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HOLLYWOOD ENDS 150-DAY STRIKE

Hollywood strike ends, Amazon, China gets crushed

Good Morning!

Today we’re talking Hollywood strike ends, Amazon investing $4B into AI, China property giants getting crushed.

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Let’s get into it!

HOLLYWOOD ENDS 150-DAY STRIKE

Source: Harper’s BAZAAR

After a grueling 150 days, Hollywood's 11,500+ writers and studios have finally struck a tentative deal, ending the industry's massive strike. The core issues? Fair pay from streaming giants and AI protection in this ever-evolving TV landscape. The strike halted production on countless films and TV shows, affecting not just the stars but everyone behind the scenes, and even tangential industries like catering and real estate. But don't expect cameras to roll just yet - actors are still on strike, marking the first simultaneous writers and actors strike in over six decades. The drama continues off-screen!


GRIT'S TAKE: The Milken Institute estimates the Hollywood strike's price tag at a whopping $5 billion for the national economy. Wondering how giants like Disney (DIS), Warner Bros. Discovery (WBD), Netflix (NFLX), Amazon (AMZN), and Apple might fare in this drama? Dive deeper and upgrade to VIP to find out all of GRIT’s takes! 🚀📊 

CHINA PROPERTY STOCKS TUMBLE (AGAIN)

Source: FOX

Evergrande's shares dropped 25% on Monday after postponing a crucial debt meeting. The delay, caused by an investigation into its subsidiary Hengda Real Estate for potential information disclosure violations, has further shaken investor confidence. Hengda's unpaid debts have reached $38 billion, with nearly 2,000 pending lawsuits. Since trading resumed in August, Evergrande's stock has nosedived 87% and is now a penny stock.

Other stocks are taking a hit! The Hang Seng Mainland Properties index dropped over 4% on Monday, while other real estates stocks took a beating: Country Garden down 7.69%, Logan Group down 7.95%, while R&F Properties down 6.62%.

AMAZON TO INVEST $4B into OpenAI Rival

Source: WSJ

Amazon will pour up to $4 Billion into AI Startup Anthropic, Eyeing AI dominance. Founded by ex-OpenAI leaders and known for its AI chatbot, Claude 2, Anthropic will now partner with Amazon Web Services. This move intensifies the AI race against tech giants like Microsoft and Google.

Headlines You Need To Know:

  • Chinese gold buying is driving a paradigm shift

  • Wells Fargo preps for wealth battle after turnaround

  • Workers with Canadian union vote in favor of Ford deal

  • Writers strike held up on AI language

  • Democratic Senators reluctant to call for Sen. Menendez resignation

  • Russia learns from its mistakes on Ukraine battlefield

  • Hunter Biden sues IRS for breach of privacy

  • Government shutdown poses ‘systemic threat’

  • McCarthy takes final shot at avoiding government shutdown

  • Netflix prepares to send their final red envelope

  • Bond markets faces quandary after fed signals its almost done

  • Usher to headline 2024 Super Bowl  

Just for fun…

This Company Doesn’t Care About Making A Profit

Source: Real Simple

This company doesn’t care about making a profit on the items sold inside their store. Costco was founded in 1976 with a unique business model. Originally, the whole goal was to break even on all the items sold inside their store. They wanted to make all of their money from the annual memberships that shoppers have to purchase to be allowed to shop inside Costco. In 2022, they made $4 billion from memberships alone. In fact, Costco loses billions of dollars each year from their hot dog. The cost of the hot dog is $1.50 and the founder of Costco never wants to raise the price of it. In fact, he told the new CEO that he would “kill him” if he raised the price. He believes that the hot dog is symbolic for all the great value that a Costco membership provides.

CHART OF THE DAY

US Inflation- Adjusted Incomes Fall

Similar declines have historically been accompanied by recession

Source: US Census Bureau

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