Latest / The Curve / TCW2: Apple, Tesla and Disney move the stock market higher & recession ow more?

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TCW2: Apple, Tesla and Disney move the stock market higher & recession ow more? · The Curve

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  We're really excited to have partnered with Audi to bring you the Curve Weekly, a podcast
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  that encourages women to work towards driving a more progressive future.
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  And if you haven't already, check out our savings calculator at thecurve.co.nz to help
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  you reach your savings goals.
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  Hi and welcome to the Curve Weekly, the podcast that keeps you up to date with all the money,
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  business and stock market tea.
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  You know exactly what I needed to do, but it would take money to get there.
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  Show me the money!
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  For the record, feminism by definition is the belief that men and women should have equal rights
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  and opportunities.
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  Everyone should experience for us class at least once in their lives in Annie.
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  Shouldn't miss out just because she can't afford it.
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  Help me, I'm poor.
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  What?
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  Can you record your video?
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  I am.
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  What are you laughing at?
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  I'd love not to do a video for these lives.
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  It's 7 a.m. in the morning.
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  It's like, can we do early in the morning?
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  I was like, how early is early though?
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  And then stuff's like, okay, I'm coming around now.
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  I was like, well, well, baby, I've literally just got back from running my face.
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  It's so sorry.
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  It's like, give me at least 15 minutes for my skin to dry out.
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  It's 5.30.
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  Oh, god.
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  I just couldn't sleep last night.
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  I thought, you know what?
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  Let's just get this shit done.
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  So I've dreamed about the Curve.
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  I actually was.
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  Yeah, I was dreaming about the Curve last night.
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  But they can, I were at a wedding in the weekend, and so apologies if so, it's a bit slow this
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  morning.
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  Oh, frog.
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  They have two days, the day after, and the wedding.
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  Which is not like, usually it's all around.
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  Usually I'd be the one that's like, wedding, day after, but I was behaved, and I just went
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  home early.
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  I was reasonably behaved.
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  I think it's actually, yeah, I don't know what's been, yeah, anyway, I've been like
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  handling my album.
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  Yeah, you and me.
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  Yeah, for a party.
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  But like, I was just saying to Vic off the microphone, I was like, we were like, some
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  of the only two single girls that we had actually, like, really, god, I didn't even
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  notice.
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  Like, so oblivious.
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  Anyway, the funniest thing happened when you left.
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  So one of the guys who I felt like had been flirting with me the whole day, someone else
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  had been like, oh yeah, it was just banging on about how much you wanted to get with
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  the Vic.
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  Oh my god.
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  Oh my god.
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  Why are we, that's so funny, that we're like the last two single girls at the wedding,
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  and all the guys are just like, I feel like it's been like that for years for me.
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  And then I'm like, this will be the last wedding, I'm single, this will be the last
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  one.
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  I'll still be 45 and be like, so funny.
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  Oh gosh.
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  Okay.
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  So week two of the Curve Weekly.
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  So this is our new podcast, which is a 10 minute wrap up of all the key things that are
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  going on in the stock market, the business world, the news world, whatever, like we need
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  to know to kind of be aware of what's happening in the economy.
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  And the boring world that no one wants to know about, but everyone should know about.
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  I heard someone in a weekend say that they were like, I just kind of bothered reading
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  the news.
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  I was like, maybe.
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  Love you.
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  It's a good week.
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  It's not like, it's actually a deal for you.
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  But use, we had another strong week last week in the US stock market.
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  So strong means it's going well, as it's going up, like stocks are selling strong, strong
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  week, up, down, yeah, those kind of act.
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  And so this is the second week, we had a good week, the previous week.
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  So the first two weeks of 2023 have been really good, which is, which is great.
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  So the stock market, the S&P500, was up 2.2%.
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  And that is the main index in the US for a year, doesn't it?
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  To the top 500 US publicly listed companies.
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  So that's up 5% now for the start of the year, which is pretty good.
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  Considering last year was like an absolute chit-chat.
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  Yeah.
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  That's quite good.
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  Yeah.
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  I mean, we're here for the long term, long term, long game.
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  And then the NASDAQ, which is the more high growth, high octane index in the US,
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  that was up 4% last week.
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  And high octane, just for anyone that's tuned in for the first time, they're like, what the
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  f**k?
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  Or any petal heads?
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  Petal heads are not high octane.
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  But it basically just means they're quite volatile, like, risky stocks, more, like, technology
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  based stuff that goes up, right, right, and then down a lot.
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  Yeah.
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  So volatile.
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  So the, I don't know the word for this.
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  I know we, the gyrations, you know, like, gyrations.
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  And isn't that, like, like, magic mic, like, gyrating on somebody?
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  Well, like, gyrations means, like, big moves, like, big moves out, big moves down.
