1. Chevron Acquires Hess for $53 Billion
2. UAW Strike Hits Stellantis’ Best-Selling Pickup
3. Bill Gross Predicts Imminent Recession
4. 10-Year Treasury Yield Tops 5%
5. Bill Ackman Closes Treasury Short Position
6. MicroStrategy’s Bitcoin Holdings Back in the Black
7. Amazon’s Return-to-Office Policy Sparks Discontent
1. Chevron Acquires Hess for $53 Billion
Today, Chevron announced it has agreed to acquire oil company Hess for $53 billion—representing a 10% premium over Hess’s 20-day moving average.
The acquisition boosts Chevron’s position in the U.S. oil market and accelerates its expansion into Guyana in South America.
This follows Exxon Mobil’s recent $58 billion acquisition of Pioneer Natural Resources.
CEO Mike Wirth stated the deal would secure long-term performance for the company.
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2. UAW Strike Hits Stellantis’ Best-Selling Pickup
This morning, the United Auto Workers union launched a walkout at a Stellantis plant that manufactures its top-selling Ram 1500 pickup.
The factory strike involves 6,800 UAW members and targets Stellantis’ most profitable vehicle.
To date, Stellantis has 14,750 workers on strike, and the Detroit Three automakers have a total of 40,000 striking workers.
The UAW said Stellantis hasn’t negotiated as constructively as Ford and GM, prompting them to escalate.
Labor negotiations with the Detroit Three have been ongoing for six weeks.
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3. Bill Gross Predicts Imminent Recession
Today, Bill Gross posted on social platform X that risks to regional banks and rising auto loan delinquencies point to an impending U.S. recession.
He predicts an inversion in the yield curve between 2-year and longer-term Treasuries before year-end.
Gross announced he is buying SFR h5 futures.
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4. 10-Year Treasury Yield Tops 5%
Today, the yield on the 10-year U.S. Treasury surpassed 5% for the first time since 2007, amid expectations that the government will issue more debt to plug fiscal deficits.
The yield rose as much as 11 basis points to a 16-year high of 5.02%.
Tom Tzitzouris of Strategas Research said the rise was driven by increased debt supply.
The Fed’s ongoing rate hikes and balance sheet reductions are also impacting the bond market.
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5. Bill Ackman Closes Treasury Short Position
Billionaire investor Bill Ackman said today on X that the U.S. economy is slowing faster than recent data suggests, so he has closed his short position in U.S. Treasuries, calling it too risky at current long-term yields.
In August, Ackman revealed a short bet on 30-year Treasuries, primarily to hedge equity exposure but also with a speculative angle.
In September, he warned that yields over 5% were likely due to soaring deficits.
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6. MicroStrategy’s Bitcoin Holdings Back in the Black
Today, Bitcoin’s price climbed to nearly $31,000, the highest since July, making MicroStrategy’s long-term bet on Bitcoin profitable once again.
Founder Michael Saylor began purchasing Bitcoin through MicroStrategy in 2020, with an average price of $29,582.
After eight consecutive quarters of losses, the company turned a profit in the first two quarters of 2023. Q3 earnings will be announced on November 1.
MicroStrategy stock is up 160% this year, benefiting from an 85% rally in Bitcoin.
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7. Amazon’s Return-to-Office Policy Sparks Discontent
Amazon has started enforcing a strict return-to-office mandate, encouraging managers to confront or even fire employees who don’t show up at least three days a week.
Managers face a dilemma as many top performers remain productive while working remotely, and firing them could be counterproductive.
Many believe Amazon is making a mistake, with the past three years proving that remote work can be just as effective.
A recent Gartner survey showed rising workplace tensions, with office policies a top source of conflict.
A McKinsey study found 83% of employees believe they’re more productive working from home.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.