed YTD - NAS down 19%, SP500 12%, DJIA 8% - Natural Gas - HAVOC What you will start to hear from the bobble-heads shortly: 1) It is an orderly sell-off 2) Healthy process 3) Buying opportunity 4) Cleansing ............... YUAN USD/YUAN Twitter - Twitter confirms definitive agreement to be acquired by entity wholly owned by Elon Musk for $54.20 per share in cash in a transaction valued at ~$44 bln Chip Prices - Not As OverPriced? - A sharp drop in graphic chip prices could presage an unexpectedly quick ending to a global chip crunch that has crippled manufacturing from smartphones to cars, and the issue will be a central one for companies reporting results this week. - GPU prices are still being sold at a premium, but a smaller one. Susquehanna analyst Christopher Rolland earlier this month said that the markup over manufacturer suggested retail price or MSRP has fallen to 41% from 77%. - Demand for GPUs may also drop because crypto currency Ethereum is expected to change the way it operates late this summer, reducing the demand for graphics chips that power systems used to mine the cryptocurrency today, analysts say. - Some talking GLUT - Yields in play - The yields on the 1-yr T-Bill (1.94%) and 2-yr Note (2.67%) both surpassed the dividend yield on the S&P 500 (1.47%) in early March. - First time in 3 years - Sucking sound out of stocks? Natural Gas - Russia will halt gas flows to Poland on Wednesday, the Polish gas company PGNiG said. - The company says it hasn’t got any outstanding payments and that the cutoff is a breach of its contract. - Won't pay in Rubles.... - European Natural gas prices shot up 17% Twitter - Musk - Deal done? $44 billion ($38% prem) - Largest buy by any one individual - Musk coming up with $ --- $12.5% margin loan against Tesla shares and other monies for about 65% and borrow the rest ---- What happened to the Poison Pill? - Why did BOD stop - no shop? More to worry about? - Investors turn anxious - Elon Musk is buying Twitter. Where does that put Tesla? The day after the announcement, Tesla is dropping pretty hard as the concern is that "fixing" Twitter is going to take time away from Tesla and the other companies he runs. - Tesla down 10% today Silly - The price of dogecoin popped on Monday afternoon following news that Twitter has accepted Elon Musk's buyout deal. - The meme cryptocurrency jumped as much as about 27% after the announcement that Twitter will be purchased by an entity owned by the Tesla CEO. Netflix/NetFlop - Going after password sharing - More than 100 million households are using a shared password - Will likely favor the setting of an extra fee for those accounts being used by multiple people outside of the home. - The company has already started a test of this feature in Peru, Costa Rica and Chile - The pricing is different per country — about $2.13 per month in Peru, $2.99 in Costa Rica, and $2.92 in Chile,