Hedgeye cartoon on the Fitch downgrade
source: Hedgeye
Interest payments on US government debt are soaring
source: Markets & Mayhem
Barbie to top $1 billion at the global box office Sunday
The blockbuster from Warner Bros. Discovery and Mattel will top $1 billion in global ticket sales, before the end of the weekend, according to estimates from the studio. Final numbers will be released Monday. Only around 50 other films have reached this benchmark. Gerwig joins Anna Boden, co-director of Disney’s “Captain Marvel,” as the only two women to helm a billion-dollar film. “Captain Marvel” reached just shy of $1.13 billion during its theatrical run in 2019, according to data from Comscore. This also marks the first billion-dollar film for the newly minted Warner Bros. Discovery, which merged in 2022, and only the second movie released in 2023 to do so. Universal’s “The Super Mario Bros. Movie” has topped $1.3 billion since its April debut. Source: CNBC
Should you do the opposite of what Wall Street strategists say? Data over the last 3.5 years suggests that strategists underperform the S&P 500
Source: Barchart, Bloomberg
Berkshire Hathaway on Saturday reported a solid increase in second-quarter operating earnings, while the cash hoard at Warren Buffett’s conglomerate swelled to nearly $150 billion.
The Omaha-based giant’s operating earnings — which encompass profits made from the myriad of businesses owned by the company, like insurance, railroads and utilities — totaled $10.043 billion last quarter, 6.6% higher than the figure from the same quarter a year ago. Net income totaled $35.91 billion, compared with a $43.62 billion loss during the second quarter last year. The strong results were bolstered by a jump in Berkshire’s insurance underwriting and investment income. Berkshire reported a near $26 billion unrealized gain from its investments as its gigantic stake in #Apple led the market rally in the second quarter. The tech giant soared nearly 18% during the quarter and Berkshire’s bet has ballooned to $177.6 billion. The “Oracle of Omaha” trimmed his Chevron stake by $1.4 billion to $19.4 billion at the end of June. Berkshire’s massive cash pile grew to $147.377 billion at the end of June, near a record and much higher than the $130.616 billion in the first quarter. Share repurchase activity slowed down as the conglomerate’s stock climbed back to a record high. The company spent just about $1.4 billion in buybacks during the quarter, bringing the year-to-date total to $5.8 billion. Link to CNBC article: $BRK Berkshire Hathaway Q2 FY23: • Segment margin 12% (-1pp Y/Y). • $AAPL Apple stake now worth $178B. • Stock repurchase $1.4B ($4.4B in Q1). • Cash and short-term securities $147B. Source: App Economic Insights, CNBC
Tavi Costa: "Brazilian equities have been attracting unprecedented levels of foreign capital investments, marking a fundamental shift since the global financial crisis
Net inflows from international investors over the past 50 days have reached historically elevated levels, maintaining a consistent upward trajectory over the last two years". Source: Tavi Costa, Bloomberg
Speaking from experience
Source: AZ Quotes
Shorting US 10y bonds seems to be one of the most crowded trades at the moment
Among the shorts, Billionaire investor Bill Ackman. To his opinion, if long-term inflation is 3% not 2%, the 30y Treasury yield could rise to 5.5%. In contrast, Warren Buffett has announced buying positions in 10y US Treasuries. Source: Bloomberg, HolgerZ
