🏸 Two pickles, one merger
Yup, there's a Pickleball merger...Investors pull from Japan; Trump and Biden win Michigan; Warner get's Duned; the ‘Big 5’ releases earnings; Sweden joins NATO; Brian Mulroney dies; and more.
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IN THIS ISSUE
🏦 ‘Big 5’ releases earnings
🍿 Warner is currently being Duned
🇺🇸 Trump and Biden win Michigan
On this day. On March 1, 1872, Yellowstone National Park, was established by the U.S. Congress as the country's—and the world's—first ever national park.
IMPORTANT
💴 Investors pull from Japan
Yes, Japan is on the headlines again, and yes, it has something to do with their economy. Foreign investment into the Japanese stock market fell by $19 million in the week ending Feb. 22, marking the first sale in three weeks. For those keeping up with these newsletters, the Japanese economy has been very weird lately, and this withdrawal from their stock market is a side effect of this weirdness.
Japanese investors also sold about $2.44 billion worth of long-term foreign debt, while purchasing about $14.7 billion of short-term investments. And despite weeks after entering a technical recession, the Nikkei (Japan’s main index) hit a record high of 39,426.29, bouncing right back.
🍿 Warner is Duned
Movie theaters have high hopes for Warner Bros. and Legendary Entertainment’s Dune: Part Two, which hits theaters today (Friday), to provide a boost to the domestic box office.
The domestic box office has only made $852 million this year, marking an almost 20% decline from the same period last year, way less than the $10 billion box office years prior to the pandemic. To make it even worse, no film has grossed more than $100 million in opening sales so far in 2024. But with a projected $65 million debut, Warner is looking to change that.
🇨🇦 Brian Mulroney dies
Brian Mulroney, Canada's 18th Prime Minister, and the creator of the Goods and Services Tax (GST), passed away on Thursday at the age of 84. His daughter, Caroline Mulroney, announced his death on X (formerly Twitter) in the evening.
Both Prime Minister Justin Trudeau and Conservative Leader Pierre Poilievre praised Mulroney's courage and dedication to the country, hailing him as one of Canada's greatest leaders. Despite controversies, Mulroney's contributions to Canadian politics are widely known and will always be remembered.
FINANCE
🏦 ‘Big 5’ earnings
As the heading says, Canada’s five biggest banks released their Q1 earnings this week. Here is a brief breakdown (non-GAAP, adjusted and diluted):
CIBC: Revenue: C$6.22B, +5% Y/Y. Net income: C$1.77B, -4% Y/Y. EPS: C$1.81, -7% Y/Y.
TD: Revenue: C$13.77B, +5% Y/Y. Net income: C$2.82B, -12% Y/Y. EPS: C$1.55, +89% Y/Y.
RBC: Revenue: C$13.49B, +1% Y/Y. Net income: C$4.1B, -5% Y/Y. EPS: C$2.85, -6% Y/Y.
Scotiabank: Revenue: C$8.43B, +6% Y/Y. Net income: C$2.21B, -6% Y/Y. EPS: C$1.69, -8% Y/Y.
BMO: Revenue: C$7.67B, +50% Y/Y. Net income: C$1.89B, -12% Y/Y. EPS: C$2.56, -16% Y/Y.
💰 Webull wants an IPO
Webull plans to go public by merging with a SPAC, valuing the platform at $7.3 billion. Pending approvals, it will combine with SK Growth Opportunities Corporation and list on Nasdaq under "Webull."
Webull, launched in 2018, saw significant growth during the pandemic, boasting $370 billion in equity volumes and 430 million options contracts traded in 2023. CEO Anthony Denier notes Webull's clientele, known for their active trading and analytical approach, distinguishing them from competitors like Robinhood.
BUSINESS
🚗 Tesla expands its supercharger reach
Thursday, Ford and Tesla announced that Ford EV owners now have access to over 15,000 Superchargers in North America. Tesla had previously said last year that Ford and GM would get access in February, so GM is likely to be next.
More automakers are expected to sign deals with Tesla, however, the onboarding process is expected to be gradual. With this announcement, Tesla listed four automakers—Rivian, General Motors, Volvo, and Polestar—that will be getting onboarded in the spring.
🏸 A Pickleball merger
You’d never see it coming, but yes, I’m writing about a Pickleball merger. Major League Pickleball (MLP) and the Professional Pickleball Association (PPA) have finally completed their long-awaited merger agreement, which is said to inject a huge amount of money into the sport.
The deal brings together the two largest pickleball organizations into a holding company, while maintaining their individual brands. It also includes a $75 million investment from PE firm SC Holdings, D.C. Pickleball Team owner Al Tylis, PPA Tour owners Tom Dundon and the Pardoe Family, and others. But even better, the 150 current professional players are going to see a 250% rise in their payouts.
POLITICS
🇺🇸 Trump and Biden win Michigan
Both President Biden and former President Trump secured victories in the Michigan primaries, setting the stage for a likely rematch in November. Trump's win, part of a streak across the primaries, is a clear signal of his strong position in the party. Biden and Trump won by 81% and 68% in their respective primaries.
Both candidates are gearing up for the November election amid ongoing legal battles for Trump, with Trump's dominance among Republican voters giving him a clear path to run against Biden in November. The only problem now is his legal troubles and his campaign finances like mentioned above.
🇸🇪 Sweden joins NATO
Sweden is officially joining NATO after being approved by Hungary’s parliament on Monday, becoming the 32nd member. This marks a historic shift for Sweden, whose 200-year neutrality spanned both world wars and the Cold War.
“Completing Sweden’s accession to NATO is a historic step that benefits the security of all NATO allies at this critical time. It makes us all stronger and safer,” said NATO Secretary General Jens Stoltenberg as reported by CNBC earlier this week.
Thank you for reading today’s issue of Weekly Brief. I’ll be back in your inbox on Wednesday for another Deep Dive.
— Jacob
📚 Book of the Week
Note: I don’t recommend books that I haven’t read or that I would never read. The books I recommend are books I have already read or that I will eventually read.
The Fundamentals of Investing — Daniel Pronk
Book Description:
The Fundamentals of Investing teaches the framework for successful long-term wealth creation through stock market investing. This book simplifies complex concepts into an easy-to-understand guide that anyone can comprehend.
Sharing his learnings from investing legends such as Warren Buffett and Peter Lynch, this book explores the mistakes, successes, and lessons behind Daniel Pronk’s own journey in becoming a successful investor.
You will learn:
Why patience, self-awareness and controlling emotions are key
Not just how to become a better investor, but a better person
How anyone can build wealth through stock market investing
Why and how stock market volatility creates opportunities
Breaking down what makes investing work, and not work
Real examples of successful and failed investments
Investment principles used by legendary investors
How the greatest investors view money and stocks
Common investor mistakes and how to avoid them
Valuation techniques used by Warren Buffett
... and so much more
The Fundamentals of Investing dives deep in the topics of stock valuation, metrics every investor needs to know, and what causes successful long-term investments.
If you want to remove the confusion and intimidation around investing, and become a better investor, then this book will help you achieve your goals. Let this book turn you into an educated and more confident investor, so you can grow your wealth and live your best life.
As of Jan 31, 2024, (resulting from my Amazon.ca Associates account being terminated) I do not earn any affiliate commissons from the links below.