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  So the, the extreme moves, I guess, is stock market is gyrating at the moment.
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  Yeah.
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  Oh, babe.
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  I'm going to go with it after we've done the support.
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  The record is actually termed.
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  Yes.
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  But it just means that the moves are bigger, so the moves are bigger, the moves down are
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  bigger.
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  Okay.
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  So the last two, I've lost it.
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  Oh, onto more important things.
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  So last week was really important because it was the start of corporate earnings season.
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  Now that just means that in the US, if you're a public listed company, you have rules that
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  you have to buy by.
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  And one of those is that you have to disclose your financial results to the public.
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  So they know what they're investing in and they know how to come as performing.
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  And they have to do that four times a year.
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  And so that started last week.
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  And so did they slowly start releasing the results?
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  Like, it's like a staggering, right?
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  Yes.
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  And now it's my turn.
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  Yes.
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  And here are my results.
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  Okay.
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  Exactly.
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  And usually that all the banks go first, so I'm talking like JP Morgan, City Group, Bank
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  of America, these big, big investment banks, like Goldman Sachs, for example, they have operations
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  in so many countries and do give quite a good insight into what's happening.
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  So what is the bigger global picture?
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  So they've actually reported pretty good results.
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  So we're not hitting into a global recession.
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  Well, it's from the commentary that they put out, going to be more mild than we have
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  expected, which is good.
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  A mild recession.
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  Yeah.
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  It's not spicy.
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  We can do all that.
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  Yeah.
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  Yeah.
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  So people were kind of expecting quite a massive recession or, you know, didn't really
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  know what to expect.
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  If it was panicking.
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  Yeah.
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  And that's a little bit like, we can do this.
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  We can do this.
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  We got this.
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  Deep breaths, deep breaths.
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  Yeah.
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  Okay.
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  Cool.
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  Yeah.
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  So that's why the market's gone out.
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  Okay.
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  That means people are buying those stocks, other stocks.
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  And then, yeah.
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  So this week, pretty big week with other company earnings and we've got Netflix coming
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  up.
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  Yeah.
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  So that should be interesting.
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  And speaking of Netflix, Disney also had an announcement during the week.
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  So they're CEO.
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  So now we did some social posts throughout this.
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  I feel like it actually went out onto the curve weekly.
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  Was it?
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  I used to.
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  I'm about the old CEO returning to Disney, which was great news.
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  He'd driven Disney's share price up massively and he'd done fantastic wealth.
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  Disney.
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  So he's back in the seat now.
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  And one of the first things that he has said is that he has introduced a really strict
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  back to work policy.
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  Now why is this important?
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  Well, you know, kind of, you can take either side the argument, but some people are like,
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  oh my gosh, no, we're now in a world where you should be able to work from home as many
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  days as you want.
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  You should be able to have that flexibility.
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  Other people are like, no, for the business, and this is his argument, is that, you know,
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  being a creative media company, needing to be innovative.
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  You need people to get that.
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  You need people to be brainstorming, throwing ideas off each other.
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  And so I kind of get what he's saying, you know, so he's saying you have to be in the
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  office Monday to Thursday.
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  A lot of people won't like that and maybe they'll lose some employees.
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  But as someone who's worked in teams of creative people like Asin producing a show or, you
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  know, working in radio, television or whatever, for me, like, that's what I miss the most
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  actually since working on the curve full time has been that lack of interaction with other
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  people to bounce ideas off.
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  I really think when you're around other people who can stimulate ideas and you can brainstorm
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  with, like, that's really powerful.
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  I actually understand where it's coming from.
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  I think you'd be annoyed if you're in the accounts team and you're like, oh mate, like,
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  yeah, I can do this at home.
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  So that was, that was big news for Disney.
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  We also had Tesla, so their stock has had a pretty tough run last year.
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  So it's down about 65%.
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  Does it still down that much?
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  So and this was all the backup, this was all off the back of issues in China, factories
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  closing, unable to get the cars out and through production.
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  And then also the whole saga with Elon Musk and Twitter, you know, is he going to be distracted.
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  He's going to have to sell shares in Tesla.
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  So that both of those kind of big issues caused, well, the main reasons for Tesla's share
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  price falling.
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  But last week, they've actually announced 15% price cuts to most of their vehicles and the
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  stock sold off on the back of that news.
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  What, sorry, sold off means the stock price went down, but hold on, why did that happen?
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  Well, the understanding is that it's, it's due to lack of demand.
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  Well, because you wouldn't cut prices if you've got good orders and you've got good sales
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  and so, yeah, so it's not a good sign or, you know, competition, there's other really
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  good electric vehicles out there now, you know, Tesla used to be the poster child for
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  electric vehicles, but you know, all the other brands are doing them now.
