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Forbes just got owned.

Here’s a quote from good old Epictetus to ease you into the day: “Don't seek for everything to happen as you wish it would, but rather wish that everything happens as it actually will—then your life will flow well.“ I’m flowing like melting butter on a pan already.

Alright so today we’ve got:

  • G7, meetings, republicans, democrats, the debt ceiling saga continues.

  • Some white collar jobs may never come back, enter AI.

  • Forbes has a new buyer.

    Let’s take a look.

The Big Picture

As the Federal reserve attempts to manage the debt ceiling, there is additional concerning news at US treasury. The debt ceiling is now estimated at $31 trillion. If US defaults on this limit, there will be increased spending on just the interest on the debt.

US monthly surplus/deficits. Source: US Department of treasury

If Republicans and democrats don’t agree on a unified strategy to tackle default on debt, it would not bode well for either parties. Left undecided, the debt crises could lead to unemployment rate rising to additional 5 percentage points. Due to a sharp drop in individual income taxes from business profits and capital gains, federal tax income reduced 25% in April compared to previous year. Democrats are proposing to raise the debt limit while republicans want to cut spending on federal programs as a solution to the debt ceiling crisis.

Sector Sweep

Tech

  • Automotive technology provider ECARX is looking to partner with EPIC games(makers of Fortnite), to make car dashboards more interactive with 3d graphics. ECARX customers include Volvo, Mercedes Benz and Smart.

  • Microsoft got the nod for the $85 billion acquisition of Activision Blizzard. They still need to convince UK and US Federal trade commission on the grounds of anti-trust law.

  • Elon Musk appointed Linda Yaccarino as the new CEO of Twitter. She is expected to be charged with managing Elon’s angularities and bringing back advertisers on the platform.

  • Amidst mass employee layoffs in the face of inflation, META and IBM bosses have stated that several white collar jobs are not expected to come back and use AI to fill in the resource gaps. Kroger and Lyft also share this idea as going forward several white collar jobs might be irreversibly affected.

Space

  • Tufan Erginbilgic, CEO of Rolls Royce is looking to revive the jet engine company by running a tight ship with slashing non-core costs, raising prices and overhauling their annual budget.

Automotive

  • With the rising EV market, automakers like GM are looking to be closely involved with mining companies and improve upon natural resource costs like lithium.

Media

  • Austin Russell, founder of Luminar technologies is about to buy a 82% stake in Forbes for $800 million. Luminar technologies makes sensors for autonomous driving features.

Finance bro term of the day: Amortization

A means of paying debt towards a real estate loan in equal installments with varying amounts of interest and principal payments over the course of the loan period. You can deduct the interest portion on your home loan installments in your tax filings.

That’s all for today folks. Do keep a lookout for our weekly email about stock deep dives and personal finance strategies this Saturday.

BTW, do tell us how we did. Just hit us with a reply.

Cheers!

Memetic Universe

In the age of corporate restructuring.

When your credit card debt is out of control, but you own the credit card company.