Hollywood Shuts down & Florida faces an Insurance Crisis

Author

Faro Capital
July 14, 2023

Good Morning,

U.S. stocks finished higher as earnings season starts off this week. This week’s core inflation number showed signs of abating. Big banks like J.P. Morgan, Wells Fargo and Citigroup announce earnings today.

Hollywood actors join writers strike shutting down the industry. It is the first time both unions representing actors and writers strike since 1960.

Insurers are starting to leave the state of Florida as Farmers Insurance being the latest insurer to exit the state. As of the past year or so 7 insurers went bankrupt, 15 stop taking new business, and 4 (Farmers being the latest) left, causing an insurance crisis in the state. This is causing home insurance prices to go up and creating a squeeze on existing homeowners. Pressure is growing on Gov. Desantis to provide some assistance, worries still persist.

Canadian stocks ended yesterday higher with support coming from U.S. equities and monetary tightening.

Brazilian stocks finished higher as U.S. inflation came in lower than expected, giving the idea the FED might end its quantitative tightening. Brazilian investors are waiting for tax reforms with the government saying there should be a deal by the end of the year.

Peru keeps rates unchanged at 7.75% as expected. Annual inflation dropped to 6.46% in June vs 7.89% in May.

Markets: Before the Open

Top News Stories

Canada

  • Aritzia’s net income drops C$17.5M in Q1 (BNN) 

  • MTY Food Group Q2 profits rise with net income at C$ 30.4M (BNN)

  • Intact Financial reported C$ 421M of catastrophe losses in Q2 (BNN)

  • Dollarama CFO to step down (BNN)

  • Global Fuels to buy U.K. based Greennergy’s Canadian gas station network (BNN)

  • Laurentian Bank sale could bring in C$ 2.6B (MG)

  • Transat AT Inc. sold a land in Mexico to Finest Resorts for $38M (MG)

  • Canfour to limit pulp mill operations due to B.C. port strike (VS)

  • Prime rate rise to 7.2% after rate hike (VS)

  • Strike at B.C. port ends with a 4-yr tentative deal (RT)

U.S.

  • SpaceX is close to a $150B valuation (CNBC)

  • Due to strikes Hollywood is shut down (CNBC)

  • Disney might sell tv assets (CNBC)

  • Delta beats expectations, hike full year guidance (CNBC)

  • PepsiCo beast expectations, raises full year guidance (CNBC)

  • Fanatics is planning to create a comic con for sports collectibles (CNBC)

  • Celsius CEO arrested, company agrees to pay $4.7B (CNBC)

  • Lucid Q2 deliveries were below expectations (CNBC)

  • Nvidia invests $50M in A.I. drug recovery company Recursion (CNBC)

  • Elon Musk start company called xAI (CNBC)

  • Exxon to acquire pipeline operator Denbury for $5B (WSJ)

Argentina 

  • As Argentina fights inflation, neighbors cross it borders looking for bargains (RT)

Brazil

  • Azul launches notes offering (USN)

  • Services activity beats expectations (USN)

  • JBS is looking to list in New York (USN)

  • Ebanx partners with Nubank (USN)

  • Brazil is projecting to have a 17% increase of agricultural harvest this year (RIO)

  • Electronics industry saw a 13% growth in sales in the first half of 2023 (RIO)

Chile

  • Miners are looking for incentives as increased royalties bit (RT)

Colombia

  • Dairy exports are now able to hit the Dominican Republic market (PORT)

  • Colombia and Japan create a committee to strengthen bilateral trade (PORT)

  • U.S. is the principal market for Colombian exports, with $5.3B of product so far this year (PORT)

  • Enel Colombia to sell its Cartagena plant to focus on solar energy (ELT)

Dominican Republic

  • Gold production & exports drop (ELD)

Panama

  • Last year Panama received $2.51B in foreign direct investment, a 42.7% increase from 2021 (LAE)

  • Q1 remittances received were $83.7M and sent were $88.7M (LAE)

Mexico

  • America Movil beat estimates (USN)

  • AMLO increases PEMEX’s refining targets (MB)

  • With protests at Peñasquito, Newmont is reconsidering investment with other miners watching (ForbesMex)

  • With onshoring & nearshoring Nuevo Leon is benefitting with some bumps (MB)

  • FDI in Latin America & the Caribbean hit $224.57B in 2022, a 55.2% increase y/y & highest level ever (MB)

  • Industrial activity grew 1% m/m in May (ELF)

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