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  So it's kind of, it's never a good sign when you have to cut the price of your product
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  because it means that you're trying to stimulate interest and stimulate demand.
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  Oh my God.
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  What other company news is coming in?
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  And then next one we had Apple, so this is quite, when I read this headline, I was like,
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  oh my gosh.
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  And then I was like, no, good on you.
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  And I was literally like floppin' in my head.
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  Anyway, the headline is that Apple's Tim Cooks, the CEO of Apple, takes a 50% pay hit
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  after she holds a feedback.
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  Now, you're saying they're going, oh my God, nice, he's taking a 50% cut in his, in his
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  pay in his salary because the sheer price of Apple hasn't done very well last year.
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  So she hold has been like, hey, you know, that needs to be reflected in your compensation
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  or your salary.
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  So it's brutal, isn't it?
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  But then, if you're thinking about his compensation or his salary was $100 million, and now he's
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  giving $50 million.
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  $100 million a year.
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  I know.
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  What the hell?
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  I didn't even know there were jobs that paid.
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  I know.
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  It was quite eye-opening.
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  Also gutted if you're getting half of what you were getting though.
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  I know there's still a lot of money, but that's like going from $100k to $50k.
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  Yeah.
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  Which is quite a huge change.
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  Which is quite a huge change.
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  Yeah.
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  But yeah, this is all around the sheer price falling, it fell about 20, 23% last year,
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  which isn't really that bad.
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  If we just talked about Tesla and the sheer price is down 65%, but this is where as a
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  shareholder, you actually have a say, and you can stand up and go, you know what, no,
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  their compensation needs to reflect the fact that Apple didn't do too well last year.
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  And so that's what shareholder has done, and so the board, who controls his salary,
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  has said, okay, well, he'll get a 50% pay go.
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  Oh, that's quite intense.
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  Yeah.
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  And so if anyone listening, he was like, oh, what is that?
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  I'm kind of confused.
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  What is that?
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  It's a shareholder.
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  If you're a shareholder, you've bought shares in the company, right?
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  So like, how?
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  I mean, there we need.
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  You get rights with those shares.
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  You get rights you have to have a say.
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  Which is weird, because you always say that, and I'm like, but do you?
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  If I own $10 an Apple, do I have a really good a say?
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  But like, hearing something like that, it's quite cool.
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  Yeah.
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  And the other really good thing, which for me is a really big green flag, is that with
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  CEOs, usually there's like a base amount they get paid, and then there's kind of what
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  we call this a sheer bonus, which means that part of it is paid in shares.
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  And his has now increased from, so it used to be 50-50, 50% base, 50% shares.
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  And now it's 25% base, 75% share.
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  Oh, that's a good sign.
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  Yeah.
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  So he's very much incentivised.
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  I mean, you're already getting 50 million.
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  So, I mean, you're incentivised to a point.
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  But he's now more incentivised than he was last year to regenerate Apple's share price.
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  And you still invested in Apple?
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  Yes.
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  Yeah.
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  So, do you, does it freak you out seeing the cut in his salary or any of that news?
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  I don't know.
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  Like, this is one of, in my opinion, one of the best companies in the world.
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  It's been around forever, you know, it has done fantastically well, so I don't know what
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  other CEOs get paid in, kind of, as some people have under companies, versus Apple's.
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  But I would say that Apple's is probably one of the most highest paid salaries, but you've
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  got one of the toughest jobs in the world.
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  God, you could not, could not pay me to do that.
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  So, people write CEO of Apple.
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  I'd be like, what do I do?
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  I'm so out of my depth.
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  But even though one day, it is just saying the same, I'd be like, okay, cool.
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  Yep, there's one million dollars.
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  Thank you, bye.
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  Yeah, true.
• 12:43
  And then lastly, just to wrap up, crypto, and I've got some news for you, so.
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  Is it going up?
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  Yes.
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  So.
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  So with the market going up, crypto has also gone up these last few weeks.
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  Interesting.
• 12:59
  Yeah, so it's up, I think it's about, Bitcoin's up about 10% and Ethereum's up about 17%.
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  Remember, they fell a lot last year, about both about 60%.
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  So it's just bouncing on the bottom still.
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  But it's positive news, and that's been great.
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  I just gave Vicka let's wrap this shit up.
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  And that was it.
• 13:24
  And now I'm done.
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  Still don't really know what you're talking about.
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  Or, hey, this sounds interesting, and I want to learn more.
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  Deep dive into the world of stops.
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  Deep, deep.
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  And.
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  Okay, can you stop talking, please?
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  I'm really interrupting my little picture.
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  But you can head to our Instagram bio.
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  a podcast that encourages women to work towards driving a more progressive future.
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  And if you haven't already, check out our savings calculator at the Curve.co.nz to help you reach your savings goals.