April 28, 2022

Meta doing poorly, but getting other FANG (FA-MAN) money:

• profits: $7.5bn January-March.
• Profits are down more than a fifth year on year.
• So, the market went wild and share price rose. Why? Because any port in a storm.
• Meta’s shares rose 17 per cent in pre-market trading.

There are more results, but we will clearly see a division forming between those services selling to consumers and services where the consumers are being sold to companies.

• Also, Twitter., in one of its last earnings reports before Elon Musk takes the company private, reported revenue that missed analysts’ estimates, reflecting a slowdown in advertising.

However, this is happening within the backdrop of the USA's economy:

• GDP contracted at 1.4% compared to a "predicted" 1% growth.

The U.S. economy unexpectedly contracted in the first quarter as a ballooning trade deficit and softer inventory growth belied an otherwise solid consumer and business demand picture.

Gross domestic product fell at a 1.4% annualized rate after a 6.9% pace of growth at the end of 2021, the Commerce Department’s preliminary estimate showed Thursday. The median forecast in a Bloomberg survey of economists was for a 1% increase.

• This is happening as the USA government is moving to cut spending to pass it's budget bill – because Joe Manchin is a "centrist" Democrat. Centrist Democrats (also known as Republicans) do not like poor people or the planet, so demand the government does as little as possible to make a future even tolerable.

And, inflation is now hitting profits in the consumer goods sector through reducing volumes of sales:

• Unilever says it needs to raises prices by 8% and swap-out high quality ingredients in its consumer brands to maintain profits on lower volumes; warns inflation will accelerate.
• In the UK, Sainsbury (food markets) said profits would about $90M (over 10%) lower this year than predicted because of inflation pressures and reduced volumes.
• More price rises are coming on top of the inflation issues as Indonesia has banned the export of palm oil. Palm Oil is a $50B market and in most processed foods and consumer cosmetics. Imperialism in Indonesia have driven the cost of edible oil-based products (also known as anything that comes prepared in a box) down.
• Palm oil is also the main cooking oil in poorer, high-population countries. So, it will also cause large price increases for those who cannot afford alternatives.

All in all, looking like recession predictions are coming true.

• https://www.nature.com/articles/s41586-022-04788-w

At least 10,000 virus species have the capacity to infect humans, but at present, the vast majority are circulating silently in wild mammals1,2. However, climate and land use change will produce novel opportunities for viral sharing among previously geographically-isolated species of wildlife3,4. In some cases, this will facilitate zoonotic spillover—a mechanistic link between global environmental change and disease emergence.

Researchers found that if mammals moved their habitats in line with climatic changes, that would lead to about 316,000 first encounters between species and at least 15,000 instances of pathogens being shared between animals for the first time by 2070.

The researchers noted that current climate change mitigation efforts would do little to stop cross-species viral transmission before 2070. They said their results “highlight the urgency of better wildlife disease surveillance systems”.

• You don't need a lab theory.

"European energy companies that comply with Moscow’s requirement to open a rouble-based account with Gazprombank would be violating sanctions against Russia, EU officials have warned."

Under EU law, member states are responsible for the enforcement of the sanctions. The official said the European Commission was in consultation with national authorities and gas providers to ensure compliance.

• The question is, will European countries follow the order and risk driving their economies into recession?
• Gas prices surged 20% in price just with Poland and Bulgaria being cut off.