News:
Even SoftBank is options trading now: The stock market suffered this week across all major indices, and tin true form Softbank made headlines again. Their shares fell 8% amid rumours that the Japanese conglomerate made substantial bets on equity derivatives and esoteric options while the stock market surged in Q2. Surprisingly, the FT report suggests that they are in the red, with unrealised gains to the tune of $4bn. Galling as this is, it raises fears that the market could be pushed downwards in the coming months when these are exercised as the option owners hedge their positions. Link
LVMH bails on Tiffany: The luxury goods house, led by French tycoon Bernard Arnault, “won’t be in a position to realise its plan to acquire Tiffany & Co,” they announced on Wednesday. By backing out of what had been touted as luxury fashion’s largest deal ever, they have lit a fuse: the jeweller is now suing them over delays to the deal, claiming they’ve deliberately stalled regulatory approvals in an effort to renegotiate the asking price. Not a classy move. Link
Nikola Controversy: You’ll remember I wrote a few weeks back about Nikola’s crazy IPO with nothing more than fancy car plans and EBIT multiples. Well, thankfully common sense has prevailed. Hindenburg Research this week released a detailed report containing allegations of deep fraud at the US automaker, causing stock to crash 13% in a single trading day. The report reveals that Nikola’s proprietary battery technology is actually bought off the shelf, and the infamous advert of their flagship truck driving down a mountain road (shown below) was actually made by rolling an engine-less shell down the hill. Of course, CEO Trevor Milton denies the whole thing, blaming short sellers for rousing the mob against him. And production isn’t the only place he’s lagging behind Tesla. His sycophantic behaviour towards the SEC in an effort to penance comes in stark contrast to electric-vehicle compatriot Elon Musk, who famously tweeted an invitation for them to fellate him. The saga unfolds. Link
Short Read:
The Google University: Is Google’s $49/mo course about to replace university degrees worldwide? Regardless, this is the first company with the reputation and aspiration to provide a meaningful global alternative to higher education. In fact, they’re claiming they’ll treat them as the equivalent of a 4 year degree for related roles. Link
Long Read:
All Wrapped in One - 2020 has:
-The income inequality of the gilded age
-The election of 1896
-The pandemic of 1918
-The economy of 1929
-The social movements of the 1960s
-The stock market of 1987
-The speculation of 1999
-The housing market of 2006
Interesting Things:
Apple Masks: Apple face-masks are here, and they’re as cool as you would expect. Employees only. Link
How London’s Tottenham Court Road has been transformed: Sitting between Covent Garden and Soho, it should be the epicentre of London’s culture and work. Hopefully this is a start. Link
New Intel logo is here, and it’s suspiciously similar to the recent Stripe rebrand: Colour gradients are in
Language learning: The story of Nigel Richards, the man from NZ who memorised every word in the French language and won the French Scrabble Championships, without ever speaking any French. Not sure what his point was, but he proved it. Link
First UK Coffee Subscription: It’s here! I mean it’s only Pret, but still. Up to 5 coffees a day (with >30 mins between each) for £20/month. At 20 working days per month, that’s up to 100 coffees. Hopefully we’ll see this model spreading, although independent coffee shop margins are slim enough already. Link
Buffett gets in on the IPO game: He’s in his 90s, and still breaking new ground for Berkshire Hathaway. It’s a generational game. Link