Market/Current Events Flashcards
What current events have you been keeping an eye on?
The implosion of SoftBank Corp (large startup investor) after their misjudgment on WeWork (office sharing) leading to a $4.7B loss released today
WeWork’s attempt to go public backfired after skepticism about its profitability and management
SoftBank gave WeWork a $9.5B bailout and promised a turnaround
Falls under the discussion of the risk division, specifically credit risk when it comes to looking at a company’s creditworthiness/looking at a business model.
Concerning lease obligations that CEO Adam Neumann supported because the compony signs leases that significantly outweigh the commitment their customers display ($47.2B vs. $3.4B of mostly short-term contracts)
Also falls under Market Risk due to a period of economic uncertainty
Where do you think the market is going?
It was recently released the US collected a record of $7B in tariffs last Sept as new China tariffs took into effect on apparel, electronics, and other tools
The revenue is a bounty for US Treasury, but an increasing burden businesses that import Chinese products as well as their customers
Of course these tariffs are related to the pressure of resolving ongoing trade disputes
As these trade war talks increase, more uncertainty arises for US agricultural businesses that are starting to report losses
As more uncertainty looming, I believe that a recession is inbound sooner or later
